Warren Buffett and Patience

Over the next few blogs, I will share some of my favorite quotes and lessons I learned from the book Snowball: Warren Buffett and the Business of Life.  

During his youth, Warren and his friends would go to the horse track. They found they could make money gathering hastily discarded tickets that did not win 1st prize, but still paid out a small sum.  One of the early lessons he learned at the track was patience. "When a loss occurs, you don't have to make it back the way you lose it."  In other words, you don't have to win the next race or even win a horse race.  One could earn back their money through a variety of means.

It reminded me of other losses and failures people experience.  Losses at a casino, in the stock market, during the swim or bike segments of a triathlon, or during one's 20s, 30s, or 40s.  Buffett goes on to say, "Be long-term greedy, not short-term greedy."  When I act hastily or ruminate on the past it only dampens my present state and future.  I try to remember what's important to me and that a lot can happen over the course of a marathon or a triathlon or life. I may lose a few minutes to my competitors during the bike, but I can gain it back during the run.  I may lose out on a promotion, but gain enrichment in my marriage.

Warren also encourages people to not "fixate on what you paid for a stock."  What's done is done.  "In the short term the market is a voting machine. In the long run it's a weighing machine."  I see his advice as a call to not worry about what the news media says or what is popular.  Stocks and fashion change from day to day.  He encourages people to think for themselves.  "Do what makes sense, not necessarily what has been done in the past."  I try to remember that I have a lot of knowledge from my past experiences and don't have to defer to others.

In regards to money management, Warren reminds people that "A bird in the hand (now) is worth two in the bush (future)."  Be careful where you spend it.  If I go out too fast in a race, burning matches, I won't have any for the finish.  Likewise, if I invest a little in relationships now, they will grow stronger and pay huge dividends in the future.

In the end, be patient and remember that you are the navigator of your life.  "Mister Market is your servant not your Master."

Inspiration - Dr Seuss

Dr Seuss's first book, And to Think That I Saw It on Mulberry Street, was rejected 27 times before it was finally published in 1937. It later went on to win the Lewis Carroll Shelf Award.

Dr Seuss published a total of 46 children's books during his life. He received several honors including two Academy awards, two Emmy awards, a Peabody award, and the Pulitzer Prize.

"Just Try Harder"

Trying harder is not a plan. When counseling clients about nutrition I often hear, "I'm going to watch what I eat." When discussing behavior change people often say, "I'm not going to do that anymore." When discussing race strategy I often hear, "I'm not going to go out so fast this time." Unfortunately wanting to do something and doing it are not the same. We have this illusion that if we just try harder things will magically be different next time.

In reality, we are all trying our best at any given moment. No one is intentionally trying to fail.  If they are it's with the hope of meeting some larger goal of feeling better.  Therefore, accept your humanity and change your strategy.

Sustained change results from having a specific plan.  One that's not based on emotion or will power, because during times of stress or exhausting, rational thinking is in short supply.  That's why people overeat or drink after work. See ego-depletion or Daniel Kahneman to learn more on the subject.  Having a specific plan eliminates the need for will power.  A specific plan makes issues black and white, thereby minimizing risk.  When a situation arises, the plan takes care of it.  No thinking or rationalizing is needed.

If you want to decrease your intake of sweets, be specific.  How often will you allow yourself to eat sweets? Once a day, three times a week, once a week, etc.  How many servings will you allow yourself to eat?  Pick a specific plan and trial it for a week.  At the end of the week, assess your findings, and adjust.

If you want to exercise more, assess past barriers and develop a plan.  How often will you workout: three times a week, five times a week, etc.  Will you workout in the morning, afternoon, or evening?  If for some reason you can't workout at that time, what is your backup plan?  How long will you workout?  If something comes up, is it possible to reduce the amount of time and increase the intensity?  If you get tired of your usual exercises, what are other exercises you could do.  What are you going to say to yourself or physically do to stay motivated? Whenever I have trouble getting out of bed to exercise, I force myself to brush my teeth then reassess the situation. Often the exhaustion goes away.  I also remind myself that I will feel better afterwards and have less stress the rest of the day.    

Life is a journey.  Think about your issue.  Decide on a specific behavior that will address the issue. Trial your strategy. Make adjustments if need be.  Now is the perfect time, with Lent, to trial a new behavior.

Inspiration Tuesday - Creativity

Be creative and make life fun.