Welcome to Focus Invested - Our Framework for Financial Freedom
Financial freedom is attainable only to those who Focus
Among the many paths to financial freedom, investing and harnessing the power of compounding is the most effective route for the vast majority.
While everyone knows they should be investing, many lack the knowledge and discipline to turn that awareness into action.
This blog is your guide to developing the skills and mindset necessary to achieve financial freedom through investing.
But first a little about myself
Hi, I'm Jim, the author of Focus Invested.
A seasoned strategy consultant and successful Amazon FBA business owner, I am passionate about self-development and investing.
I've read over 200 books on investing and self-development, and this blog distils all I've learned into practical principles and frameworks.
With more than 10 years of experience applying these principles and refining my skills, I am here to share my knowledge and help other investors on their journey to financial freedom.
Join me as we explore the path to financial independence, providing you with the tools and insights needed to succeed. Stay focused, stay invested, and let's unlock your potential together.
Financial Freedom through the Magic of Compounding
Financial freedom is when you no longer need to be employed to finance your lifestyle. To me the benefits of this are profound and include:
Spending quality time with family and friends
Living and working on your own terms
Pursuing your life’s passion and travelling
Achieving financial freedom is not just about accumulating wealth; it is a key pillar in creating the life you want to live.
One of life's main purposes is to learn, build, and iterate. The human mind needs a project to wake up to each morning. For me, that project is mastering the art of investing. Investing is a vast and deep field. It provides a perfect framework for lifelong learning and development.
The power of compounding is a fundamental principle in life and investing. It can produce extraordinary results with time.
Compounding occurs when the returns on your investments generate more returns. When left to run this creates a snowball effect that accelerates growth.
Investing and learning are two areas where compounding can produce transformational results:
“A stock that returns about 20% per year for 25 years multiplies your money by a factor of 100x. An investment of $10,000 in that case becomes $1,000,000.” - Christopher Mayer
“If you are investing in your education and you are learning, you should do that as early as you possibly can, because then it will have time to compound over the longest period.” – Warren Buffet
Investing is not only about financial gains; it’s also about intellectual growth. The true magic of compounding is achieved when you combine and focus on these 2 areas.
By consistently learning and applying new knowledge, you can enhance your investing skills and improve your decision-making process.
The synergy between learning and investing then amplifies the compounding effect.
Financial and personal development are the foundation of making market beating returns.
I have been focusing on and compounding both areas in my life for over 10 years. This blog documents what I've discovered through the Focus Invested Framework I've developed.
The Focus Invested Framework
To me investing is both an art and a way of life and to succeed a integrated approach that intertwines money management, investing principles, and personal growth is required.
I have developed the focus invested framework for that purpose. It represents the high-level view of how to think about and approach investing. It will also form the basis for the content of this blog.
The framework consists of 4 domains which if you consistently work on, and let the magic of compounding take effect, you cannot help but achieve great things.
We will cover each of these areas in more detail moving forwards but for now here is an overview of each:
Focus 🔎
Central to everything we do, ensuring you stay committed and disciplined.
You will notice Focus is at the core of the model and the included in the name of this blog!
This is because it is the most important domain and forms the very foundation of everything we are discussing.
The definition of focus in the oxford dictionary is “the centre of interest or activity” which is very fitting. Focus forms the foundation of the model in the following ways:
It represents the intention and dedication required to master the art of investing.
It represents a resource each of us have which can be invested into the 3 other domains .
It represents the integration of learnings from the three other domains back into the core, forming a comprehensive model.
It represents a focused approach to investing through deep research and concentrated positions
To some this may sound somewhat new age, but I promise you without focus you will not succeed in investing (or anything in life for that matter!)
Like anything, focus is a skill that can be cultivated through practice, and we will be sharing practical steps on how to develop and optimise your focus.
Approach 📝
A structured method for identifying high-quality investments and making informed decisions.
This domain is my focused investing approach that I have built over the course of my investing journey. It will provide you with the foundational skills and practical steps to achieve market beating results.
At its core the approach can be summarized as:
Finding high quality businesses with meaning to you.
Buying with conviction when you are getting value.
Cultivating a business owners’ mindset and holding for the long term.
With this approach you will have a framework to base you investing decisions upon and if applied correctly make market beating returns. Within this area I will teach you how to:
Turn yourself into a compounding machine and establish a solid foundation for growth
Focus on leveraging the advantages you have as a retail investor over the wider market.
Analyse any business from the bottom up and intrinsically value the company.
Make buy/sell decisions and establish a portfolio of quality compounders.
Mindset 🧠
Building the mental models and resilience needed to navigate the complexities of investing.
“You’ve got to have models in your head, and you’ve got to array your experience – both vicarious and direct – onto this latticework of mental models.” – Charlie Munger
You can have the all the knowledge in the world but without the right mindset and mental models you will not go far in investing. There are too many mental stumbling blocks.
This is part of the reason I love investing as an art form. It not only requires the technical expertise but also requires mastery of the way that you view the world and how you handle your emotions.
This is an area that a lot of investors neglect at their own peril. Remember:
Mindset is why investors buy high and sell low.
Mindset is why investors follow the crowd and jump into the next hot stock without doing their own research.
Mindset separates those that will beat the market vs those that won’t.
A significant proportion of this domain is inspired by my personal hero the late great Charlie Munger. Charlie is Warren Buffets right hand man who influenced him to focus on high quality companies and look how that turned out!
Within this domain I will distil relevant content to help you develop the right mindset and mental models required to consistently outperform the market:
Understand how the mind works, what influences our thinking and common biases that can negatively impact our results.
Develop a latticework of mental models and integrate principles from areas such as Physics, Psychology, Philosophy and Mathematics into your investing journey.
Tips on how to foster a Long-Term Focus and embrace the life long journey of learning and investing.
Practice 💪
Putting theory into action through consistent, deliberate efforts and learning from real-world experiences.
The difference between dreams and reality lies in the actions we take. Practice is the application of both the approach and mindset domains through focused action.
You only learn through action, and this is where the real fun of compounding both knowledge and money begins.
However, you are not alone and to guide you on your way I will be documenting my own journey and investments. This will provide you with investment ideas, crystalise teachings through examples and practical resources to support you along the way.
To guide you I will be sharing:
My personal portfolio of high-quality companies that follow the focus invested approach.
Deep dive investment cases for individual companies detailing my thought process and buy/sell decisions.
Practical resources and tools that I use daily to improve workflow and focus on what matters.
Ready to take control of your financial future and embark on a journey of personal growth?
Subscribe to Focus Invested now and join a community of like-minded individuals dedicated to mastering the art of focus investing.
By subscribing, you’ll get:
Three insightful articles each week covering topics across the focus invested framework (Focus, Approach, Mindset and Practice)
Full access to our comprehensive library of data-driven articles
Insights into our portfolio of high-quality stocks
Detailed investment cases on compelling companies
Don’t miss out on the opportunity to transform your financial life. Subscribe today and stay focused on your path to financial success and personal growth!
Stay focused, stay invested, and unlock your potential with Focus Invested!
Disclaimer
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