Tuesday, December 19, 2006

On Mobility (Zurich Axiom VI)

The Sixth Major Axiom
"Avoid putting down roots. They impede motion."
Minor Axiom IX
"Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia."
Minor Axiom X

"Never hesitate to abandon a venture if something more attractive comes into view." (Blogger's note: apply this to investments, not your love life).

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These strategies are very appropos to one's career. I worked for someone for a very long time (about 10 years as employee then as consultant), and I realized that they would never be able to pay me what I knew I was worth. I left for another opportunity that granted an immediate 30% increase in salary. Within 4 years and yet another opportunity later, I had quadrupled my annual pay. Looking back, it seems like a no-brainer. But when you work with people for a very long time and you feel a sense of ownership and loyalty...well, it's easier to stay than leave sometimes (at least for my disposition!).

2 comments:

Anonymous said...

Re: Minor Axiom X

There is this conundrum: a venture may seem unattractive at a certain point -- particularly in comparison with the new-kid-on-the-block contemplated venture -- prompting one to abandon the original, nettlesome venture just before it would have proven to be successful and rewarding and worth all the aggravation and work.

And the new-kid-on-the-block contemplated venture? Could prove to be a no-account, snotty kid that should never have been paid any mind after all.

I love these wonderful little quips and axioms, but then when I really begin to think about them....

It's a bit like investing: there are guidelines and short-cuts. They're great -- but use them at your own peril. No matter what: there's no escape from the requirement that we think for ourselves.
that's the frustration -- and the joy.

Anonymous said...

I will also note that my most consistent investment Big Mistake is selling too soon. Something more "attractive" came into view (usually during a [temporary] price decline) and I abandoned the original company in favor of the "better" choice, only to regret my decision.

The solution? Better investment parameters in the first place plus the patient willingness to "ride" the inevitable ups and downs in the price of a really good company. Indeed, now I view price declines in good companies as an opportunity to add to a position and/or initiate a position in a good company.