Benjamin Graham’s seminal work, “Security Analysis,” starts with this foreboding quote by the Roman philosopher, Horace:
“Many shall be restored that now are fallen and many shall fall that are now in honor.”
Graham lost everything during the Great Depression, so it is no wonder that he highlights the staggering reversal of fortunes that can happen seemingly overnight if a person is not vigilant. That’s why my word of the year for 2023 is “VIGILANCE.”
Colonel Boyd, who developed the OODA loop, believed that “observation,” the first part of the loop, was critical to informing our later actions. And what do we now observe? We see rising inflation, supply chain breakdowns, demographics issues, political instability, war and the threat of war, uncertainty in the markets, the list goes on. Still, I believe we can remain vigilant and prepare for stormy weather.
Financially, we can do this by having a lot of cash in reserve. Warren Buffett is widely know to be sitting on a cash pile of over $100 billion dollars, ready to scoop up opportunities during a recession. In health, we can keep good habits to prolong our lives as much as possible while waiting on scientific breakthroughs. Dr. David Sinclair, chair of genetics at Harvard, has previously stated that we’re nearing a sort of escape velocity, where the longer we live, the better science becomes — so much that in the near future, we may be able to add greater than one year of life for every additional year that we live. Finally, we can be vigilant about our time, giving it up only to those activities that serve us rather than take away from the legacy we’re trying to build.
How do you prepare for stormy weather? What is your word for the year?
One Ladder Project 