Life is funny. Just when you think you’ve got it figured out, a curve ball comes at you and takes you by surprise. Think about the weather.
Throughout my business career, I’ve travelled to almost every major city in the USA. And do you know what each and every resident of these cities has told me? They told me if you don’t like the weather, just wait a minute… it will change at the bat of an eyelash. I’ve heard this from Maine to Hawaii and everywhere in between. So what do I make of that? Weather is volatile and it can change at the snap of a finger.
Take financial markets. In the past few months we have heard from fear mongers that the sky is falling, and it is time to take cover. We’ve also heard from economic optimists who suggest that with all of the smart people running companies, that everything will work out just fine. The only take away for me from these two camps is that they are usually both right and wrong, but not even they know when their prognostications will manifest. So what do smart people do? They set an allocation and have a general understanding of the parameters of the risk they are taking and the benefit and detriments that will come with that allocation.
Look at gambling, sports and the odds of any particular game. The odds makers don’t make money because they are smarter than the rest of the world, they make money by servicing a lot of volume on a very small margin. Inherent in any para-mutual system is that the odds change as better sentiment shifts. The only constant is the margin, or vig, that the house always receives.
And last, look at your life and the lives of others you love. Some are surely destined for greatness based on their abilities, dedication and skills. But not even those destined for greatness make it to the hall of fame without persistence and a little luck. Think about the people in your college or high school class that barely made it to graduation who are phenomenally successful today. They obviously knew something that not everyone knows.
The moral of this story is to control what you can. Plan for greatness, at least your best definition of greatness for you and your family, and understand the path to get there will be loaded with obstacles. Some you can see and others that simply pop up. Prepare for the worst, and leverage your strengths to maximize your opportunities for greatness.
We at Napier are proud to be a part of your strength team. You focus on your life story, and we will be sure that all of the minutiae and details to keep your financial house in order are on the right path, for today and for generations to come.
