Seth Godin is my favorite blogger. I religiously read each and every one of his blog posts. Recently, I read three of his books and here is my take on them from an investing and trading perspective.
The Dip: “If it is worth doing there’s probably a dip.” A dip is the effort and price you pay for success. “It’s the incredibly difficult challenges (the Dips) that give you the opportunity to pull ahead.” If you are developing a trading algorithm, it may take a few years of playing in the sandbox to discover your winning formula. When I designed my first algorithm, I managed to cross the dip and I am now enjoying the results. It was hard work and therefore very hard for anyone else to replicate. Are you ready to pay the price?
You want to become a successful investor? Are you ready to pay the price Eddie Lampert, WarrenBuffet, John Paulson, and other successful investors have paid to conquer their respective dips? (Amazon links: http://bit.ly/8VtcgV )
Purple Cow: The financial world is serviced by conventional providers! Do you remember the Morgan Stanley TV ad where the advisor wept at the wedding? That clip sounded hypocritical to me. Differentiate yourself from the nonsense. Be customer focused, lower financial transaction costs, embrace new technologies to connect with your customers, and increase transparency. The financial world needs new leaders. It needs Purple Cows! (Amazon Link: http://bit.ly/8U6Xfx )
Tribes: Build tribes in the financial world. Tribes need leaders. Go lead a financial tribe. Conventional Wall Street services its customers on the one way street. They don’t build communities. Howard Lindzon with his StockTwits movement has created a hugely vigorous tribe. Seeking Alpha is another one. Check them out and learn how they are leading. (Amazon link: http://bit.ly/6ALffJ )