W e all face times when things seem really bad, even hopeless. At these moments it is easy to become discouraged and to view the situation as strictly a negative obstacle to success and happiness. But many of these situations are actually valuable opportunities for greater success disguised as pending failures. The old expression “It’s always darkest before the dawn” points to the opportunities that frequently lie just beneath the dark surface.
Sir John Templeton, one of the greatest financial investors of the twentieth century, recognized this potential. The basis for his tremendous financial success is a philosophy that the best time to invest is at “the point of maximum pessimism.” In other words, he has advised acting in ways that seem counterintuitive. Instead of trying to go where the outlook is best, he has searched the world for places where the outlook is most bleak, where others are scared and fleeing from a particular market.
Some of the notable examples of Templeton’s against-the-tide investments include Japan in the 1960s when people thought the Japanese market was a mess and it would be crazy to invest there, Ford Motor Company in the late 1970s when the future looked very bleak for the auto giant, and Peru in the mid-1980s when political tension gripped the country and money and the middle class were fleeing. He committed significant sums in each of these cases and just a few years later earned millions on these investments.
Templeton saw significant stock market drops, which sent others into panic selling, as golden opportunities to invest. The best time to buy is when everyone is selling, the price is low, and there is almost nowhere to go but up, was the logic he espoused. This perspective extends to many other difficulties beyond financial investing. When things have hit bottom in some aspect of our lives, we have an opportunity to rebuild, to try something new and fundamentally different, to make an investment when there is little left to lose and a lot to gain.
Throughout history human beings have resisted change that threatens their current comfort zone. That is, until things start to go bad and that comfort zone becomes quite uncomfortable indeed. Personal relationships, for example, can get in a monotonous rut. But when conflict springs up, and things get difficult, the motivation to change is created. And often the closest bonds between people result from facing a crisis together.
Many of the greatest innovative breakthroughs have resulted from formidable problems that arose that needed to be solved: spectacular medical advances from the onslaught of serious illnesses and injuries; revolutionary new construction strategies and materials from the threat of horrific storms and earthquakes; powerful new energy sources and vastly more efficient cars and machinery from serious shortages and environmental dangers; and even effective strategies of diplomacy from crises between groups and nations.
So when things get bad and pessimism abounds, don’t panic and back off. Remember, it was gravity itself that ultimately challenged and motivated us to fly. Instead of retreating, move in closer and look very carefully. Search for the treasures that can produce life’s greatest success opportunities when difficult circumstances are upon us time and again.
When pessimism abounds, don’t retreat . . . move in and look for the treasures that difficult circumstances create for success.
Good Morning and Happy New Month 💫
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