The Parable of the Mexican Fisherman and the Investment Banker

Mexicanfisherman

Money is a necessary part of life in the modern world.  We trade our ideas, time and labor in exchange for money in the hopes of building a fulfilling life today and to build financial security for the future.  We must remember, however, that money is the means to an end, not the end itself. Many people have lost sight of this and pursue money as an idol and lose sight of its true purpose.

The parable below is a great reminder of this lesson.

An American investment banker was taking a much-needed vacation in a small coastal Mexican village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it.

The investment banker was impressed by the quality of the fish and asked the Mexican how long it took to catch them. The Mexican replied, “Only a little while.” The banker then asked why he didn’t stay out longer and catch more fish?

The Mexican fisherman replied he had enough to support his family’s immediate needs.

The American then asked “But what do you do with the rest of your time?”

The Mexican fisherman replied, “I sleep late, fish a little, play with my children, take siesta with my wife, stroll into the village each evening where I sip wine and play guitar with my amigos: I have a full and busy life, senor.”

The investment banker scoffed, “I am an Ivy League MBA, and I could help you. You could spend more time fishing and with the proceeds buy a bigger boat, and with the proceeds from the bigger boat you could buy several boats until eventually you would have a whole fleet of fishing boats. Instead of selling your catch to the middleman you could sell directly to the processor, eventually opening your own cannery. You could control the product, processing and distribution.”

Then he added, “Of course, you would need to leave this small coastal fishing village and move to Mexico City where you would run your growing enterprise.”

The Mexican fisherman asked, “But senor, how long will this all take?”

To which the American replied, “15-20 years.”

“But what then?” asked the Mexican.

The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You could make millions.”

“Millions, senor? Then what?”

To which the investment banker replied, “Then you would retire. You could move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”

The fisherman, still smiling, looked up and said, “Isn’t that what I’m doing right now?”

– Author Unknown

Author: Gregg Indovina

Gregg has a passion for helping clients achieve the life of their dreams. As the Vice President of Investment Strategies at Accelerated Wealth, he uses his knowledge and experience to build adaptive investment strategies that fit into the firm’s overall mission to help clients achieve long-term financial success.