108 | It Might Not Work

It seems we have forgotten the underlying tension in investing.

It might not work.

Partially because of the phenomenal returns of the past decade.

Partially because of how slick technology has made some investing look like a video game.

Partially because of the second-by-second price quotes that make it seem like the price is more important than the profit.

Partially because of the way investing and all of our investment options are marketed to us.

It's become too easy to think investment returns are a birth right or a handout from Oprah when they are actual ownership stakes in businesses.

Businesses with employees - the you and me's of the world - who are delivering goods and services for a profit - most days.

The key word in that last sentence is most, because it's not all.

Every business doesn't make it, which means every investment doesn't work.

But this isn't any different than other parts of life.

When an author is afraid that the word processor they use to save their work might not work, what do they do?

They save a second copy.

When a football team is afraid that the quarterback they have chosen as starter might not work, what do they do?

They sign a backup.

When a traveler is afraid that a new restaurant might not work, what do they do?

They find another option.

If we’re afraid an investment in a business might not work, what do we do?

We find another one, and another, and another, and another until we’re comfortable knowing that it’s OK that one might not work.