Hey Friend, 

 

Last week, I recorded a reel for Instagram on my Samsung S20. When I bought this phone outright in 2022, the S22 was the latest model. Now we’re up to the Samsung S26.

 

I’m probably due for a new phone. 

 

But it’s unlikely I’ll buy the latest S26. I could get the S24 for a third of the price of an S26. And I’m sure the S24 would still feel like an incredible upgrade seeing as I’ve been rocking an S20 for four years now.

 

Technology is always improving. 

 

And new technology attracts a premium price when it’s first released. And the premium price for a phone is within reach for almost anyone when it’s put on a monthly plan over 36 months. 

 

But then 12 months later, the next edition drops, and you feel FOMO. So you either have to pay out your old plan or pay a much higher monthly price. 

 

And this cycle rinses and repeats. 

 

You may recall this image I shared a little while back that shows the technology adoption life cycle:

 As a consumer, I’m quite conservative. I don’t feel the need to have the latest tech. I’d rather wait until the price has gone down. 

 

But as an investor, I’m a little different… 

 

In this newsletter, I told you about how I watched a YouTube video in 2016 that made me believe electric vehicles (EV’s) would be the future. 

 

I didn’t see this as an opportunity to be one of the pioneers in owning an EV to look cool and progressive. 

 

I saw this as an incredible investment opportunity. Because EV’s were still very much in the ‘early adopter’ phase.

 

Now, I didn’t invest in Tesla (bummer). But I did invest in a company that mined the raw materials required for EV batteries – lithium. 

 

In recent times, I’ve had people say to me: 

 

“Marshy, you’re heavily invested in lithium, so why don’t you own an electric vehicle?” 

 

That’s a fair question.

 

And I tell them, it’s because I’m in the late majority of technology as a consumer. But I’m an early adopter of technology as an investor. 

 

And that’s because when you’re early as an investor into new technology, there can be massive potential upsides. 

 

But because the technology is not yet mainstream (and has no guarantee of becoming mainstream), there is also a much higher likelihood of downside. 

 

And it led me to forming this wealth principle:

 

 

 

But this is counterintuitive, and goes against human nature. 

 

As consumers, we’re wired to buy the latest technology (e.g. a smartphone) as an early adopter. When FOMO is high and the price is high.

 

As investors, we’re wired to invest in the latest technology in the late majority. When the big money has already been made. And now it’s mainstream, hyped up and overpriced (e.g. SpaceX IPO). 

 

Fundamentally, this all comes down to value. 

 

As Warren Buffett says: “Price is what you pay, value is what you get.” 

 

So remember,

 

As a consumer or investor – it’s financially wise to buy products, services or investments you want when the price is offered at or below fair value. 

Speak soon,