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Whether you’re American or not, it is hard to deny the extraordinary impact the United States has had on the modern world.
We may not agree with every decision made by every American leader over the last 250 years. In truth, no nation has a perfect record. Yet history shows that America has been one of the greatest engines of innovation, entrepreneurship and wealth creation the world has ever seen.
Born into humble circumstances, Franklin became a scientist, inventor, writer, diplomat and Founding Father. His curiosity and determination helped shape a nation. He understood that progress comes from questioning convention, solving problems and continually improving. His work on electricity helped lay foundations that transformed civilisation.
Franklin’s story reminds us that human progress is rarely the product of governments alone. More often, it comes from free people pursuing ideas, building businesses, taking risks and innovating.
And nowhere has that been more evident than in the United States.
Think about how much of our daily lives have been influenced by American innovation. The smartphone in your pocket. Microsoft, Apple, Amazon, Google, Nvidia, Tesla, Netflix and countless other businesses that have transformed the way we work, communicate, travel and live.
As investors, we sometimes become distracted by politics, elections, economic headlines and market volatility. Yet the long-term story is often far simpler.
The remarkable growth of the US stock market has not been driven primarily by politicians. It has been driven by millions of entrepreneurs, innovators and workers creating products and services that improve people’s lives.
“No one has ever been a success betting against America since 1776 and they are not going to be a success doing it in the future either.”
The evidence is compelling.
The history of investing in America is not a smooth upward line. It includes wars, recessions, financial crises, inflation shocks, political turmoil and pandemics. Investors have endured the Panic of 1907, the Great Depression, World War II, the inflationary crises of the 1970s, Black Monday, the Dot-Com Crash, the Global Financial Crisis and Covid-19.
Why?
Because human ingenuity compounds.
Innovation compounds.
Entrepreneurship compounds.
Ownership of great businesses compounds.
There is also a small piece of American history that has always resonated with me personally.
The events that ignited the American Revolution began on the evening of 18 April 1775, when Paul Revere rode out to warn that British troops were advancing. The following morning, the first major battles took place at Lexington and Concord, marking the beginning of a struggle that would ultimately lead to American independence.
Coincidentally, 18 April is also my birthday, and the name of my firm is Lexington Wealth Management.
When I founded Lexington more than 20 years ago, the connection wasn’t front of mind, but over the years I’ve come to appreciate the symbolism. The story of Lexington is ultimately a story about independence, conviction, courage and looking beyond the challenges of today to create a better future tomorrow.
Those are values that apply just as much to financial planning as they do to history.
That principle lies at the heart of how we invest at Lexington.
For more than two decades, we have helped clients focus on what truly matters: owning productive businesses, thinking long term and resisting the temptation to react to every headline. Rather than trying to predict the next election result, interest rate decision or market correction, we believe investors are generally better served by participating in the growth of the world’s most innovative companies and economies.
There is a parallel here with financial planning itself.
Political independence gave people the freedom to shape their future. Financial planning helps people make the most of that freedom.
When I founded Lexington Wealth Management, my ambition was to help families achieve their own form of independence—not merely financial wealth, but the freedom to choose how they spend their time, support the people they love and pursue the things that matter most.
Financial planning is ultimately about creating options.
On this Independence Day, perhaps that is the enduring lesson worth reflecting upon.
The world will always face challenges. Markets will always experience setbacks. Politicians will always disagree.
Yet throughout history, human creativity, innovation and enterprise have continued to move us forward.
As investors, we have all benefited from that progress. Many of the products, services and companies that shape our lives today originated in America. More importantly, many of the world’s most successful businesses have rewarded patient investors who were willing to look beyond short-term uncertainty and focus on long-term progress.
The lesson is that free people, free enterprise and human ingenuity have an extraordinary ability to create value over time.
As investors, that is a trend worth believing in.
As financial planners, that is a future worth helping people prepare for.
And as beneficiaries of the innovation, entrepreneurship and economic progress that have emerged from America over the past 250 years, that is something worth celebrating today.
Happy Independence Day to all our American friends, clients and connections.
Warren Shute CFP® MSc
Founder, Lexington Wealth Management
“Helping people achieve financial independence through evidence-based financial planning for over 20 years.”
