Investment “Advice” From Apex Predators
I was channel surfing the other day and landed on David Attenborough narrating a Planet Earth episode on crocodiles (What a voice!). Apex predators are at the top of their food chain, looking down on all other animals. Yes, they tend to be fast, have razor sharp teeth and often big claws; but design isn’t the only thing that got them to the top. Their habits play a major role, and those habits carry over to successful investing. Some examples:
Cheetah — The world’s fastest cat can reach speeds of 75 mph in pursuit of prey. But cheetahs don’t sprint all day long. They are smart enough to conserve energy, and they don’t turn on the jets unless and until they know their prey is in range. Investment parallel: You don’t have to be in constant action; you just must act decisively when opportunity arises. Over-trading and/or switching strategies is the enemy of long-term success.
Golden Eagle — Yes, their talons are big and they can dive at speeds of up to 200 mph. But what puts it all together for the Golden Eagle is their unbelievable eyesight. Multiple times sharper than human sight, they can spot a rabbit from up to 3 miles away. Investment parallel: It’s best to take the long view and parse out the short-term noise. Look out at the investment horizon to spot long term trends early, but act with caution.
Sharks — Aerodynamically designed, they glide through the water with tremendous efficiency and fluidity. Investment parallel: Keep costs low (fees, taxes, turnover). Small inefficiencies can compound over time.
Lions — A single lion can strike fear in any animal, but that’s not how they hunt. They hunt in packs using teamwork to force herds into a weak position before attacking. And they hunt at night to increase stealth. Working this way, they maximize the probability for success. Investment parallel: Your various investments should work efficiently as a team. Asset allocation matters more than stock picking. Being in the right position beats chasing every opportunity.
Crocodiles — Crocodiles are master ambush predators capable of waiting for hours or days for prey, and in periods of scarcity, they can go months without eating. They position themselves in the right spot, stay motionless, and then wait—and wait—for their prey to venture by. Hours can pass without a single movement. Investment parallel: Patience is the best investment strategy. Long periods of inaction (and boredom) often take place before real investment opportunities show themselves.
In nature and the markets, success (and survival) isn’t about constant motion; it’s about disciplined actions.
Fun Fact: One of the smallest apex predators is the dragonfly. Only a few inches long, they have nearly a 100% success rate when hunting insects which they grab mid-air with incredible precision. Around ponds and wetlands, they have no natural predators while actively hunting. I wonder if we humans would be on their menu if they weren’t so tiny
