Tag / risk

by Nathan Coumbe

The greater the risk, the greater the reward

I often ask (and I’m sure you do too) why all these brilliant “bad guys” in the world don’t put their skills to use for good?

Oddly enough, I found an answer in an unlikely (or, depending on your worldview, very likely) place: investing.

Scott Galloway, in his book The Algebra of Wealth, discusses the ratios of risk to reward in the stock market. For many high-risk investments, the reward is outrageous, but the risk is destructive.

So the obvious answer to the question is that bad guys make more money via crime than if they put those same skills to use for a legitimate employer.

They have massive potential upside, potentially millions of dollars.

But the downside is worse than what most are willing to pay: risking lengthy prison sentences isn’t appealing to most people who would also love to make $50 million in a few hours. But for a select few, it’s the lifestyle they want.

So, you probably already knew this, but some things are worth putting into words.

by Nathan Coumbe

How to get into the Hall of Fame

What does it take for a Major League Baseball player to earn a spot in the MLB Hall of Fame?

It takes failure.

Not a little bit of failure – it requires failing almost two-thirds of the time.

The best baseball players who’ve ever played the sport only average a hit 3 out of 10 times they come up to bat. That means they fail at their job 7 out of 10 times. And yet we still regard them as the best.

Why then, in our own lives, do we strive so hard to avoid failure at any cost? What if the avoidance of failure is preventing us from succeeding at a level that would cause us to stand out from the pack?

We don’t learn how to succeed through books, lectures, or seminars – we learn through failure, the greatest teacher of all. The books and seminars can help us avoid mistakes committed by others who’ve walked the path before us, but we have to fail on our own, in our own way, to find what works and what doesn’t.

To paraphrase Seth Godin in his webinar a few days ago: success requires time and failure.

Failing not only teaches you lessons from which you can improve, it also makes you more resilient to future failures. Each time you fail, you build a reserve for the future, which grows your confidence and allows you to try bigger and better things the next time. It’s a cycle that only spirals up.

What could you do in your life where you would consider batting .300 to be Hall of Fame-worthy success?

Don’t fear failure – fear never taking the chance of doing something great.

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by Nathan Coumbe

Invest in goodness

“Goodness is the only investment that never fails.”

–Henry David Thoreau

The stock market is reeling; businesses are closing; people are losing jobs. Any decision attached to money comes with a risk.

Being generous, kind, and selfless is not a risky thing to do. Sure, you might get taken advantage of or your acts might not be appreciated, but so what? You will always gain equity and compound interest when you are good and decent to others.

Today, and for the rest of your life, invest in goodness.

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