This year, we have yet again numerous members with an annual rate of over 20%
Hello, this is GezoYamashita.
The “10,000-Hour Rule”
Surely you have
heard somewhere before.
“If you spend 10,000 hours, you can reach pro level.”
That kind of story, but...
According to the latest research,
it seems that conclusion
was a little different.
“Becoming top class doesn’t simply come from practicing for long hours.””
（Newsweek Japan edition:
“Bad news... ‘Effort beats talent’ was a lie”
https://www.newsweekjapan.jp/stories/world/2019/08/post-12868_1.php）
It seems so.
Next, we will introduce the details of the experiment.
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“ violinists were gathered and divided by ability into three groups: “Very good,” “Good,” and “So-so,” with 13 people in each group.
Then, for each musician, interviews were conducted about their musical history, achievements, and practice time.
Additionally, they kept a one-week practice diary.
The violinists in the “so-so” group had accumulated an average of 6,000 hours of practice by age 20,
but the groups labeled “very good” and “good” had both accumulated
an average of 11,000 hours of practice.
The share of performance difference accounted for by practice time was
about one-fourth, they found.”
（Newsweek Japan edition:
“Bad news... ‘Effort beats talent’ was a lie”
https://www.newsweekjapan.jp/stories/world/2019/08/post-12868_1.php）
In other words,
if you practice,
you can reach a decent level, but
simply practicing alone will not
lead you to certain domains.
There are limits beyond which you cannot reach.
The main factor is probably “talent.”
That said, most people
already sense this, right?
You’ve likely thought, at least once,
“No matter how hard I try, I can’t beat that guy.”
Perhaps you’ve had one or two such moments?
Feeling the limits of talent,
“Effort cannot beat talent.”
Many people may think so.
Indeed, there are people who bloom overwhelming talent effortlessly and attract attention.
In the trading world, it’s the same.
There are people who are born with talent.
For example, Warren Buffett.
From now on, every day, to the point of not even sleeping,
to think only about investing and to study
and actually invest
Even someone like Warren Buffett
will not be listed on Forbes World’s Billionaires
Rank.
No one can deny that Buffett has talents that cannot be matched by effort alone.
“The world is unfair and unequal.”
Unfortunately, this is the truth of the world.
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The market is not a place where only talent prevails
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But if you want to earn stable profits in the world of investing,
there is good news.
Fortunately, the world of investing is not a place where only talent matters.
Even with zero investing talent, you can
surpass globally renowned investors.
Of course,
if you have little investment capital,
you may find it difficult to surpass them in amount, but
in terms of “profit margin,”
you can surpass Buffett’s, for example.
Buffett’s annual return is around 20%, but
achieving a track record higher than that is
not a fantasy.
Of course,
I’m not talking about
“just once, you happened to earn”
or anything of that low level.
What I’m saying is that achieving an annual rate of 20% consistently
is possible regardless of talent.
Generally this is almost impossible, but it’s true.
I have seen that reality over several years.
In the stock academy I run as president,
there are people who exceed 20% annually year after year.
We hold an annual ceremony called the “Warren Buffett Award” for such individuals.
Members are required to submit their trading accounts before the award is given,
so those who win have clearly achieved an annual rate of over 20%.
For those who know the norms of investing, this may be hard to believe, but
we have a video capturing last year’s award ceremony here.
Here it is:
⇒https://www.youtube.com/watch?v=vOyHnmLCZU8&feature=youtu.be
If you watch this, you will understand that
what I’m saying is not a lie.
The video also features comments from those who were awarded,
so please take a look.
This year, the Warren Buffett Award ceremony is planned for September,
and we have already received Entries from members who have surpassed 20%.
That aside, what I really want to convey is
that even if you don’t possess Buffett’s unique global talent,
it is possible to achieve world-class results at an annual rate of 20%.
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Knowing a winning method is not enough.
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I told you talent isn’t the key, but
then what is needed to achieve world-class results?
“Whether you know a winning method or not?”
That is what matters.
Knowing a winning method or not changes life dramatically.
However, simply knowing a method is not enough.
No matter how wonderful the method,
if you cannot use it well, it’s meaningless.
Like knowing how to putt in golf but not being able to hit like a pro,
it’s not enough to know the method; you must be able to apply it effectively.
So, how can you become able to use the method properly?
In the Buffett Award video you just saw,
participants answer questions in interviews,
and their words contain hints, so
I’d like to share a few of them.
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（1:46〜）
The seniors also give very serious advice and help,
and I feel I’m learning in a very good environment.
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（2:48〜）
Even after work, studying materials and attending study groups
and taking active steps,
I’ve made friends, which changed things.
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（3:02〜）
Being able to ask about stocks,
coming here helped me meet many people,
and I didn’t feel alone anymore; I felt safe.
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There are many more comments I’d like to share,
but what many people said was
“the presence of peers is the big thing.”
In the Stock Academy,
comparing profits with others is prohibited,
so everyone isn’t jealous of each other
and instead shares knowledge in a friendly, homey atmosphere.
Moreover, the presence of peers is the key reason why our members
consistently achieve annual rates of 20%.
Of course, there are people who trade alone, without speaking to anyone,
and still profit, but
the vast majority gain motivation, inspiration, and profits
through interaction with peers who study the same method.
Let me state clearly again: the market is not about talent.
What you need is a “winning method” and good peers.
It isn’t that only Stock Academy is wonderful.
Please find a method and peers you can genuinely trust in your own way.
With that, please enjoy watching until the end today as well.
Thank you.
Keizo Shimo
