BI > FEBRUARY 2004

On Better Sharing

Inviting Friends and Family

Perhaps one of our missions should include waking up the neighbors? Make a little noise at your next investment club meeting. Share your experience as an individual investor, following NAIC principles, with your friend over your next cup of coffee together. Share why we quietly smile.

Blame it on the mailman. Shortly after joining the NAIC staff a few years ago, I received a phone call from a member. She requested another copy of Better Investing because her issue had apparently been lost during the delivery process. I tracked down a replacement issue. As I got up from my desk to find the outgoing mailbox, the phone rang again.

"I found it!" But there was still something "inquisitive" in the tone of her voice. When I suggested that she no longer needed this extra copy, she quickly corrected me. "No, I still need it. You see -- the mailman had accidentally delivered my Better Investing to my neighbor. Although I now know where my magazine is, the problem is that she won't give it back to me!"

We laughed together and shared some thoughts about "great causes." If this was the greatest sacrifice that she'd have to make, it seemed like an easy way to spread the word. I grabbed another copy and stuffed it in the envelope and we talked about accidentally leaving this extra copy in her other neighbor's mailbox.

Issue Special Invitations

Better sharing has long been the theme of the early months of the year at NAIC. The late George Nicholson, Jr., co-founder of NAIC, always thought of February as Invite-A-Friend Month. NAIC members have been encouraged to describe their experience to friends and family. We hope they will explore and discover the type of successful sleep-at-night investing that so many of you know so well, even if we -- as a larger community -- are somewhat quiet about what we do here.

Quiet Refuge and Old Tractor Seats

My grandfather was a very quiet man. He was renowned for his ability to fix things. His neighbors all knew that he was perpetually eager to come and do some plumbing or get a lawnmower started for them. He was a man of few words. Very few words but a smile that his spouse described in terms borrowed from Alice in Wonderland. During games of canasta, she'd howl about that "Chessie Cat grin." These so-called games actually evolved to become family tournaments as we battled, men vs. women, for the canasta championship of the civilized world.

The card games were anything but quiet. I'm sure that the neighbors were keenly aware when tournaments were in session. Grandpa was quiet, patient and extremely competitive. But my fondest memories of him revolve around his backyard. He maintained an impeccably well-groomed garden and raised the best tomatoes this planet has ever seen. His backyard was a quiet refuge, a place of solace. The centerpiece of this refuge was a stump. Grandpa had removed a seat from an old tractor and installed it on this stump next to his garden. An early riser, always finishing breakfast long before sunrise, he'd sit in this tractor seat with his collection of walnuts, sunflower seeds and birdseed. Squirrels would literally join him and sit on his lap while they feasted. Birds would land and dine on the trail of seeds on his shoulder and outstretched palms.

Instinct generally encourages these types of creatures to scurry from people. I asked Grandpa how this was possible. He shared, "This doesn't happen overnight. It takes time. I spent several weeks out here with the walnuts while the squirrels summoned courage. In time, trust developed and we've gotten to be pretty good friends. And I might add, the fattest squirrels in the county live near my garden."

Redefining Risk & The Formation of Expectations

The classical Wall Street definition of risk has something to do with price volatility. NAIC investors know that this misses the mark by a wide margin. Warren Buffett comes closer when he observes: "Risk is not knowing what you're doing. I put a heavy weight on certainty. If you do that, the whole idea of a risk factor doesn't make any sense to me. Risk comes from not knowing what you are doing." Managing risk is more about acquired knowledge than the reality that stock prices fluctuate.

Few things are truly certain. Our study of companies and the development of expectations can be an effective approach to investing. Newcomer instinct often involves either scurrying or disrespect for patience and time. NAIC investors generally discover with time -- and a few reliable walnuts -- better investing is achievable. Share better. Tell a friend what is possible and grin like a "Chessie Cat."

Mark Robertson is director of online resources and senior contributing editor for BetterInvesting. He serves as a member of BetterInvesting Magazine's Editorial Advisory & Securities Review Committee. Mark can be reached at Robertson_Mark@comcast.net.