You can direct where your money goes by choosing between owning stock in commercial banks versus co-owning a mutual life insurance company. Stock ownership is speculative and market-valued; mutual ownership is contractual and long-term, keeping value aligned with owners' interests rather than extracted by outside shareholders.
Every dollar that passes through the books of a commercial bank becomes someone else's working capital.
It's just the truth.
And so if you have as many dollars as you desire flowing through the books of the life insurance company that you co own that capital, that working.
Capital gets deployed for the benefit of.
Everyone who owns the life insurance company.
If you are a stockholder of a commercial bank, your motive is to participate.
In the profitability and the long range owner equity of that institution.
You want that institution to have a.
Very clear motive, be profitable and grow.
The enterprise value because my ownership interest becomes more valuable. If you check the boxes on both of those things, the life insurance company, their mandate is very simple. They can only be responsive to the.
Owners of the company.
And in this case with a mutual company not dealing with stockholders, there's no quarterly pressure on the insurance company to.
Deploy capital in a way that either.
Perhaps introduces a little bit of additional risk that maybe the company might not have taken. There's no pressure there. We're dealing in theoretical 100 year lifespans, not 90 day sprints. Big, big, big difference in terms of correlating that to Nelson's first golden rule, which is to think long range. And.
When you are a stockholder of.
A commercial bank, the value of your.
Stock fluctuates based upon whatever the market believes that institution's value is.
When you co own the life insurance.
Company, that is a contractual relationship, not a speculation relationship. Big difference between the two.
Your policy's value cannot go backward.
Your ownership interest in that business cannot lose value.
Your money must reside somewhere.
What better place to have it reside than here?
Oh, it's, it's fantastic. People, as they go through life, their life experiences are going to dictate how they respond to things. You know, their failures are going to dictate how they pivot and adjust. And unfortunately, as we go through different generations, different generations have different life experiences. And they've seen the economy, they've seen the financial sector affect them differently, whether it was their parents, their grandparents and so on. So unless you look backwards or you actually pay attention to history, then you're not really, it's not really in your focus, it's not in your sights to be like this. This has happened before, this is probably most likely going to happen again. So how do I establish and set myself up so that I'm, I'm the one in control so that this doesn't affect me or my family as we.
Move forward throughout life?
