self-control

Who Controls Your Destiny?

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“You can’t go back and change the beginning, but you can start where you are and change the ending.”
-C.S. Lewis

When we came across this quotation from novelist and academic C.S. Lewis, it made us realize one other trait tends to set you, our clients, apart from others. We have long believed you form a niche market of the mind, sharing certain beliefs about investing and life. Our understanding of your uniqueness is deepening as we go along.

Successful planning—our work–requires all of us to believe that we have some control over our outcomes—that we can start where we are and change the ending. But not everyone believes that.

Do people have control over how things turn out, or do external factors, things beyond our control, govern? Psychologists refer to this dimension of personality as the locus of control. We humans vary in this respect.

Much is beyond our control. Accidents happen, markets move randomly in the short run, others sometimes make decisions we do not like. Yet we try to make the most of what we have to work with. We expect that we can make the future better with the actions we take today.

At one extreme, some believe nothing they do can make a difference. If planning is fruitless, we cannot be of service. At the other extreme, some believe that everything can be controlled. This is a problem too—we do not control the stock market!

We are grateful for your balanced outlook: willing to take action to make a better future, knowing that stuff happens, always looking to make the best of it.

Clients, if you would like to talk about this or anything else on your agenda, please email us or call.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Modern Rationality and Ancient Wisdom

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The modern age is largely a product of the Scientific Revolution. Scholars date the beginning of that period to the 1543 publication of the Copernicus treatise, On the Revolutions of the Heavenly Spheres.

Developments in mathematics, physics, astronomy, biology and chemistry changed our view of the world. It seemed that all the secrets of the universe could be unlocked by the scientific method. The idea of reason or rationality arose from this: an objective reality may be discovered by observation, experimentation, and logical thought.

It is comforting to think that everything can be figured out—and probably wrong.

Modern philosopher Nassim Taleb has argued that the role of randomness in our world is underappreciated. There is much that cannot be known until we find out: whether a company will struggle or thrive, whether a market will advance or decline, which bird of two sitting on a branch will be the first to take flight.

Before rationality, going back to ancient Greece, there was wisdom—expressed in the word sophrosyne. This ideal of character included traits such as moderation, prudence, and self-control. Think of it as wisdom.

It strikes us that wisdom helps investors fill in the gaps where rationality fails us. The idea of diversification is a way to deal with uncertainty: if we could rationally determine which holding was going to go up the most, who would need to diversify? And self-control plays a role in our methods. “Avoiding stampedes” takes quite a bit of it, for example.

We are big fans of quantifying the things we can quantify. Doing the math is a large part of our work. Reason—rationality—is key. But it also makes sense to exercise moderation and prudence when facing uncertainty—which is nearly always.

Modern rationality and ancient wisdom are a powerful combination. Clients, if you would like to discuss this or anything else on your agenda, please email us or call.


There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

No strategy assures success or protects against loss.