Monday, May 24, 2010

We Like Sheep...

I watched an interesting documentary last night. I forget the name of it, but I am sure that it had the word broke in the title. It was about America’s current economic condition. The film maker shared his view on the reason for economic decline as well as the view of some of the world’s leading money experts.

The foundation of the film maker’s view stood on the notion that we (generally) are conditioned to be followers …like sheep. To illustrate his point, he visited a shepherd and observed the herding of his sheep. The shepherd explained that sheep will wonder around aimlessly following the crowd. By design, sheep are prey animals and have a natural instinct to follow the leader in the hopes of finding new pastures. They also panic and flee when stressed which makes herding difficult for uninitiated flock. As it pertains to the documentary, the film maker believes that the current marketplace would be more profitable if people would take control of their personal wealth and did not follow investment trends. He further suggested that people panic when presented with the possibility of loss. Investing is by nature risky business, but the film maker believed that the risk would minimize with the decline of aimless followers.

People have made a fortune investing such as Warren Buffett. Others have made their fortune preying upon aimless followers, such as Bernie Madoff. In life, spending time researching, planning, developing character, and establishing results-driven strategies is an investment. You can not establish your success following trends and wondering aimlessly. You must invest wisely, and if you expect to see a return, you must not panic at the first sign of stress. Owning your own business is a risk. Investing in your education now-a days is a risk…jobs are like the lottery. BUT…if you take control of your own personal success by being intentional, consistent and diligent; you will minimize your risks and increase your chances of seeing a return.

To Blog…Nakeia

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