Why There Are No Brave Old People In Finance

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interview on Wall Street an hour early, because I didn’t want to be late. I sat in a Chock Full o’Nuts coffee shop nursing a cup of coffee, the one cup I could afford, checking my watch every couple of minutes. When 9:00 a.m. arrived, I went into the headquarters of Donaldson Lufkin Jenrette at 140 Broadway, up to the thirty-sixth floor.

So we formulated a clear set of expectations, which I laid out in a welcome speech to our new analysts. It boiled down to two words:. If we delivered excellent performance for our investors and maintained a pristine reputation, we would have the opportunity to grow and pursue ever more interesting and rewarding work. If we invested poorly or compromised our integrity, we would fail.we hired a young banker from the corporate finance division at Drexel Burnham Lambert.

And right on cue, a few months after we closed, steel prices began to nosedive. Edgcomb’s inventory was now worth less than they had paid for it and dropping in value every day. The profits we anticipated, which were to pay our borrowing costs, never materialized. We couldn’t make our debt payments. Edgcomb was imploding, just as David Stockman predicted it would.

I had fallen into a trap common to many organizations. In my enthusiasm to give a new partner a shot with the Edgcomb deal, I had made myself and the firm vulnerable. I had succumbed to a good sales pitch. I learned later that one of the analysts on this new partner’s team had opposed the deal. He couldn’t see it ever working. But the partner had told him to keep his doubts to himself.

We decided to involve all of our senior partners in our discussions of investments. We would never again allow one person single-handedly to green-light a deal. During my career, I had gotten things more right than wrong, but Edgcomb had shown that I was far from infallible. My colleagues had decades of experience. By working together, arguing and applying our collective wisdom to evaluate an investment’s risks, we hoped we could examine our deals more objectively.

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It’s more than a failure when you haven’t given it thought !

😍

The true definition of sin is doing, or being wrong. Americans are programmed to believe right/wrong are subjective, and quantified by popular opinion. If the whole world voted to change the sky from blue to green, calling the sky green would still be wrong.

So in other words: STOP TEARING DOWN THE MONUMENTS TO THE HISTORY OF OUR GREAT COUNTRY. THE GOOD. THE BAD. THE TRUTH.

You'll never be president that way.

Perfect

Exactly 💯

Valid point! Yet, talking about one's failure openly attracts extended attention to it and thus has a needlessly long 'stay' on your mental-shelf. So while it's crucial to talk to a 'confidant' about it, it's a tad too much to make a 'case' out of it for 'decision making' rules.

What about ur success? Mute 🤐

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