How To Get As Lucky As J. Paul Getty
J. Paul Getty appeared to be incredibly lucky, but it was a luck
which, in many ways, he engineered. Instead of continuing on a
well-structured career---that of the U.S. Diplomatic
Services---he made a detour to the rich oil fields of Oklahoma.
There he had the difficult task of raising money, which he did
by working and borrowing. He then took care of his funds, by
spending them frugally. Initially, he hit a number of dry wells,
but one speculation paid off for him. This last speculation was
a calculated risk. Yes, he was lucky, but he also did his best
to attract that luck.
A notable feature in his "luck" was his decisiveness. After
reviewing the geological data, he decided to act on it. The data
gave him odds on success, but it didn't guarantee anything. He
could have continued to investigate, postponing the decision to
act.
But, in his own words, he did not want to be "like one of those
government commissions that are afraid to make a decision. They
hold hearings, collect facts, stew and fuss and keep very, very
busy for months and months. After a while you know it's just a
sham. The appearance of action is just a front to hide inaction."
When you take chances, you risk defeat, you risk loss, but
unless you play the game you may never win either. Playing to
win also means willing to lose. Indeed, J. Paul Getty lost first
before he won. However, money management enabled him to continue
despite his losses. And because he only had small losses, he was
able to keep enough resources to stay in the game.
Successful investors on Wall Street advise new investors never
to gamble with their grocery money, because it has a twofold
effect: one, it jeopardizes their well-being; two, they are
nervous when they invest and this clouds their judgement.
In your own life, you can use the following checklist to be a
'luckier' and more prosperous person.
1. Find some area that needs investment of time, money, energy,
and skill.
2. Calculate the risks.
3. Estimate the rewards.
4. Find the time, raise the money, harness the energy, and learn
the skills.
5. Manage your resources so that you only take affordable risks.
Above all, remember that winning often involves risking, but
risking does not mean gambling. When you gamble, you don't
evaluate much information and you use all your resources. When
you take risks, you review all the available information and
only commit what you can afford to lose.
Dr. Abraham Weinberg, a prominent psychiatrist, once commented
that passive people "tend to let life happen to them instead of
using its opportunities in an asserive way. Often they are
afraid of change itself, even change without risk. They tell
themselves, 'I'm afraid of going into this new situation,' even
when the situation holds no objective terrors except its
newness. Instead of examining the situation and finding what the
risks actually are, they simply drop out by saying, 'No, it's
too much of a gamble.' It may not be a gamble at all. They are
only making an excuse for staying in some familiar territory."