Dear Friends and Clients,
Which species is man’s best friend, dogs or cats? The answer is at the end, so please continue reading. This note was prompted by my brother Bob, who was in Dallas this past July. During his visit, he mentioned how much he loves his dog, Mizzou (pictured above), and how much he will miss her when she goes to doggie heaven. Having grown up with dogs, I understand his sentiments. Dogs are loving, loyal, fun to play with, and really make the endorphins flow when they wag those tails and look into our eyes. Unconditional love and 24/7 emotional support.
Knowing these things, I had always dismissed the idea of having a cat. However, several years ago my wife decided that our family could use some feline company. Since life is like the game of chess (the queen is the most powerful piece on the board … not the king), I acquiesced. Sammy, a black and white ‘tuxedo’ cat, was slinky and entertaining. He would frequently surprise me by suddenly appearing in high places throughout the house, having used no visible means of ascent. James, the brown tabby, preferred the lower altitudes of couches and chairs. When I would come home from work, he would often settle down within arm’s reach. James especially enjoyed jumping up on my desk and curling up on my stack of The Financial Times newspapers. And, unlike Sammy, James would sit on my lap from time to time. To my way of thinking, I truly believed that James loved me. The reality; he probably just liked old newspapers and warm laps.
Points to consider: dogs excel at making us feel loved; cats, on the other hand, provide needed lessons in humility. James and Sammy ignored every order and request I ever made. They went wherever they pleased, whenever they pleased. Staring at me with his professorial countenance, James was a constant reminder for me to remain humble in my expectations.
As we think about the world of investing, we do well to remember that financial markets behave like cats. You never know what they will do next, or where they will end up. Like Sammy, their positions on lofty perches are never permanent. We are unable to predict or command their behavior. And no matter how much we may love our investments, they will never look into our eyes, wag their tails, love us back, or do as they’re told.
So, which species is best for us? It’s a trick question, apples and oranges. Dogs are great at providing love and affection. Cats are animate reminders that we have limited control over many things in life; things like investment outcomes, and especially the beliefs and actions of others.
Happy November. On the 28th, I will give thanks for having you, my friends, family, and clients, in my life.
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