Ivy League Lessons For Success
I was recently asked to lecture a business class at Harvard. The class of in-coming sophomores were looking to enter the investment arena. Despite their focus, the lessons are rather universal for success in life.
Why are you in college?
College is a place to learn how to learn. Gain exposure to as many things as possible. Take classes in art, theology or psychology. The more well-rounded you are the better you will understand the world.
Go to every class. Go to every party. Meet weird people. Join clubs. Become a more interesting person. Learn to ask open ended questions, sit back and listen.
As a professional I love being in the classroom. Teaching forces me to effectively explain difficult concepts. I must speak in plain English while avoiding jargon and acronyms. If you cannot explain complex concepts in sixth grade terms, step back and ask why.
Find something you love.
I work seven days a week not because I have to, but because I love what I do. Find something you are passionate about. I like thinking about business and investing puzzles. I like our clients and enjoy helping them.
Since college, I have had several employers. Even once I found the right industry, it did not mean it was the right cultural fit.
If you are going to tackle something for the next 40+ years, you need to love it. Furthermore, you need to work for people you respect and admire. Search out good bosses, co-workers and mentors. However, realize not every job is a cultural fit. Some previous employers did me a favor by helping me to understand I didn’t fit and should move on.
How did I get in the investment business?
It is almost embarrassing, but I never took an investments course in college. As such, I didn’t plan to be in the investment business. Fortunately, in my mid-20’s I got nudged in that direction.
Since then, I have earned several licenses and read hundreds of investing publications. Once out of college the real education begins. The result was a steady diet of books, journals and research papers daily for nearly 30 years. A degree gives you a head start, but that is just the beginning. If you stop actively learning, it is game-over.
What is your purpose?
No matter the occupation, your job is to care of other people. You exist to fix problems and implement solutions. Step back and ask, “How else can I help my customers, my employer, my co-workers and my vendors.” If you are successful in doing this, you will learn a lot and be invaluable.
If we add value to the lives of others, things have a way of working out. Money is a necessity in a for-profit world. However, the singular goal is not making more money. Money is merely a byproduct of treating people well.
Basic Necessities
Many things can get our attention. However, ask yourself, “Do you have a roof over your head? Do you have access to food and electricity? Does your toilet flush? Is anyone shooting at you?”
Once you have answered these things, the rest is just details. You can only worry about things within your control. There are people luckier, smarter and better connected than me. All you can do is get up earlier, stay later and work harder.
Cleaning toilets…or other unpleasant jobs.
After I got my MBA, I turned to a classmate and said, “I will never clean toilets again.” That was such an arrogant thing to say. With time you realize you never stop cleaning toilets. It is just part of life.
How do you deal with mistakes?
Over the years, we have made our share of mistakes. The one goal is to make the client whole—fix the problem. A client has never been mad at us if we identified the problem and proposed a fair solution.
Your most valuable resource
Time is your most valuable commodity. You cannot make more of it. Use it wisely. Spend time on things that add value.
Find a gap or niche that is profitable, yet underserved.
Thomas Edison once said, “Opportunity is missed by most people because it is dressed in overalls and looks like work.” During the lifecycle of a business, people become entrenched. The more entrenched, the easier it is to ignore change or opportunity and say, “Its fine the way it is.” The unrecognized need for change often delivers opportunity in boring industries.
Every business must challenge conventional norms. If you don’t, your competitors will.
Reputation and Ethics
Your most valuable asset is your reputation. As Warren Buffett says, “It takes a lifetime to build a reputation and minutes to destroy it. If you think about that, you’ll do things differently.”
Eventually, someone will ask you to do something unethical. It is human nature. We make ourselves vulnerable to ethical lapses when we live a compromised life. Things like leverage, substance abuse, infidelity or living an unsustainable lifestyle all present a threat to our reputation and ethics.
Steady Growth or Fast Growth
I have seen more businesses fail because they grew too fast. Know your value proposition and deliver on the simple things that matter with great consistency. If the quality is erratic, customers won’t come back. It is much harder to get a new customer than it is to take care of existing ones.
Mental toughness
Being an investment manager is the financial version of the military. The “news” is your drill instructor who is screaming at you, testing your discipline and distracting you. The news will not inform you. Rather, it is here to sell advertising.
Shut out the noise and make logical and rational decisions. Most days, our office is like a library. We read, we think and openly challenge each other’s positions.
One thing I wish I’d known earlier
Read Dale Carnegie’s “How To Win Friends & Influence People.” The title sounds cheesy, but it is as relevant today as ever.
When you get out of school, people know you have smarts. You don’t have to convince them. Rather, you are there to solve problems.
You only solve problems when actively listening. Learn to ask open ended questions and then sit back, take notes and listen. Whether verbally or in writing, make sure you know exactly what needs to be said and deliver it in a concise manner.
Dave Sather is a Certified Financial Planner™ and owner of Sather Financial Group. His column, Money Matters, publishes every other week.