Hidden Opportunity

Diamonds in the Rough: Identifying Talent – OrgChanger.com

Beginning back in February, the Great Companies of America, represented by the S&P 500, saw their combined value slide 34% in just over a month. It was the most violent decline in US stock market history, according to Standard and Poors, and the “worst” 33 days in the history of the S&P 500 Index.

Many investors panicked. They stopped buying the Great Companies of America, and what’s worse, many sold them at fire-sale, fear-induced prices. They gave away their life savings at a discount.

Other investors, those with a long-term view who could look past the discomfort and uncertainty of the moment, made the choice to buy shares of those same companies on sale. They chose to see opportunity in adversity. Where others saw the end of the world, they saw a 34% off discount on the largest, most robustly capitalized companies in the United States. And what followed, in true storybook fashion after the market bottomed out on March 26^th (based on the S&P 500 Index), was the 50 best days in stock market history. Those patient and disciplined investors were handsomely rewarded for their persistence.

While this is a narrow example in finance and investing, there is a larger truth here at play. Adversity brings opportunity. I am sure we can all agree, there has been plenty of adversity so far in 2020. But a few people have been able to peer into that adversity and see promise and potential.

We are in a society that seems to avoid adversity at all costs. We want to eliminate all risks, all hardships, all inequality. Unfortunately, we live in a fallen world where all those things will always exist. And we must seek the positive things wrapped in difficulty. If we avoid the hardship, we also miss the blessing. Not only does adversity bring opportunity, often adversity is the opportunity.

*Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.

Comments

Toxic Humility

We have all seen false humility: the guy who tries to hide his arrogance with feigned modesty. It’s usually pretty obvious and always obnoxious. But there is also another variation of false humility out there: toxic humility. This is often displayed in self-deprecating talk and a lack of self-confidence, belittling or undermining one’s own talents and abilities. The danger in this kind of behavior is twofold: it is too often accepted as true humility and like a virus, it spreads doubt and disbelief. To clarify, it is not that the bearer of this toxic humility isn’t honest about his view of himself. That is the very issue: he absolutely believes he has little value or utility. He thinks downplaying his own worth is humility but I disagree. CS Lewis said it best when he wrote, “Humility is not thinking less of yourself, it's thinking about yourself less.” His point being, true humility is not an ever-present raincloud of self-doubt that follows you around. It’s a focus on

Glutton for Punishment

I’ve learned over the years that being comfortable can be a dangerous thing. I try to find paths to discomfort to push me out of my realm of “safety.” However, I have noticed my ability to develop comfort zones amidst discomfort. I’ve found ways to be comfortable in uncomfortable circumstances. I wonder, do I need to be stretched beyond those areas as well? One of the areas in which I have adapted to the discomfort is the gym. I don’t go to the gym to exercise, to get stronger or even to be healthier. It’s grown beyond that. Now, I go to the gym to clear my head by testing my will and resolve. I do it to see how hard I can push my limits and I strive to outwork everyone else there. I may not be the strongest, the fastest or the fittest. I may not lift the most weight or even do the most reps – I can’t control any of those variables – but I can control my effort. So one of my goals for each workout is to unleash more effort than anyone else at the gym. But along with this

Commitment

You know what the problem is with a lot of goals and grand plans? They are mostly fueled by emotion rather than commitment. It is why most New Year’s Resolutions are long forgotten by now and many aspirations quietly fizzle out over time. True commitment is sticking with the effort even – if and especially when – the emotion has diminished or disappeared. Emotion can be a great initiator of action, like kindling on a fire, but it lacks staying power. Commitment is the logs that keep the fire burning long after the kindling is consumed. The butterflies after falling in love, the best intentions of waking up at 4:30am every day to work out after you join a new gym, the excitement of your first day on campus, even the sleep-deprivation induced euphoria of a new baby: all kindling. But it is commitment that keeps you working hard on the marriage twenty-three years after “I do.” It is what causes you to keep going when you do not want to make one more sales call, do one more presentat

Mindset Matters

Search This Blog