A Bronx Tale: a lesson from Sonny, for C, and now for you

"And I was getting two educations, one for the street and one from school. That way, I'd be twice as smart as everybody." - C, on the advice Sonny gave him

I always have a chuckle when I get into a heated negotiation, and as I chip away all objections and diffuse uncertainty, the opponent resorts to reciting all the courses he / she took at XYZ Ivy League University involving sales, negotiations, and business strategy; and how none of them have helped with their purpose in the real-world.

Ha.

"Most of these Harvard MBA types don't add up to dogshit. You need guys who are poor, smart, and hungry." - Gordon Gekko

It is arguably impossible to create an artificial scenario that truly engages the traits of a human being when it is selling, negotiating, etc. in the real-world. When you are "fake-selling", say, in a classroom, the trade dynamics do not account for any investment-driven value the seller holds, nor does it account for any investment-consideration risk the buyer has. In layman's terms, the seller hasn't spent any time or money on learning about or buying the product, and he / she is in school, so his / her opportunity cost is arguably $0.00. Also, the results of the sale have no impact on the seller. Make the sale, sit down. Miss the sale, sit down. The buyer hasnt spent any time or money on funding the budget, or getting the cash, needed to make the purchase, and he / she is in school, so his / her opportunity cost is arguably $0.00. Again, the results of the sale have to meaning to the buyer.

There is no sense of risk involved in the transaction. It is impossible for this exercise to benefit either party. Integrate a bit of risk, and the dynamics change. Have you ever had your next meal depend on your next sale?

This is what Sonny wanted to emphasize to C in A Bronx Tale. Having not attended college, Sonny attributed his ability to move money to what he learned on the street. I felt he feared that C would never truly grasp the dynamics of true supply / demand sitting in a classroom, so he made sure C spent time on the street, dealing with real people with real needs and real psychological dynamics controlling their behavior. The street is where people lived, traded, bartered, determined prices, formed entities, and live with a real sense of risk. This is the fundamental condition of all who passed through Ellis Island. They divided, specialized their labor, competed among competitors, and traded with customers. The Italians offered garments, shoes, and food. Every culture chose a path, risked time and money on their products, and traded with others who did the same with different products (you can't specialize in everything). It's pure economics.

Not able to be created in an auditorium.

Nowadays, no one wants to start at the "street" level. People pay hundreds of thousands to learn how to move money and risk in simulated environments, and then try to convince people who learned the same thing on "the street", i.e. with their own money and the psychological risk that comes with moving it, that because they did so in class, perhaps at an astute university, they deserve the six figure salary and the corner office.

Take a walk.

The classroom education is certainly required in today's global economy. Memorizing facts about business, etc. help with filling in the blanks when framing a real-life encounters, and history helps us identify trends, etc. But I chose to get that second education, the one Sonny recommended C get, on the street. And I will openly admit, and am quite passionate about, the fact that what I learned on the street is far more responsible for my ability to move risk and money today than anything I read about or learned in or out of the classroom. I frequently deal with "these Harvard MBA types" with no street-level experience, and, frankly, I often agree with Gordon Gekko.

Doubt it? Comment, and I'll respond.