Amateurs

“It ain’t bragging if you can do it.” - Dizzy Dean

Tonight my husband and I get to do one of our favorite things: listen to our son play the music he loves. Seb is a member of a high school jazz band and the group is holding a fundraiser this evening. The event is sold out, and the music will be amazing.

These kids, and they are all kids, are incredible. They play as well as many professional ensembles. Are they amateurs? Sure, if the metric is whether they make a living by playing music. But if you are scoring on talent, passion, and enthusiasm - this group is all-world.

One of the more formative experiences for my son on his music journey was attending a summer camp last year in New Orleans. This is not a kids’ camp - it’s a camp for adults, with a small number of openings for kids who are passionate about jazz. Every camp attendee is an amateur. The instructors are professional musicians. Once the musicians start to play, though, I would challenge anyone to pick the pros from the non-professionals. 

I’ve been thinking recently about how this relates to finances, and, in particular, to investing.

What struck me most at the summer camp was how superb some of the attendees were. More than a handful of these folks could make a living as professional musicians. The fact that they aren’t making a living playing music is entirely unrelated to skill, talent, and experience.

It is the same with investing. I’ve seen my fair share of “amateur” and “professional” investors, and here’s what I can tell you: the labels are meaningless. An individual investor who devotes time and energy to learning about investing can kick the stuffing out of professionals, consistently and significantly. It’s not dumb luck - it’s skill, talent, and experience. It is also not as hard to learn about investing as it is to learn to play music, I believe.

The big difference is that in music, there isn’t a huge industrial complex trying to convince you how HARD it is to invest, how COMPLEX it is, how much HARM can come to you if you make a mistake.

I understand how difficult it is to make a living in entertainment, but these challenges are not a result of an industry actively discouraging you from trying. 

Here are some ways to think about the work of investing:

• Do you love investing, and want to devote time and energy to it? Good. You can do it!

• Do you want to manage your portfolio, but need some guidance? Hire an advisor who will be your thinking partner and coach, and will help you build your skill set.

• Are you completely uninterested in investing? Hire a professional who charges a flat fee for investment management. Look, we can all clean our own homes, but some of us hire house cleaners. These folks provide a valuable service. If you don’t want to manage your money, outsource it. Make sure you hire well.

Play your role, your way - no labels needed.