theme might be to peek at Warren Buffett’s holdings or the Janus
fund’s (they are publicly available, after all) and then duplicate that
portfolio. (Isn’t it an odd profession that allows you to do this? In
grade school this was called cheating. In business it’s called best
practices.) This approach of borrowing the best practices of others
looks especially attractive when you consider the alternative: dar-
ing independence! Mustering your courage and your capacity for
radical thought and striking out on your own. Yikes! No thanks,
Dilbert and I will wait here in the cubicle.
Again, though, personality style is relevant.
Which types are most likely to accept risk? As noted earlier, the
foxes (SPs) like risk. They are the hedge-fund managers and day
traders. They love action and adventure. In fact, they would hate
copying someone else’s portfolio. Typically, then, foxes are already
primed for risk taking. They are natural-born contrarians. Index
funds? Forget it.
In contrast, lions (SJs) don’t like risk. They tend to be tena-
cious and effective but only with the traditional techniques. They
like stability and steadiness. Remember their motto, “I’m steady.”
They will be most resistant to dramatic contrarian investments.
Having worked in several shops that were heavily stocked with
lions, I know this behavior first-hand. One lion chief investment
officer continually talked a good game about risky new growth
opportunities, like starting a mutual fund, or acquiring one, or
spinning off the investment department and making it a separate
entity. Bold plans, rife with risk, they conjured up the image of
Lewis and Clark or the search for the Northwest Passage. The truth
was more like Homer Simpson rooting around in the fridge for
a doughnut. Given the lion (SJ) nature of this CIO, each time he
drew his sword for a new adventure, he instead used it to cut
expenses by selling off asset groups or reducing headcount. Lions
tend to be great cost cutters, but growth, especially when it
involves significant risks, is very difficult for them. The solution
in this case would have been a balance between the SJ lion ener-“R” Is for Risking Discomfort 17714-25 ware 177 1/19/01, 1:15 PM