After leading the Los Angeles Lakers to victory in the 1987 NBA Finals, Head Coach Pat Riley did something unprecedented. During his victory speech in front of a crowd full of fans and reports–not to mention the players on this team–Riley made a claim that shocked everyone. After the obligatory comments regarding how happy he was to be in Los Angeles and so on and so forth, he finished his short speech with the simple statement, “…and I guarantee everyone here that we’re going to win it again next year.”
Was the statement a mistake? Did Riley get caught up in the heat of the moment? Many commentators certainly thought so. How could anyone guarantee something so difficult? But, it turns out that it wasn’t a mistake–it was a strategy. Riley knew exactly what he was doing. After winning a championship, Riley understood that players sometimes let down their guard. They could begin to feel untouchable and consequently not work as hard to remain competitive. In guaranteeing that his team would achieve victory yet again in the subsequent season, Riley motivated his team to work extra hard in order to meet those expectations. And, guess what? Pat Riley was right; they won again in 1988.
Never underestimate the power of beliefs. You know the story of the little engine that could. Uttering the mantra to himself “I think I can, I think I can, I think I can,” and really believing it, was the only thing that gave the little train the strength to make the trip. Henry Ford has famously said, “Whether you think you can or think you can’t, you’re right.” In psychology, they call it the self-fulfilling prophecy. When you believe something, you often necessarily act in such a way that leads it to become true.
So, what does all this mean for investing? Really, it’s all about maintaining a positive attitude. When the market is down, pessimism can creep in quickly and cause you to believe that all is lost. The thing about the power of belief is that negative beliefs can lead to self-fulfilling prophecies just as much as positive beliefs can. What if Pat Riley had said, “We probably won’t win it next year?” Do you think his team would have worked as hard? What if the little engine had said, “I don’t think I can?” Do you think he would have completed his task? If you think you can’t, you’re right. As an investor, you need to stay positive and continue to believe–even through the dark times–that it will turn out alright in the end. Staying positive will prevent you from making the decisions that turn your fears into realities.
Your Beliefs Determine Your Destiny. Your mind-set and beliefs control our actions and, to a large extent, determine what happens to you in the future. If you take control of your beliefs, you can purposefully choose new ones or modify the old ones to change your destiny. Money beliefs are very powerful. When you take control of them you can tap into amazing opportunities for wealth creation. If you would like to learn some tips and tricks on how to stay positive through the tough times, please feel free to reach out to us for a free consultation. We want to help you move past your fears to make your dreams come true.