Almost — but not quite — good

Do you know the difference between good and not quite good?

It’s a lot like the difference between a Rolex watch and a fake Rolex watch. I can explain that one with a true story.

For several years, my wife traveled around the world on business. On one of those trips, which happened to include a visit to China, a work colleague of hers told her about a fellow who bought three Rolex watches. One of them was real, two were not. As he was coming through customs, the inspector looked at the watches and asked about them.

“They’re all knockoffs,” the fellow apparently said. Meaning that the customs charge would not be much.

The inspector said, “So they were pretty inexpensive?”

And the fellow said they were about $25 each. The real Rolex, of course, was a few thousand dollars.

The inspector said, “Then it won’t be much of a loss if I destroy one and let you take the other two?” And of course there was nothing to do but agree.

So the inspector picked one of the three, put it on a table, and smashed it with a hammer. It was, of course, the real Rolex that was destroyed. But there was no protest.

Being on the alert, and being trained to spot the difference between the real thing and the thing that looks real, it was no accident that the inspector recognized the Rolex.

Most would not.

But do you know who would? Jewelers, customs inspectors, and Rolex owners.

Several decades ago I was given one of those amazing time-pieces as a gift, and I learned the real thing from a fake.

Buying on price

You might be surprised to learn, even if you play golf, that a very large market for knockoffs is golf clubs. New drivers that are legitimate can easily be $500 or more. Naturally, bargain shoppers are looking hard at the price. Find a new one for $275, and that is almost too good to be true.

In fact it actually is too good to be true.

But if you think a driver can be costly, do a search for a Scotty Cameron Circle T putter. Those are only made for Tour players. Once in a while, though, one will come on the market for around $5,000. (There is not one in my bag. Or my house.) No matter the price, if you find one of those online, it’s probably not legit.

Overall, the knockoff industry comes in at almost $2 trillion annually. Let me write that out: $2,000,000,000,000.

Apparently a lot of us are willing to take a chance on buying something at a reduced price.

A few decades ago America went through a time of double digit inflation and businesses were hurting big time. One that suffered a lot was the farm implement business. Tractors and combines, even then, were very expensive, so farmers weren’t buying.

But at a conference with other sales people, the John Deere sales guy was still doing well. His secret: SOQNOP. Sell on quality, not on price.

When we buy on price, we open ourselves up to the possibility of buying something we don’t really want to own. That might be a watch or a golf club or a shiny new diamond ring.

I’m all for being a good steward of the assets I have, but that doesn’t always mean buying cheap. Price is one factor, but it is not the only factor.

The genuine article

What you want is the genuine article. That is just as true with good as it is with a diamond. The real thing will serve you well and increase in value.

Here are two examples of “almost good” that have been popular for a while: ESG and DEI.

Allow me to unpack those briefly.

ESG stands for Environmental, Social, and Governance. According to the IBM website, ESG “refers to a set of standards used to measure an organization’s environmental and social impact.” The theory is that potential investors can look at data from a company that will help guide them in their investment decisions.

The theory made some sense. But it was/is all a moving target, and ESG is currently not as much in favor as it once was.

DEI, as you know, has been in the news lately because some fairly large companies have said they would no longer have a DEI department. Those include, Ford, Lowes, Tractor Supply, and our friends from above, John Deere.

DEI isn’t new. Its roots probably go back to the 1960s in America. In concept, the idea is good. The intent is to encourage diversity, equity, and inclusion in the workplace and (much more recently) in colleges.

Should DEI d.i.e.?

This comparison is going to sound a little strange, but hear me out.

A lot of very conservative Americans are opposed to DEI. Not because they are opposed to diversity, equity, or inclusion, but because DEI has been weaponized and used to hurt many innocent people.

A lot of very liberal Americans are opposed to gun ownership. Not because they are opposed to guns per se, but because guns (already weapons) have been used to hurt and kill many innocent people. (David French, wrote a great column in the New York Times about the misuse of DEI. In case you can read the Times online, here is the link.)

Do you see my point? The problem isn’t with DEI, or even guns. Both are tools that can be very useful in the right hands.

Here is where DEI is almost, but not quite, good, and why gun control is almost, but not quite, good.

You cannot legislate morality.

In fact if we had deeper and more resolute morality, neither DEI nor aggressive gun control would be required. But once you go down the path of trying to make everyone follow a set of rules, problems will arise. Just ask God, who gave mankind 10 pretty straightforward rules.

Here’s the simple, but also very challenging answer, and you already know it: do good. It really is in you.