The Conflict: Investment Success and the Battle of Inner Personalities
Have you heard the parable about the two wolves? Its origin is unknown but often attributed to the Cherokee or Lenape people. It usually goes like this:
An old Cherokee is teaching his grandson about life. “A fight is going on inside me,” he said to the boy. “It is a terrible fight and it is between two wolves. One is evil — he is anger, envy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.”
He continued, “The other is good — he is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, and faith. The same fight is going on inside you — and inside every other person, too.”
The grandson thought about it for a minute and then asked his grandfather, “Which wolf will win?”
The old Cherokee simply replied, “The one you feed.
The tale is a classic story about inner conflict and the choices we face. I was reminded of this story when I read a quote by Wall Street Journal columnist Jason Zweig. When asked the secret to investment success, he answered:
“Within you lurk an angel, a devil, a scholar, and an idiot. If the angel and the scholar ever let their guard down, the devil and the idiot will wreak havoc that will take years of work to undo.”
These inner personalities constantly battle for control.
The devil and idiot are dopamine addicts, desperately pursuing another hit to activate the amygdala. They’re instant gratification junkies, willing to sacrifice the future for fleeting satisfaction.
They are proud to the point of arrogant conceit. They take credit when risks payoff and blame others (or “the system”) when they fail. This duo will make money an end to which any means are permitted when allowed free reign. When they succeed, you fail.
The devil and idiot inside explain how intelligent people can repeatedly make terrible money mistakes and how thoughtful investors abandon their principles to chase a quick buck. They are loud, persistent, and convincing.
The angel and scholar have your long-term interests at heart and in mind. They understand the importance of delayed gratification and are of sound mind — free of chemical influence.
They are not greedy and seek to align money with your values. They’re not excitable, so it’s easy to ignore their sensible advice in favor of the more boisterous, exciting pair.
Like the two wolves, you have to decide who you will feed. Are you going to fuel the devil and idiot? Or will you sustain the angel and scholar?
Will you make short-sighted decisions for a boost of dopamine? Or will you maintain discipline, even when it’s challenging, allowing compounding returns to enhance your future?
Choose wisely.
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.
