6/21/2010
By Brian Sozzi, Research Analyst

On a late night channel surfing mission, I came across a few years old "Charlie Rose" interview of legendary college basketball coach John Wooden.  Flanked by his former players and NBA hall of famers Bill Walton and Bill Russell, "coach" as he was called by many, rehashed his remarkable collegiate coaching career, his love for poetry (recited poems off the top of his head with ease), and what it took to drive successful outcomes in life.  In particular, Wooden touched upon his "Pyramid of Success", a schematic that took quite some years to develop.  At the apex of this pyramid is none other than success, but in order to reach that summit there is a foundation of blocks that are required to be set.  They include industriousness, friendship, loyalty, cooperation, and enthusiasm.

John Wooden amassed a truly remarkable coaching record of 664-162 over the course of 29 years, a career that actually began at Indiana State.  The list of accomplishments, outside of shaping young minds for real world experiences, included 10 NCAA championships, 7 NCAA championships in 7 consecutive years, 9 consecutive appearances in the Final Four, 88 consecutive victories (1971-1973), and 8 perfect seasons.  The accolades are more than I can list, but as is obvious this was one special individual.  He must have understood human psyche and the world at large unlike many of its other inhabitants.  All I know is that I finished watching that "Charlie Rose" special thoroughly, thoroughly impressed with John Wooden.  I wished I lived in a different point in time, born with larger hands and a mean jump shot so I could have been a part of that special UCLA culture.  Unfortunately, I lack a time machine, so the next best thing I was able to do was drill down into Wooden's "Pyramid of Success" and apply its principles to where we are as a nation currently.  After the financial bailouts of 2008, a bitterly divided Capitol Hill, dangerous Keynesianism running rampant, a poorly managed response to a major natural disaster, and apparent changes to how we live on a daily basis I believe the U.S. foundation is shaky.

Breaking Down the Building Blocks of the "Pyramid of Success"

Industriousness: "There is no substitute for work.  Worthwhile things come from hard work and careful planning."  I frequently get into these discussions with friends, but the youth of today, in my opinion, has zero idea what it takes to survive in the rough and tumble world.  As Sylvester Stallone so eloquently put it "the world ain't all sunshine and rainbows, it's a very mean and nasty place and it will beat you down to your knees and keep you there permanently if you let it."  Approximately 67 million children were born between 1945 and 1964, also known as the illustrious baby boomer population.  These children's parents still had the freshness of the Great Depression, World Wars, and dangerous trips on boats to seek a better life on their minds.  Baby boomer parents busted their butt to make ends meet and instill a sense of hard work in their children.  Despite their best efforts, baby boomers have fertilized the U.S. with children (and this does not apply to all) that expect things handed to them on a silver platter.  Cars, iPods, college educations, you name it and Generation Xers want it...and now!  And, don't even get me started on the kids of Generation Xers commonly called Generation Y.  The fact is that as baby boomers enter into their golden years, the U.S. will be left with a group of individuals that in no way boast the DNA (work hard, take nothing for granted) of prior generations.  One building block removed from Wooden's success pyramid...

Friendship: "Comes from mutual esteem, respect and devotion.  A sincere liking for all."   Watching children belittle their parents in public and post explicit pictures on the web of their friends immediately chips out this building block.  Moving right along.

Loyalty: "To yourself and those dependant on you.  Keep your self respect."  Let me approach this from differing angles.   Government stimulus programs have distorted natural rates of demand in private industries.  The Obama Administration has failed in its attempt to create sustainable jobs, in my opinion.  All the Administration has done is add a new layer of deficits, taxes, and overall gloom that clouds our future economic direction.  Demand distortion kills loyalty; that construction company who hired a worker for a job is now worried about its future tax payments and demand given the expiration of a $8,000 tax credit.  The once employed worker gets laid off.  Where is the loyalty in this story?  Where is the loyalty by the Administration to the U.S. Constitution?  The Preamble makes reference to "insuring domestic tranquility" and the "promotion of general welfare."  The Administration has increased the likelihood of no domestic tranquility in the future due to its profligate spending.  Just look al the tea party movements across the country.  There is a building distrust of government.  How about the promotion of general welfare?  Raising barriers to entry for small businesses, the engine of the U.S. economy, is enough to suggest promoting general welfare is not high on the agenda for the Obama Administration.

Cooperation: "With all levels of your co-workers.  Help others and see their side."  This one is tough to get a read on, so I will leave it as a block in the U.S. foundation.

Enthusiasm:  "Your heart must be in your work.  Stimulate others."  The U.S. shed over 8 million jobs during the recession (which has technically not ended).  The upheaval in the jobs market has been deep and long lasting in my opinion.  We now have former skilled machinery workers pouring coffee and waiting on tables, losing their skillsets and contributing less to the economy.  Part of the issue is globalization, but a big part is an Administration yearning to take from big business to support a near socialist agenda.  Companies are rightfully timid to add new employees.  So in assuming a person takes a 50% pay cut to just put food on the table, one has to wonder, is the enthusiasm there?

Conclusion

I am obviously pulling for America's long-term economic prosperity.  After all, I have zero desire to pursue a career in Japan or becoming a mountain man that lives off the land and escapes paying taxes.  However, the way I see things, the U.S. has only 1 of 4 essential building blocks for success when applying the Wooden methodology.  In other words, success is not guaranteed, and that is troubling.

Brian Sozzi
Wall Street Strategies