Tuesday, August 5, 1997
Patience, Commitment,
Rewards, and the Nintendo Generation
by
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July 24th marked our fifteenth wedding anniversary. It seems natural that the long-term benefits of a relationship with my partner sent from heaven might kindle some thoughts of rewarding moments. I can remember absolutely everything about the morning some elevean and a half years ago that Lindsay, our first child, arrived. I can visualize the brightness of the sun, the smile on a stranger's face at McDonald's as I ordered my coffee; somehow he knew, without asking. We hope to find the patience and commitment that we need to access other rewards, and know that we will.
Five years ago, I "wifenapped" my spouse and whisked her away (without warning) to retrace our voyage in Hawaii that we'd enjoyed ten years earlier. Part of our holiday included a stay on Maui, actually staying at the same Hyatt hotel that we visited during our honeymoon. It had changed very little, a condition that is sometimes refreshing in our world of dynamic change. We rented a car and headed out for a place called the "Seven Sacred Pools of Hana." It's a challenging trip, assailing the adventurous tourist with winding, undulating, roads that can turn the most seasoned boater green.
Recalling that Wendy had set the all-time world record for seasickness on a cruise in 1982, I was somewhat surprised that she didn't recommend throwing in the towel. With white knuckles, we pressed on. Somewhere along the way, we stopped and gathered up a fantastic picnic basket, "just in case." We continued our quest, gritting our teeth as the roads got narrower, bumpier, and the peaks and valleys came with increasing frequency. Finally, we arrived at Hana, a spectacular place where you can swim in crystal pools with the Pacific ocean surf roaring just a few feet away. There are waterfalls, waterfalls, and waterfalls. Hana would rival Niagara for newlyweds, if it weren't such a challenge to arrive.
After a brief relaxing swim, we noticed a trail leading up the mountain that seemed to originate in the clouds. The path seemed to follow the river's course back up to the peak and we decided to see where it might lead. We picked up the picnic basket, took a deep breath, and began the ascent. Sure enough it traced the river, and we were met with several charming waterfalls as we lifted our feet and trudged onward. We reached the point where 98% of all tourists turn back. The path crossed the river using stepping stones, and we decided to venture further. The trail got steeper, the foliage and humidity got thicker, and it got hotter. We reached a fascinating bamboo forest that seemed impenetrable, until we got close enough to see the clues of a continuing trail. It became stifling but we decided to continue our foray. We talked ourselves out of turning back several times, probably sounding a lot like our children's "are we there yets?" But we didn't know where (exactly) we were going so we couldn't answer the question.
We kept lifting our feet as a thunderous roar in the background began as a whisper and was now approaching deafening proportions. But we still couldn't see the source. A few more steps, a clearing, and WOW! We were overwhelmed by an awesome vista. We found ourselves at the foot of a gargantuan waterfall, and the arduous voyage meant that very few ever reached this hidden splendor. Our "just in case" picnic basket fulfilled its prophecy and we found a place to relax and enjoy the moment for the ages. I can still smell the bamboo and hear the roar.
What's this got to do with investing and the "Nintendo Generation?" I'm not sure, but the memories cause smiles, and that's OK. Investing, by definition, mandates a certain measure of patience and perspective. When I observe the traders buying Microsoft in the morning and shorting it in the afternoon, I'm reminded of this generation's heritage of Pong, Space Invaders, PacMan, and our current Nintendo distractions. It seems to me that this generation grew up on lightning reflexes and high-speed transactions. It's a small jump from Nintendo 64 to MetaStock, technical analysis, Wise investing, and video-game-like behavior with the traders on Wall Street. Most of the people you read and hear about are from this camp.
Patience, but "Why?" they'll ask? Patience, commitment, and a Foolishly long-term perspective for the most part puts one outside the herd.
It's a shame the herd will never see the hidden waterfalls. Best wishes and Foolish investing,
Mark Robertson