Let me open with a confession: this week’s message is inspired by the words of a true sage… my spin instructor. Like many works of true art (yes, I am calling my Weekly Whiteboards art), inspiration can grow from the smallest or least obvious seed. For this week’s Whiteboard, I am making a comparison and drawing lessons learned from a book I read earlier in the year called The Alchemist. So, writing about another writer’s writings…
Paulo Coelho’s The Alchemist (while written in the late 1980s) continues to be widely read and, from what I understand, even more widely beloved. Beneath its poetic storytelling and desert mysticism lies a surprisingly clear-eyed message: we are all on a journey, and the pursuit of our “personal legend” – our unique purpose – is worth the trials we endure along the way. So, what does any of this have to do with investment management and financial planning? Quite a bit, as it turns out.
Wealth (regardless of size or scale) is a tool for living out your purpose. I work with clients to help make funds available – maybe even plentiful – in retirement or for the next generation or even organizations that my clients hope will have a positive impact on our world. This planning (and related investing) is a direct parallel with the book as it is through action (e.g., planning and investing for me/us) that the main character discovers his life purpose. So, let’s explore four memorable scenes from The Alchemist and draw some metaphysical (but practical) wisdom for the financial journey. One note: reading the book is certainly not necessary to appreciate the following concepts.
Santiago and the Call to Adventure
“When you truly want something, all the universe conspires in helping you to achieve it.”
Santiago, the Andalusian shepherd boy and the protagonist in our story, leaves behind a simple life to follow a recurring dream about treasure near the Egyptian pyramids. He doesn’t have a map – only a sense of purpose and a willingness to act. This part of the plot is obviously critical to move the story forward, but it also underlines the fundamental importance of 1.) self-reflection and 2.) goal-setting… two actions I push clients to work on and think about regularly.
Investment Insight:
Many come to an investment advisor because they feel a need to answer a bigger question or address a larger concern: retiring early, building a legacy, funding their children’s education, or simply gaining freedom from financial stress. The numbers matter, but the dream/goal drives it.
Planning Insight:
We encourage clients to start not with their net worth, but a viewpoint or goal for their life. Investment strategy should serve that purpose, not the other way around. It’s not about beating the market; it’s about aligning your resources to the journey that matters most.
The Crystal Merchant and the Fear of Change
Santiago works for a crystal merchant (in one of the stops along his journey) who once aspired to make the Hajj (a religious pilgrimage) but never pursued it. The merchant’s character is uncomfortable with change – and even though he knows it, he cannot change. Fear, comfort, and inertia kept him where he was – even when he had the means to do more.
Investment Insight:
Many investors behave like the crystal merchant: sitting on cash, avoiding portfolio adjustments, or hesitating to take action because uncertainty feels safer than risk. But over time, indecision becomes its own form of risk. One important aspect of our work as investment advisors is to help encourage action – within the risk tolerances and goals of our clients – because short-term concerns can become longer-term encumbrances.
Planning Insight:
Financial growth demands movement. Rebalancing portfolios, adjusting for changing goals, or exploring new asset classes might feel disruptive, but it’s how your strategy evolves with your life. This is not to say movement for movement’s sake. Rather, action in a direction… a chosen direction.
The Englishman and the Search for Complexity
The Englishman in the story is obsessed with deciphering alchemy through books and theory. He had read hundreds of books on alchemy but never practiced the art itself. He seeks wisdom in formulas and calculations but misses the intuitive simplicity the alchemist embodies. We can all relate to this in some form or another. We may know someone who fits this bill sometimes, we may BE someone who fits this bill sometimes. The reason I use this scene or portion of the plot in the book in this week’s Weekly Whiteboard is to emphasize that moving forward – even if not exactly right – is often far more valuable than not moving at all. Having a plan and pivoting when the plan needs to change is a great outcome. Without a plan, it can be more difficult to make informed decisions and adapt as circumstances change.
Investment Insight:
There’s a temptation among investors to believe that complexity equals sophistication. Endless charts, models, and jargon-heavy strategies feel impressive – but they can obscure clarity. Also, be careful not to let the “great” be the enemy of the “good.”
Planning Insight:
The best investment strategy is one you understand well enough to stay committed to. Complexity without purpose adds noise, not insight. We favor designed simplicity: a disciplined plan grounded in logic, but flexible enough for life’s unpredictability.
The Alchemist and Trusting the Process
“When we strive to become better than we are, everything around us becomes better too.”
The Alchemist (a critical character in the book and a mentor of sorts to Santiago) teaches Santiago that the real treasure lies not at the end, but in what he becomes during the journey. The boy learns to listen to his heart, read the omens, and trust the process – even when he doesn’t understand every step. Now, I am not saying reading omens equals financial planning or quality investing (although my magic 8 ball got A LOT of work in 2025). I think the point of this part of the plot is to highlight that if you put in the work and maintain an open, but disciplined, mind, the outcomes are likely to be positive over time.
Investment Insight:
Investment management is rarely linear. Markets fluctuate. Life throws curveballs. But a thoughtful, long-term plan, executed with discipline is often helpful to getting you closer to your purpose and your goals … who you are and what those goals represent.
Planning Insight:
The path to wealth isn’t just about reaching a dollar amount. Often, the path is about becoming someone who is purposeful, generous, and intentional with money. That requires trust in your plan, faith in the process, and a guide to help you interpret the “omens.” From an investment viewpoint: the portfolio may zig and zag, but the direction is what matters.
Okay, so… what’s your REAL point, Matt? While narrowing to only one point is impossible, I think The Alchemist reminds us that the pursuit of meaning isn’t separate from the material world… it’s embedded in it. Wealth, when thoughtfully stewarded, becomes a vessel for purpose. In my world, that is an important vessel as I am tasked (at least implicitly) with the oversight of that vessel. A client’s portfolio – and the related plan for its use – is my personal legend. And one I take very seriously. But, at East Franklin Capital, we don’t just manage assets, we walk with clients toward their version of the pyramids or deserts, helping them make informed, grounded decisions along the way. Because the real treasure is not gold buried in the desert – or accumulated substantial wealth (although that might be a nice byproduct of our focused work). As Santiago learned, the real treasure is living a life aligned with your values, with enough financial freedom to say yes when it matters most.
