Wednesday, December 4, 2019

Changing Horses, Highway Lanes and Stocks

It happened long ago that a German chancellor named Konrad Adenauer changed his mind about something. When asked why he did it, he said he reserved the right to be smarter today than he was yesterday. You got to admit, this was a smart thing to say and a wise advice to go by.

But is it always wise to change one's mind about important things? In the English culture of North America, at least two metaphors were invented to demonstrate the perils inherent to changing one's mind too often, or changing it by habit, for no good reason.

One metaphor tells the story of the fellow who finds himself driving a car on a congested highway. He keeps changing his position from one lane to another whenever he believes that this lane or that one is moving faster than the one he’s in. But when he inspects what's around him, just to see how well he’s doing, he finds himself either among the same group of cars as he was ten or fifteen minutes ago –– or worse, he finds himself lagging behind them. Thus, changing lanes did him no good.

The other metaphor tells the story of the fellow who trades on the stock market. The moment he sees that a stock is advancing faster than the one he owns; he automatically sells what he holds and buys the other one. After doing this kind of transaction several times, he discovers he would have been better off staying with the stock he was holding originally. Thus, selling and buying stocks without taking the fundamentals into account did him no good.

Why is that? Because each time that he sold––not knowing what the true value of the stock is––he sold before it had reached its highest value. And each time that he bought a new stock––not knowing what its true value is––he did so after the stock had appreciated up to its true value, and was ready to “flatline” or correct downward. The net result is that the fellow made very little money or lost. But what he succeeded in doing, was make lots of money for the broker who gets a commission coming and going.

Well then, is there some kind of formula or science or philosophy we can learn and use to determine when and where to change from one thing to another? If so, what good would it be to know these things if you're a sensible driver to begin with, and you don't trade on the stock market?

The short answer is that when you're facing choices in life, being experienced is the best thing you can have under your belt. It hones your instinct and warns you of the pitfalls that you may encounter as you move from one setting to another. But while protecting yourself by taking the necessary precautions, you'll still want to make the choices––perhaps a little risky––that will render your journey through life an efficient exercise.

This is when you'll remember the metaphor about changing horses in midstream and try using it to the fullest. It goes as follows: Life is like a cluster of horses, all running in the same direction but not at the same speed. In fact, none of the horses runs fast all the time. What each does is speed up, and when it gets tired, slows down. Meanwhile, another horse that's rested, speeds up. It goes on like that, cycle after cycle, as each horse takes its turn speeding and then slowing down to rest and speed up again.

Whatever your vocation, whether you are in the apprentice phase of your life or the journeyman's phase, doing things efficiently means producing as much as anyone without spending unnecessary energy achieving the task that you’re on. Learning how to put the lesson about changing horses in midstream is a useful skill to have under your belt because it will help you become productive and efficient.

And here is a pertinent question: What happens when someone that may have the right skills for one vocation, ends up exercising those skills in a field that’s so different –– he has neither the learned skills nor the natural talent for it? If that's your question, my friend, there is no better way to find the answer than to read a remarkable article that was written by Daniel L. Davis.

The article came under the title: “Trump's Big Mistake: He Hasn't Withdrawn From Syria But Doubled Down,” and the subtitle: “Three times in the past eighteen months Trump has announced American troops would be withdrawn from Syria. Three times senior administration figures or influential advisers walked him back.” The article was published on November 29, 2019 in The National Interest.

Because there is no way I can do justice to the content of the article by condensing it, I'll only advise that you read the entire piece. What I can say, however, is that while reading the article, you'll find it interesting to try determining where Donald Trump attempted to change America's lanes when he shouldn't have. When he dumped America's stocks too soon on the world stage. And when he bought useless stocks that did America no good at all.

See also if you can determine when and where Trump missed the opportunity to change horses at a time when they were there, ready to take America to new heights.

If at the end of all this, you determine that Donald Trump has neither the skills nor the talent to be president of a country, you’re not alone. Seven and a half billion people on Planet Earth feel the same way.