Page 182 - Think Like a Champion

1593155308_trump:trump 2/2/09 11:05 AM Page 163
THINK LIKE A CHAMPION
I know people are stunned by their losses and rightly so. I think
we would all do well to pay heed to all of our transactions no mat-
ter how much we might respect or like someone. But the main les-
son is never to invest 100 percent of your money with one person
or in one entity. Even if someone or something is great, you can’t
bet the ranch on it, especially a person—they can become dishon-
est or they can become sick. In Madoff’s case I think it was a com-
bination of both. But you’ve got to spread your money around with
numerous people, or at least three or four. You can’t have your well-
being determined by one person. My CliffsNotes summary:There
are no guarantees but there are precautions. Do not let your guard
down. Focus on the positives—but don’t forget about the pirates.

The Rogue Wave

In January, Tom Barrack sent me his notes for a 2009 Survival Kit.
I am sharing them with you because he tells a great story and he
has an equally great insight in applying it to what’s been going on.
Included here are the first two pages of his four page essay, and I
hope everyone will give this their full attention:

The constant turmoil of the recent market is reminiscent of
a story Laird Hamilton shared with us at our last annual
meeting. No one has mastered the art of living more than
Laird. He has spent his life in preparation and anticipation
of riding big waves. The biggest waves in the Hawaiian Is-
lands occur on Maui at a surf spot named Jaws. These waves
reach 50 to 70 feet and can only be ridden by a few daring
professionals utilizing “tow in surfing.” Tow in surfing was
invented to “turbo charge” the entry speed of a surfer to
match the speed of the mountainous walls of fury which
would otherwise be unconquerable by traditional paddling

163