Day 2 Quote 2: Only A Fool Holds Out For Top Dollar

Quote 2: Only A Fool Holds Out For Top Dollar

- Joseph P. Kennedy



Question: Would you rather opt for a guaranteed short-term gain or an unsure (but is definitely better) long-term gain?

Let’s say I’m giving you two options:

-         Option 1: I’ll give you a million pesos right now

-         Option 2: Depending on my mood, I’ll give you five million pesos or 0 pesos two years from now.

Considering the inflation rate, the second option still sounds waayy better. However, there is a catch to it – it can either be zero or five million. Yes, you can use the DCF (Discounted Cash Flow) equation to find out which option would yield a higher return. But in accounting for uncertainty (or, in this case, the chances of getting the “bokya” money), you would need to at least have a solid probability [of the chances] of either getting the five or “bokya” million pesos. Overall, what you can get is what’s called the “best estimate.” But since the differentiator or the decision maker is my mood (which is obviously qualitative), how you can logically decide what option is better? Or what is the “best estimate of returns”?

Going back, this is what Day 2’s topic answers. Only a fool holds out for top dollar! Following this thought, the risk of waiting for the five million pesos after two years is not worth it. You have to live for the now! Only fools turn down current opportunities in the hopes of receiving a very BIG opportunity in the future. It’s all about guaranteed success!

On the flip side, it’s also true that the biggest winners are fools! If you don’t risk anything, the chances of landing a BIG success are minimal. Risk Takers are those who defy the odds and take chances. They are the ones who have the guts to pursue something regardless if the cards are stacked against them. They seek for the bigger prize instead of settling for the small but guaranteed win.

But, be warned!

There are fools and there are smart fools. Fools are those who just keep on hoping for the promise of the future. Smart fools are who that still do the same but carefully analyze the situation if they have a realistic chance of getting the big prize in the end.

Smart fools are the true winners!

For me, I’d rather risk something than not risk anything at all. I love the thrill of chasing something that you are unsure of. It gives me a sense of an adrenaline rush. But, I still have to be careful as to what extent am I willing to take risks and if the prize in the end is all worth it.

I try to be a smart fool!

How ‘bout you? Do you want guarantees or do you want to be foolish? If you answer the latter, are you just a plain old fool or are you a smart fool? Pick a side.