Hedge fund manager Whitney Tilson, the founder of Kase Capital, gave some sage life advice to nearly a hundred graduating 9th grade boys during a commencement speech on Friday.
Speaking at his alma mater, Eaglebrook School, a private 6th to 9th grade boarding school in Deerfield, Massachusetts, Tilson told the boys: “If you are a dumba--, there will be consequences!”
This is Tilson's so-called “No. 1 Immutable Law of the Universe” that he's been telling his three teenage daughters for years.
Throughout his career, Tilson has made many public presentations and television appearances. This, however, was his first time speaking to an audience of teenagers. He wanted to give the 15-year-old boys a "memorable" speech.
“I like it because it’s memorable: I’m pretty sure that the word dumba-- has never been used in any commencement address ever. The question is, is it meaningful? I think it is.”
He continued: “[The] foundation for a a successful life is playing defense. And by that I mean avoiding the obvious mistakes that can really set you back. I’m not talking about the big, general things: if you’re mean to people, don’t expect to have many friends; if you’re lazy and dishonest, you won’t have much of a career; if you don’t take care of your body, of course it’s going to break down…. No, I’m talking about the blindingly obvious things, ranging from touching a stove to see if it’s hot (I did that once) or touching an electric fence to see if it’s live (I did that too), all the way up to things that can derail – or end – a life.”
Tilson cautioned the boys that the "biggie" that can derail their lives is binge drinking alcohol, especially in college.
"I'm not saying you should be a teetotaler -- go ahead, have a drink or two...maybe even three. But be really careful about getting totally smashed because there are so many permanently bad things that can happen," Tilson said.
He added: "By now you’re probably thinking, 'Jeez, what kind of commencement speaker is this? What a downer he is! When is he going to tell us how great we are, how we should put on our sunglasses because our future is so bright, and how we need to seize the day?' Well, you are and you should – but the reason I started with these stories is because the foundation for a successful life is playing good defense. If you want to get ahead, you have to start by not falling behind," Tilson said.
In addition the "don’t be a dumba--" advice, Tilson encouraged the boys to form good habits, quoting famed investor Warren Buffett: "You can transform yourself into the person you want to be, but you have to decide early because the chain of habits are too light to be felt until they are too heavy to be broken."