"Take Some Risk, Seek the Truth and Never Give Up"

I am honored to be with you this morning.

I want to congratulate the graduates on their accomplishment. Completing your college degree is a wonderful achievement for you and for those who supported you. I hope you take a moment today to thank your parents and those who helped you. Mother's Day was just a couple of weeks ago. My mother's support was so important to me in obtaining my education. Be sure to thank your parents, especially your mother. I wish I could.

When Dr. Carroll asked me to address you this morning, I felt honored but I wondered, why me?

You have no idea how unlikely it would be for me to be a commencement speaker if you had known me when I was your age. There's a lesson in that—who knows what marvelous things some of you will do for yourself, your family, for your country, even for mankind.

I'm a trustee of Benedictine because I value education. As you become successful, be sure that you remember this institution.

I am also Chairman and CEO of Calamos Investments, an investment management firm that I founded 30 years ago. Today we have over 400 employees. We operate out of our headquarters at I-88 and Route 59. You may have noticed the construction next to our headquarters, our real estate development called CityGate Centre. Calamos manages more than $43 billion for institutional and individual investors in the U.S. and around the world through mutual funds and other types of accounts. We have been recognized for the long-term performance of our strategies and funds. We have won 30 awards for mutual fund performance excellence over the years. We are proud of that because performing well for our clients is as important today as it was when I started the business 30 years ago.

We took the company public three years ago, and I got a little more attention than I am comfortable with. I've been on the Forbes list. That's the price of being a public company.

So, if being successful is starting a company, creating jobs and career paths for others and winding up on the Forbes list, how did I do it? And what does that mean to you?

You have taken an important step by graduating here today.

As I look back on my life, I can see more clearly now that we all make important decisions that can and often do significantly change the direction of our lives. The importance of those decisions were not obvious to me at the time.

My Story

My hope is that as you listen to my story that it may help you as you make important decisions for your life.

I was the first in my family to graduate from college. In those days, very few around me even considered college. For me, going to college was that dramatic change in direction. Addressing you today takes me back to my graduation, an event that transformed who I was and who I would become. My college experience and college degree transformed my thinking and my perspective on the world.

My parents were Greek immigrants who did not have the benefit of an education. Neither finished high school. They came to this country to create a better life for their family. I'm sure there are a few of you receiving diplomas today whose parents sacrificed to make your education possible. Like many Greek immigrants, my parents had a grocery store. We lived in an apartment above the store and we all worked in the store. They instilled in me a strong work ethic. They would sacrifice anything to help me receive an education.

Be a Player—Take Some Risks

Like most of you, I thought a lot about the future. One day, walking in the alley behind our house on West Division Street in Chicago I remember very distinctly making a decision that changed my life. I thought, I am not going to be a bystander or a spectator in life. I am going to be a player. I am going to gain control of my life, and I am going to risk playing rather than simply watching others. I advise you to make a conscious decision for yourself about your future. Be a player--take some risks. That turned out to be a huge decision for me because, from that moment on, I took many risks that many thought were foolish.

Let me make the point that the risks I took were to control my life and my life's direction. Do not mistake risk with the loss of control that comes from the risks of drugs, alcohol and other foolishness.

Now you would think that as someone with an undergraduate degree and an MBA in finance and a wife and child, that I would get a job. But I couldn't face a desk job. Instead, I decided to join the Air Force to become a pilot. Now, I knew nothing about airplanes. I was just this guy who had never been out of Chicago when I headed for flight school at Webb Air Force Base in Big Spring, Texas. There were more than 60 of us, including many Air Force Academy graduates. It was meant to be tough and only half of my class graduated. Flight school was so tough that I found myself totally immersed in learning. It's amazing to me what the Air Force taught us. A year after entering flight school, I was flying supersonic jets in formation at night. When I received my Air Force wings it was an incredible personal achievement and reward for taking a risk and learning and giving it all I had. Again, a risk taken that changed my life forever.

I spent five years on active duty in the Air Force with a tour as a combat pilot in Vietnam and 10 years flying fighters in the Air Force Reserve. It was risky, it was challenging and it was fun. I enjoyed being a pilot and flying. I still do. If you see an airplane flying overhead, it may be me.

Now, when you are a military pilot flying airplanes, you cannot avoid risk. But I learned that with preparation, I could manage risk. I also learned in life and death situations that you never, never, never give up. You persevere no matter how dire the circumstances. You are in control of your destiny. Take that control and persevere.

After spending five years as an Air Force pilot with a combat tour in Vietnam flying hundreds of missions, I thought I understood something about risk management. Going to war is not a pleasant experience and it will definitely change who you are.

The Value of Teamwork

Looking back, my combat experience gave me a great deal of confidence: It taught me that I could accomplish anything I wanted to.

I also learned that being part of a team is how you survive. There's a saying that you go to war for your country but you die for your friends. The teamwork, the camaraderie, the joys and the sorrow are with you forever. Some of my best friends today are my squadron mates from the military. I value that highly.

Again, looking back, what I learned about teams in the military became very valuable in business later. We manage money using a team approach at Calamos, which is not common in our industry. But it works for us. I believe it has been an important factor for our success over the years. A team approach has been instrumental because it leverages talent and increases everyone's knowledge. In the dynamic world of global investing that is essential for success.

When I started in the investment business, the Dow Jones Industrial Average was 1000 in 1970. Over the next few years it dropped nearly 50 percent to 577. And I thought flying airplanes was dangerous! Risk management took on a whole new meaning in the investment business.

Managing money for people is an awesome responsibility, which I take very seriously. Since we manage many pension funds, you're often dealing with people's retirement savings.

Studying Convertible Bonds

While I was in the military here in the states, I began studying the financial markets whenever I could. When I wasn't flying airplanes, I was trying to figure out the stock market. I kept trying to learn and understand more. I studied the history of the markets. There's no better way to study a subject than to study its history.

I had become intrigued with convertible bonds and their complexities and, if understood well, the ability to use convertible bonds to help manage the risk of a portfolio. It seemed to me that their unique characteristics could be developed into an effective investment strategy.

My goal was to know as much as possible about convertibles bonds. I wrote two books on convertibles detailing how to apply option price theory to the valuation of convertibles. [Investing in Convertible Securities: Your Complete Guide to the Risks and Rewards, and Convertible Securities: the Latest Instruments, Portfolio Strategies, and Valuation Analysis—read an excerpt now.] I convinced my first institutional investors of the strategy back in 1981, and they remain clients today. As I look back, my determination to learn as much about investments as possible fueled my passion for the business.

This dedication to expertise is an important aspect of why we became successful. Calamos continues to be a learning organization today.

Calamos remains one of the largest convertible bond managers in the world.

I don't want to leave you with the impression that every risk I took worked out well for me. That was hardly the case. I have taken risks that did not work well.

Often I was on the eve of failure but I did not give up. I took a new direction. I changed course. I tried to adapt to changing conditions and unforeseen events. I persevered to reach a goal.

For me, failure is never an option.

Seek the Truth

My second piece of advice is to seek the truth and think through problems.

I was a very impressionable student when I was in college. Plato said that to lead a good life, you are first a student, then a soldier, then a businessman and then a statesman.

I have been a student, a soldier and a businessman. I guess three out four isn't bad.

I am often asked if my goal was to run a big company.

I did not have a clear vision that someday I would run a publicly traded company. Running a company to me is like riding a bike uphill. If you stop pedaling you're going backwards. I keep pedaling. I don't have any idea how high this hill is for me. But it sure is interesting and exciting as I go.

I have always had the gift of curiosity which caused me to continue to learn. I studied engineering, architecture and, of course, finance but no area of my studies was more important to me than the study of philosophy. I credit the study of philosophy with helping me to develop the ability to think critically, which is extremely important in a world that is constantly changing. A college degree is not about getting a job but rather it's about being curious about this amazing world. It's about continuing to learn.

Those who have read Plato know that "conversation is the ultimate human experience." Descartes said, "I think, therefore I am."

Conversation in search of the truth is a great human experience. I think all of us who enjoyed our student days continue to miss those debates about politics and religion. They were truly conversations in search of the truth. Unfortunately, many people today think the truth comes from a reporter's 30-second sound bite, the "spin" on the event. We need to spend more time trying to learn the truth rather than being led by sound bites. Real education is the answer as well as striving to learn the truth. Yet, there are elements of the philosophic conversation in business, if you recognize them as opportunities to think for yourself.

Again in hindsight, looking back over 30 years, thinking for myself has helped me more than my finance degree.

Your education has given you the gift of thinking critically. You will have many occasions to use that gift. You will think through business issues to find a solution. And, if you remember the philosophic pursuit of truth, you will think for yourself. You will be accountable and you won't simply follow the crowd or fall into the trap of simply doing what everyone else is doing.

Over the years I have seen many people simply give up learning anything new. Some people reach a point of comfort and simply stop growing. Unfortunately, I have seen people with six months of experience who haven't grown much beyond those six months of experience even though they have been on the job for 20 years.

You can't do that. You are graduating from Benedictine as people who can think and people who can learn. Be grateful for that gift, but mindful that it obligates you to continue to learn.

The Future

The diversity of this Benedictine graduating class confirms my belief that globalization is upon us. Calamos may be operating out of Naperville, Ill., but we are investing in companies around the globe. I have been investing in the markets since I was a teenager. Globalization presents the most exciting development that I have ever seen as an investment manager.

From my perspective of many years of experience, I see what is going on in the world today as very exciting. The investment opportunity, the changes, the ability to meet people of different cultures and have "human conversation" is what keeps me going.

But it's even more exciting for you as you begin your careers—that may take you to any country on this planet.

What an exciting time to be starting your career! You are truly beginning your careers in the best of times. I grew up under the threat of the Cold War. The collapse of communism has given 3 billion new consumers and producers the opportunity to enjoy the economic benefits of capitalism. Free trade and the advances of technology have dramatically increased productivity. The advances of financial engineering, which we at Calamos know well, have allowed economies to become more stable.

Standards of living around the world have improved the lives of millions of people. We're learning more about different cultures, and we've become more accepting of differences than ever before.

Yet, this is also the worst of times because there is and, unfortunately, there has always been an evil element. More dangerously, at this time they have the intent and the technology to cast civilization back to the dark ages.

You are doing your part by becoming educated and, I hope, by searching for the truth. Continue that journey. You have made an important first step.

My hope for you is that someday you will be rewarded as I have because you have taken a risk, you have searched for the truth and you never, never, never gave up.

Congratulations again and good luck.

Thank you.