Vision, Capacity, Success

And The Moneyball Method

The Moneyball Method is not primarily about investing, but about redefining success. It is not primarily about investment success, but about principled action. It is not primarily about achieving those goals, but about the emotional payoff from your newly perfected declaration of independence.

That is the concluding paragraph of the book, but it is also the starting point for decisions about cash flow and investment strategy. Once you gain the independence to focus on what you can control, the next step is to think like an entrepreneur. Theoretically, that is about radical self-governance with a new morality to justify your pursuit of happiness. Practically, it is about creating your vision, taking calculated risks and measuring success.

For objective investors, the vision begins with aspirations for the future with dollars and dates on a calendar. Those are then balanced with current financial resources and future cash flow expectations. Success is measured using the most reliable historical data and is monitored constantly as circumstances change. In this environment, both risk capacity and spending capacity are known, but that is only possible because the performance measurement standards have changed.

The Moneyball Method does not live by time-weighted percentage compared to traditional benchmarks. True wealth management uses dollar-weighted returns against the only benchmark that matters – your life as an investor.

In addition, entrepreneurs have three concerns that drive success. They must meet the needs of their customers, be easy to use and understand - and they must be reliable. And in a world of constant change, that means innovation and flexibility, but in our postmodern culture, there is a missing link. There is an intellectual gap. The prime movers at the heart of business success are not known or understood. Those begin with the absolute of reason and the virtues of rational self-interest.

For objective investors, that means respect for money as a tool and the price mechanism of markets as the guide. It means focus on what you can control, understanding risk and spending capacity - and measuring performance by the only benchmark that matters – your chosen values. In that regard, Moneyball meets the need and is reliable.

To better understand, Moneyball is radical because it deals with the root causes and fundamentals of efficient markets - primary wealth creation and voluntary trade. To the extent that it dismisses and replaces the contradictions that dominate Western culture today, it is a manifesto for mass market investors. Ultimately, it means becoming a radical for capitalism in your pursuit of life, liberty and happiness.

Happy Independence Day!