If you can trust yourself when all men doubt you,

If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,

In the world of investing, conviction is a powerful force. It is the unwavering belief in an idea or a decision that sets successful investors apart from the rest. Most investments are made out of sufficiency, not conviction. Investors settle for good enough, close enough, or consensus enough. They fear the consequences of being wrong, so they play it safe. But playing it safe rarely leads to exceptional returns.

To generate great returns, one must find conviction and bet big. Warren Buffett, one of the most successful investors of all time, once said, "Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years." Buffett understands the power of conviction and the need to make bold bets.

Stan Druckenmiller, another legendary investor, tells a famous story of his experience at the Quantum Fund. He had a high conviction idea to short the British Pound and wanted to go all-in, shorting 100% of the fund against the Pound. When he shared his idea with George Soros, Soros looked at him with disgust. But instead of discouraging him, Soros told Druckenmiller to go even bigger and short 200% of the fund. Soros recognized the power of conviction and encouraged Druckenmiller to bet big on his idea.

A few high conviction ideas that turn out to be right, and aggressively sized, can make an investment career. But conviction is not limited to investing. In any pursuit of greatness, finding conviction and betting big on it is a required act. All great ideas and accomplishments start with a spark of conviction that compels major action.

When you find conviction, you reach a level of confidence rarely found in any pursuit. It gives you the power to convince others. When people hear a convicted person speak, it's intoxicating and infectious. They follow conviction because it's authentic. Fake conviction is no conviction at all. You can't fool yourself into conviction. It only happens through a journey of open-minded exploration and discovery, where you become sold on the idea. And once you are convicted, your conviction does the selling for you.

In the words of Rudyard Kipling's famous poem "If—", he writes, "If you can trust yourself when all men doubt you, But make allowance for their doubting too." This line encapsulates the essence of conviction. It requires trusting yourself even when others doubt you. It demands the ability to withstand criticism and skepticism. But it also reminds us to be open to doubts and allow for different perspectives. Conviction is not about being stubborn or close-minded; it's about having the strength to hold onto your beliefs while remaining open to new information.

So, how can we find and cultivate conviction in our own lives? Here are three actionable pieces of advice:

1. Explore and Discover: Conviction doesn't happen overnight. It requires a journey of exploration and discovery. Take the time to delve deep into the subject matter, research, and gather as much information as possible. Engage in conversations with experts, ask questions, and challenge your own assumptions. The more you know and understand, the stronger your conviction will be.

2. Trust Your Gut: Conviction often stems from a gut feeling, an instinct that tells you something is right. Pay attention to that inner voice and trust your intuition. Of course, it's important to back up your gut feeling with research and analysis, but don't ignore the power of your instincts. They can guide you towards your true convictions.

3. Take Calculated Risks: Conviction requires taking risks. It's about betting big on your beliefs. But that doesn't mean blindly jumping into every opportunity. Evaluate the potential risks and rewards, assess the probability of success, and make informed decisions. Taking calculated risks allows you to maximize the potential upside while minimizing the downside.

In conclusion, conviction is a powerful force that sets successful individuals apart. Whether in investing, entrepreneurship, or any pursuit of greatness, finding conviction and betting big on it is crucial. It requires exploration, trust in oneself, and taking calculated risks. When you find conviction, you reach a level of confidence that is contagious and persuasive. So, embrace the power of conviction and let it guide you towards greatness.