Sticking to What Works: A Lesson from the Chili Cook-Off

For three straight years, I won the Rather & Kittrell office chili cook-off. Each time, I started with the same reliable recipe and made small adjustments. A bit more spice here or a different cut of meat there to improve the flavor profile without changing the core. It was consistent and delivered.

With the potential to win a fourth consecutive title I decided to completely reinvent my winning product. Not one or two new ingredients, but three I had never tried in chili before.

The result? The chili fell flat. My tinkering with a proven winner cost me the title, and secured a last place finish.

It reminds me of how some investors behave. They chase the next big thing, the strategy or sector that everyone says will deliver outsized returns. A few years back, SPACs were everywhere. Blank-check companies promised a fast track to public markets with big upside. Many jumped in, but after the 2021 peak, most SPAC mergers underperformed badly often losing 50-80% or more from their highs as reality set in.

Private equity drew similar attention. People heard about strong historical returns and rushed to access private markets, sometimes through funds or direct deals. While elite managers have done well over long periods, broad private equity returns in recent years have often lagged public markets during strong stock periods, especially with higher entry valuations and longer hold times.

Then came the AI stock frenzy. In 2025, AI captured nearly half of global venture and funding flows, with massive bets on companies tied to infrastructure, chips, and software. Valuations soared, and headlines promised transformation. Yet questions about over-spending on capex, and whether profits will follow have led to volatility and pullbacks in some names.

These pursuits often come with big promises but rarely deliver the easy edge people expect. The effort, time, and energy spent chasing them can pull focus away from what actually builds wealth.

We already know what works in investing: broad diversification, low costs, staying disciplined through market ups and downs, strategic rebalancing, and aligning the portfolio with your overall financial plan. These basics have stood the test of time for building and preserving wealth.

That does not mean we ignore new opportunities. Far from it. When something promising comes along like targeted exposure to AI through established companies or selective private investments it makes sense to look closely. But only if it is low-cost, fits as an addition to diversification, and does not disrupt the core strategy that is already working.

Many people we work with at Rather & Kittrell prefer this approach. They want to delegate the day-to-day decisions so they can focus on their lives, not on trying to outguess the market or catch the latest wave. A thoughtful, coordinated plan that encompasses investments, taxes, retirement, and legacy goals gives clarity and peace of mind.

If you handle your own investments but find yourself tempted to chase the latest trend, or if you are ready to hand off the complexity to someone who sticks to proven principles, we are here to talk. A conversation can show how a steady, evidence-based strategy supports your bigger picture.

Nathan Smith is the Chief of Staff and Trading Manager for Rather & Kittrell.  he can be reached at [email protected]