EDITOR: | June 22nd, 2014 | 3 Comments

Discipline outweighs conviction in the financial success formula

| June 22, 2014 | 3 Comments

Met a friend this weekend who was somewhat distressed over an account that was down 50% over a short call. “What do you think happened?” I asked. “Discipline over conviction…” — he replied, as he shook his head. He then added: “…my decision it seems was based on conviction, and that’s where I failed.”

Hmmm, I thought nervously…as he may have just summed up the reason for every financial shortfall I have ever made since the beginning of my life experience. Shortly after our conversation, I came across a Business Insider story that ran this morning titled This Hollywood Director Gave Away $50 Million and Moved to a Trailer Park (click here). Initially it was sent to my girlfriend who made all her money in the dotcom era in the late 90’s but then gave it all away to help survivors of the 2012 Haitian earthquake as a joke with “hey, I bet he’s single…”

But then – I paused…my friends via social media were loving this story, and extending accolades for this Director, who gave it all away?

Tom Shadyac, Director of "Ace Ventura," "The Nutty Professor," "Liar Liar,"  -- photo taken at the 22nd Annual Palm Springs International Film Festival Screenings of "I Am"

Tom Shadyac, Director of “Ace Ventura,” “The Nutty Professor,” “Liar Liar,” — photo taken at the 22nd Annual Palm Springs International Film Festival Screenings of “I Am”

“Alright, enough” I thought…because while I too liked the nice parts of the life journey in this Director’s story that included prioritizing giving as a way to a satisfying life, what I can say is that I also appreciate that giving too much has the same repercussions as taking too much: it is a catalyst for imbalance. Frankly, I am convinced his decision making process was compromised due to a long standing symptom relating to his concussion. Either way, while I do appreciate that these types of both physical and metaphorical ‘knocks on the head’ can indeed be a catalyst for a much needed life change, I believe giving all one’s money away is indeed an example of conviction winning out over discipline and is the furthest thing from ‘balance’ – an arguably positive life attribute that every wealth manager since the beginning of time advocates…that I certainly do not have down.

This said, if your one of those believers as I am that life is simply perfect as is — then c’est la vie. But again, I wondered as I flashed back to monetary losses that were incurred due to a variety of convictions in my own life path if the real story here is what not to do.

Speaking of do’s, I am attending the GreenRush Financial Conference on Thursday, June 26th here in Toronto at the Metro Toronto Convention Center. GreenRush is intended to help investors understand the medicinal marijuana (Canadians spell it “Marihuana”), industrial hemp and alternative medicine sectors as a business, not a lifestyle. Furthermore, their agenda is to help those ‘weeding’ through the intense conviction sells and get down to the business of revenue, which includes – needing a license.

Speaking of agribusiness, this sector continues to pick up steam and is the 3rd most viewed sector on InvestorIntel. Of course – why not? Bourne Trader (BT) told me this week that Agribusiness is flourishing and that “corn is the deal of the century.” “C’mon” I responded, I am told that uranium will be the deal of the decade.” BT believes that the increasing need for protein edibles for the Chinese will propagate this market into some kind of stratospheric rise, and then said bacon, cocoa, coffee and well, just in time for my potash clients to reap the benefits of all of their hard work. Let me add, BT likes uranium too but told me that “it is not acting the way it should” and told me he follows Cameco as his discipline for making money in the uranium sector.

Now if you would like to see the top movers in the market including one graphite company up +50%, a gold company up +35%, rare earth company up 24.53% — and a niobium exploration play up +17.51%, you’re going to have to log-on or become an InvestorIntelReport member (click here).


Tracy Weslosky is the founder and CEO for InvestorIntel Corp. (2001-Present), a leading online source of investor information that since 2001 has provided public market ... <Read more about Tracy Weslosky>

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  • Tracy Weslosky

    So I looked up ‘financial discipline’ and found a quote from Warren Buffett where he is quoted as saying: “Only when you combine sound intellect with emotional discipline do you get rational behavior.” According to WealthLift.com they enhance the understanding of this quote by saying: “Investors need these two ingredients to successfully parlay the investment game. The sound intellect comes from doing your homework. It is your research and analysis of a company’s business and value. Discipline on the other hand, refers to your ability to wait for the proper price to enter. You shouldn’t chase prices in bull markets and you shouldn’t get scared in bears. Practice emotional discipline and take your investing to the next level.” — source: http://www.wealthlift.com/blog/10-warren-buffett-quotes-berkshire-hathaway-learn-heart/

    June 22, 2014 - 3:39 PM

  • hackenzac

    Warren Buffet is giving his wealth away also.

    June 22, 2014 - 9:28 PM

  • Gordon

    Interesting comments about financial discipline, I practiced some this morning with Allan Potash , have been watching this company for some time now , have done my homework, with the latest news I felt it was the right time to take a position on this company, they will be bought out by ICL.

    June 23, 2014 - 10:57 AM

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