Hero or Legend?
As I am watching the World Series and thinking about baseball, I decided to do some research on the greatest baseball player of all time, Babe Ruth. The Babe, born George Herbert Ruth Jr., grew up in Baltimore and had a remarkable career, first as a pitcher for the Red Sox and then as an outfielder for the Yankees. His trade to the Yankees in December of 1919 was perhaps the worst trade ever made in the history of baseball, according to some experts. Babe still holds the record for the most seasons with forty or more homeruns. He’d be very valuable in today’s baseball world, as homeruns seem to be the key to the new era of baseball, an age defined by the term Sabermetrics. I’m not going to engage in a discussion about the new era, however. I’m going somewhere else.
In the movie Sandlot (a personal favorite), there is a scene where Babe Ruth gets quoted: “Heroes get remembered, but legends never die.” Great movie and a great quote, whether you like baseball or not. I cannot verify that this is an actual Babe Ruth quote, so I’ll share with you some verifiable Ruthisms;
- “Every strike brings me closer to the next home run.” That’s the attitude of a winner.
- “Yesterday’s home runs don’t win today’s games.” Wow. That has great application.
- “Baseball was, is and always will be to me the best game in the world.” I agree.
Reflecting on these quotes, the game of baseball, and the stock market causes me to think about some of the legends and heroes that we have seen in my 35 years in this business. Investing, like baseball, has it’s own list of heroes and legends. In my opinion, heroes champion a cause or reign for a period of time in the investing arena, while the legends create a whole new way of looking at and investing in the markets. My short list of heroes and legends is below, and by no means is it comprehensive. It reflects my observations on characters that I believe have shaped Wall Street during my career. Here you go:
- Peter Lynch – LEGEND. Brought investing to Main Street. “Buy what you know.”
- Jack Bogle – HERO. Championed the cause of lower fees through index investing.
- Michael Milken – LEGEND. A villain who changed the fixed income markets.
- Bill Miller – HERO. Fund manager who had the longest streak beating the S&P.
- Jim Cramer – HERO. Former hedge fund manager turned TV star, Cramer is a champion of modern day trading. And boy does he call ’em like he sees ‘em.
- Warren Buffett – LEGEND. Is there anyone who has had a greater influence in the last thirty years than the “Sage of Omaha”? I think not.
These heroes and legends are among many notable personalities that I have heard and read about during my career. None of them believe in market timing, a thought worth mentioning considering that we are in the late innings of this economic recovery. Let us think about the lessons each has brought to this game of investing, which may be the most interesting game of all time.
Ralph McDevitt October 31, 2019
Any opinions are those of Ralph McDevitt and not necessarily those of Raymond James.
