Arguably that which differentiates Britain and her colonial subjects from the Free Burghers of this great United States is that most civilized of games.
Not Soccer;
Nor my favorite Rugby;
No, ‘tis the game of leather and willow,
Bat and Ball,
A 22 yard pitch, wickets and bails (that’s bails with an i).
CRICKET.
A game inexplicable to the modern day American.
Take the puritan form, the 5 Day Test!
That’s right, the game lasts for 5 days.
8 hours per day.
Taking breaks for lunch and 4 o’clock High Tea.
Fully ONE THIRD of ALL 5-day games end in a delightful DRAW,
That’s a TIE!
Her rules are many, arcane, glorious, and intricate, detailed and most importantly ORDERED … just like the British civilized world ought to be.
For instance, the rule of leg before wicket, colloquially called LBW, is as baffling as the incomprehensible Offside in Soccer.
In cricket the batsman need not run if he hits the ball. In fact it’s perfectly acceptable to spend the entire day parrying away at the ball in a display of DISCIPLINED defense.
However, merely blocking the balls path to the wicket by putting your Padded legs in the way is unacceptable.
Cheating!
And so, if the Umpire had x-ray vision and could project the path of the ball going through your pasty white legs and hitting the wickets … without ever touching the bat ... you would be OUT my dear boy!
Out by LBW.
Cricket is a game of patience and persistance.
The same two essential ingredients needed by good investors.
Luckily we have participated in our fair share of Elephant Bull markets. But we’ve also been in the trenches, biting our fingernails when an investment goes wrong.
On average a good upswing lasts about 4 years. The current bull cycle is 8 years old!
Patience and persistence are always severely tested during the natural ups and downs. There is no substitute. To get the rewards of a fully played out bull movement you need to experience the ups and downs.
“You've got to go through it to get it!” – Greg Silberman
If you have investment partners it is common that nerves get stretched as deadlines slip or there is no liquidity when prices are in correction mode. Here are a few tips on how to deal with partners during these stressful times:
- Show don’t tell – now is a good time to take another site or management visit. Very often it’s the absence of information that causes fear. Seeing, touching and feeling something real can soothe frail nerves.
- Write down your thoughts! The exercise of writing fills in gaps. Our brains are accustomed to making leaps of faith and leave out important details. Writing completes thoughts and may reveal the answers to important questions.
- Breathe Deep and don’t react emotionally – this one is tough but when the pendulum swings towards fear all rational senses leave the room. With time levelheadedness will re-appear. Don’t crater the partnership before it does!
- Learn to compartmentalize. FOREX traders are excellent at this. As hard as it is, don’t let stress spill over into other aspects of your life. This too shall pass!
- Revisit your original investment thesis – hopefully written down in your due diligence. Understand where things have gone wrong. Put managements feet to the fire and let them explain how they plan on making things right.
- Realize we are in the business of taking RISK. There is always the possibility things will go wrong because of unforeseen changes in business conditions. You and your partners should realize that this is merely the market exacting payment for your risk taking. THE COST OF DOING BUSINESS. This is why risk management and position sizing is so important.
- Conduct the Sociopath test to ensure you are not the victim of a Ponzi. Most frauds allow the perpetrator to attain new higher level of personal living, new house, new cars, etc. They also require liquid assets (easily exchanged). The absence of these suggests you MAY have escaped the fate of a Ponzi scheme.
As the old adage goes:
“If you don’t know who you are, the stock market is an expensive place to find out.” -- GEORGE GOODMAN 1959
Regards
Greg
P.S. If you are interested in reading more about Elephant Bull markets we are currently tracking take a look at these previous articles:
Thank you for reading my post. I regularly write about private market opportunities and trends. If you would like to read my regular posts feel free to also connect on LinkedIn, Twitter or via Atlanta Capital Group Investment Management.
Nothing in this article should be interpreted as a recommendation to buy any security. Please conduct your own due diligence.
Greg Silberman is the Chief Investment Officer of Atlanta Capital Group Investment Management [ACGIM]. Atlanta Capital Group Investment Management specializes in creating custom private market solutions for RIA/Family Office clients.
Advisory Services offered through Atlanta Capital Group Investment Management.
