Blue Investing

In 1789 Benjamin Franklin said that nothing is certain except death and taxes. Entire industries have been built around understanding or postponing these two eventualities. Almost a hundred years before this statement was made, Edmond Halley (better known for the famous periodic comet that bears his name) constructed what some consider to be the first actuarial life table. These tables are foundational to pricing life insurance and annuity plans, as they assign probabilities to surviving until a certain age. It is astounding to see how those probabilities have increased over time. Average life expectancy in Europe at the time of his work was around 40 years. Today, that number has more than doubled.

That is no accident. The Enlightenment ushered in knowledge that laid the foundation for rising levels of living standards and groundbreaking discoveries in the field of medicine. These have contributed significantly to the growth in human life expectancy. There are however always exceptions to the rule. Dan Buettner led the National Geographic expedition that discovered five places in different parts of the world where people consistently lived to be older than 100 years. These places are now referred to as “Blue Zones”.

Looking for common denominators in these communities, the team of demographers and scientists identified nine specific attributes which contributed to people living so much longer in Blue Zones. They called these nine commonalities, the Power 9. Quoting directly from the American Journal of Lifestyle Medicine (PMCID: PMC6125071), they are:

1. Move Naturally

   “Live in environments that constantly has them moving without thinking about it.”

2. Purpose

   “Knowing your sense of purpose is worth up to 7 years of extra life expectancy.”

3. Downshift

   “Have routines to shed stress.”

4. 80% Rule

   “Stop eating when their stomachs are 80% full.”

5. Plant Slant

   “Beans, soy, and lentils are the cornerstone of most centenarian diets.”

6. Wine @ 5

   “Moderate drinkers outlive non-drinkers. One or two glasses per day with friends and/or with food.”

7. Belong

   “Research shows that attending faith-based services, four times per month, will add 4 to 14 years of life expectancy.”

8. Loved Ones First

   “Successful centenarians in the Blue Zones put their families first. They commit to a life partner (which can add up to 3 years of life expectancy) and invest in their children with time and love.”

9. Right Tribe

   “Social networks of long-lived people have favourably shaped their health behaviours.”

These nine have been grouped by the researchers of Blue Zones into four categories:

1. Right Outlook

2. Eat Wisely

3. Connect

4. Move

This, we feel, is also a good framework to consider when thinking of the investment lifecycle. Firstly, have the right outlook. Understand what the goal or purpose of the investment is. When markets undergo periods of stress, get into the routine of looking for opportunities. The second step is to feed the portfolio appropriately – be it through continued saving, reinvesting cashflows or banking profits as capital grows. Don’t be greedy - sometimes, 80% of the upside in an investment is enough to celebrate with a glass of wine.

Steven Covey said, “The main thing is to keep the main thing the main thing”. That is point number three. Focus on what is most important by remaining true to your long-term investment philosophy. Surround yourself with people who have good investing habits and learn from them. Often, these aren’t the so-called “smart” people as Edmond Halley’s friend Sir Isaac Newton famously proved with his investment in the South Sea Company. Lastly, don’t stand still. Cover some new ground as you expand your knowledgebase in an everchanging world.

Much like longevity in human beings has been enhanced by scientific breakthroughs, applying some basic, health-centered principles to people’s lifestyles could result in a similar outcome. The same is true about growing your wealth. Good habits pay off. Just ask Gary Player.

“Work hard, exercise every day, eat healthy, love unconditionally.”

- Gary Player -