|
A lion can raise a
mouse. But a mouse is still a mouse.
Christopher Walken
Actor in the movie
Kangaroo Jack
|
|
Over the years I have met many people
who insisted that they wanted to make big money in the stock
market. These individuals had heard from exaggerated
cocktail party chatter that huge bucks had been made in high
technology, health care and initial public share offerings.
They figured it was easy and they wanted their share.
Smitten by an infectious greed they would ask, "how do
we get started?"
Unfortunately many of these neophyte
investors are ill-prepared for prosperous stock market
investing. Firstly, they don't possess the necessary
character attributes of discipline, intensity and patience
in order to achieve monetary success. Secondly, they are so
blinded by a gluttonous, money-hungry mission that they
eschew all investment commonsense and instead navigate
toward making that one big financial score. But success is
rarely attained. In actuality, these individuals are simply
not suited for stock market investing. Instead, I believe,
they should entrust their hard-earned money to a capable
professional money manager with solid long-term objectives.
Successful investing, I contend,
cannot be taught. An investor either has the necessary
investment disciplines or he does not. The reality is you
cannot teach someone patience, focus or lack of greed no
matter how capable the instructor may be. The fact is: a
lion can raise a mouse. But a mouse is still a mouse.
Effective money management can be
methodical and painstaking involving serious fundamental
research and analysis. Furthermore it can stretch the limits
of one's patience and severely test one's confidence and
bravado. But for those few individuals who have either
mastered the challenge of investing or have effectively
delegated the investment management to a competent
professional, the rewards can be exceptional.
Irwin A. Michael, CFA
