Sunday, February 11, 2007

Think of the exit, before the entry

Well this is all common sense, but I thought it would be interesting for some. I had a previous career as an equity derivatives trader. Without delving into the minutae of what that is, basically in 10 years I had to buy and sell 1 million things. Sounds impossible but it's true. One of the basic tenets of investing is to determine your upside target, and your downside limit. In life, "it's not how you start, it's how you end". Though this is just another way to say, "set goals", it actually helps you determine what you are going to do, by thinking of the results or consequences of your desired course of action. I recently invested into the company where I now work, and the "exit" was what convinced me to "enter". In marriage, if the exit is regarded as divorce, then what's the point of getting married? It really should be until death do us part. Getting to heaven, the ultimate exit, is determined by a decision to commit your life to Christ for example, which is your entry......and so on. I think you get the point.

Next time " transactional vs. relational".

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