The Investment of A Lifetime

How to Build Business With the Habit Most People Forget to Develop

Warren Buffett is known for not sharing his specific strategies; and yet his knowledge is so desirable that a  dozen or more authors have written about what they think he does. By Buffett's own admission, the best book about him is called The Essays of Warren Buffett, by Professor Lawrence Cunningham. The book carries a series of articles explaining why Mr. Buffet invests as he does, and how he manages risk and opportunity.

People want to know what works. We like to be connected to the action.And more often than not the action is around the money. This will give you the outline for having and enjoying real wealth.

Several very wealthy people openly share their observations about investment. Donald Trump and Robert Kiyosaki cared enough to write a book about the importance of investing as a wealthy person, called "Why We Want You to Be Rich"; perhaps not the classiest title, but their direct approach is refreshing, and their advice extremely useful.

The saying "the rich get richer" negates the opportunities available and the type of work that makes one wealthy. Kiyosaki and Trump have evolved themselves into teachers. And they begin by encouraging a different approach to money-that is their job #1. That is their key advice. It is difficult to overlook Donald Trump's role as an educator. After all, Trump's television program, "The Apprentice," provided MBA-level lessons on business decision-making.

Another book on the subject of becoming rich is, "How to Get Rich", by Felix Dennis. Dennis is a publisher behind such diverse publications as Maxim and The Week. He is also a very talented poet. Dennis' stories are both pointed and funny, and they have much in common with Kiyosaki and Trump. For one, he's really made a lot of money. What's more important, though, is a sense of the humility necessary to really "make it.

"Get rich quick? Maybe. If you are very, very lucky, yes, you can. You can also lose it pretty darn quick, something I regret being experienced in. One needs to know how to dissect the challenge and know what to keep and what to chuck.

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Choose One: Avoidance or Opportunity

I was away...
We're too busy....
I know all about it!

We are geniuses at avoidance. Have you ever missed an opportunity sitting right beside you?

Les Brown tells the story of a time he was feeling all important flying First Class! on a coast-to-coast flight. All important. All pumped up about himself.

As he left the plane, walking at a distance behind the older gentleman he'd sat next to silently during the trip, someone tapped his arm. "Wow!" said the attractive woman, "you must have had a great conversation with Dr. Deming."

Brown did a double take. "W. Edwards Deming, the management GENIUS?" In an instant Brown realized he had sat beside one of the greatest managerial minds of all time. Not once did he take advantage of the opportunity to learn from the great man.

There are no figures about the income lost because of avoidance.

There is only the vaguest of recognition, and denial, that the opportunity missed might have held the answer we most needed.

And we just weren't conscious enough to accept the gift.

rb

Is there money for "sustainable" projects? (Was there money for Woodstock II?)

I was one of a handful of producers at Woodstock II, in Saugerties in 1994. My piece of the turf  was the EcoVillage. The experience probably had as much to do with coloring my view of the world (and my current business) as any other experience I've ever had.

Actually, the EcoVillage was more like paradox village. Planned for solar powered lighting and filled with "green" exhibits, the tents and the so-called "3rd stage" (there was also music there!) were allocated a fraction of the electrical power required to project the sounds of Bob Dylan, Aerosmith, Crosby, Stills and Nash, Johnny Cash, The Cranberries, Santana... and about 40 other bands.

As it turned out, solar power proved insufficient to power even the EcoVillage's needs. As the clouds brought the inclement weather to Saugerties, they snuffed out the power source. Much of my time was spent diverting even 15 amps(!) to give us backup power for the "green" exhibitors. Fifteen amps is  about what a competent electrician allocates for a home refrigerator.

Last year was one of the best years to date for distressed debt

Those institutional investors who added distressed to their portfolios during the second quarter of 2009 were richly rewarded with returns exceeding 30 per cent. Yield-hungry investors made a good choice, as junk bonds were priced excessively low for many companies after credit spreads blew apart late in 2008.

In the last half of 2009, investors aggressively put funds to work, driving yields below 15 per cent, admittedly still a decent return. But some junk bond issuers fell on extremely hard times, and their default rate, as reported in the Financial Times, stood at 12.9 percent by the end of the third quarter. That has upped the risk-versus-reward ratio in the market and investors ought to be more discriminating in choosing distressed funds in the coming months.

But aside from the auto companies, there are few familiar household names which appear to be in trouble, looking further into 2010. Don’t be surprised, though, if investors continue to allocate funds to this area, as long as the Federal Reserve keeps interest rates near zero.
RM/IMI

How to Think About Social Media: Keeping out of trouble by planning your day job

Many people "just do it" with their social media. If you are managing your own social media, blind luck may be ok.

But, when you are asked to create a campaign for someone else, like your boss, or a charity that you help out with...there are some considerations you might want to make.

Here is a LIVE conversation with a client, where I walked her through the prep work for creating a fan page--and a campaign for a New York City autism group.

Also consider using mindmaps for our planning...I use Mindnode with my Mac--it's great for thinking through probelms, products, marketing plans. Just about anything that requires our inchoate wisdom.

Is your book calling financial advisors, liars?

Rob: In your book, you seem to suggest that all financial advisors are suspect, and may not be able to be trusted. Lots of people are angry for sure. But are their advisors all liars? My Dad is an advisor and he is a great guy, who works his tail off for his clients BY THE WAY!

Signed--Warming to a fight

Dear Warming to a Fight:

You can put your dukes down. You are over-thinking what the BLBB says.

There are numerous surveys that show advisors are among the MORE honest professionals "out there." I am glad your father isn't in politics--because over 50%of the respondents in a recent survey say they are the most deceitful. If we were arguing that one--you and I might both be swinging at each other for keeps.

The core message of The Billionaires Little Black Book," however, is pretty placid. Even profitable.

When professional advisors work together, I write, they tend to create more complete solutions that apply to a longer view for their clients. When they create such solutions, they often enjoy the work more and end up working together again. Or, as I suggest numerous times, they may refer business to each other--Why? Because they know each other's level of competence, skill and personality. They want to serve the client--first, and then the firm because it is good business.

One of the sadder elements of professional life is that a statistically low number--about 2% of financial advisors--ARE deceptive. The mass media, always keen for "dirty laundry", will make the story sound like a trend. I do not believe that is the case.

My emphasis in the book is on the 2% that are really great and work to make their clients super-successful--presumably using an all inclusive system like the BLBB. I am sure that your Dad is among those. The strategy is, like so many strategies, simple but not easy to achieve: Get the right people, doing the right thing, in the right way, at the right time, for the right reason.

Achieving all those levels represents having fun making money. And THAT is what the book details about locating and managing the right advisors.

Who wins? Everyone. The Advisors, the Client. And Society.  You wouldn't fight that, would you?

rb



 

Stadium Naming Rights... Signs of Sustainability and Consistent $/X Behavior

What is the connection between consistent money behavior ($) and obvious success (X)?

The Wall Street Journal recently looked at 90,000 sports games, to find the correlation of naming of stadiums by different corporate sponsors to the teams success.

This is something to think about, especially if you are in a football pool for the Superbowl, but before other games, too.

Miami's stadium, the site of Superbowl XLIV, has held numerous names: Joe Robbie  Stadium, Pro Player Park, Pro Player Stadium, Dolphins Stadium, Dolphin Stadium, and Land Shark Stadium. And now football's BIGGEST match  this year between the Colts and the Saints will be played Sun Life Stadium--you know, the guys in the TV campaign who attempt to negotiate a renaming of the famous disco band as KC and Sun LIFE Band ...

The Journal grouped stadium naming corporations by general business category.

What real control feels like

Character, control & conscience may be your real business. Are you addressing them? How would it change your life, if you did?  http://budurl.com/m4b7

A new business--Hushed my asthma. Was my Doc alienated? Nah!

I wanted some extra energy. But I needed to breathe.

I had ZERO concern that healthier skin and better digestion would also occur.  But, within a few days my shrugging acceptance had turned to astonished relief. My nearly $400/month asthma (legal) drug habit had become an exercise regime and, now, a possible fortune--I am working on the business and learning how to reset my physical health. Truly the best surprise I have had in the last 3 years.

My suggestion to you is--'do what I did.' Take all your skepticism to the web, then... watch, listen and think about how you think of  the future. Especially if you are going to live and love for a very long time, don't you deserve to be healthy and a little wealthier, too!

Where you see the videos, you can also request your Free Sample under the video! Go to myqivana.com/robertbailey

Introducing the 10 Commandments of Sustainability (Really!)

Pass the hat. Lend a hand. Make more money. Gimme. Cut your taxes. Just TWO MORE DAYS! Just 339 Days to Christmas. ? "Do YOU Suffer from RLS? Millions of people Do!" But there's MORE! If your order right now...!

Sheesh. Is anyone in America every satisfied? We sure don't sound like it. We are broke and lacking direction.  Of course, there is the added pressure to be sustainable.

Sustainability as a concept sounds SO good, that it's been railroaded by the press and by the financial services industry. It sounds so responsible. Of course, when it is sincere--it IS responsible. When it is a marketing term it is as meaningful ad Blutto's promise to" gladly pay you Thursday for a hamburger today." (Did he EVER pay Popeye back?--we know he ate-forward.)

Sustainability is a valid objective. It is also an ideal. Like all ideals, each person has their own version. Therefore, is unlikely to be achieved. Paradoxically, the ideal nature doesn't make sustainability unworthy as a goal. It may be edgy to do this but a key question is in order.

Can't a good discipline have a beneficial result--without having a material outcome? Sustainability has many advocates and lots of them connect illogical elements--like saving having clean water and advocating protection the elephants. Two separate issues. Another one. Being liberal or conservative and being "environmental" or "conservationist"? (Either expression connected to an individual sounds like a socio-medical condition.)

These are complex times. They are so tough that the troubles open the way for sustainability to masquerade as a marketing device.  However, the practice of real sustainability is one of the greatest stimuli for  innovation we may ever see. For your entertainment and consideration, in that order, I will share with you my Ten Commandments of Sustainability.