Archive for July, 2009

10% Talent + 90% Persistence = 100% Greatness

Monday, July 6th, 2009

“Success is not final, failure is not fatal; it is the courage to continue that counts.”

– Sir Winston Churchill

 

The formula for achieving greatness is 10% talent and 90% persistence – not the other way around. Of course we can all think of examples of top performers who have natural gifts and achieve success but without persistence do they ever really achieve personal greatness? I would argue they do NOT because true greatness is something that is measured as an absolute value rather than a relative one.

 

The following are some examples of individuals who achieved greatness as the result of their persistence, more so than their talent.

 

  • Henry Ford went bankrupt twice in his first few years in the automobile industry.

 

  • In 1902, a magazine called the Atlantic Monthly rejected the poetry submissions of a 28-year old aspiring poet stating, “Our magazine has no room for your vigorous verse.” The name of that 28-year old aspiring poet was Robert Frost.

 

  • Michael Jordan was cut from his high school basketball team.

 

  • 23 publishers rejected Dr. Seuss’ first children’s book. The twenty-fourth publisher took a chance and sold over 6 million copies of his book.

 

  • J. K. Rowling’s Harry Potter and the Sorcerer’s Stone manuscript was rejected by 15 publishers before it was eventually picked up and became a multi-billion dollar phenomenon.

 

  • In 1905, the University of Bern rejected a Ph.D. candidate’s dissertation describing it as “irrelevant and fanciful.” The candidate’s name was Albert Einstein.

 

  • A young quarterback named Johnny had a passion for football and played at a small school because he was considered too little to play at Notre Dame. After graduation, he played with the Steelers for a short stint and was cut. Forced to work construction to pay the bills, he waited for another chance to play football. The Baltimore Colts took a chance on him and Johnny Unitas not only led them to a championship but also was eventually inducted into the football hall of fame.

 

  • A young college economics student submitted a paper on a new way to send and receive packages. His professor gave him a “C” on the paper stating, “The concept is interesting but in order to earn better than a ‘C,’ the idea must be feasible.” That student’s name was Fred Smith and he founded a company called Federal Express.

 

I would expect that each of us has heard of these people and may be surprised and hopefully now inspired to learn of the failures they overcame in their path to achieving greatness.  If anything, maybe this week’s article will justify a moment of reflection as you ask yourself, “How persistent am I?”

 

Dr Doug

Don’t Get Madoff’d

Sunday, July 5th, 2009

People tend to see what they want to see, so it’s not surprising Bernie Madoff was able to convince scores of investors his scam was legit. And while many still wonder how such a large-scale fraud could happen, there were a number of missed warning signs for investors. [View the video online].

So rather than be mad at Madoff, we should thank him for reminding us of certain lessons we seem to have forgotten:

1) Never put all your eggs in one basket. You’ve heard the stories about people who lost everything with Madoff. That’s what happens when you put all your faith in one investment. Diversify, diversify, diversify.

2) If it sounds too good to be true, it probably is. After all, if the market is losing 30 percent and your money manager is always up, you may be too busy counting your blessings to track the details.

3.) If someone only caters to the elite, be skeptical. If someone makes their product or what they do sound like it is reserved only for the rich and that makes you want it more, be skeptical, because there is likely more to the story.

4.) Stop being so trusting. P.T. Barnum told us that a long time ago there is a sucker born every minute. A healthy dose of skepticism really is a very good thing. It helps you manage risk and profit in the long run.

5.) Always ask questions, especially when things are going well. In reality, the Madoff scam is a classic example of how the old adage, “if it ain’t broke, don’t fix it” can come back to bite you. Madoff’s scam didn’t look “broke” for many years, and that should be the first red flag for any professional money manager. Always look under the hood.

6.) Do your own homework. Do not blindly trust a friend’s opinion or recommendation. How many Madoff investors became involved only because a friend told them about him? You need to look behind the scenes so you can determine your own best course of action.

7.) Take responsibility for all your personal and financial decisions. This is the most important lesson of all. It’s your life, your money. Don’t give control over to someone else.

Think better, invest smarter.