“Public’s out there throwing darts at a board, sport. I don’t throw darts at a board. I bet on sure things. Read Sun-Tzu, The Art of War. Every battle is won before it is ever fought.” — Gordon Gekko

 

Let’s set aside the unethical and illegal practices of the Gordon Gekko character in the 1987 film Wall Street and just dissect the above quote for the words.

“Public’s out there throwing darts at a board.” Most investors professional and lay alike do not have a clearly defined investment process, set up principles/beliefs, strategy, or identity as an investor. Most investors are making it up as they go along. Whether it’s business, sports, fitness goals, you name it, having an identity and process greatly increases the probability of success.

“Read Sun-Tzu, The Art of War. Every battle is won before it is ever fought.” Be prepared, preparation is crucial for determining favorable outcomes. Having great preparation can drastically improve your chances of success almost to the point of a sure thing. This is especially true when investing in capital markets. Without the preparation you are with the public, “throwing darts at a board.”

As investors we must define our core beliefs about investing in capital markets. Those core principles should be paramount when developing an investment process and in influencing every investing decision we make. My investing principles can be found here.

 

– Wyatt Swartz

– 5/13/17