What do a legendary investor, Buddha and a rock and roll titan have in common? Change.

Sometimes you cannot ignore a good coincidence: Backdrop: I was enjoying my weekend ruck[i], amidst the picturesque fall leaves of Rose Valley, PA, at the Old Mill, a place I've frequented for over 20 years and where my parents also got married (back in 1974). This spot along Ridley Creek clearly holds a special place in my heart, for, in addition, I have also come to the creek (crick in Delco[ii]) with three different dogs over the years and brought my kids there when they were younger (and still let me plan their Saturdays).

This ruck coincided with my weekend reading, spanning topics from Karen Armstrong's book "Buddha" to my newly acquired seventh edition of Benjamin Graham’s "Security Analysis[iii]" edited by the esteemed investor Seth Klarman[iv], whom I also recently had the privilege of hearing speak. Seth's opening to the book, included a statement, "Change is the one constant in the investment world," which clearly echoed the Buddhist teaching on impermanence, emphasizing life's transient nature and susceptibility to change. To top it off, as I rucked by the creek (what better symbol of impermanence than a river or creek), I celebrated the 30th Anniversary of Pearl Jam's "Vs." album, which includes, a crowd favorite, “Elderly Woman Behind the Counter in a Small Town” – which too focuses on change.

So, on Saturday afternoon, I found myself at the river's bend, letting London, our German Short Hair Pointer (following in the footsteps of kin, Cody and Kenai), swim, and the poignant lyrics of "Elderly Woman Behind the Counter in a Small Town" playing, reminding me of the evolving nature of our lives and the bittersweet nostalgia we often feel.

Hopefully, Eddie[v] and Seth have studied their Buddhism, for this weekend, Seth, Buddha, and Eddie all converged creekside in Rose Valley, harmonizing the impermanence of existence and encouraging acceptance of this reality to seek inner peace and liberation from suffering.

I could not pass up thinking of how all these masters of thought and words collided on a topic so important to investing: A strong principled foundation with room to evolve. Here we go:

1. Seth Klarman's Quote: "Change is the one constant in the investment world."

   - This statement highlights the fundamental truth that financial markets and investment landscapes are constantly evolving. Economic conditions, market trends, and investor sentiment can change rapidly. Successful investors must adapt to these changes to make informed decisions.

2. Buddhism and Impermanence:

   - Buddhism teaches the concept of impermanence, which is the idea that everything in life is subject to change, including our circumstances, emotions, and experiences. Nothing remains static, and clinging to the idea of permanence can lead to suffering.

   - From an investment perspective, recognizing impermanence can help investors avoid overconfidence and excessive risk-taking during periods of success. It encourages a more mindful and balanced approach to financial decision-making.

3. Pearl Jam's Song: "Elderly Woman Behind a Counter in a Small Town"

   - The song reflects on the passage of time and the sense of nostalgia for a simpler, bygone era. It reminds us that our lives and circumstances evolve, and we often look back with a mix of emotions.

   - In investing, nostalgia for past successes or failures can cloud judgment. Investors who dwell too much on past performance may make decisions based on outdated information or emotional attachment.

So how can these insights make us better investors:

1. Adaptability: Embracing change and impermanence in the investment world can make investors more adaptable. Being open to new information, adjusting strategies, and staying flexible in response to evolving market conditions is crucial for long-term success.
2. Mindfulness: Understanding that markets are dynamic and subject to change can promote mindfulness in decision-making. Mindful investors are less likely to make impulsive decisions based on fear or greed and are more likely to make rational choices that align with their long-term goals.
3. Balanced Perspective: The combination of these insights encourages a balanced perspective. It reminds investors not to get carried away by euphoria during bull markets or discouraged by downturns. Keeping a long-term view and maintaining a balanced portfolio can help mitigate the emotional ups and downs of investing.

In summary, rucking obviously clears the mind!

My take: Seth Klarman's quote, the Buddhist teachings on impermanence, and the lyrics of Pearl Jam's song collectively emphasize the importance of recognizing change and impermanence in both life and investing. Incorporating these insights into your investment philosophy can contribute to better decision-making and long-term success as an investor (with the added potential benefit of improving on a life well lived).

Signing off – The Rucking Pearl Jam Singing Buddha Capitalist…

[i] In the context of hiking for exercise, a "ruck" typically refers to the act of carrying a weighted backpack, often called a "rucksack," to increase the intensity of the hike and provide a challenging workout. The added weight in the backpack simulates real-world conditions, making the hike more physically demanding and helping to improve strength and endurance.

[ii] "Delco" is a colloquial term used to refer to Delaware County, a county in Pennsylvania, USA. In this region, you might hear some residents use the term "crick" instead of "creek" when referring to a small waterway. This is an example of a regional or dialectal variation in language, where "crick" is a common local pronunciation or colloquialism for "creek." It's a feature of local language and is not used universally.

[iii] "Security Analysis" by Benjamin Graham, first published in 1934, is a seminal work in finance and investing that laid the foundation for value investing, emphasizing the importance of rigorous analysis and intrinsic value assessment of securities, profoundly influencing countless investors and becoming a cornerstone of modern investment philosophy.

[iv] Seth Klarman is a well-known American investor and the founder of Baupost Group, a highly regarded hedge fund based in Boston. Klarman is known for his value investing approach, which involves seeking out undervalued and distressed assets in the financial markets. He has a reputation for careful risk management and a long-term investment perspective. His investment insights are often sought after, and he has written a book titled "Margin of Safety," which is considered a classic in the field of value investing.

[v] Eddie Vedder is an American musician and singer-songwriter best known as the lead vocalist and one of the founding members of the rock band Pearl Jam

About the Author – Dane Czaplicki, CFA®

Dane Czaplicki is CEO of Members’ Wealth, a boutique wealth management firm that offers a comprehensive approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of wealth management experience, Dane and the Members' Wealth team thrive on bringing clarity and confidence to clients' unique situations. He believes everyone needs sound financial advice from someone whose interests are aligned with theirs, and is determined to put service before all else.

Dane received his MBA from The Wharton School of Business at the University of Pennsylvania and his bachelor’s degree from Bloomsburg University. Outside work, he enjoys spending time with his wife and kids, hiking and camping, reading, running, and playing with his dog. To learn more about Dane, connect with him on LinkedIn.

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