WHY IS EFFICIENT COMMUNICATION SO IMPORTANT?
Talking on the phone, answering questions via email, playing golf, or providing regular account updates all seem to be very reasonable tasks for a money manager.
However, it is also important to understand some simple math. Assume a money manager has just 80 clients. Each week, the money manager spends 30 minutes per client talking on the phone, answering questions via email, playing golf, or providing regular account updates.
80 Clients X 30 Minutes Per Week = 40 Hours Per Week
The simple math above says it would take 40 hours per week to perform what appear to be reasonable tasks. The money manager would have to work 8 hours per day 5 days a week just to communicate with clients. There would be little time or energy available to perform research, monitor markets, or manage client accounts.
Our entire approach to the markets is built on efficiency, scalability, and repeatability. We all have limited amounts of emotional and mental capital; thus, it is important to use these resources wisely. Since discipline is a key component of success in the financial markets, it is extremely important to minimize distractions and focus on the primary task at hand. CCM's efficient and proactive communication process is an important part of our recipe for long-term investment success.
STUDY: TOP PERFORMERS ARE VERY SELECTIVE AND FOCUSED
Morten E. Hansen, a professor at the University of California, Berkeley, recruited a team of researchers and performed a five-year study to identify which specific set of behaviors led to high performance; the key takeaway was summarized in The Wall Street Journal:
"The common practice we found among the highest-ranked performers in our study wasn’t at all what we expected. It wasn’t a better ability to organize or delegate. Instead, top performers mastered selectivity. Whenever they could, they carefully selected which priorities, tasks, meetings, customers, ideas or steps to undertake and which to let go. They then applied intense, targeted effort on those few priorities in order to excel."