Boney M sang this blockbuster hit in the ’70s.
I’m sure you’ve heard it, because it’s still the rage.
he’s crazy like a fool – what about daddy cool?
Who’s Daddy Cool?
You tell me.
Is it you, in a cool cucumber moment, slow to respond to stimulus, devoid of anger, master of your situation in a kinda non-bossy, non-micro-managing (cool) way?
And what of Mr. Hyde’s Dr. Jekyll nature?
We’re talking about your “like a fool” moment.
Just for your information, winning behaviour is often termed foolish by the crowd.
Contrarian investing is one such example.
Successful derivative trading is another.
To cap it, let’s not even talk about private equity in real-estate.
Did someone mention high-yield structured-debt?
There are many examples of “foolish” behaviour.
These same examples earn very well.
… how do we do it?
We maintain our cool.
We keep all basics going, as they are.
With a small portion of our surplus, we take calculated risks, in a controlled environment.
Sure, these risks will appear foolish to someone on the outside.
However, our controlled environment has installed riders for our safety.
A balance-sheet might be stressed, but not stressed enough for bankruptcy.
A lock-in might be ultra-short.
A stop-loss might be in place.
Collateral might be up to 4x.
There might be a highly reputed Trustee in between.
What have you.
Have your Daddy Cool fool-moments.
Take some calculated risks with small portions of your surplus.
These should give your portfolios an extra-boost.