Execute With Urgency
I read a fantastic book by Tim Grover on vacation two weeks ago called ‘‘Winning: The Unforgiving Race to Greatness’’.
Grover is a performance coach who trained some of the best athletes of all time, including Michael Jordan, Kobe Bryant and Dwyane Wade. In his book, he shares how these winners operate and the main characteristics they have in common.
I found it fascinating how he debunked some common misconceptions people have about success, like achieving balance, getting up early, focusing on the journey instead of the destination, and much more. Here’s an example:
‘‘Every single day, I get messages and emails from people sending me videos and pictures of themselves working out at 4:00 a.m. I have no idea why. I assume they’re looking for congratulations and “You got this!” But honestly, who cares if you’re in the gym at 4:00 a.m. or 4:00 p.m. or any other time? Did you get results? Are you achieving something?’’
Grover argues that winners only focus on execution and delivering results.
You don’t need to show people what you’re doing. You don’t need to look like you work hard.
It’s not ‘‘fake it till you make it’’. It’s just make it. Deliver results, and your brand will build itself.
One point in the book that struck a chord with me was the need to execute with urgency.
‘‘Long-term goals are great… but “long term” isn’t promised to anyone. Your skills and opportunities have an expiration date. If you want something, go get it now.’’
I pride myself on thinking long-term in all facets of my life. If you’re familiar with my approach, you probably know I’m a long-term investor.
I’m also very process-driven. I try to get 1% better every day, which isn’t sexy in the short term but builds tremendous results over the long term.
I still believe in all those things, but it’s crucial to remember that… the long term isn’t promised to anyone.
I could be gone tomorrow. I don’t have unlimited years to make my dreams happen.
In some ways, thinking long-term can create a sense of complacency and procrastination. The belief that I’ll get somewhere someday doesn’t foster an extreme focus on daily results.
‘‘Most people never think about running out of time. They look ahead and see days and months and years of empty dates on the calendar, and assume they have plenty of time to fill them. Kobe [Bryant]’s success wasn’t the result of managing his time. It was the result of his relentless focus on results.’’
To Grover, a sense of urgency is the ultimate distinction between winners and losers.
So, how does that apply to investing? How can you develop a sense of urgency without becoming short-term focused?
Well, here are a few things I’m personally striving to improve:
Turning over rocks: The more new investment ideas you look at, the higher your odds are of finding a great one. An urgency to turn over the most rocks is critical.
Prioritizing: As a portfolio manager, I’m ultimately judged based on the results I deliver (i.e., my fund’s returns). How can I generate better returns? Answering that question and executing, day in and day out, should be my single priority. What doesn’t lead to better returns can wait.
Concentrating my portfolio: Every once in a while, I realize that I waste so much time owning subpar opportunities. I’m talking about a handful of 1-2% positions that take up more time and mental space than my 10-15% positions. Focusing exclusively on high-conviction ideas frees me up to think about and find more high-conviction ideas.
Paying attention to catalysts: In microcaps, catalysts matter. The market is inefficient. People don’t do proper research. You can find something that’s undervalued, and it can stay that way for months or years unless there’s a catalyst that wakes other market participants up. Wanting the market to recognize value quicker is not being a short-term investor. There’s no virtue in waiting 3 to 5 years for an investment thesis to play out. If it works out in 6 months, fantastic!
Insisting on execution from my portfolio companies: In microcaps, shit happens. Setbacks and delays happen (too often). These are small companies, I get that. However, I’ve been terrible at drawing the line and determining when enough is enough. Either you execute, or you don’t. I must be ruthless about selling positions when the thesis is not working. Or maybe a little activism wouldn’t hurt in some cases. Either way, I must ensure I invest with people who have the same focus on results as I do.
It’s still a work in progress, but I think these initiatives foster a sense of day-to-day urgency while pursuing the overarching goal of being long-term focused.
To quote from another book I’m currently reading, ‘‘Our ability to achieve extraordinary results in the future lies in stringing together powerful moments, one after the other.’’ – Gary Keller, The ONE Thing
The long term is only a collection of short-term moments compounded over time.
Compounding is powerful. Don’t underestimate it.
And it starts NOW.
Disclaimer
This publication is for informational purposes only. Nothing produced under the Stocks & Stones brand should be construed as investment advice or recommendations. Mathieu Martin, the author, is employed as a Portfolio Manager with Rivemont Investments. This publication only represents Mathieu Martin’s own opinions and not those of Rivemont.
If you’d like to invest in small public companies, check out this post.