Commuting is investing

Those of us who commute by car and therefore enjoy the pleasure of traffic jams on motorways day and day again will know the phenomenon. It is very rare to see all lanes, whether there be two or seven, to move simultaneously. Mostly, a few of the lanes will be moving, even rapidly at times, while others remain stationary.

Interestingly, some people start weaving in and out of lanes almost immediately. Others on the contrary, remain in their current lane forever. At this point, let me point to the fact that switching lanes a few times is acceptable in Belgium. This automatically means that those who remain in one single lane at all times do not optimize their time, though they might be optimizing their stress level. On the contrary, those weaving frantically might (try to) optimize their time usage, but will significantly increase stress levels for themselves and all around.

So far this is a very normal and everyday picture. Now start planning ahead. Not one or two cars ahead, but as far as you can see. Driving a little left or right in your lane will let you see at least 5 to ten cars ahead in your own lane, and maybe the double in at least one adjacent lane. Now we can start to plan ahead, and change in a smart way.

This is where investing kicks in. A long term investor will plan ahead and pick those categories that are most likely to bring a higher return than others. When the future prospects of another investment minus transaction costs are higher than those of a current holding, it’s time to switch.

Every lane is an asset. Pick carefully, optimize your weaving and you’ll outperform the other cars as well as the market.