A New York Times article chronicles the impact of novelist/philosopher Ayn Rand on business leaders. It's quite amazing that her 1200-page book, Atlas Shrugged, is now 50 years old but ranked in the top 500 of all books sold on Amazon.
My experience at various trading firms and with traders across settings confirms the NY Times piece: many market participants are attracted to Ms. Rand's philosophy (which she called Objectivism).
Here are a few Objectivist principles that are especially relevant for trading:
1) The Primacy of Reason - There *is* an objective world out there ("existence exists", as Ms. Rand puts it), and our survival depends upon the exercise of our reasoning mind to grasp reality and base our actions accordingly. Following Aristotle, Rand defines man as "a rational animal": reason distinguishes us from other species. There is no greater moral virtue than the independence exercise of one's reason, for that is what enables us to survive.
2) The Virtue of Self-Interest - This is probably the most misunderstood facet of Rand's philosophy, as what she calls "selfishness" is commonly thought of as hurting others in order to further oneself. Rather, Rand declares that each person has the right to live for him or herself and pursue his or own fulfillment, as long as that does not violate the rights of others. Serving others is not perceived as a moral imperative; rather, the idea is to live a heroic life in which one strives effortfully, using one's reason, to pursue worthwhile goals. Rand defines the "good" as that which furthers life.
3) The Imperative of Freedom - If individuals are to live lives guided by reason and the pursuit of life-furthering goals, they must enjoy the political and economic freedom to do so. The ideal State derives its (limited) power from the consent of individuals who possess fundamental rights; the State does not grant rights to individuals or take them away. Freedom in the political sphere is expressed through democracy, fundamental rights, and rule of law. Freedom in the economic sphere is expressed through the right to own private property and the ability to pursue one's own economic goals (capitalism).
Why do I say these basics of Objectivism are relevant for trading? I believe that the successful trader is, in essence, living out these principles: using independent reason and judgment to pursue self-chosen goals and exercising the prerogatives of economic and political freedom.
Perhaps most important from my own perspective is the way that Rand, as novelist, captures the heroic dimensions of human life and what is possible for each of us. In the characters of Howard Roark in The Fountainhead and John Galt in Atlas Shrugged, we encounter people of principle, who fight for those principles, and make a difference as a result. Her novels, I believe, are as much a spiritual compass for readers as a philosophical one: hence their enduring appeal, particularly to young people.
The best Objectivist advice I can give traders is to not be afraid to dream and dream big, but to always have the determination to act on reality, not fantasy. There is much to be said for having your eyes on the stars and your feet on the ground. If your life is a canvas or ball of clay, your mission is to fashion a work of art. Your life belongs to you: not to other people, not to a sovereign State, and not to religions and cults. Make it count.
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7 comments:
Brett,
What a review by you, too!
Her principles were greatly misunderstood during her lifetime, I believe, but now as is often the case, posthumously, people are beginning to see the light of her wisdom and Objectivism.
I am a great fan of her and still reading and learning her wisdom.
Hsieh, hsieh ni.
Hi AnaTrader,
Thanks for your note. The Fountainhead remains my favorite introduction to Ayn Rand's work. It well captures her sense of life.
Brett
"Serving others is not perceived as a moral imperative..." I just wanted to comment that while this is often the way Christianity is taught, it is incorrect. Serving others comes from loving others, and that comes from the heart. The best example I could think of is my wife and how she will do things for me because she loves me, not out of any kind of obligation.
I have to say that the tenets of this philosophy are attractive, but it seems to presuppose atheism or agnosticism, which doesn't really fit with my worldview. To an extent I'm ok with that, because my view is that if something sounds good, then there is probably at least some bit of truth to it. This has gotten me in trouble in the past with my more theologically rigid, less nuanced, peers. Oh well. :)
In all, I would say that there is actually a lot of cross-over between these values and Christian values, although not completely. Especially if you believe that Christian teaching supports the idea of free-will. I also believe that God wishes us to be blessed, and that this certainly includes material blessing. Which is good news for traders.
BW
Outstanding post, Brett!
The first time I heard about Ayn Rand was in your book. Atlas Shrugged is in my must buy book list. Now, I move it to the top of the list ;)
Hi Brandon,
It would be fascinating to take a look at how traders integrate spiritual concerns and the more material, trading-related ones.
It's in situations where religions pose a dichotomy between what one needs to do for happiness on this earth and what one needs to do to achieve a favorable afterlife that we see the greatest (ethical) split between traditional religions and Objectivism.
An excellent volume from a rationalist philosopher named Brand Blanshard, called Reason and Belief, was his effort to reconcile reason and religion. Very challenging topic.
Brett
Hi Krasimir,
Yes, I think Rand's novels are an excellent introduction to her philosophy--and they're great reads in themselves. Of the novels, Atlas Shrugged is the most explicitly philosophical.
Brett
I am not from a trader or a teen-ager, but I understand that Rand is a folk hero among high-school students and, apparently traders. What I don't understand is how anyone can take her system of thought seriously. It's overblown, self-important, ill-defined. I also find her novels nearly unreadable, but if people prefer to spend their time with her books rather than Plato's dialogues or Nozik's work or even the early Sowell, that is fine by me. I am just asking the inevitable Rand fans not to tell me that she is a thinker of any substance. It is just a lame way to rationalize their reflexive impulses.
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