Unleashing the Power of the Subconscious Mind: Lessons from Arnold Van Den Berg

I’ve never met anyone with a stronger belief in the power of the subconscious mind than Arnold Van Den Berg. We didn’t meet in person, but I had the pleasure of interviewing him for my podcast, Bulls, Bears, and Bourbon (listen here). In addition to the two-hour recorded interview, we talked for another two hours in preparation for the real deal. I loved every minute of it. 

It’s easy to understand why Arnold became obsessed with the subconscious mind. He grew up on the same street as Anne Frank during the Nazi occupation of Holland. Arnold was just a toddler at the time, and as you can imagine, a noisy child creates problems when hiding from Nazis looking for Jews in hiding. Arnold’s parents ultimately sent him to an orphanage in the countryside with the help of the Dutch underground — a move that likely saved his life. 

Arnold survived the Holocaust but was left angry, confused, and depressed. His parents miraculously survived Auschwitz, but his early years were filled with angst. A damaged young man emerged from the war, but Arnold recovered to become a top-class money manager by learning to control his mind — a true rags to riches story. 

Today, Van Den Berg is still at it, running Century Management, the company he founded in 1974. His story has a lot to teach us about relationships, life, overcoming adversity, and more, but Arnold has a lot to offer investors too. 

Here are some of the critical lessons Arnold shared with me:

Don’t Try to Predict the Future

Arnold survived one of the most tragic times in recorded history, but he doesn’t live in fear. Investors have astonishing imaginations. We can envision market crashes, world wars, and crises of every kind, most of which will never come to fruition. Even after experiencing evil firsthand, Arnold knows that our minds cause more suffering than reality, saying, “As usually happens in life and also when buying stocks, most of our fears are never realized.” 

Arnold recommends against predicting the future and urges investors to focus on buying quality businesses at attractive prices.

Knowledge is Power

When Arnold started in the investing business, he quickly realized he was ill-prepared. He had no formal education, no experience, and few resources (he was in debt at the time). Arnold never attended college but was committed to teaching himself about investing. He curated a reading list and worked his way through it with laser focus, even forgoing dates with an attractive young lady to focus on his self-study. 

Arnold reviewed every acquisition, learning everything he could about what a company is worth and why. And he absorbed everything he could about Benjamin Graham, the father of value investing. 

Over the next ten years, Arnold outperformed the broader markets, and his career was off and running. Formal education is overrated — but knowledge is power.

Believe

Arnold declares, “belief is the single most important thing in life.” Success can’t elude you if you genuinely believe you will succeed. Unscientific? Maybe, but Arnold is steadfast in his faith in belief, saying, “Always repeat the things you want to become, the things you believe in. That’s what I did during my whole career. I programmed my subconscious that I would become successful and have a great family. I had everything mapped out. They all seemed impossible, but they all came true because of that realization.” 

Investing requires discipline and a long-term time horizon. Belief magnifies our ability to stick with a plan, even when it’s hard.

Learn from Tough Times

I doubt I’ve ever spoken to someone who overcame more than Arnold Van Den Berg. He lost 39 family members in the Holocaust, dealt with complicated relationships, relocated to a new country, and was barraged with negative thoughts about himself — but he didn’t submit, he learned. Arnold believes, “Through all your suffering, you can learn great wisdom.” He’s demonstrated that. 

All investors will experience challenging times. Bear markets are inevitable, and the media is quick to elicit fear. But every moment of suffering is an opportunity to learn.

Arnold Van Den Berg taught me that investing is a microcosm of life. The same factors that lead to success and happiness are the same tools required to be a successful investor: discipline, self-belief, knowledge, and love.

Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from James Vermillion, and all rights are reserved.