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?