Throughout this book, I cite research to support the recommendations I make for defining your own personal Gyroscope. Some of this material is from contemporary sources. Yet, for many of the over-arching concepts and themes, I draw from the ancient world.
When financial services professionals first enter treatment, we start with a review of some key themes, including virtue, character, greed, obsession, and other classically based time-proven behavioral standards.
For these exploratory exercises, we start from the beginning with the ancient philosophers, beginning with Aristotle.
A BETTER USE FOR MONEY
Aristotle (384-322 B.C.), student of Plato, counsel for Alexander the Great, preeminent thinker, is notable for his advanced prescient theories on the elements and influences of a market economy, conceived more than 2,500 years ago, yet are still relevant today. In his Topics, Aristotle provides his philosophical analysis of human ends and means, theorizing that means, or instruments, of production are valuable because their end products are useful to people.
The more useful or desirable goods are, the higher the value of the means of production.
Money represents all other commodities for Aristotle. Money is not necessarily wealth, because if one only had money they would starve.
Instead, the value of money is as a medium of exchange.
One can store wealth with money. Aristotle contended that the components of wealth were coined money, property, livestock, implements, and slaves.
For Aristotle, though, the individual human action of using wealth is what constitutes the economic dimension.
The purpose of economic action is to use things that are necessary for life (survival) and for the Good Life (flourishing).
Extrapolation of Aristotle’s teachings are nothing new for modern economists, though it is questionable how many FPs actually incorporate these ideas into their own ideology.
Aristotle provides unique perspectives for financial professionals who trade money and equities day in and day out. Awareness of Aristotelian theory can only enhance the understanding of their mission. Putting money into perspective in one’s life can only strengthen and expand the FP’s capacities and in turn his mission.
WHAT IS THE POINT OF ACCUMULATION OF WEALTH?
When I counsel my patients, I ask them to analyze themselves and assess whether the accumulation of wealth is the ends or the means? So then, what becomes of the individual once the wealth is realized? Do they grow into it? Do they become kinder and more spiritual? Do they work and play more effectively with others? Do they feel safer and more secure? Do they have more self-respect? These are important life issues regardless of your portfolio size.
How much is enough?
They realize that when happiness is predicated solely on the accumulation of wealth, satisfaction can never be truly achieved. The psyche can only be briefly satiated. Think back to my initial moment of enlightenment when a young analyst entered treatment after landing an $11 million contract.
These are fundamental existential questions FPs need to tackle and ultimately process so their Gyroscope travels smoothly.
Aristotle envisions “The Good Life” as the moral life of virtue through which human beings attain happiness. The purpose of economic action is to use things that are necessary for life (survival) and for the Good Life (flourishing).
Further on in this book we take a deeper look into the definitions and meanings of key terms of self-awareness, especially the essence of virtue. And, the common thread that is woven through the Wall Street Psychologist’s Gyroscope is the aspiration to achieve personal and professional virtuosity. How these constructs are related to fiduciary responsibility will be made clear later on.
Yet, if the individual is locked in a cycle of constant accumulation, competition, and display of wealth, they will never achieve true fulfillment.
HOW DO YOU DEFINE HAPPINESS & FULFILLMENT?
I do not advocate a Spartan existence. A successful individual is entitled to enjoy the fruits of his labor and the entitlements of his position.
There is certainly no end to the examples of lavish spending in the financial services sector. But there is nothing inherently wrong with extravagance, as long as the opulence is not driven by obsessive behavior. Obsessive behavior is mechanical and generally a symptom of the need to resolve ambiguity and gain control in order to avoid depression.
Clearly, accumulation that what was once amusingly tolerated has become synonymous with greed, exemplified by the ridiculous displays of wealth from the likes of Kenneth Lay (Enron), Bernard Ebbers (WorldCom), John Rigas (Adelphia Communications), and Dennis Kozlowski (Tyco).
John Thain, the former CEO of Merrill Lynch who resigned from Bank of America after its acquisition of Merrill Lynch, spent a reported $1.2 million to redecorate his office, including an $87,000 rug, a $68,000 credenza, a $1,400 wastepaper basket, and, most notoriously, a $35,000 commode, at a time when the company faced $15 billion plus loss in 2008’s fourth quarter, prompting an additional $20 billion of government bailout money (on top of the $25 billion already provided).
Earlier, Kozlowski was slammed repeatedly for billing his company for a $19 million home in Florida, an $18 million apartment in New York and $11 million in antiques and furnishings, not to mention a $6,000 gold and burgundy flower-patterned shower curtain, and a $2.1 million birthday party for his wife featuring country singer Jimmy Buffett.
Former General Electric boss Jack Welch was also dinged for his use of an $80,000-a-month New York apartment complete with cook, housekeeper and wait staff, as well as tickets to New York Yankees and Boston Red Sox baseball games and the post-retirement use of the company’s Boeing 737.
One of the distinctions between Thain and Welch, in terms of public and professional perception, is perhaps that Merrill Lynch was rapidly deteriorating, while Welch’s legacy at GE was intact.
And, these men all dismissed criticism as irrelevant. In a jail-house interview, Kozlowski even insisted he was not even aware of these purchases.
Still, there is no disputing the outrageous materialism in the financial services industry. What are these people really searching for; how could they in good conscience justify their behavior.
Are these cases of malignant narcissism coupled with pure psychopathy?
Many of my patients have contended that most of their CEOs are ego maniacs with incredible acting skills, or lemmings that have risen to the top by “hook or crook,” or just through “dumb blind luck” feeding on the hero worship and insecurities of their underlings and shareholders.
The question remains, is the act of acquisition the source of satisfaction, though ultimately elusive as it may be? Or, is accumulation a conduit for facilitating a lifestyle where you find your fulfillment?
This is a key distinction. My experience has been that satisfaction based on the act of accumulation is ultimately elusive and fleeting, and usually based on more deeply seeded psychological issues.
Conversely, leveraging techniques, such as the Wall Street Psychologist’s Gyroscope, to re-calibrate your value system to instead view accumulation as strictly a conduit to attain happiness is the path to true, sustainable fulfillment.
Aristotle got it right.
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17 “Topics” is the name given to one of Aristotle’s six works on logic collectively known as the Organon. The other five are: “Categories”, “De Interpretatione”, “Prior Analytics”, “Posterior Analytics”, and “On Sophistical Refutations”.