Brent Buckner makes a great point in a comment to an earlier post here. He says, somewhat archly (I think), that,
“Willingness to undergo tedium may thus be a competitive advantage for active investors.”
I agree strongly. One of the things that separates some of the most successful investors I know from the rest of us is that they are willing to spend an inordinate amount of time suffering through excuciatingly boring stuff. For example, pouring over contracts and legal agreements, doing hours of cold-calling for clients, reading lengthy SEC financial filings (and their interminable footnotes), sitting in endless meetings with companies that generally don’t interest you, and so on.
But as Brent says, having that kind of discipline can be a real advantage. After all, there are people who literally count on the fact that most people aren’t able to suffer through boring analysis. So they hide things in financial footnotes, and some even even try to drag out meetings to the point where proudly ADD sorts will literally agree to anything to get out, and then they spring some complex request that they really want, knowing that the I-hate-being-bored gang will say no mas just to get out of the room and back to pretending to be productive while emailing/browsing/talking/reading/IM-ing.
To digress slightly, all of this does, however, remind me of the wonderfully nihilistic passage in Joseph Heller’s Catch-22 where Dunbar explains why he loves shooting skeet because it was such a mind-crushingly boring way to spend time:
Dunbar loved shooting skeet because he hated every minute of it and the time passed so slowly. He had figured out that a single hour on the skeet-shooting range with people like Havermeyer and Appleby could be worth as much as eleven-times-seventeen years.
‘I think you’re crazy,’ was the way Clevinger had responded to Dunbar’s discovery.
‘Who wants to know?’ Dunbar answered.
‘I mean it,’ Clevinger insisted.
‘Who cares?’ Dunbar answered.
‘I really do. I’ll even go so far as to concede that life seems longer I -’
‘- is longer I -’
‘- is longer – Is longer? All right, is longer if it’s filled with periods of boredom and discomfort, b -’
‘Guess how fast?’ Dunbar said suddenly.
‘Huh?’
‘They go,’ Dunbar explained.
‘Years.’
‘Years.’
‘Years,’ said Dunbar. ‘Years, years, years.’
‘Clevinger, why don’t you let Dunbar alone?’ Yossarian broke in. ‘Don’t you realize the toll this is taking?’
‘It’s all right,’ said Dunbar magnanimously. ‘I have some decades to spare. Do you know how long a year takes when it’s going away?’
‘And you shut up also,’ Yossarian told Orr, who had begun to snigger.
‘I was just thinking about that girl,’ Orr said. ‘That girl in Sicily. That girl in Sicily with the bald head.’
‘You’d better shut up also,’ Yossarian warned him.
‘It’s your fault,’ Dunbar said to Yossarian. ‘Why don’t you let him snigger if he wants to? It’s better than having him talking.’
‘All right. Go ahead and snigger if you want to.’
‘Do you know how long a year takes when it’s going away?’ Dunbar repeated to Clevinger. ‘This long.’ He snapped his fingers. ‘A second ago you were stepping into college with your lungs full of fresh air. Today you’re an old man.’
‘Old?’ asked Clevinger with surprise. ‘What are you talking about?’
‘Old.’
‘I’m not old.’
‘You’re inches away from death every time you go on a mission. How much older can you be at your age? A half minute before that you were stepping into high school, and an unhooked brassiere was as close as you ever hoped to get to Paradise. Only a fifth of a second before that you were a small kid with a ten-week summer vacation that lasted a hundred thousand years and still ended too soon. Zip! They go rocketing by so fast. How the hell else are you ever going to slow time down?’ Dunbar was almost angry when he finished.
‘Well, maybe it is true,’ Clevinger conceded unwillingly in a subdued tone. ‘Maybe a long life does have to be filled with many unpleasant conditions if it’s to seem long. But in that event, who wants one?’
‘I do,’ Dunbar told him.
‘Why?’ Clevinger asked.
‘What else is there?’
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Excellent!