True to the pervasive obsessiveness of financial industry employees, I wrote a list of topics to cover with Interloper at the outset. This list, which was surprisingly unchanged as the months progressed, has now been covered. Alarmingly, as a result of this, the last posts began to exhibit the two temptations that, in the beginning, I swore I would never succumb to – beating on near-dead rhetorical horses (the industry in playing on your imperfect psychology) and attempting to wring pearls of wisdom out of the work of others (notably Epicurean Dealmaker for some reason).
The urge to write combined with a lack of anything new to say is a time-honored recipe for masturbatory crap, so its definitely time for a hiatus. There are also practical reasons for this – I still need to find employment to take some pressure off Mrs. Interloper, who desperately needs a vacation. Writing blog posts and hitting F5 every 90 seconds is not conducive to a sustained effort in that regard.
At the risk of going all Altucher on the people nice enough to read this, I want to also explicate a strange emotional risk that also informs the decision to take a few weeks off from blogging. I couldn’t, first of all, be happier with the way things turned out for Interloper and the five-or-so people most deserving of gratitude for this know who they are. Having readers focus on your opinions, and occasionally agree with them, has been incredibly rewarding. At the same time it also gives birth, for me at least, to an unhealthy ambition for further recognition – what was an initial, highly gratifying surprise morphs into a weird existential need. Twice during the past two weeks (and this is truly embarrassing) I’ve been on the verge of picking a fight with another blogger only to discover, with a modicum of introspection, that the root cause for the impulse was a desire for attention. Acting on this would have disqualified me from ever calling out anyone else’s behavior as infantile which, as it happens, is one of my favorite things in life.
End of therapy session. I’m not done; I just need time to make a new list. Hopefully the few very nice emailers asking what was up with the lack of writing now have some idea.
To end Interloper: chapter 1, I’ve re-framed the issues covered to date into three broad industry/investing tenets as follows:
Cui bono: Whenever you’re confused about anything involving the finance industry, look to how it benefits the investment banking department. If, for example, analysts from three large BDs all raise ratings and targets on the same stock that hasn’t moved in 5 years, first assess the potential for an M&A transaction or secondary offering.
Don’t trust your gut: The industry knows your brain better than you do, how to appeal to its less rational, emotional elements. Going with a gut feeling and winning is undoubtedly exhilarating and you’ll want to do it again. This is, however, the same thought process that built Vegas. The corollary is to be very careful when you see what you want, or expected to see. Try and practice thinking like other, successful investors with a different style, if only as a test drive.
The finance industry has its own interests, not yours, first: View every research report and every speaker on business television with the same skepticism you’d bring to Super Bowl commercials. This is not inherently cynical – good products need advertising almost as much as bad products. But don’t expect full disclosure.
End of chapter 1