Serendipity: The Role of Luck in Your Life and Career
As the sun sets on another semester, I find myself reflecting on the role of serendipity in our lives and careers. I've been in the finance industry for three decades, and my views on success, money, and the world have evolved significantly. One of the most profound realizations I've had is the importance of luck, or serendipity, in achieving our goals.
In our quest for success, we often overlook the role of random events and fortune. We want to believe that our efforts, intelligence, and skills are the sole determinants of our outcomes. But the truth is, serendipity plays a significant part in our lives, and we do ourselves a disservice by ignoring it.
I've had the privilege of interviewing 650 notable guests on my podcast, including Nobel laureates, CEOs, billionaires, and assorted celebrities. One recurring theme emerged: the role of luck in their success. At first, I dismissed these mentions as a case of false humility. But as the frequency of these mentions increased, I realized that serendipity is a powerful force that we often underestimate.
One of my most memorable interviews was with Howard Marks, Chairman of Oaktree Capital. When he mentioned his good fortune, I pushed back, questioning the role of intelligence and hard work. But his response was eye-opening: "Hard work and intelligence are mere table stakes. Not everybody has fortune smile on them; not everybody gets lucky."
His honesty and sincerity were persuasive, and they made me realize that I might be underestimating the role of luck in my own career. I began to reflect on my life and career, and I realized that serendipity has played a significant part in my success.
One example that stands out is my call to the bottom of the market in March 2009. It wasn't just my analysis that led to this call; it was also the timing of my vacation and the school calendar. My wife, a teacher, was away, and I had time to digest the market's movements. This serendipitous timing allowed me to make a crucial call, which led to my success and the management of millions of people's money.
Another example is my decision to bring Josh Brown from the sell side to the buy side. It was a random choice of a poolside lounge chair that led me to him. This chance encounter allowed me to recognize his potential and bring him to a new level of success.
The launch of my firm, Ritholtz Wealth Management, was also an inevitable result of my frustration with working for others and the state of Wall Street. The timing of the launch, just as a new bull market was starting, was pure chance. These examples illustrate how serendipity can shape our careers and lives.
I've come to realize that hard work, skill, perseverance, and insight are the minimum costs to enter the arena. But once we're there, we need to get lucky. Serendipity is a powerful force that can make or break our success.
I've compiled a list of 10 things that have helped me "get lucky" professionally. These ideas are not just about luck; they're about creating opportunities and being prepared for them:
- Curiosity: Be genuinely interested in many things, including those that may not be related to your career. Be multi-talented.
- Effort: Work hard! If possible, harder than everybody else. Sports coaches know that hard work beats talent.
- Mastery: Find something you really like and spend lots of time and effort mastering it. Becoming excellent at a single thing often spills over to other areas.
- Auto-Didact: Read voraciously. Build a library, learn from the masters.
- Forward-looking: Your academic background matters less and less the longer you are out of school. Stop stressing about it.
- Add Value: Create something of value that others want — and are even willing to pay for.
- Network: Meet as many people in your field as you can. Learn from them, and when possible, be genuinely helpful.
- Specialize: Develop a specialty. Hone that skillset/knowledge until it is razor sharp.
- Be Prepared: "Once in a lifetime" opportunities come along more frequently than you imagine. Be prepared for when those opportunities present themselves.
- Serendipity: Be lucky.
In conclusion, serendipity is a powerful force that can shape our lives and careers. By embracing curiosity, effort, mastery, and a forward-looking mindset, we can create opportunities and be prepared for them. Luck may not be something we can control, but we can certainly increase our chances of success by being proactive and prepared.
