Common Sense Investing… How To Catch An Elephant
Issue 24.09
As I write this I am enjoying a beautiful week in San Diego where our daughter Dana will soon be married. We rented a home by the beach so our family can enjoy the lovely ocean air, while having plenty of room for all the kids. The weather is beautiful, the views gorgeous and the moist ocean air makes it easy to forget some of the cares of our time.
The gentleman who rented us this home owns a used car dealership in San Diego. With all I have heard about the economy of this area, I asked him what he has done to stay in business through it all. With a big smile he replied that not only has he stayed in business, but each of the past six months has seen increasing record sales for his dealership. When he told me his secret I knew I had found a friend who saw things much the way I do.
In the fall of 2008 he said people were so desperate to get rid of their gas guzzling vehicles that they would sell them at almost any price, so he started buying. He bought up all the SUV’s and pick-up trucks he could get money to pay for. He had learned two important things from his experience selling cars. First, people in San Diego love their big SUV’s. Second, Americans have very short economic memories.
Sure enough, as soon as the price of gas fell below $2 a gallon, Hybrid sales came to a screeching halt and his dealership with its huge selection of V8’s became the hottest ticket in town. As he handed me the keys to a 2008 Prius, which he is kindly allowing me to drive for the week, he said with wink, “I can’t give these things away today, so I am stocking up on them now while they are cheap because the price of gas won’t stay down forever.”
There is an old saying that if you want to catch an elephant you don’t shoot it in the rear with an arrow, you get out in front of it and dig a big hole. Our economy is like a massive herd of elephants. Too many investors are continually running behind shooting arrows. Few, like my new friend, are wise enough to get out in front of the herd and wait for it to come to them.
Dan Wyson, CFP® is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #305 St. George 435-986-9525 - Securities offered through LPL Financial FINRA/SIPC
