A trader I hold in high regard recommended watching “Jiro Dreams of Sushi”. They drew an analogy between the granularity and continuous refinement of the process of the Japanese chef Jiro and that of the highest calibre of trader.
Initially, I took it to be somewhat of a stretch (to say the least). However, as I got on a 14h flight, I thought, given that I did not have many better things to do at that moment, I would give the documentary a watch and see if I could draw any major parallels between the 2 crafts.
Jiro is a chef in Japan. He is 100 years old and is the owner of Sukiyabashi Jiro. Jiro is unique; he is obsessive, truly harsh on himself and stubborn in his ways.
A good trader, similar to that of Jiro, hones in on his craft. This obsession for simplicity in the process with defined steps is the magic of a 3 Michelin star chef, and a trader carrying many wins and accolades under his belt, from my perspective, is no different.
In the documentary, it is outlined that the attributes of a great chef are:
Take work very seriously and perform at the highest level
Aspire to improve one’s skills
Maintain cleanness
Impatient character (they are often better leaders than collaborators)
Unprecedented passion for their craft
All of those apply to trading.
In the story of Jiro, his edge lies in the fact that he finds it essential to double-click on every single detail.
In the restaurant, they would age a small tuna for about 3 days and a larger tuna for up to 10 days. Everything is being done ahead of time, similar to the research and work it takes before any trade ever takes place.
What others might not notice, Jiro will spot simply from having done this for such an extensive period of time. Once again, if we draw a parallel, in a trade, if you are not meticulous in your ways, you will be more prone to losses and succumb to growing sloppy over time - discipline is essential.
His routine is simple, yet timeless. He has taken the same steps for over 50 years. The only occasions during which he takes time off and has days when he is away from the restaurant are national holidays and funerals.
“The way of the shokunin is to repeat the same thing every day”
This is rare, and I find it to be beautiful. In my eyes, this is exactly what it takes to stand out from the herd as a trader.
In France, the 1st Michelin guide was first published in 1900.
Michelin inspectors look for:
Quality
Originality
Consistency
Again, I know I am beginning to sound like a broken record here, but all of those in my eyes qualify as traits of a good trader.
For reference, a perfect 3-star Michelin rating means that it is worth making a trip to that country just to eat at that restaurant. You can probably understand that when Jiro’s restaurant received 3 Michelin stars in 2008, most were rather astonished.
Think about it.
There are only 10 seats in his restaurant, with the restroom being outside of the premises. The average duration of a meal is approximately 15-25min, with no appetisers, just sushi. We can definitely say that there is no other 3-star rated restaurants anything like this in the world, and it would be an understatement.
“No matter how many times you eat at Jiro’s, the sushi there is incredible” - Michelin
Right now, it might just seem like everyone is obsessed with Jiro, almost becoming deluded. Surely his food cannot always be a 10/10 every time? He is inherently dependent on external factors; what if they let him down? i.e bad tuna or shrimp? Before WW2, they used to cook fatty tuna (o-toro); the taste of the fatty tuna is simple & predictable, although the flavours of the leaner cuts (akami) are significantly more subtle and sophisticated.
Each tuna has its own unique taste, yet it is the leaner cut that carries the essence of the flavour.
“We can’t buy just any tuna” - Jiro
and a good trader cannot afford the complacency of bidding any random asset ;)
Now let’s dive into the supply of tuna. The tuna vendor is a priori the tuna expert; the same applies to the shrimp vendor, who is a specialist in his field. Each one of the vendors is a specialist in their niche and has a unique edge that Jiro and his crew do not have. It is a de facto that specialists, in this case, the vendors, are significantly more knowledgeable.
If we are honest, they are the ones who can disrupt the flow for Jiro and his culinary magic. To avoid such occurrences, the team made a conscious decision to build a relationship of trust with them.
Trust is everything. In markets, those same trust assumptions apply.
“I would make sushi in my dreams. I would jump out of bed at night with ideas” - Jiro
There is always a yearning to achieve more with Jiro. I find it honestly fascinating: the level of obsession and dedication to the craftsmanship.
Always try to look ahead and above yourself
Always try to improve yourself
Always strive to elevate your craft
Those are the lessons Jiro taught his sons. There is even an undeniable level of joy when a master calls the apprentice a “shokunin”; it is what they strive for over many years.
The way of the shokunin is powerful in its own right, and I believe we have a lot to learn from it & carry over many of the teachings to our own pursuits.
“Perfection is achieved not when there is nothing more to add, but when there is nothing left to take away.”