Unwritten Rules

Being good at something doesn’t promise rewards. It doesn’t even promise a compliment. What’s rewarded in the world is scarcity, so what matters is what you can do that other people are bad at. — James Clear

In my six years of involvement in the financial markets, I’ve observed and studied my major losses, leading me to this summary:

The nature of business, more often than not, is to delay, conceal, and oppress the rewards of early execution on truly great ideas — it’s like a marathon race: before you can break away from your competitors, you have to survive what they cannot survive — a steep hill, a certain pace, weather conditions, etc.

You do not break away when it’s easy; you break away, if ever you do, when it is hardest for everyone else but you. Because you are more prepared and capable of enduring longer periods of suffering.

I made this observation while reviewing an investment I made in the commodities market, where I was shaken out with a big loss before the investment proved successful.

If you have run competitively before, you will understand how difficult running is: a steep hill will leave you out of breath, a fast pace will force you to walk later on, and hot weather will exhaust you. In business, we face similar challenges. Leverage will assail your financial stability, and losing months will cause self-doubt in your products or investments.

But both runner and entrepreneur need to survive these challenges in order to break ahead into victory or profitability. Without leverage, how can you ever Trade For A Living? Without a fast pace, how can you ever get the Gold Medal?

Start by identifying the unspoken rules in your situation. What constraints do others face, and how can you turn those into your strengths? — Shane Parish

Cancelo Alvarez

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