The Number: A Completely Different Way to Think About the Rest of your Life

In Barnes and Noble yesterday I encountered the book "The Number: A Completely Different Way to Think About the Rest of Your Life" by Lee Eisenberg. The Number is the amount in people's minds that they can retire on. I hear guys on wall street say it all the time, $30 million and I can walk away. When I think of "the number" I think of it not as a goal but as a wall, not a wall that needs to be scaled, but a wall that needs to be torn down.

The "number" is a goal not a vision. It has an endpoint that give us comfort but also limits us. Unlike a goal, a vision is boundless. A number or goal is also usually selfish. It is about what I need, what I want, how I can live the rest of my life comfortably without a care in the world.

The Bible teaches us the opposite of carefree living, it teaches us that "those that cared for the least of those cared for me." The number limits our vision and is selfish in motivation. How much charity does our "number" have included in it? Whatever amount of charity it is probably not enough. I'm reminded of the ending scene in the Steven Spielberg movie "Schindler's List" where the main character Oskar Shindler realizes in the end even the little things he kept like his ring and his car were acts of selfishness when he could have saved more Jewish lives from the holocaust.

Bill and Linda Gates and Bono are examples of people who have visions not a "number". Neither of these individuals need to work another day in their lives. They have has many homes, yachts and islands to keep many generations happy, yet they press on. Why? Because if they once had a "number" they have long since surpassed it and discovered that there is more to life. I imagine attaining the "number" is like Dorothy in the Wizard of Oz realizing that there is no Wizard but an old man behind a curtain. Is that all there is? What is next?

Instead of creating a "number" or a goal, I like to think of my life work as mile posts that show me from where I've come and remind me that I'm still on the road but that there is a lot more road out there for me to travel.


Note: This blog entry is in no way a recommendation to buy or not buy "The Number by Lee Eisenberg. The sole intent and purpose is to think about how goals hinder our spiritual vision.

Stubborn: Don't Fight the Tape! Or Argue with God!

I knew a portfolio manager who would always forget the principle, "Don't fight the tape." The problem was he was very smart and would let his intelligence would get in the way of him making money. The principle of don't fight the tape is simple: do not trade against the market trends, if stock prices are rising don't sell.

The portfolio manager was one of the smartest men I ever knew however, he was frequently to early with his ideas. While he was often correct, his timing caused him to endure a lot of pain as he waited for the market to catch on. He often found himself having to cut back on his positions and eventually would not make as much of a return as he could have had he been more patient an not so stubborn.

In "Stock Casting" we do our work and come up with a thesis just like this portfolio manager however, we listen to the voice of God and allow him to dictate the timing (See 1.10.05: The First Principle of Stock Casting: Listen). I have found that as I pray and seek the voice of God, the more he speaks to me in every aspect of my day.

Just the other day I was about to park my car in a parking space and I felt God tell me not to park it there. Just like my portfolio friend that was trying to fight the tape, I started to argue with God. My reason said this was a great spot, it was good until the end of the week and it was right in front of a well-lit Deli so I wouldn't have to worry about it being broken into. Later that afternoon, I walked by my car and the mirror on the side on the sidewalk side had been broken off. It was a very windy day and some siding from the deli blew off and struck my car. My stubbornness in the face of God telling me not to park there cost me $700 to replace the mirror.

God knows what is going to happen in the stock market and he knows what is best for us in every area of our lives so why not pray and listen to His voice? I found out that arguing with God is like fighting the tape; you’'re going to have to endure a lot of pain going against His will.

Fast forward to this Sunday, I slip out of the church service to go to the bathroom and while I'm washing my hands I feel God tell me to grab a bunch of napkins from the bathroom because someone is going to need it in the congregation. I think that is the silliest thing, why would God tell me to do that. But I figure if I'm practicing "Stock Casting" principles in my work place I better start practicing them in every aspect of my life, so I grabbed about 20 paper towels and stuff them in my pocket. As I'm returning to the sanctuary a woman runs out with a panicked look on her face, "Can you get my paper towels from the bathroom, I just spilled my coffee all over the floor of the sanctuary." I was in shock, I reached into my pocket and handed her the paper towels, as she ran back inside I realized she was actually seated in my row and her coffee was starting to spread toward my bag laying on the floor. If God is interested in telling me about my bag that is about to get drenched with coffee, and my car that is about to be damaged, I believe he is also interested in guilding me in my investment decisions.

The first principle in Stock Casting: LISTEN

What do you get when you put a analyst a trader and a portfolio manger in the same room? The first Stock Casting meeting. At our the meeting I introduced the first principle of Stock Casting, listening to God's voice.

The trader, being a good trader cut the chase and asked the practical question. "How do we do that?" Being an analyst, I pulled out my excel spread sheet and began to describe the equation for hearing God's voice (I'm joking).

If you feel the same way don't feel bad, because you are not alone. We all have difficulty discerning the voice of God. The first couple of times Samuel heard the voice of the Lord he had the same problem, he didn't know who was speaking. At first Samuel thought the voice calling to him in the night was that of Eli his master.

In Stock Casting we basically struggle with discerning between three voices; our own voice, God's voice and that of the enemy. The easiest voice to discern is that of the enemy, his suggestions while often enticing are usually very short sighted and involved cutting corners and they usually feed our pride because they are driven by greed.

The real challenge is discerning between God's voice and our own. This is a learning process. It starts by turning the voice in your head into a prayer. What do I mean by this? We all have these thoughts that come into our head. Sometimes those thoughts are our own and sometimes they are God speaking to us. Whenever I have a thought that I think is a good idea I immediately turn that thought into a prayer. God is this you? It may sound simple but the results may surprise you.

This Stock Will Change Your Life

"This stock will change your life" This was the title of a recent article in a financial website that caught my eye. Unfortunately the article was a bit of a disappointment, however it made me think about the greater question. Is it true? Can a stock change your life forever? You have to read this entire entry to get the answer.

Isn't why were are all in this business? To find that one stock that will pay for our grandchildrens' education? If you missed getting into Google (GOOG) at the ipo, waiting for the next stock that can change your life can be like the Samuel Beckett play "Waiting for Godot" It happens once in a lifetime and usually we are not prepared for when it does occur.

I recently was introduced to Scott Harrison a photojournalist who had a life changing experience with a stock. The stock that changed his life was Google's arch rival Yahoo (YHOO). While still in college, Scott decided to make a very risky move and took all the money is father had saved for his college tuition and he opened brokers account. With that money he shorted Yahoo (YHOO). Unfortunately for Scott his timing couldn't have been worst, shortly after making his bet, Yahoo started its ascent to $300 a share. The impact this stock had on his life was not the one he had hoped for. Scott lost it all.

In retrospect Scott would likely agree that his actions were similar to putting his money on black at the roulette wheel in Vegas. So why do I share with you Scott reckless behavior? What impressed me about Scott's story was how he rebounded. A blow like this would impact most people beyond recovery, but not Scott. In order to make the money back without his father finding out, he started working nights promoting clubs in NYC. Soon thereafter Scott became one of the most celebrated promoters in New York. Scott was able to recover all the money he had lost and then some. Scott entry into the NY club scene was not the best for his spirit but he has now walked away from that world to fulfill his promise to God to dedicated a year of his life working as a volunteer photojournalist on a hospital ship called, the Mercy Ship.

So did a stock change his life? Yes but it is not quite the fairy tale story he was hoping for. Instead his story is that of one where his character was challenged and in the end he was an overcomer. If his stock investment had a different outcome would his character held up to the challenge? Everyone is looking for a quick fix something that will make us rich overnight, but very few are ready to deal with the consequences of investing in a life changing stock.

As analyst on Wall street I always get people asking me for stock advice. I like to ask people what they would do if they actually invested in that life changing stock what would they do with the return. Many of the answers are very similar to what people say they would do with the money if they hit the lottery. If you invested in that life changing stock would your character remain in tact? Would you do the right thing? If you are looking at stock casting or investing like a lottery ticket you have got it all wrong. It is this attitude that will cause a person to sacrifice their character for a quick return, maybe even cut corners that are unethical at best and maybe even illegal.

Stock Casting is about seeking God first in everything including our investments. Maybe one day you will invest in a stock that will change your life, but until that day, the more important question is what will you do when that day comes. Will you let your character shine or will you crumble to temtation and greed?