Dec 8, 2015

Over the years the investment realm has been one that will continuously teach all who participate that they know nothing and can predict nothing. The sooner you realize this truth, the sooner you can have a fighting chance in the stock market and not be seduced by the dark side. One must have a strategy and philosophy that he/she believes in and can stick with any during the tough times. These are our 10 rules of work and life, which I will share with you in honor of “Star Wars: The Force Awakens,” opening in theaters on Dec. 18. Others who follow them will be more likely to have The Force with them. The truth, I speak.

• Show integrity. Your most important choice is to be trustworthy. Call it what you want — honor, honesty, truthfulness, reliability or consistency of character — but living it means that you will be respected and esteemed. Always stick to the hard yet honest path of the Jedi when investing; do not be seduced by the “no risk/high return” products of the dark Sith Lords.

• Swim against the tide. Contra-trend personally and professionally. The masses are typically wrong. Many winning stocks over the past century were overlooked by value managers due to their “expensive” price, P/E ratio and refusal to offer a dividend (“mailbox money”). Had you been following the herd you would’ve missed game-changer stocks like Walmart, Coca-Cola, Cisco Systems, Amazon, Apple, Netflix, Tesla, Facebook etc etc.

• Choose the harder right. The West Point Cadet Prayer is correct: “Choose the harder right over the easier wrong, and never be content with a half-truth when the whole can be won.”

• Be thorough. No matter how top-notch you consider yourself, you will be even more so by honing every opportunity to shine. A close friend of Winston Churchill, one of the world’s most persuasive communicators, said, “Winston has spent the best years of his life writing impromptu speeches.” Meticulously prepare for every meeting, think ahead and rehearse every remark and painstakingly review every communication.

• See the big picture. “Force multiplier” is a military term for adding an element that dramatically improves the chances of success: The effectiveness of a fighter with just a sword can be multiplied with a modern weapon. The equivalent for us? Thinking creatively and big. Can you open your mind wide enough to see “around the corner” when looking for big ideas in the stock market? If so, you have a greater chance of hitting that home run that can change your financial future drastically.

• Be nice. Ever wake up and say, “I think I’ll ruin someone’s day today?” Yet, that’s exactly what many do, even if inadvertently. The financial industry can be overwhelming to advisers and clients, so it’s really important to treat everyone with patience and courtesy. This business is not just numbers and charts, it’s behavioral and psychological at its’ roots.

• Know when to hold ’em. Having a keen eye and gut instinct (along with filtering software and technical analysis indicators) goes a long way in the investing game. When you find a stock that explodes upward, don’t get antsy and anticipate when to sell it, wait and watch. Many conservative investors tell you to grab your quick profit and move on, but many of those people have missed the big home runs. Remember, the rule is to buy high and sell higher. On the flip side, you better know when to sell and not let your ego get in your way of taking mini-losses to avoid portfolio bleed outs.

• Remain loyal. Disloyalty means detachment and the pathway to failure. Remember the old truism: Respect is earned, honesty is appreciated, trust is gained and loyalty is returned.

• Stick together. Don’t dislike people who are smarter, more creative and more imaginative than you are. Remember, eagles don’t flock with turkeys.

• See opportunity everywhere. Allow yourself to be a contrarian when it comes to investing (and in life). When there is a lot of fear in the air don’t hide your head in the sand with everyone else, get your shovel out and start digging for that fountain of youth. Opportunities and black swan events happen when you least expect it, so remain open and fair during your investment years, because it is easy to become jaded and egoistical in this business which will inadvertently blind you from the path of the Jedi.

Lastly, an important message from Yoda: “Try not. Do or do not. There is no try.”