OUT OF THE BOX: GRANT'S RULES FOR INVESTING AND GRANT'S RULES OF CONDUCT

For more than forty-eight years, I have wandered around Wall Street. Looking back, looking at our history, is an interesting adventure, that we can all learn from. Experience is the best teacher! Looking forward, however, is a more interesting adventure, as we have the opportunity to create our own history.

For more than thirty-five years my nickname on Wall Street has been “The Wizard.” I may not have seen it all, but I have seen a great deal of it. I don’t watch sports, I have never played golf, I don’t fish, I only socialize with very interesting people, and I focus on the “Great Game,” with incredible intensity.

I get up between 3:00-4:00 AM daily, seven days a week, to ponder the markets, my client’s portfolios, and often times to write my commentary, “Out of the Box.” I go at it with vigor, because I continue to be fascinated with winning, in the most complicated game on Earth, Wall Street. The X-Box has nothing that is even close to it.

From time to time, and today is one of those days, as we carefully navigate 2023, I share with you what I have learned. Recently, one of the largest money managers in the world asked for my updated recount of the Grant’s Rules. Here you are my friend, the Grant’s Rules for Investing, and Grant’s Rules of Conduct, and what I think “really” matters. I hope the rest of you enjoy my musings as well.

Grant’s Rules for Investing

1.?????Preservation of Capital

2.?????Preservation of Capital

3.?????Preservation of Capital

4.?????Preservation of Capital

5.?????Preservation of Capital

6.?????Preservation of Capital

7.?????Preservation of Capital

8.?????Preservation of Capital

9.?????Preservation of Capital

10.?Preservation of Capital

11.?Make Money

12.?When a company is under Federal investigation for Fraud---Sell.

13.?When a company gets a “Going Concern” letter from its auditors---Sell

Grant’s Rules of Conduct

Your reputation is EVERYTHING. Guard it with your life. Your word is not only your bond, but it is also your future. There is no amount of money that is worth tarnishing your reputation. This plays out in a number of ways, living in your own skin, sleeping soundly at night, and earning the title of being a “stand-up guy.” Not even the title of CEO, or Chairman of the Board, carries more weight.

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

-Warren Buffett

In my life I have learned that you can’t sit back and let life happen to you. No, you have to go out and make your own “Mark” on life, so says Mark.

Surround yourself with people you love, and who love you. The rest, well, be polite.

There is nothing you can do about getting older. There is “everything” you can do about getting old. You can trust me 100% on this one.

My wonderful mother recently informed me that life comes in three stages:

Youth

Middle Age

And, “Oh, you’re looking good.”

I am now at the point in my life where I am doing my very best to be “looking good.”

Your best, that is what you give. Not one iota less, ever. Good is never enough. Learn to be Great!

In a nod to my fuzzballs, the three Sages, Ms. Lalique, Ms. Crystal, and Mr. Tracker, I remind you that it is not two legs or four legs. It is just who you love!

When you meet an obstacle, and you will meet plenty of them along the way, here are the instructions: “You can go over it, you can go under it, you can go around it, you can go through it, and when nothing else works, dance until it moves.”

Winnie the Pooh said it best, “You can’t stay in your corner of the forest waiting for others to come to you. You have to go to them sometimes.” Just take his advice, “Think it over and think it under.”

Many people, along the way, will tell you, “It can’t be done.” Just smile, and then do it. I have done this several times in my life. They will never forget the moment, and neither will you. Never!

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.”

?-Dr. Seuss

Life is just an adventure. More than that, it is “your” adventure. You don’t “know” where you came from. You may believe, but you don’t “know” where you are going, when you leave this Earth. Have a wonderful adventure, from your first breath to your last breath. Nothing less, not one iota less!

I have had several memorable experiences in life. It was on April 10, 1972, that I got to have dinner with Charlie Chaplin. I would guess that I am one of the last people alive to have that honor. Another wonderful moment in my life was when I got to sit on the Throne of the Pope. I asked for “Divine Guidance.” I also got to have brunch with the immortal Mae West once in my life. I quote her today, “You only live once, but if you do it right, once is enough.”?

The road to success comes in four stages. They are dreaming, thinking, planning, and executing. Everyone can dream, fewer can think, fewer still can plan, and the people that know how to execute, to get things done, are a very, very rare breed. Learn how to execute.

No university, on the planet, teaches deductive reasoning. It is one very important key to winning on Wall Street, “Figuring it out.” Go buy yourself the collective Sherlock Holmes books. Read them. Learn how to reason deductively and always remember, “The game is afoot.”

“Holmes and Watson are on a camping trip. In the middle of the night Holmes wakes up and gives Dr. Watson a nudge. “Watson” he says, “look up in the sky and tell me what you see.” “I see millions of stars, Holmes,” says Watson. “And what do you conclude from that, Watson?” Watson thinks for a moment. “Well,” he says, “astronomically, it tells me that there are millions of galaxies and potentially billions of planets. Astrologically, I observe that Saturn is in Leo. Horologically, I deduce that the time is approximately a quarter past three. Meteorologically, I suspect that we will have a beautiful day tomorrow. Theologically, I see that God is all-powerful, and we are small and insignificant. Uh, what does it tell you, Holmes?” “Watson, you idiot! Someone has stolen our tent!”

-Sir Arthur Conan Doyle

Make sure your tent hasn’t been stolen.

Wishing, Hoping and Praying are not functional tools of the Great Game. Avoid them and the people that use them. Our playing field is riddled with both their losses, and their memories.

If you make a mistake, it is “your” fault. It is never “their” fault and always remember, “There is no crying in the trading room.”

On Wall Street, “Experience” is the teacher. She is a harsh taskmaster. The test comes first, and the lessons come afterwards.

Wall Street, you know, is a kind of Wonderland. It is just like Alice stated, “Curiouser and curiouser.”

Remember the Past and make use of it. Stand in the Present and contemplate it. Finally, stride purposefully into the Future. It is yours to own!

If you want to be successful, don’t go with the crowd. Make your own path and leave a trail for the crowd to follow.

Learn how to transform Excellence from a goal, into a habit.

Take the shot. No goal can be made, unless the shot is taken.

You get in life what you have the courage to achieve.

Wall Street is full of storms. Most people just stand there and wait for them to pass. I suggest that you follow Gene Kelly and learn how to dance in the rain.

When opportunity knocks, open the door.

Learn to be so good at what you do that they can’t ignore you. If you are really, really good, however, you will find that you can ignore them.

In my first job interview on Wall Street I was asked, by the head of Human Resources, what I wanted to be. I said, “Fascinated.” I was told that I didn’t understand the question. I replied that she didn’t understand the answer. I was hired.

Wall Street isn’t about finding yourself. It is about creating yourself. Wall Street is not a spectator sport.

Learn the Rules like a pro, so you can bend them like an artist.

Keep your eyes on the stars and your feet on the ground.

In the middle of any difficulties, if you look around carefully, you may find new opportunities.

Life is like a book. Each day is a new page. May your book be a bestseller with adventures to tell, lessons that have been learned, and tales of accomplishments to remember.

It is our choices that determines who we are. It is our dedication, our courage, our creativity, and our abilities, that can make our choices our reality. Never back up.

Today, you have 100% of your life left.

Finally, there is “Stuff.” If it is your health, or the health of those that you love, two legs or four legs, or if it is a significant amount of money, then it matters. The rest is just “Stuff.”

Don’t confuse what matters, with “Stuff.”

Mark J. Grant

????????????Chief Global Strategist

????????????Colliers Securities

[email protected]

????????????U.S. 954-999-0933