Sunday, January 13, 2008

A good Zen koan for investing

Joshu asked Nansen, “What is the Way?”
“Ordinary mind is the Way,” Nansen replied.
“Shall I try to seek after it?” Joshu asked.
“If you try for it, you will become separated from it,” responded Nansen.
“How can I know the Way unless I try for it?” persisted Joshu. Nansen said, “The Way is not a matter of knowing or not knowing. Knowing is delusion; not knowing is confusion. When you have really reached the true Way beyond doubt, you will find it vast and boundless as outer space. How can it be talked about on the level of right and wrong?”
With these words, Joshu came to a sudden realization.

—“Ordinary Mind is the Way,” translated by Katsuki Sekida

This is one of my favorite koans. It also has an investing parallel. I have rewritten it as:

Joshu asked Nansen, “What is the way the make money in stocks?”
“Don't try to make money in stocks. Just invest wisely,” Nansen replied.
“Shall I try to seek after great returns?” Joshu asked.
“If you try for it, you will become separated from it,” responded Nansen.
“How can I get rich investing unless I try for it?” persisted Joshu. Nansen said, “The Way to riches is not a matter of trying to get rich or trying to keep from losing money. If you do that you will be bound with fear watching your daily net worth fluctuate wildly. Just invest wisely keeping true to your principles. If you do that you will be rich."
With these words, Joshu came to a sudden realization.