FundingStrat

 

This pandemic has undoubtedly created a lot of pain for many.  It has also created opportunity for personal and organizational evolution.

 

Ray Dalio, founder of the world’s biggest hedge fund by assets ($160B), Bridgewater Associates, lays out how he personally evolved as well as evolved Bridgewater through trying times in his 2017 best-seller, Principles.

 

Pain and how it is dealt with is at at the center of his teachings.

 

“Pain plus reflection equals progress.”

-Dalio

 

The cycle of success and upward growth, according to Ray goes as follows:

 

Setting and moving towards audacious goals –> Failure –> Learning Principles –> Improving –> Setting and moving towards more audacious goals.

 

Rinse and repeat.

 

Dalio goes on:

Keep on Reading!

 

The late Dr. Stephen Covey synthesized the common patterns in the leaders he studied and worked with in his 1989 best-seller, 7 Habits of Highly Effective People.

 

At the core of his message is the belief that the way we see the world is entirely based on our own perceptions.  In order to change any given situation, we must change ourselves.  And, in order to change ourselves, we must be able to change our perceptions.

 

Put simply, in the context of this crisis:

 

In order to change/improve the state of things during this crisis, we must change/improve ourselves first.

 

In order to change/improve ourselves, we must change/improve our perceptions.

 

“The way we see the problem is the problem.”

-Covey

 

To undergo a paradigm shift and upgrade ourselves fundamentally, we must go beyond the surface level and alter our behavior for the long-term.

 

This is where the habits (7) come in:

1. Be Proactive
2. Begin with the End in Mind
3. Put First Things First
4. Think Win-Win
5. Seek First to Understand, Then to Be Understood
6. Synergize
7. Sharpen the Saw

 

2.  Begin with the End in Mind

 

Quick Hits:

Keep on Reading!

 

This past weekend, Berkshire Hathaway held its Annual Meeting.  Typically billed the Woodstock of Capitalism, the meeting has routinely served as a great bellwether for the economy and business in general.

 

Here are some top takeaways from the Oracle of Omaha at this weekend’s meeting:

 

#1.  Never Bet Against America.

 

Although it may take years to assess the full impact of COVID-19 on the country/economy, Buffett remains highly optimistic about the U.S.’s economic future.

 

In the Civil War, 6% of the prime workforce, males 18-60 died.  This is a mortality rate orders of magnitude above that in the current pandemic.

 

Past crises that have brought brought businesses to their knees have been navigated, and the economic engine has ultimately roared on through.

 

Bottom Line:  Don’t bet against American (human) ingenuity.  Necessity is the mother of invention – although the landscape has drastically changed, we will get through this and problem-solve it out.

 

#2.  American (Consumer) Psychology may drastically change.

Keep on Reading!

 

The late Dr. Stephen Covey synthesized the common patterns in the leaders he studied and worked with in his 1989 best-seller, 7 Habits of Highly Effective People.

 

At the core of his message is the belief that the way we see the world is entirely based on our own perceptions.  In order to change any given situation, we must change ourselves.  And, in order to change ourselves, we must be able to change our perceptions.

 

Put simply, in the context of this crisis:

 

In order to change/improve the state of things during this crisis, we must change/improve ourselves first.

 

In order to change/improve ourselves, we must change/improve our perceptions.

 

“The way we see the problem is the problem.”

-Covey

 

To undergo a paradigm shift and upgrade ourselves fundamentally, we must go beyond the surface level and alter our behavior for the long-term.

 

This is where the habits (7) come in:

Keep on Reading!

 

Tony Robbins tells this story of him taking a racing lesson on a NASCAR track years ago.

 

His seasoned instructor sits in the passenger seat and has his own steering wheel he can override the driver’s with if the car starts to get out of control.

 

As they get going and Tony starts to get comfortable with driving this machine, the instructor introduces the concept of “spin,” and the importance of effectively coming out of it unscathed.

 

Spin is when cars on the track start to lose control and careen into other cars, pulling in more racers off the track, causing cyclones of destruction.

 

It may not have been your fault, but a racer ahead of you on the track starts to spin and now you have to deal with it.

 

The natural reflex when you skid is to look right at the very thing you fear (and could kill you).  Stare too long, and you will steer right into it.  For racers, the natural reflex is to look at the wall in attempt to avoid it.

 

But you keep focusing on what you fear, that’s exactly where you’ll end up.  Where your focus goes is where you go.

 

The instructor presses a button that activates one of the rear tires to slightly lift to make the car skid and spin.  Tony’s job is to regain control of the car and steer away from the wall.

 

Now at this point, Tony’s been taught that his natural reflex will be to initially look at the wall, and what he’ll need to do is turn his head to face the open track.  If his head turns in one direction, physiologically his hands on the wheel will follow.

 

Three times in a row, the instructor has to physically turn Tony’s head with his hands and override his steering to evade hitting the wall.

 

Its not that Tony doesn’t get it – we are just hardwired to stare down what we fear when the stakes are high.  Only with practice can we start to override our own fear reflex-response and focus on where we want to go as opposed to where we don’t.

 

After a few more runs at it, Tony gets it – snapping free from the skid, driving away from the wall and back to the open track.

 

Racers know they will unconsciously steer right at what they are focusing on.  Its crucial to initially glance at the wall (what we fear) to measure distance and influence our steering, but resist the urge to glaze over.  Turn your head to where you want to go.

 

Where your focus goes, you go.

 

-FundingStrategist

https://fundingstrat.com