Letter #112: Byron Wien (2013)
Letter #112: Byron Wien (2013)
Vice Chairman of Blackstone's Private Wealth Solutions group and Chief US Investment Strategist at Morgan Stanley | Lessons Learned in His First 80 Years
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Today’s letter is the essay born from the notes Blackstone’s Byron Wien jotted down before a last-minute speech where he shared what he had learned over the course of his career (right before his prepared speech on his world outlook, the conference organizer told him the audience would be much more interested in hearing about what he’d learned over his career vs his view on markets). In this essay, Byron expands on the notes for that speech and shares 20 life lessons that he learned over his first 80 years on earth that he hopes to continue practicing over the next 80 years of his life. These lessons cover everything from health to relationships to career to life experiences and much more!
Byron Wien is Vice Chairman of Blackstone’s Private Wealth Solutions group where he acts as a senior adviser to both the firm and its clients in analyzing economic, social and political trends to assess the direction of financial markets and thus help guide investment and strategic decisions. Prior to joining Blackstone, Mr. Wien was Chief Investment Strategist for Pequot Capital and before that served for 21 years as Chief (later Senior) US Investment Strategist at Morgan Stanley.
In 1986, while Chief US Investment Strategist at Morgan Stanley, Byron started publishing an annual list of “The Ten Surprises,” with “surprise” being defined as an event the average investment professional would assign a 1/3 chance of taking place, but that Byron believes are probable and have >50% chance of happening in the following 12 months. In 2023, he published edition #38. It’s become a must read for everyone interested in investing and one of my personal favorite reads to start every year off with.
In 1995, Byron co-authored a book with George Soros on the legendary investor’s life and philosophy, Soros on Soros – Staying Ahead of the Curve. In 1998 he was named by First Call the most widely read analyst on Wall Street and in 2000 was ranked the No. 1 strategist by SmartMoney.com based on his market calls during that year.
I hope you enjoy this letter as much as I do!
Relevant Resources:
Letter
I was scheduled to speak about the world outlook at an investment conference recently and shortly before my time slot the conference organizer said the audience was more interested in what I had learned over the course of my career than what I had to say about the market. I jotted a few notes down and later expanded and edited what I said that day. I have since been encouraged to share my thoughts with a broader audience.
Here are some of the lessons I have learned in my first 80 years. I hope to continue to practice them in the next 80.
Concentrate on finding a big idea that will make an impact on the people you want to influence. The Ten Surprises, which I started doing in 1986, has been a defining product. People all over the world are aware of it and identify me with it. What they seem to like about it is that I put myself at risk by going on record with these events which I believe are probable and hold myself accountable at year-end. If you want to be successful and live a long, stimulating life, keep yourself at risk intellectually all the time.
Network intensely. Luck plays a big role in life, and there is no better way to increase your luck than by knowing as many people as possible. Nurture your network by sending articles, books and emails to people to show you’re thinking about them. Write op-eds and thought pieces for major publications. Organize discussion groups to bring your thoughtful friends together.
When you meet someone new, treat that person as a friend. Assume he or she is a winner and will become a positive force in your life. Most people wait for others to prove their value. Give them the benefit of the doubt from the start. Occasionally you will be disappointed, but your network will broaden rapidly if you follow this path.
Read all the time. Don’t just do it because you’re curious about something, read actively. Have a point of view before you start a book or article and see if what you think is confirmed or refuted by the author. If you do that, you will read faster and comprehend more.
Get enough sleep. Seven hours will do until you’re sixty, eight from sixty to seventy, nine thereafter, which might include eight hours at night and a one-hour afternoon nap.
Evolve. Try to think of your life in phases so you can avoid a burn-out. Do the numbers crunching in the early phase of your career. Try developing concepts later on. Stay at risk throughout the process.
Travel extensively. Try to get everywhere before you wear out. Attempt to meet local interesting people where you travel and keep in contact with them throughout your life. See them when you return to a place.
When meeting someone new, try to find out what formative experience occurred in their lives before they were seventeen. It is my belief that some important event in everyone’s youth has an influence on everything that occurs afterwards.
On philanthropy my approach is to try to relieve pain rather than spread joy. Music, theatre and art museums have many affluent supporters, give the best parties and can add to your social luster in a community. They don’t need you. Social service, hospitals and educational institutions can make the world a better place and help the disadvantaged make their way toward the American dream.
Younger people are naturally insecure and tend to overplay their accomplishments. Most people don’t become comfortable with who they are until they’re in their 40’s. By that time they can underplay their achievements and become a nicer, more likeable person. Try to get to that point as soon as you can.
Take the time to give those who work for you a pat on the back when they do good work. Most people are so focused on the next challenge that they fail to thank the people who support them. It is important to do this. It motivates and inspires people and encourages them to perform at a higher level.
When someone extends a kindness to you write them a handwritten note, not an e-mail. Handwritten notes make an impact and are not quickly forgotten.
At the beginning of every year think of ways you can do your job better than you have ever done it before. Write them down and look at what you have set out for yourself when the year is over.
The hard way is always the right way. Never take shortcuts, except when driving home from the Hamptons. Short-cuts can be construed as sloppiness, a career killer.
Don’t try to be better than your competitors, try to be different. There is always going to be someone smarter than you, but there may not be someone who is more imaginative.
When seeking a career as you come out of school or making a job change, always take the job that looks like it will be the most enjoyable. If it pays the most, you’re lucky. If it doesn’t, take it anyway, I took a severe pay cut to take each of the two best jobs I’ve ever had, and they both turned out to be exceptionally rewarding financially.
There is a perfect job out there for everyone. Most people never find it. Keep looking. The goal of life is to be a happy person and the right job is essential to that.
When your children are grown or if you have no children, always find someone younger to mentor. It is very satisfying to help someone steer through life’s obstacles, and you’ll be surprised at how much you will learn in the process.
Every year try doing something you have never done before that is totally out of your comfort zone. It could be running a marathon, attending a conference that interests you on an off-beat subject that will be populated by people very different from your usual circle of associates and friends or traveling to an obscure destination alone. This will add to the essential process of self-discovery.
Never retire. If you work forever, you can live forever. I know there is an abundance of biological evidence against this theory, but I’m going with it anyway.
Wrap-up
If you’ve got any thoughts, questions, or feedback, please drop me a line - I would love to chat! You can find me on twitter at @kevg1412 or my email at kevin@12mv2.com.
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Bookshelves — Your favorite investors’/operators’ favorite books.
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