When we moved to Texas,
I quickly learned folks who prospect for oil are called Wildcats.
They are excited to explore.
They keep digging and failing all the time.
Some strike it rich, while others do not.
It’s in the culture; it’s in their blood.
They are optimists and marketers.
In contrast, some people in NYC, I would say are hedgers.
They want to mitigate their downside risk.
They are guarded.
They need protection and guarantees.
They position to capitalize and profit from both rises and declines in market prices.
Hedging is an expensive strategy.
It typically underperforms.
Thank you to Manini for a fun discussion on the above!!
So in life, would you rather be a hedger or a wildcat?
You could argue both are right.
But here is a difference.
“Being enthusiastic is worth 25 IQ Points” – Kevin Kelly
(Kevin Kelly is the founding executive editor of Wired magazine)
Enthusiasm leads to investor interest.
Optimism leads to better performance.
People like to be with happy people.
It’s contagious.
It makes everyone else a better performer, creating a positive virtuous cycle.
The economy and prosperity improve.
Howard Marks, an investor and co-founder of Oaktree Capital Management.
recently wrote,
“Everyone can study economics, finance, and accounting and learn how the markets are supposed to work. But superior investment results come from exploiting the differences between how things are supposed to work and how they actually do work in the real world.
To do that, the essential inputs aren’t economic data or financial statement analysis.
The key lies in understanding prevailing investor psychology.”
When I went in for surgery, I changed my psychology from something scary to an exciting event. I recovered in HALF of the typical recovery time.
Next time you have to choose, try to pick optimism and see if that works out better for you.
Go Wildcats!!
(daughter and her friends cheering on the Wildcats at Westminster)
Tiffany Kent
Your Friendly Wealth Engagement Guide,
Tiffany@wealthengagement.com
Empowering women to take control of their future!
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