One of the most important developments to come out of this pandemic, if not the biggest, was the shift to remote work for millions of workers. Starting in March 2020, businesses quickly adapted to the demand, keeping their operations in line with employees working in pajamas from their living rooms.
However, this golden age of remote work was short-lived. In the first quarter of 2022, investment banks and other old-school employers began calling workers into the office, starting with a few days a week. As the pandemic ended, the need for office space grew, and today, corporate giants like Amazon require workers to come back five days a week.
The reason? It's clear: when left to their own devices, many employees naturally become complacent. At the very least, without direct supervision, productivity tends to decline.
As a 12+ year Amazon stockholder, I was excited to hear this news as Amazon's share price rose after the announcement.
A Unique Perspective on Remote Work as a Retiree
Since I retired from investment banking in 2012, I have had complete freedom to design my days. Before the pandemic, I could easily play tennis in any park or club early in the morning or after bed without any problems. But when the lockdown was lifted in July 2020, my empty courts suddenly filled up.
Curious, I started talking to the players, expecting them to retire like me. What surprised me was that none of them—almost all of them were “working from home” blinking and nodding their heads.
Many have been there for hours, with little concern about their supervisors tracking their daily activities. Armed with a phone and noise canceling headset, they make the most of their freedom.
I'll admit, I was jealous. Imagine getting paid so you don't really have to work! Many of the 20- and 30-somethings I played pickleball with every day all enjoyed the same luxury. It made me consider coming out of retirement just to experience that level of flexibility!
As a freelance researcher with 12+ years of experience working from home, it is clear to me that many often take advantage of the lack of supervision. It is a logical response to nature
If you happen to visit Larsen Playground on the west side of San Francisco on a weekday, you'll find the courts filled with young professionals under the age of 40. They take advantage of the ever-present work-at-home rights left in the tech industry.
Working from Home is an Employees Dream
It's no surprise that employees love remote work. For many, the worst part of their job was the commute. In my experience, overcrowded buses and delayed rides were boring every day.
The flexibility that comes with working from home—being able to pick up and drop off the kids or fit in an afternoon workout—is a big plus for many, especially parents. It's a setup that employees and managers alike want to keep.
Everyone wants to get paid to work for as little money as possible. Let's accept this fact. Anyone who says otherwise is being dishonest or just being nice.
However, for those just starting their careers or looking to climb the corporate ladder, working from home is a career-blocking move. The fact is that visible people, who communicate directly with decision makers, are often promoted. Not being noticed often means missing out on important opportunities that can protect your financial future.
The law of entropy applies here too: if left unchecked, things tend to get messy. Do you think your room is getting naturally clean or dirty? Over time, working remotely can lead to less focus and less productivity, which explains why terms like “slow down” have emerged as workers refuse to be sent back to the office.
Working at Home is Better for Shareholders
While most of us view the work-from-home debate from an employee's perspective, consider it from an investor's perspective—especially if you're working to build an income to achieve financial freedom.
Would you like to invest in a company that allows employees to work from home five days a week? Or one that requires dealing with office workers and long hours five days a week?
As a rational investor, the answer is clear: you would probably choose the latter. More face-to-face interaction and structured hours often lead to greater productivity, which in turn drives profits and, ultimately, higher stock prices.
Investing is not an act of giving. You take risks in hopes of growing your money. And goodness knows investors have lost a lot of money before!
Therefore, as a shareholder, it is reasonable to expect the company to pressure its employees to be as productive as possible. If the company is not focused on expanding the product, you have the right to sell your shares and invest in that.
Solution: Work for a Cool Company, Invest in a Hard-Charging One
So, what is the best way to balance lifestyle and wealth creation? It depends on where you are on your journey to financial independence.
- First stages of FI: Work for an ambitious company that needs an office presence, and invest in companies that are run in the same way.
- Intermediate categories of FI: Look for a passive employer that offers a remote work option, but continue to invest in high-growth, ambitious firms.
- Latest FI categories: Stick to freelance work while keeping investments in hard-charging companies.
For example, if you are 28 years old, you may want to work in a fast-growing startup and invest heavily in other promising startups using a venture capital fund. After consulting with various startups, I can assure you that startup employees work harder than most employees at established companies. And this comes from me having worked for 13 years in a bank.
By the time you're 50 and a multi-millionaire, you may want to transition to a more comfortable role at a large corporation or even your local government, where the pressure to perform is much lower. Meanwhile, you can invest in promising private AI companies that want their employees to work in an office and put in 60+ hours a week. Investing in smart, driven people is the best combination for success!
Make Sense of Work From Home Policies
No one wants to grind forever. Once you have achieved some level of financial security, it is wise to transition to a new role with fewer responsibilities and less stress. You can still collect a paycheck while playing tennis at 3 pm if you want—because at that point, you've already done it.
However, if you haven't reached that point yet, don't be fooled into thinking that you can just coast your way into the corner office. Many eager employees see their bosses and C-level executives enjoying life from Aspen or Hawaii during a pandemic and may think that's the norm. But the truth is, those managers put in their time to get there.
Ideally, balance your mental and physical well-being by working for a company that offers a flexible lifestyle, while fueling your financial growth by investing in ambitious, high-performing firms. This approach allows you to enjoy the best of both worlds: a peaceful working life and solid financial benefits.
Student Questions
As a shareholder, would you like to invest in a company that requires its employees to work in the office or allows them to work from home five days a week? Do you have a suitable setup where you enjoy a demanding job with a lot of flexibility while investing your money in hard charging companies?
Invest In Private Growth Companies
Consider branching out into private growing companies through an open-ended fund. Companies remain private for a long time, as a result, most of the profits accrue to private equity investors. Finding the next Google or Apple before going public can be a life-changing investment.
Check it out Product of fundrise venture capital, investing in the following five sectors:
- Artificial Intelligence & Machine Learning
- Modern Data Infrastructure
- Development Activities (DevOps)
- Financial Technology (FinTech)
- Real Estate & Property Technology (PropTech)
About 60% of Fundrise venture capital is invested in artificial intelligence, which interests me. In 20 years, I don't want my kids to wonder why I didn't invest in AI or work in AI! The minimum investment is also only $10 and I have invested $143,000 in Fundrise venture so far and Fundrise is a long time sponsor of Financial Samurai.
Source link
