Numero Uno

For one night, I forgot about the anxiety surrounding financial markets or even the primary season and focused on one of my favorite investment indicators: the Westminster Dog Show. I love the show and try to use the characteristics of the winning breed as a metaphor for the investors.

The winner of the 2008 Best In Show Trophy was "Ch K-Run's Park Me In First," a.k.a. "Uno," a Beagle. A BEAGLE? Yup, just like good old Snoopy, Uno is a beagle, not some fru-fru poodle or a weird, esoteric breed from the hinterlands of Europe. I dug around a little to find out what makes a beagle tick. I have added my comments about the parallels to investors in parentheses to the description found on www.dogbreedinfo.com:

A hardy, sturdy squarely-built, small hound, the Beagle has a sleek, easy-care, short coat, which can come in any hound color, for example, tri-color, black and tan, red and white, orange and white, or lemon and white. (Let’s think of these colors as basic asset classes---investors can not confine themselves to only stocks, or bonds, but should use a mix of the various asset classes available.)

The coat is close, hard and of medium length…The skull is broad and slightly rounded, and the muzzle is straight and square. The feet are round and strong. The black nose has full nostrils for scenting. The long, wide ears are pendant. (All of these features seem pretty basic—I would interpret this to mean that every investor should take care of the fundamental issues of planning in addition to focusing on investing.)

The brown or hazel eyes have a characteristic pleading expression. The tail is carried gaily, but never curled over the back. Beagles have a distinct howl / bay of a bark when they are on the hunt. (Investing is emotional -- sometimes investors beg for certain outcomes, especially when they have imbalanced positions in place, while other times we howl with pleasure when things go our way. We should fight these urges and carry our tails gaily as we navigate our financial lives.)

The Beagle is a gentle, sweet, lively and curious dog that just loves everyone…sociable, brave and intelligent, calm and loving...they have minds of their own. They are determined and watchful. (What better message for investors: use your own mind, be determined, though not intractable. Finally, play well with everyone-never brag about your successes or whine about your missteps.)