You're likely to hear much about the CGM Focus Fund (CGMFX), if you're one to follow mutual funds or the financial press.  The reason you will hear about this fund is that it returned a whopping 80% in 2007, compared to an S&P500 return on the order of 6%.

The fund holds a concentrated number of stocks, can invest anywhere in the world, and can even bet against individual stocks.

The secret to why this fund was a winner is the focused concentration on the best ideas of the portfolio manager, Ken Heebner.  The fund does not go out and invest in every good idea, but rather, it picks the very best ideas and takes large positions in those stocks where Heebner expects significant outperformance.

As an investing approach, this style carries a large degree of risk and may not be suitable for all investors, especially those who are risk-averse.

However, what if we carried this practice of focusing on our best ideas over into our lives?  It's very easy to sign up to help out in a number of very worthwhile causes or try to address too many problems in our businesses.  The end result of getting in over our heads is burnout and a feeling that nothing significant has been accomplished. 

As Jim Collins wrote in his best-selling book "Good to Great", the good is often the enemy of the great.  Trying to do too much good can keep us from greatness or from fulfilling the mission that God has uniquely gifted each one of us to perform.

To combat the desire to try to do too much, Collins recommended that companies (a similar principle can be applied to individuals) limit themselves to areas where they are deeply passionate, make money, and can be the best in the world.  If an activity falls outside of the intersection of these 3 areas, they either end up on the "stop doing list" or don't get started.

The same principle of the power of focus applies to our finances.  This is what Dave Ramsey calls "gazelle intensity".  We need to get serious about turning our finances around, cut our spending, and focus on our debt snowballs.  Unless we're deeply passionate about getting out of debt enough to make it a top priority, it will never get done.

The start of a new year is a good time to take an inventory of our lives and weed out those things that are holdings us back, so that we can invest our time, talents, and treasures in more productive activities.  I pray that we may find the knowledge to identify our unproductive activities and the courage to make a change.

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