A few years back, I returned from abroad and landed my first U.S.-based job in more than five years. The job security was great. The health insurance for myself, my new bride, and our daughter-to-be was better
But the best part of the job was that I made more money than my little brother, who was teaching science at a rural school in Maryland. A noble profession, to be sure, but not one that brought in a big paycheck. On the other hand, he was working only nine months a year. So when we compared our salaries on a monthly basis, I really wasn't doing so much better than he was, despite several more years of experience and three more years of schooling. Grrr.
So you can imagine my consternation when my brother ditched his country gig for a job as a programmer in the midst of the tech boom. He immediately doubled his salary and was soon within shooting distance of my own tax bracket.
One evening, after he casually made mention of that fact, I just had to point out that, well, yes, he was making nearly as much as I was. But on the other hand, I was working part-time, whereas he was now pulling 80-hour weeks coding in Sun's (NASDAQ:SUNW) Java and studying some newfangled language called .Net from Microsoft. Not that I could tell Java from a bad cup of coffee, or distinguish .Net from a soon-to-be-bankrupt dot-com, mind you. The important thing was that I was winning again. And so it went over the years.
What does this have to do with investing?
I'm getting to that. You see, one important thing was transpiring over these years. In our fervor to one-up each other, my brother and I were working harder, gaining new skills, earning more, and building up our retirement nest eggs. Now, we both own our own homes. We both have comfortable bank accounts. We both have jobs we love.
Which brings me to the moral of this story: With the right proportion of personal striving to good-natured rivalry, pride can bring out the best in people and inspire them to live up to their potential. As Gordon Gekko famously said in Wall Street, "Greed is good." Well, maybe, but boasting is better.
The cola wars redux
The idea that a good rivalry can push both parties to do better has been borne out many times throughout history. America's rivalry with the Soviet Union put both nations' astronauts in space. The Washington Redskins' rivalry with the Dallas Cowboys pushed both teams hard and helped each to reach the Super Bowl several times. And in the investing world, the epic rivalry between Coca-Cola (NYSE:KO) and Pepsi (NYSE:PEP) has turned both companies into veritable money-printing machines, earning their shareholders returns two and three times higher than those generated by the S&P 500 over the past 30 years.
Yet another example of the positive effects of rivalry -- and the bragging rights that are the victor's spoils -- can be seen right here at The Motley Fool. For more than three years now, brothers and Fool co-founders David and Tom Gardner have engaged in a public duel to prove who's the best stock-picker. For a long time, Rule Breaker David was ahead as the stock markets recovered from the aftermath of the tech bubble, sending visionary, high-growth companies far ahead of the pack.
Lately, as the market has begun "correcting" its earlier exuberance and embracing the stocks of slower-growing but more profitable companies, the tide has begun to turn. Tom now holds a comfortable 15-point lead over his older brother.
And so it goes. One day, David and his keiretsu of entertainment stocks such as Pixar (NASDAQ:PIXR) and Netflix (NASDAQ:NFLX) rule the Foolish roost. Another day, Tom's UnitedHealth (NYSE:UNH) and Costco (NASDAQ:COST) might win the day.
You don't have to be a Gardner to win
Two things you can count on:
1. These guys are both in it to win.
2. You can profit from their efforts.
Remember, Stock Advisor is not even four years old. That's good news for subscribers, because it means we probably have decades to enjoy the fruits of this sibling rivalry. Three years into the public contest, the S&P 500 has eked out just 14% in total gains -- far below the "10.5% per annum" that most investors expect. In stark contrast, the rivalry between the Gardner brothers has already helped Stock Advisor subscribers achieve 57% combined returns.
As one of the many subscribers who has benefited from the competition, I have to say: Duel on, Gardners! My portfolio thanks you.
Psst! Want to score a ringside seat to the next round of Gardner vs. Gardner? Right now, Stock Advisor is offering a free 30-day trial of the newsletter. Click here to read all the back issues, and get the new issue when it is released today at noon, EST. We won't bill you a cent unless you're completely satisfied. If you're not thrilled with our newsletter, cancel any time, for any reason.
Fool contributor Rich Smith has no position in any company mentioned in this article. Microsoft and Coca-Cola are Motley Fool Inside Value picks. The Motley Fool'sdisclosurepolicy has no rivals.
