Nike Shifts Marketing Focus

“Why?” is a question that seems to linger on everyone’s mind—philosophers, parents, and even young athletes today. Recently, Nike decided to change its famous slogan from “Just Do It” to “Why Do It.” It appears that advertisers have picked up on a cultural shift. There seems to be a noticeable move from taking risks to being more cautious among younger consumers.

Nike describes its latest ad campaign as a challenge to a generation that hesitates. As they put it, greatness is not handed out; it’s a choice, and sometimes the hardest choice is simply to begin.

But Nike isn’t the only one observing these societal changes. Many have pointed to the lingering effects of the pandemic and research by NYU’s Jonathan Haidt, highlighting a rise in what he calls “safetyism.” This mentality prompts questions like, “What if we just went for it?” Is the fear of failure really worth it?

The ad, narrated by Tyler, the Creator, wraps up by asking, “What would you do if you didn’t?”

I’m not trying to criticize the younger generation. Each generation has its unique traits, both positive and negative. It reminds me of Bud Dry’s “Why Ask Why” campaign back in the ’90s, which suggested a rather carefree attitude—who cares why? Just enjoy a drink. But it seems like the purpose behind these choices has faded away.

Investors should also ponder the “why.” Achieving greatness in athletics or accumulating wealth doesn’t just happen passively. Certainly, there are risks involved, but let’s be honest; the alternative is not investing, which can also be costly.

Consider this: Since 1950, if you had kept $100 in cash, it would be worth less than $10 today. On the other hand, had that money been invested in the S&P 500, it would now be worth nearly $2,900.

Often, when people first approach me, their opening query is “What?” They want to know, “What should I invest in?” Or sometimes, they name an investment they’ve heard about and expect a straightforward yes or no answer. A competent financial advisor can’t just respond without understanding the reasoning behind the question.

• Is this money intended for your retirement?
• Is it a down payment for your future home?
• Are you looking for income to manage your expenses?
• Will you need this money next year, or can it sit for 20 years?
• Is it meant for your child’s education or future inheritance?
• Why are you investing now, and what goals do you hope to achieve?

“I just want to make money” isn’t a solid answer. In the world of financial advice, understanding your “why” is crucial before considering the “what.” Without answering the “why,” you can’t really grasp how to reach your goals.

Focusing solely on what you invest in can backfire. If your investments start to drop, you might feel compelled to sell at the worst moment.

For example, to gain 15% in the S&P 500 by 2025, there was a significant -19% drop along the way. If you concentrate solely on performance, you might end up struggling.

Looking back, investors since 1990 have faced an average annual decline of -14% just to achieve a 10.5% annual return.

It’s said that understanding your “why” enables you to tackle any challenge that comes your way. This applies to life and, certainly, investing. It isn’t easy, but asking yourself why you choose to invest—or why you don’t—can lead to clearer decisions.