Yet all three contain lessons that apply just as much to investing as they do to life.
The Snowball – Compound more than just money
Alice Schroeder’s biography of Warren Buffett is called The Snowball because Buffett once described life as being like rolling a snowball down a long hill. If you start with the right snow, on the right hill and keep it moving, it gathers more snow as it goes until it becomes something far bigger than where it started.
Most people assume the snowball refers simply to Buffett’s wealth – but it’s much more than that.
Over the decades, Buffett has accumulated knowledge. He accumulated trusted relationships. He accumulated a reputation for integrity. He accumulated wisdom through thousands of decisions – both good and bad. Every conversation, every book, every investment and every lesson became another layer of snow. Over time, that snowball became an extraordinary force.
The lesson is that compounding isn’t just about money. Knowledge compounds. Habits compound. Trust compounds. Friendships compound. Character compounds.
We live in a world that celebrates overnight success, yet Buffett’s life reminds us that the most meaningful achievements are usually built quietly over decades. Small, intelligent decisions, repeated long enough, become a remarkable force.
Man’s Search for Meaning – You always have a choice
Viktor Frankl’s Man’s Search for Meaning is one of the most profound books I’ve ever read.
Frankl survived Nazi concentration camps, where he lost his parents, his brother and his wife. Few people have endured circumstances more horrific. Yet from that unimaginable suffering came one of the most enduring ideas about human nature.
He wrote: “Everything can be taken from a man but one thing: the last of the human freedoms – to choose one’s attitude in any given set of circumstances.”
Frankl wasn’t suggesting that we can control what happens to us. Life is often unfair, unpredictable and painful. His insight was that we always retain the freedom to choose how we respond to situations – good and bad.
That’s a lesson I’ve found myself returning to repeatedly at Generate. We can’t control whether markets rise or fall tomorrow. But we can control whether we panic, stay disciplined or take advantage of the opportunities volatility creates.
The same principle applies well beyond investing. It isn’t always easy and to this day, the right response often deserts me. But when you get it right, it’s hugely empowering.
Open – Success should serve a purpose
Fans queue for tennis great Andre Agassi signing copies of his autobiography, Open, at Paper Plus in Newmarket, Auckland.
Andre Agassi’s autobiography Open surprised me more than almost any book I’ve read.
It’s easy to assume it’s a story mainly about resilience, determination and sporting greatness. However, I think its deeper message is something else entirely.
Agassi’s story isn’t that success brings happiness. It’s that success gives you the opportunity – and perhaps the responsibility – to decide what really matters.
Despite winning Grand Slams, becoming world No 1 and achieving almost everything a tennis player could dream of, he openly admits that for much of his career, he didn’t even enjoy tennis. It wasn’t until later in life, through his family and his commitment to improving educational opportunities for disadvantaged children, that he found a deeper sense of purpose.
That resonated with me because it raises an important question: what are we ultimately trying to achieve?
At Generate, our key purpose is delivering market-leading returns. Knowing we are helping hundreds of thousands of New Zealanders is seriously motivating.
But what gives me an extra spring in my step is knowing that Generate provides rewarding careers for about 250 staff and advisers. And it’s making investments that create positive change, whether that’s being the first KiwiSaver provider to invest in social housing, or Generate having invested more into New Zealand’s venture capital industry than any other KiwiSaver provider.
Kicking goals matters. But they can be a platform to deliver something more.
Three books, one philosophy
At first glance, these books have very little in common.
One is about investing. One emerged from one of humanity’s darkest chapters. One is about professional tennis.
Yet together, they describe a surprisingly simple philosophy for investing and life.
Buffett reminds us that our daily choices compound. The person we become is shaped by the habits we build, the people we surround ourselves with and the decisions we make over many years.
Frankl reminds us that while we can’t choose every circumstance, we can always choose our response. In the end, our attitude is one of the few things that is entirely ours.
Agassi reminds us that success is not the destination. It simply gives us the opportunity – and perhaps the responsibility – to decide what really matters.
Perhaps that’s the lesson these three very different books share. Build your snowball patiently. Choose your response wisely. And remember that success isn’t the finish line. Making a meaningful difference to the lives of others – whether it’s one person or 1000 people – is what really matters.
Generate is a New Zealand-owned KiwiSaver and Managed Fund provider managing over $10 billion on behalf of more than 200,000 New Zealanders.
This article is intended for general information only and should not be considered financial advice. The views expressed are those of the author. All investments carry risk, and past performance is not indicative of future results.
To see Generate’s Financial Advice Provider Disclosure Statement or Product Disclosure Statement, go to www.generatewealth.co.nz/advertising-disclosures/. The issuer is Generate Investment Management Limited.