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Bias For Clarity

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Bias for action. Gets things done. Go-getter. Traits companies big and small look for. And for good reason, you're being hired to do things! However, action is a secondary step that often overshadows the primary step, direction.   Clear direction is the foundation that enables our actions to takeoff. Without it, we're stuck in the mud.  Striving for clarity is an underrated skill. Having the courage to ask ( seemingly ) obvious questions, and to check in, making sure we're all on the same page. "O bvious " questions are a low risk, high reward way to add value. At worst, you'll add confidence to our actions. At best, you discover a misalignment that saves us from a dead-end.  The more people, the more clear we need to be. The bigger the initiative, the bigger the risk of reaching the finish line, only to realize expectations were off.  Success is always uncertain. But we can be certain about what we want and what everyone's job is. Things that can be clea
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Big Drawdowns: The Wild Ride To Riches

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Every investor daydreams about going back in time and getting in on the ground floor of a super successful company. Amazon went public at $18 and now trades above $3000. That's a whopping return of 17,000%! Being an early investor would've made you filthy rich - if you were able to hold on.

Staying invested is much easier said than done. Hindsight is 20/20. We have the privilege of knowing things worked out for Amazon, but it was a bumpy ride.

While there were many years of amazing returns, there were also tense moments where all seemed lost. To endure these drawdowns you would've needed an iron stomach. 

YearAnnual Return
1998966.39%
199942.18%
2000-79.56%
2001-30.47%
200274.58%
2003178.56%
2004-15.83%
20056.46%
2006-16.31%
2007134.77%
2008-44.65%
2009162.32%
201033.81%
2011-3.83%
201244.93%
201358.96%
2014-22.18%
2015117.78%
201610.95%
201755.96%
201828.43%
201923.03%

Would you've been able to hold on during the Great Financial Crisis or during the Tech Bubble? I wouldn't have. 

A lot of stocks don't come back. Every year companies fail, even industry titans that once were unstoppable. Yahoo, Myspace, Enron, Blockbuster.

It can be incredibly rewarding to ride out the downs, but things can also turn grim. A bounce back might never happen.

How do you know when a drawdown is temporary or when it's permanent? You won't. That risk is part of the deal. 






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