Investment lessons from Rocky Balboa

Years ago, when I first saw “Rocky”, I was hooked onto it immediately. Since then I have watched the entire series umpteen times, and it has never failed to impress. While few would dispute the entertainment (remember I am a fan), the Rocky fable also offers some handy investment lessons. Read on.

It's about how hard you can get hit and keep moving forward

At its core, the Rocky saga is a tribute to the indomitable human spirit. That makes it the greatest underdog story of all times. Let’s not forget that Rocky is a boxer who is on the wrong side of age with a bad eyesight. But what he lacks in physical attributes, he more than makes up for in determination. To quote Adrian: “All those fighters you beat, you beat them with heart not muscle”.

Likewise while investing, it is undeniably important to be well-informed of the nitty-gritties of the economic environment, market conditions and investment avenues. But alongside the aforementioned, investors must also possess the ability to be resilient at all times. For instance, they should succumb neither to temptation (take on undue risk to make a quick buck in frothy markets), nor to panic (in down markets when fundamentally robust investments are trading in the red). Investors who can detach themselves from the noise in the markets and resolutely stay the course are often best placed to succeed over the long-haul.

Nobody's ever gone the distance with Creed. All I wanna do is go the distance

Throughout his boxing career, Rocky is unambiguously aware of his goal. Also, his unwavering focus and willingness to do all it takes to achieve the goal are noteworthy. For instance, when he first goes up against Apollo Creed, he simply wants to last the entire match, but in the rematch he focuses on beating Creed. Against Clubber Lang, it’s about regaining his confidence and the title. For taking on Ivan Drago, Rocky choses to train in testing conditions in Russia.

At the risk of using a cliché, investing without a goal is a bit like a journey without a destination; you never know where you will land up. Before investing, investors must decide what their goals are i.e. what they intend to accomplish and how much monies are require for the same. This in turn will help them figure out their investment horizon, avenues to consider and even the sum of money to be invested. Having pre-set goals also helps evaluate if investments are panning out as expected, and if not, corrective action can be taken.

Because I’m a fighter. That’s the way I’m made

In the Rocky series, the protagonist dabbles in vocations ranging from a thug for a loan shark, trainer to a restaurateur. However his true calling is to be a boxer and that’s where he is at his best. This is a classic example of identifying one’s true self and then sticking to it.

On their part, individuals must identify what kind of investors they are. They should find out how much risk they can take i.e. are they fine with risking money invested in a trade-off for higher-than-average returns? Or, do they put a premium on preserving capital, even if it means foregoing returns? Likewise, investors should try to determine if they are comfortable trading around, or is a long-term oriented buy-and-hold approach more apt for them? Such insight into their psyche will aid investors devise an investment philosophy that they are most comfortable with. It is no less important for investors to consistently adhere to their philosophy.

I wanna thank Mickey for training me

Admittedly it’s Rocky who wins all those glorious bouts in the ring, but he is always backed by a strong team. To begin with, he is mentored and trained by Mickey; subsequently it’s Creed and Duke who take on training duties. Let’s not forget that Adrian and Paulie are omnipresent in Rocky’s corner. Simply put, it pays to have a strong team.

There’s a plethora of investment advisers and financial planners who can help investors manage their monies. Then there are investment-focused publications and websites which can also aid investors. Investors would do well to make the most of the available resources. Expectedly, investors must ensure that the chosen adviser is competent, experienced, has a proven track record and always acts in their best interests. Likewise, before relying on a website or publication, investors must verify its credibility.

It ain’t over till it's over

In his career Rocky goes up against some formidable opponents–Creed, Lang, Drago, and Mason Dixon to name a few. Have you noticed how each opponent is more fearsome than the previous? Sure, Rocky does beat most of them, but nonetheless, each time a new opponent shows up, and the Rocky saga continues.

It's no different with investments. The investment process never comes to an end, not even for investors who may have an ideal portfolio in place. Factors such as changing market conditions, and investors’ needs and finances necessitate a constant review of the portfolio. For instance, often when one need is fulfilled, a new one crops up. At times, existing needs change with passage of time. Hence, investors must understand that investing is not a one-off activity, rather it’s an ongoing activity that they must devote adequate time to.

The Lords of Flatbush: A small classic

The black & white image on the blog has evoked a fair bit of curiosity. I have had several queries on what it stands for. Here goes - it's an image from a 1974 movie called "The Lords of Flatbush" - TLF. A typical low-budget independent flick, over the years, it has acquired a cult status. Also, it happens to be one of my all-time favourites.

For most, TLF's claim to fame is that it boasts of several major stars in their pre-stardom days. Of the leading men, Perry King subsequently made a name for himself as a television star starring in the series "Riptide" and several made-for-TV films. Henry Winkler acquired iconic status playing "Fonzie" in "Happy Days". Finally, a lesser-known actor called Sylvester Stallone went on to become one of the biggest movie stars portraying legendary characters like "Rocky" and "Rambo".

But there's much more to TLF than its star cast. Set in the 1950s, it's a heartfelt coming of age tale. The central characters are a bunch of leather-clad, teen-aged delinquents who are resisting growing up. They identify themselves as members of a 'social athletic club' called the Lords of Flatbush. And their activities include indulging in boorish behaviour, picking up fights, chasing girls, stealing cars and playing pool. In fact, the opening credits unambiguously establish the credentials of the Lords.

As is often the case with low-budget flicks, TLF suffers from some serious technical flaws. Oddly, they add to the film's gritty and real theme. And that is one of TLF's fortes. Unlike "Grease" (the far more popular 1950s movie that hit theatres a few years later), which is about as real as Santa Claus, TLF offers an earthy look at life in the 1950s, despite the leather jackets, pompadour hair, vintage cars and bikes, drive-in, soda store et al. It's about believable characters in life-like situations.

While the performances are top-notch, the well-etched characters and perfect casting deserve to be applauded as well. Perry King enjoys maximum screen time; armed with a cool bike, he is the Casanova with a roving eye. Sylvester Stallone plays the archetypal tough guy with a heart of gold, with a lot of gusto. Henry Winkler has the brains in the gang and is clearly wasting his time. But then breaking ranks and doing something worthwhile wouldn't be Lord-like behaviour. Finally, the pint-sized Paul Mace whose only identity is that he is a Lord, and he couldn't care less. Each actor has his moments. However, the best scenes are undoubtedly the ones wherein the Lords are together doing what they do best - having a blast!

TLF's brilliant and apt soundtrack merits a mention. Another interesting aspect of the film is that it lacks a well-developed story line. Instead, what you have are various incidents in the life and times of the protagonists; each one offering an insight into the protagonist's character. One grouse I have with TLF is its runtime. At about 86 minutes, it seems a trifle too short.

While TLF-enthusiasts have lapped up the film on DVD and video over the years, they were in store for a bonus recently. TLF's co-director Stephen Verona authored a book titled "The making of The Lords of Flatbush". It offers some interesting insights, trivia and a behind-the-scenes look at the cult film. For instance, Richard Gere was set to play one of the Lords and his run-ins with Stallone were largely responsible for his exit. Also, Bette Midler was supposed to be a cast in TLF.

Anyone who has ever been a part of a closely-knit gang will easily identify with TLF and the nostalgic feel that it strongly evokes. Without doubt, TLF qualifies as a must-watch!