At one point in my career I was raising capital for a firm that was more than 40% of the market and many members of the sales team were prospering in ways they had never experienced before. I was reading an article and the phrase “no one is bigger than the market” jumped off the page. That idea has been with me ever since and has served me well. It is a truth worth remembering as we enter into this holiday season.

I have often been struck by the role luck appears to play in our lives. I am currently hiring a national sales manager for a high quality real estate investment company that is poised for significant growth. In the process I have had the privilege of interviewing some accomplished professionals. It has further confirmed how pivotal it is to be both lucky and good. Virtually all of the individuals I have interviewed are very talented, have worked hard, have been sincere in their efforts and have enjoyed significant success. They know their market well and are looking for their next opportunity. To quote the great hockey player Wayne Gretzky, they do not want to skate to where the puck is, they want to skate to where it is going to be. Most people have attempted to be in the right place at the right time throughout their careers. It is not something they can control. It requires luck. Literally every highly successful person I know acknowledges the role luck has played in their success.

It is just another way of saying that no one is bigger than the market. Shortly after the market crashed in 2008, the capital raise for the top firms in the industry began to decline. The firms did not do anything wrong. They did not suddenly become incompetent. Their sales effort did not deteriorate. Their commitment to investors did not wane. The market shifted and they responded the best way possible. But the market shift worked differently for others. Some of the up and coming firms saw an opportunity and as the market recovered they rose with it. They were smart, worked hard, tried to do the right thing and were lucky enough to be at the right place at the right time. But they were not bigger than the market. It remains to be seen how they will fare during the next down cycle. During my 30 years in this industry I have seen multiple cycles. The big six that dominated before the Tax Reform Act of 1986 are no longer in the market. Since then others have dominated. It is highly likely that new firms will dominate in the future. None of them will be bigger than the market.

So during this holiday season, appreciate the many choices you have. Choose to be smart, work hard and do the right things. Also acknowledge the things that are bigger than you. They will keep you humble when the market moves in your favor, and strong when the market moves against you. Most of all, take the time to be grateful for all the ways you have been lucky.

Martel Day
Principal
NLR Advisory Services, LLC