Thursday, September 24, 2015

Stay Relentless

To be an above-average investor, a person must possess a number of traits and skills that simply don't come naturally.  We touched on this thought recently when we highlighted the latest memo from Oaktree Capital Chairman, Howard Marks.  In it, he referred to a comment once made to him by Charlie Munger: "Investing is not supposed to be easy.  Anyone who finds it easy is stupid."

On top of the obvious need for a passable IQ, a superior investor requires certain traits that can only be acquired through repetition and commitment.  While we're not big on rah-rah, no pain-no gain soapbox rants, we're huge believers in process and efficiency and constantly challenge ourselves to get better in those areas.  The market is a constantly evolving being so we must be as well.

That thought brings us to the point of this post which is being and staying relentless.  Nick Woodman, CEO of GoPro, was recently asked about dealing with competitors and how to stay in front of them.  His response? "You have got to be relentless.  One of the things that's really benefitted GoPro is a healthy dose of fear..."

His comments on relentlessness start near the 18:00 mark of the linked video and last only a couple of minutes.  But the message within hits a chord with us.  While we're not competing with any one individual or company, we are jostling with ourselves as well as an entire marketplace of differing wills, ideas and opinions.  Our job as investors is to develop a process/thesis that shows a proven edge for making profits and then performing the proper ongoing maintenance that allows it to evolve along with the market.  This is a task that's easier said than done but those most likely to succeed are the ones who are willing to be relentless in order to combat that persistent fear of losing out to the competition (the market).

Ryan Worch is the Managing Director of Worch Capital LLC. Worch Capital LLC is the general partner of a long/short equity strategy that operates with a directional bias and while emphasizing capital preservation at all times.

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