The Sanford Berenberg Experience: Message of the Day

Good Morning,

In a recent read, “Storm Warning” by Billy Graham, Billy said that warning signs often have no value.

How can a warning sign have no value?

First, let’s consider what actually is a warning sign?

· It could be a street sign warning of an upcoming change in road conditions like construction or a bump in the road.

· It could be that cryptic message given to us by someone who is normally more forthcoming.

· It could be an email hinting at some rough times ahead from management.

A warning sign then could be anything which gives us advance notice of something we should be aware of, that is something that sets off our ‘Spidey Sense’.

The warning also could also ultimately be of good tidings. If something bad is to happen, and you catch the warning sign, there is a chance you can turn it around to good. In the end the warning brought something good.

Billy shared three factors when encountering a warning sign so that it can be of value. With a warning, we need to:

1. See it.

2. Understand it.

3. Heed it.

1. Seeing a warning sign may seem intuitive, but if we don’t know what to look for, we can miss them. For example, when I was working from home for the Dot.Com after they closed my office the year before, and business was struggling, I should have seen the warning signs, but I did not recognize them. Then came a large bonus, and I did not see that warning sign either, and then a month later I was let go.

2. Understanding warning signs are similar to seeing them, but once we see them, can we understand what they mean. Is a bonus a good sign or a bad sign. In some cases, it is good and in others it can be bad. Understanding the environment which the event is taking place will help. With the Dot.Com these large bonuses came after what was a ‘poor’ year. It made no sense, but then half the company was let go within a month of the bonus payout.

Some warning signs are near impossible to read, and then to those with experience in those areas, they are as plain as day. Financial experts knew our company had to significantly downsize, so the bonuses just made the belt tightening easier.

3. Heeding warning signs can be the toughest of all. Knowing we know something is up is the easy part. Knowing we need to make an adjustment or what we are being warned of will happen is a bit harder. The hardest part is making that adjustment or change. Some folks will judge the impact of doing nothing and embracing what is coming compared to making the necessary changes. This may be considered laziness, or shrewd decision making. In any case, when we know that something has to be done, or else, we must make a decision.

Seeing warning signs, and even knowing what the mean is then worthless if we fail to act when we know what could happen can open the door to more troubles.

This may be rudimentary knowledge, then again, we tend to ignore many warning signs.

Hmmmm.

Sanford Berenberg
Sanford@berenberg.net
http://www.berenberg.net

http://sanfordberenberg.blogspot.com/
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