Have you ever heard about the Stanford Marshmallow Experiment? In the late 1960s and early 1970s, a series of studies on delayed gratification tracked children’s ability to master self-control. The children had to decide whether to immediately eat one marshmallow placed in front of them or wait 15 minutes and receive two marshmallows as a reward. Many attempted to survive the seemingly endless countdown but, in the end, only a third resisted long enough to receive the greater reward.
Why does this story matter? Because Medallion always focuses on getting you the best continuing results. We strive to offer a competitive and streamlined program with stability you can rely on, resisting the pressure to follow the crowd when everyone starts abandoning best practices.
When it comes to lending, there are a few reasons to be patient and trust in a long-term financing strategy.
  • Developing a relationship with a portfolio lender focused on enduring value will provide peace of mind, regardless of the changing marketplace.
  • Other lenders see competitors offering low rates and immediately follow suit, taking risks without anticipating the lasting consequences (they eat the first marshmallow).
  • We avoid taking excessive risk and we never ignore historical data.
  • Medallion’s lending model has proven successful during both healthy economies (the easy part) and recessions (the hard part).
A thorough understanding of historical trends creates incentives to adhere to a long-term financing strategy. If you don’t believe us, just look at the follow up studies to the Stanford Marshmallow Experiment. The researchers found that children who waited longer for the additional rewards tended to have better life outcomes. Which just goes to show that maintaining a longer-term perspective, instead of rushing after short-term gains, will pay off in the end.