Even a sparkling new ice rink couldn't completely shine the shadows off our little posse of 12-year-old rink rats. Most of our shenanigans were harmless, but not all.
On the fringe of our young group was an outsider - not a youth and not quite a man. Brian was a very friendly, mentally-challenged adult. He chain smoked, and carried a small, broken black radio in one arm wherever he went. He would stand at the edge of wherever we were, just watching us goof around. From time to time he would catch someone's eye, nod his head, and smile knowingly as if he had been in on the joke, whatever it was.
Brian was truly a harmless soul, but some in our group had a disturbingly mean streak in them. Although I do not wear the guilt of having ever joined in, I wish I had done more to protect him. Some of the boys would surround Brian like a pack of coyotes and badger him with swearwords, finger poking, a little pushing, or even steal his precious radio.
Brian would mumble under his breath, try to make a joke of it or lamely fight back, but it was usually the girls who put an end to it.
This climaxed one day when we were on a school field trip, walking down a side street toward the arena. It was a sunny spring morning at around 9:30 AM and there was Brian stretched out on the hood of a car, in his winter jacket, smoking a cigarette, "listening" to his broken radio and sunbathing to his heart's content.
The bully boys couldn't contain themselves.
They wrestled him off the car and began swarming like rats on a ham sandwich. The ring leader was particularly on his game, circling the prey, shouting, swearing, laughing and waiving his arms in the air as if he was a quarterback inciting the crowd noise up a notch.
Just then, one of the prettiest girls in class glided in decisively, and pushed her way between bully and victim, slapping the agitator smartly across the face and said "Is that it? Is that what makes you feel like the big man?"
The perpetrator gave ground to her, shrinking from his stage, and muttered something to his cronies.
Quieter now, but even more deliberate, she followed after him.
"You disgust me!" she shouted.
And that ended it.
Brian brushed himself off, and smiled at his beautiful young rescuer, as the rest of us shuffled on to our destination, quietly wondering why we hadn't stood up to the brute ourselves.
Investment decisions - by committee or by individual talent?
Later today a small group of us will meet with a mutual fund manager to discuss financial market trends, opportunities and risks. He is younger than me, but more educated, and is very gifted at both financial analysis and communication. It is interesting to compare investment decision models among firms and funds. Some tend toward committee deliberations, others lean heavily on a few bright individuals to lead the way.
As can be seen in the above story, even people in small crowds don't always move in accordance with their own personal inclinations. Committees, whatever their mandate, will usually be lead by one or two extroverts who thrive on the group dynamic, and some of these would leave the perfectly valid opinions of the introverts swept under the table like chalk dust.
While most investment decisions are made on the quiet, most investment opinions are very public and these same issues arise in investment committees. This makes for an eclectic stew of money and sense.
According to Dr. Sharon Livingston, a marketing psychologist, there are good and bad manifestations of this in the group dynamic. Often one person wrestles control over the committee:
"In a productive group, the 'good' alter leader often is the first to speak up. He seriously thinks about questions, and is enthusiastic and supportive of the process. He addresses constructive questions to other panel members. He believes the group's opinions really do count.
"In a nonproductive group, the alter leader also is vocal, but negative and resistant. He objects to the questions, answers questions not asked, and tries to enforce his views."
Other fund companies make no pretense of a committee structure and allow a few key decision makers to rule the day, at least in the funds they personally manage.
The most extreme examples of these are with some hedge funds, which are typically managed under a shroud of proprietary secrecy, for better or worse.
Some of us ignore the rock star status achieved by mutual fund managers and take a "show me" attitude.
Whatever the structure of the investment policy tool, we will listen to and ponder their recommendations, but ask how has their fund responded to various market conditions? What risks are associated with its core holdings? Have they proven themselves over a reasonable amount of time?
The proof is in the pudding.
Mark Ryan is an advisor in Prince George with RBC Wealth Management, Dominion Securities (member CIPF) and can be reached at [email protected].
