Every semester we host a speaker for my Texas Lutheran students. They are incredibly gifted and articulate.
The goal is to find experts who speak from the world of “reality.” Academic theory is necessary from a foundational perspective. However, engaging with people who have been in the trenches supercharges the learning opportunities.
This semester, we welcomed Mike Zapata who took “supercharged engagement” to a new level.
Zapata calls New York City home, but he grew up in Texas.
After college Zapata enlisted in the United States Navy, completing SEAL training in 2001. He served nearly ten years with seven deployments throughout the Middle East and West Africa. During his tenure, he was Troop Commander of SEAL Teams 2 and 10, concluding his command with the Naval Special Warfare Development Group—better known as SEAL Team 6.
Upon retirement from the Navy, Zapata earned his MBA from Columbia and today runs Sententia Capital Management.
Sententia, is Latin for “purpose.” In spending time with Zapata, you recognize he was put on the earth to accomplish certain things—things of depth and substance. Although a capitalist, he devotes a portion of Sententia’s profits to the families of elite military operators.
Additionally, Zapata is the president of publicly traded Schmitt Industries.
With a resume’ like this, it is easy to see why Zapata garnered a standing-room only discussion.
At Columbia, Zapata read the The Intelligent Investor. It was a like a lightning bolt struck him in the head. This investing philosophy and discipline made so much sense. Zapata is not the only one with this conclusion. The Intelligent Investor was written by Benjamin Graham—Warren Buffett’s teacher and mentor. It is a “must-read” for any serious investor.
Graham’s book helped Zapata understand that value investing limits downside while offering multiples of upside. This discipline creates an environment in which he might lose a little, but if he is right there is significant opportunity for big returns. This resonated with Zapata as this was a similar mentality when analyzing enemy targets in his previous career.
As Zapata worked the room, he shared several key insights for all to appreciate.
- Balance humility with confidence. Many things you think are important, are not. Possess the humility to know you don’t know everything, but confidence that you have done the homework to effectively compete. While in graduate school,
- Zapata said he learned the most, not because he was the smartest, but rather because he knew the least. This humble attitude opened his mind to learning. In the process, he recognized how important it is to “know what you don’t know.”
- Have the perspective of a 90-year-old. This offers a much longer time line over which to evaluate things and prevents you from making rash decisions.
- Pursue your passion. Life can be incredibly short. As such, don’t spend it merely going through the motions.
- You will make mistakes. However, if the mistakes don’t kill you they really didn’t matter. Have the grit necessary to overcome hurdles and obstacles. In the process, non-lethal mistakes are learning opportunities.
- It is difficult, if not impossible, to “balance” work and family. As such, wherever you are, be “present” and fully committed to where you are at that moment.
- Read everything you can, but you must have experience. Zapata said, “I read all the books; I was the perfect parent. And then I had kids.” There is a huge difference between theory and reality.
- Do everything you can to avoid a fight. However, if a fight is inevitable, make sure you have done enough research and training to ensure you will win.
- Go into negotiations and relationships with respect, humility and an open mind. There are multiple sides to every discussion.
- Success is a continuous journey. Never stop improving, growing or learning. There are many smart people with great ideas. However, they lack the ability to implement and execute their strategy. Get the wheels on the road.
- We stand on the shoulders of giants. Mimic those that have been at it for decades and generations. Those that preceded us have paved the way for our success.Â
- Being a SEAL was not high risk due to relentless research and preparation. This put the odds heavily in your favor. Be vigilant in identifying and mitigating risks. Apply the same intensity and preparation in your careers and investing.
Texas Lutheran students representing the Bulldog Investment Company program. Mike Zapata, front row, fourth from the left.