The Fisherman and The Investment Banker

[7million7years]

I came across this old story again the other day ... it is used to illiustrate an obvious moral. However, I have posed a couple of scenarios at the end that I would like to hear your thoughts about ...

__________

“I write to you the story of a fisherman in a Mexican Village who goes out every day on his boat to catch a fish. The fisherman goes out for three or four hours, catching a small load of fish and returning home. Every day he does this, without fail.

One week, an investment banker from New York is vacationing in this Mexican village. Every day he sees this young fisherman go out, catch fish, come back, go out, catch fish, and come back. So after a few days, the investment banker approaches the fisherman. He asks the fisherman if he catches fish like that all the time.

“I do,” says the young Mexican, who is about thirty years old.
“How long have you been fishing?” asks the investment banker.
“All my life,” says the Mexican. “Since I was a boy.”
“And you catch fish like that every time?” He looks at the sizable fish in the catch.
“Yes,” says the Mexican. “There are always fish.”
“But you only go out a few hours a day. If you catch fish like that, why don’t you go out longer—catch more fish?”

The young Mexican thinks a minute and looks down at his feet. He looks back up at the investment banker. “Well, I like to spend time with my family and play cards with my friends.”
The investment banker nods, he steps closer to the Mexican.

“Look,” he says, “if you double the amount of time you fish, you’ll make double the amount of money you make now.”
“Why would I want to do that?” asks the Mexican.
“Because then you can buy another boat and hire more fishermen.”
“Why would I want to do that?” asks the Mexican again.
“Because then you’ll quadruple your earnings and pretty soon you can have your own fleet.”
“And why would I want to do that?”
“Well, once you have your own fleet, you’ll have enough fish to cut out the middle men and go directly to the distributor. You do well enough with him, you can buy his company. Then, we do an IPO, take the whole operation public. You’ll cash in. You’ll be rich.”

“And then what?”

“Then,” says the investment banker, “you can spend time with your family, and play cards with your friends …”
__________

That’s a nice story. It’s usually used to show how ridiculous the Investment Banker’s position is, and how we should focus more on what’s important than money … which, of course, is true.

It’s just that money is a part of - or at least an enabler of - what is important …

For example, what happens when the fisherman gets sick, or too old to fish? What do you suggest?

For example, we can cover ’sick’ with Fisherman’s Insurance (a couple of fish from his daily catch should cover that) …

… but, how do we cover ‘old’?

I think, only by meeting the investment banker part way …

IF the fisherman’s ideal retirement is simply to spend some time with his family every day (and, eat a few fish), and have a little spare time to play cards, it shouldn’t be a very big number …

… no IPO’s necessary!

But, it will take some investing in cold-storage to build up enough fish to last as long as the fisherman does!

Perhaps it’s time to think about how many fish you need? I'd like to hear everybody's thoughts on this ...

[davoscat]

That's an interesting question. In some cultures, the fisherman's family or village will take care of him when he is old. Today, we're told that we should take care of our financial futures so that we don't become a "bruden" to our children when we get older. But maybe in societies where generational support is the norm, children don't feel like they are being "burdened" by their parents.

[rstlne]

I'm on the side of the investment banker, although not to the extreme of sacrificing everything in pursuit of a multi-million dollar IPO. Mainly, I'm concerned about the high cost of retirement and I wish to be able to provide for myself until the very end.

Sometimes though, I'd like to be the fisherman and not worry about things too much.

[lazy23]

Maybe we're idealizing the whole concept of the carefree fisherman. If Old Man and the Sea is any guide, that's not an easy life.

[kav122]

Originally Posted by 7million7years

… but, how do we cover ‘old’?

...

I was going to say the same thing as Davoscat. Since he has obviously shown his children love and attention, he doesn't have to cover "old". That's the beauty of cultivating a good relationship with your family and living a simple life.


Oh, yeah, and as for sick...hard work and a stress free life do wonders for your health

[Julie Rains]

I love this story -- I remember seeing a variation of it several years ago when dot.com owners all seemed to be getting rich with IPOs. My version had the fisherman spending time with his wife and taking regular siestas. I don't think bad of the investment banker but I do think it shows that having TIME to do what you enjoy is just as significant as having the means (wealth) to do what you enjoy. In the end, does it matter how you got there? Yes, I need to have the money to relax but not everyone does and those values should be respected.

There was a time when people just didn't live 'til their 80s, 90s, and 100s and healthcare, long-term care, and significant wealth to last decades just wasn't needed.

[Cindysu]

Originally Posted by kav122

I was going to say the same thing as Davoscat. Since he has obviously shown his children love and attention, he doesn't have to cover "old". That's the beauty of cultivating a good relationship with your family and living a simple life.


Oh, yeah, and as for sick...hard work and a stress free life do wonders for your health

Ah, but what happens if the children don't do so well? Or they die before their father? Or the children have children with huge medical bills? Or they STILL need financial help?

[7million7years]

Great comments! But, you are right, too many people rely on their families to take care of them and others believe that they are doing enough if they just "own their own homes", but your home is ONLY an asset IF you are prepared to put it to work ...

[Julie Rains]

Originally Posted by Cindysu

Ah, but what happens if the children don't do so well? Or they die before their father? Or the children have children with huge medical bills? Or they STILL need financial help?

I hadn't thought of the fisherman as being part of the USA culture but another culture with completely different values and sets of rules regarding healthcare, eldercare, etc....if there is an anthropologist in the house, perhaps he/she can share with us how other cultures treat older adults, whether children are the only resource for those who can't take care of themselves or whether there is a tribal/clan that takes care of all, what is the system for welfare, etc.

[mbhunter]

I was going to say something like "In the US? Forget it!" but caught myself.

Even if things go south and TEOTWAWKI occurs, people who provide food will be in demand. The investment banker might look to see if the fisherman needs more help, but the fisherman will probably do just fine.

Otherwise, though, planning ahead for widespread social and financial disasters is wise. It's probably better not to assume that things will be business as usual forever as this fisherman does.