SamTheHobbit (34.42)

Frodo Baggins friend, the gardener and the one who never lost hope that there was still some good in this world worth saving.

October 31, 2009 – Comments (5) | RELATED TICKERS: USA

Samwise Gamgee, Frodo Baggins' loyal servant, was determined to follow his master wherever he went even when he was not invited. Sam proved to be a brave and loyal companion and became Frodo's closest friend. His Hobbit-sense and his love for Frodo saw them both through danger and hardship to the end of the quest. Sam's unwillingness to give up hope even when things seemed darkest ensured that not only did they reach their goal, they also survived.

Investing is easy when the market is going up and being supported by both fundamentals and investor confidence.  But like Sam, we frequently find ourselves in not ideal conditions with the odds stacked against us.

"I am glad that you are here with me," said Frodo. "Here at the end of all things, Sam."
"Yes, I am with you, Master," said Sam, laying Frodo's wounded hand gently to his breast. "And you're with me. And the journey's finished. But after coming all that way I don't want to give up yet. It's not like me, somehow, if you understand."

The Return of the King: "The Field of Cormallen," p. 228

Like this epic story, the forces of darkness seem all around us.  Hope appears to be a fool’s delusion.  But we have seen this before in the fall of 2008 and March 2009.  It is not going to be pretty, but those who survived and prospered were those who took the risk and invested in what they believed had real value or speculated on companies of no value.  Not all brave investors win, but cashing out last fall and holding cash indefinitely will guarantee the future loss of wealth as inflation takes away what remains of their saving.

Sam was more than an optimist.  He was a gardener.  He knew how to work and grow things.  He knew what was right and the value of friendship.  So he wasn’t just a foolish optimist, he was like we were during the Greatest Generation.