How Cancer Can Teach You About Investing (and Keep You From Losing Your Marbles)
At first glance, the phrase “cancer and investing” feels like they belong in different universes. Think of one as a battle against a relentless disease, the other a calculated dance with money. But if you look a bit closer, you’ll spot a surprising twist of fate: both worlds have a lot more in common than it seems.
1. Spotting the Signs Early
- Early detection is everything. In medicine, a quick biopsy can save lives. In finance, a simple check of your portfolio’s performance can avert a crisis.
- Don’t wait for the “symptoms” to become obvious. Regular reviews keep both your health and your money on track.
2. The Growth Game
- Cancer cells multiply exponentially. The same principle applies to investments: compound interest, reinvested earnings, and a little patience can lead to massive growth.
- Just because things grow fast doesn’t mean you should ignore the risk. Balance is key.
3. Not All Cells Are Equal
- Some cancer types are benign; others are vicious. Similarly, in investing, not all assets carry the same risk.
- Be diversified—mix stocks, bonds, real estate, and perhaps a splash of cryptocurrency if you’re feeling adventurous.
4. Keeping the Spread of Damage in Check
- In cancer treatment, doctors aim to target malignant cells while sparing healthy tissue. In investing, risk management keeps your portfolio from bleeding.
- Use stop‑losses, hedges, and a clear exit strategy to preserve what’s yours.
5. Teamwork Makes the Dream Work
- Survivors often rely on a support network—family, friends, doctors. Investors thrive with mentors, advisors, and a well‑rounded community.
- It’s hard to do both alone, so lean on expertise.
Bottom Line: Learn by Parallels, Live by Strategy
Whether you’re fighting a disease or wielding a dollar, the key themes are the same: early detection, balanced growth, mindful risk, and solid support. Take these lessons to heart—and you’ll be better equipped to navigate both life’s challenges and the market’s thrills.
Want More Wisdom?
Grab a coffee, sit down with your financial planner, and maybe a doctor’s office is another close friend. Who knew that a lecture on cancer could double as a crash course in investing?
Simple way to win cancer
Cancer’s Not‑So‑Secret Weapon: The Art of Saying “No”
When you hit the big screen with The Emperor of All Maladies, the genius behind its scientific backbone—MIT titan Robert Weinberg—drops a little bombshell: “If you don’t get cancer, you’re not going to die from it.” It sounds like a shrug, but actually it’s a story of how the smartest brains in the field might be, rather than killing cancer, just missing the most straightforward lifeline.
Why the “Simple Truth” Gets Overlooked
- Intellectual buzzkill: For a researcher who loves decoding DNA, the idea that quitting smoking is the single biggest game‑changer feels like a generic buzzword talk.
- “No fun in behavioral science”: Weinberg admits that persuading someone to ditch a pipe is less about molecules and more about psychology—“the sort of thing a scientist like me finds boring” even though it could wipe out the disease faster than any lab breakthrough.
So, what’s the real deal? Prevention. A dose of common sense that, if replicated globally, would outdo the best drugs we’ll ever roll out. Yet, it’s dismissed because it’s, frankly, plain old simple.
Investors and the Affinity for Complexity
- Like many scientists, investors chase the dazzling curriculum of gene‑editing, targeted therapy, and clinical trials.
- But they rarely stop to ask: What if the cure was just asking people to stop smoking? That approach is less flashy, but the payoff is massive.
In the end, it’s a lesson for all of us—scientists, investors, and everyday folks: Stop pressing the “fancy” button and reach for the reality button. Sometimes, the hardest victories come from the simplest steps.
Simple way to win the investing game
Ben Carlson: The Doctor of Passive Investing
Ben Carlson isn’t just a tutor for Wall Street’s bright‑eyed interns; he’s the financial whisperer who steers charities, university endowments, pension plans, and other big‑money institutions through the maze of modern investments. When he’s not juggling spreadsheets, he’s e‑slanging away on A Wealth of Common Sense – the blog that turns tangled financial talk into plain‑spoken, bite‑size nuggets.
The “Bogle Model” – A No‑Frills, All‑The‑Same Formula
Back in 2017, Ben threw a spotlight on the ginkgo‑leaf tree of complexity that is the college endowment. He compared it to a lean, muscular routine he dubbed the Bogle Model, named after the late, great index‑fund pioneer John Bogle.
What’s inside? A three‑piece wardrobe of low‑cost Vanguard funds:
- 40 % – U.S. equities (think Big Apple, Wall Street, and a handful of small‑cap mavericks)
- 20 % – International equities (a global tour without the jet lag)
- 40 % – Bonds (safe‑haven for the risk‑averse, proving that a little smoothing keeps the markets from jumping nuts)
That’s it. No weird derivatives, no convoluted structuring – just straight‑forward, high‑return, low‑friction investing.
College Endowments: The Wild West of Investment
Ben reminded us that those institutional funds aren’t just playing checkers. They’re on a real‑world, high‑stakes crusade:
“They pick venture capital, private equity, infrastructure, timber, the best hedge funds in the universe; they have top‑tuna managers of stocks and bonds; they’re borrowing against their assets; they deploy derivatives that would make a taxman’s head spin; and they work with the most massive, well-connected consulting firms. It’s like a corporate circus.”
Think of it as a multi‑season reality show where the stakes are twice the size and the drama is a million times bigger.
The Numbers: The Bogle Model is the Underdog Champion
Over a decade ending 30 June 2016, the Bogle Model dazzled with an annualized return of 6.0 %. Even the cream of the college endowment crop – the top‑10 % of performers – managed an average return of only 5.4 %.
The reality? A simple, well‑balanced portfolio outperformed the most elaborate, expensive college endowment strategies. The “smart” ones, with all their fancy bells and whistles, were actually held back by the very features that made them seem superior.
Why This Matters for You and Me
- Less is more. Complexity often adds fees, taxes, and operational headaches without delivering commensurate gains.
- It’s about staying in the market. The Bogle Model just kept you in the beat of the market’s rhythm.
- Every dollar saved on fees fuels your returns. Those small percentage points can turn into a fortune over the life of a portfolio.
So next time you see a pitch for an elaborate, fee‑heavy strategy, remember Ben’s “Bogle Model” – a lean, mean, winning machine that proves the best strategy is often the simplest one. And to the endowments, perhaps it’s time to roll back the curtain on the circus and embrace a bit of elegance.
K.I.S.S (Keep it simple, silly!)
How Simplicity Drove a 1981 Investment Dream
Ah, the 1981 speech by Dean Williams – a gem in the world of finance. He spun a tale about a certain fund‑manager, Edgerton Welch (yes, he spelled it Welsh in the story, but let’s keep the name handy), who turned a small bank in Chillicothe, Missouri into the country’s top performer for a decade.
The Curious Case of the Local Bank
- Forensic analyses in Pension & Investment Age had been bragging about the best quarterly results all over the U.S., but the top spot went to a humble Citizens Bank and Trust.
- Forbes didn’t argue – a reporter huddled on the street in Chillicothe, hunting the person behind the success. The answer? A 72‑year‑old who had never heard of Benjamin Graham or “modern portfolio theory.”
- “So, how did you do it?” the reporter asked, eyes wide.
Welch’s “Computer” Strategy
Welch scratched his chin, handed over his trusty Value‑Line copy, and explained:
“I buy the stocks that are tagged ‘1’ by me, Merrill Lynch, or E.F. Hutton. If any of those three change the rating, I swoop and sell. Think of it like a computer – you print the data and act on the numbers, not your gut feeling.”
The Forbes reporter nodded, then mused, “It’s not the system that’s the secret, but the consistency of the user.” That line hit home for those of us who cherish simplicity as the maddest underappreciated win‑factor.
My Simple Blueprint
Speaking of simplicity, here’s what steers my own investing playbook—just a quick crown‑point: Find great companies with a long, high‑growth horizon. I love learning what each company does, but I do what a simple-minded investor would do: I dodge over‑analysis of rates and macro trends and just let the company’s story shine.
So, Why Overthink?
Like in cancer research—where the obvious, uncomplicated approach often leads to breakthroughs—investing is no different. Drop the cerebral gizmos and hand‑pick the uncomplicated but powerful ideas. Simplicity can outshine even the shinny, complex ones.
Note: This was first shared on The Good Investors. The content is purely for information and is not financial advice.
