Luck, Skill and Big Fortunes

In 1991, I met Torben Karlshoej, the founder of Teekay Shipping, which is now a global shipping empire with billions in revenue, assets and company value. Mr. Karlshoej was an unforgettable character who would take many pages to describe. I will just say that his private yacht was a converted freighter which I saw at anchor from my small 36’ power boat. His dinghy was likely larger than my whole boat.

Mr. Karlshoej founded his company in 1973 when he arrived in L.A. from New York with only a few dollars in his pocket. But he had several things of great value: he had worked in the ship chartering business, so he knew the shipping industry better than most. He had incredible drive and determination and worked truly around the clock. But he had a final gift which made the big difference: his timing was impeccable. There had just been a major setback for the global shipping industry in the early 1970’s and most people were pulling back. He saw the opportunity to expand and to buy or charter ships at rock bottom prices, which later soared in value. In 20 years, he became a global shipping magnate, starting from nothing. His luck, skill and timing brought him enormous wealth.

I have had the good fortune in my banking career to meet many other successful entrepreneurs: some worth millions, others worth tens of millions, a few with hundreds of millions, and a handful of genuine billionaires. (I mention Mr. Karlshoej by name, since he tragically died a year after I met him. I do not like to write about business people by name who are still alive, since I respect their privacy.)

I have witnessed first-hand what a top international banker told me as a young man: it takes both good luck and great skill for big-time success in business. Some people believe that luck alone can get you there. That is rarely true. I met someone who won $8 million in a lottery, but if he was a typical winner, a few decades later he would have very little left. The same is true for inherited wealth; it rarely lasts more than 2 generations, if that long.

In my experience, the successful business people were incredibly skilled, but that alone did not account for their success. They also needed timing, lucky breaks, and other fortuitous factors on their side.

Similarly, I could begin to describe the skill-set that it takes to become a great entrepreneur. Determination is crucial, together with discipline, financial shrewdness, marketing savvy, technical smarts, access to capital, industry knowledge, willingness to take big risks, and sometimes ruthlessness. (I personally would rather die a pauper than to lie, cheat and steal; but unquestionably, a shrewd entrepreneur needs to make very hard decisions.)

But sometimes misfortune can also play a role in our success. I suffered from Polio at age 5, which left me severely crippled for a few years. Although I gradually recovered and now enjoy comparatively good health, my childhood illness put me into hospital for a year and left me unable to compete in sports. Consequently, I became a voracious reader, which accounts for my exceptional academic performance and a scholarship to Harvard. Obviously, I also had a good attitude towards my misfortune, or I would not have used it as a stepping stone to a successful career.

But life is much more than about making big fortunes. When Mr. Karlshoej died suddenly in his early 50’s, I felt very sad for him. Although he made it to the big times, he didn’t live long enough to fully enjoy it.

My advice to those seeking a fortune is don’t try too awfully hard. You can never achieve it by determination alone. Unless the wind of providence is blowing in your sails, you will likely be part of the 99% who tried and failed, rather than the 1% who makes it big. And enjoying life is even more important than financial success!

ABC’s for Success – final installment

Hope is a priceless gift. If you can hold on firmly to hope in the worst of situations, your career has a real future. Always keep your hopes high, but keep your short-term expectations low.

Hurry is usually unnecessary, when you are headed in the right direction. Hurry may bring disaster if you are going the wrong way. Just keep up a steady pace in your work – that is better than hurry. Work is a long distance race. Learning to pace yourself is a key job skill.

Limitations – everyone has personal limitations; we never have all of the skills, training and ability which are needed in our work. These limitations may be physical, mental, or due to lack of motivation and determination. You and I need to overcome our limitations, every day, in order to become the best that we can be. Blaming others is just an excuse – we can usually accomplish what we really want to do, regardless of the external obstacles or our own internal limitations.

Pay Work is about much more than just your pay. Obviously, you need money, and pay ought to be fairly allocated. However, when you concentrate on doing your job well, your pay usually sorts itself out in due course. You may not get your full rewards immediately, which can be discouraging. It takes considerable time for your organization to realize how well you work and for your pay to therefore increase. But if you concentrate on doing great work, your financial future will be assured

Punctuality is evidence of commitment, right attitude, and good planning. If you fill your schedule too full, it will get out of control; every thing will become late, including you.

Self-reliance and Independence – Learn to become independent at work and to rely on your own resources most of the time. That doesn’t mean that you should not ask for help, but don’t become dependent on a friend, or boss, or on an organization. Sooner or later, they will let you down, because nobody else can look after you all of the time. You must do it yourself.

Stress is inevitable at work. Moderate stress is healthy and motivational. However, too much stress is a killer. Stress can gradually build up and accumulate until it becomes truly overwhelming. It can rob you of both your physical health and your emotional health. Learn to reduce work stress by relaxation, recreation, time away from work, by taking mental breaks, and by getting more exercise. Your work life depends on managing your stress levels.

“Unemployable” is a term which might apply to you due to your age, your race, religion or health, which are not your fault. However, most people become unemployable due to their negative attitudes, their poor work habits and/or unrealistic job expectations. People of any age or background can usually find work if they have a wonderful attitude, good work habits, and the willingness to take any reasonable job offered to them, however menial. Those people may start low, but they will eventually rise to greater success. However, people who complain constantly, who do poor work, who are habitually late, who can’t get along with their bosses or fellow workers, and who do not deliver what they promise, will find themselves out of work indefinitely. Become employable! It is mostly up to you.

Training your thoughts seems almost impossible, but it is crucial for success in work. What you read, what media you watch and listen to, forms much of the input for your thoughts. Mental discipline requires the same dedication as physical training, but the benefits are even greater. Observing your thoughts and slowing them down helps to achieve control. Meditation and prayer are means of training your mind, as are reading, music, science, academic study, and gardening, to name a few activities which are good for your mind. Watch and guide your thoughts carefully. They determine who you are and what you will become.

Working well in difficult circumstances is a real challenge, but it is something we face during much of our lives. We cannot change these difficult circumstances quickly, but with courage and determination, we can adapt ourselves quickly to make the best of the situation.

Those who have the gift of positive thinking are able to see hope and opportunity when people all around them are giving up in despair. Overcoming difficult circumstances makes us stronger and more capable for other challenges. Those who overcome challenges again and again rise up to become heroes, artists and leaders.

Yielding is a sign of grace, intelligence and maturity. There are definitely important matters where we need to hold our ground at all costs, but for small matters yielding is generally advisable to avoid conflict and bad relationships.