The parable of the Mexican fisherman and the American banker
Financial wisdom in the parable of the fisherman and the banker...
The parable that changed my perspective forever
I came across this story a number of years ago. Ever since then, whenever I need to reset my perspective for why I'm working and setting lofty financial goals, I refer back to this simple story with a powerful message.
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The Parable of the Mexican Fisherman and the American Banker
An American investment banker was taking a much-needed vacation in a small coastal Mexican village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it.
The investment banker was impressed by the quality of the fish and asked the fisherman how long it took to catch them.
The fisherman replied, "Only a little while."
The banker then asked why he didn't stay out longer and catch more fish?
The Mexican fisherman replied he had enough to support his family's immediate needs.
The American then asked, "But what do you do with the rest of your time?"
The Mexican fisherman replied, "I sleep late, fish a little, play with my children, take a siesta with my wife, stroll into the village each evening where I sip wine and play guitar with my amigos: I have a full and busy life, señor."
The investment banker scoffed, "I am an Ivy League MBA, and I could help you. You could spend more time fishing and with the proceeds buy a bigger boat, and with the proceeds from the bigger boat, you could buy several boats until eventually, you would have a whole fleet of fishing boats. Instead of selling your catch to the middleman, you could sell directly to the processor, eventually opening your own cannery. You could control the product, processing, and distribution."
Then he added, "Of course, you would need to leave this small coastal fishing village and move to Mexico City where you would run your growing enterprise."
The Mexican fisherman asked, "But señor, how long will this all take?"
To which the American replied, "15-20 years."
"But what then?" asked the Mexican.
The American laughed and said, "That's the best part. When the time is right, you would announce an IPO and sell your company stock to the public and become very rich. You could make millions."
"Millions, señor? Then what?"
To which the investment banker replied, "Then you would retire. You could move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take a siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."
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I really do love this story.
It makes you think about why you're doing the things you do to build wealth, but also helps you realize that if you just look at what you have around you, the wealth you seek might already be in front of your nose.
When you reach your financial goals in 15 to 20 years, what do you plan to do?
3 Moves to make this week
Figure out how much you spent last week and spend less this week.
Try saving an extra $10 / day and depositing in your savings account. Make a real effort to transfer or deposit via ATM that $10 extra each day.
Figure out someone you can model. Do they live a simple but enjoyable lifestyle that you'd enjoy living? Learn how they reached their goals, and model what the steps they took to get there.
Interesting Fact
There are over 300,000 items in the average American home.
#TooMuchStuff
Today's Investment Tip
Look for a quote, parable, or poem that inspires you and will help you focus on your goal. Buy a nice framed copy on Etsy or somewhere similar. Hang it up somewhere visible where you can see it every day.
Tuesday Trivia
What was the name of Mr. T's character in The A-Team?
Answer below
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Trivia answer:
Mr. T played B.A. Baracus in The A-Team. B.A. stood for Bosco Albert or Bad Attitude. "I pity the fool"