Happy Memorial Day….Huh?

This got lost in my draft folder, but wanted to share before the summer passed by all together.

Just some random links and ideas, things I have been thinking about, impressed with, and want to share:

– Bryant University Lacrosse – Showcased on 60 Minutes:
As a proud alumni and former Captain of Bryant Lacrosse, this piece hits home big time. Really proud of the school, the Administration, and the unbelievable transformation of the Athletic Program

Link to Video here: http://cbsn.ws/1CPvusJ

– Books I have read/listened to this year that stand out:

1) The One Thing – George Keller

Link to the book’s website:www.the1thing.com

Link to the book on Amazon: http://amzn.to/1eipSCB

2) Choose Your Self Guide To Wealth – James Altucher

His website: www.jamesaltucher.com

Link to book on Amazon: http://amzn.to/1JDF6un

HE HAS A GREAT PODCAST!

3) Zero to One – Peter Thiel, Blake Masters

Link to the book’s website: http://zerotoonebook.com/
Link to the book on Amazon:http://amzn.to/1HNMwjr

3) Leap First – Seth Godin

Link to the book on Amazon: http://amzn.to/1TXkGna

4) The Frackers – Gregory Zuckerman

Link to the book on Amazon: http://amzn.to/1MMUnvV

5) Titan: The Life of John D. Rockefeller (in progress) – Ron Chernow

Link to the book onAmazon: http://amzn.to/1TXlkRVhttp://amzn.to/1TXlkRV

– Articles stood out:

Hunter S. Thompson on Finding Your Purpose and Living a Meaningful Life: http://bit.ly/1VFloY3

I Prefer to Leave Early (James Altucher): http://linkd.in/1EEdnXZ

Why Football Matters, By John Harbaugh: http://bit.ly/1HVWWvk

Chatham, NJ Profile (NY Times): http://nyti.ms/1NPaFVi

Light Joggers Can Outlast the Ironmen Over Long Term: Health (Bloomberg): http://bloom.bg/16bzQ4d

– Miscellanous things to check out:

1) Searching for Sugarman – Great Documentary – check it out on Netflix: http://bit.ly/WNtTXn

2) Photo/Video Storage service I started using: https://www.mylyve.com/

3) Tower Inflatable Paddle Board – Just purchased for family vacation: http://bit.ly/1lzFB13

4) Boll and Branch – A new sheet/bedding business, Fair Trade

www.bollandbranch.com

5) Healtheo360.com – Healthcare Social Media, video based company which provides “Virtual Social Therapy”: www.healtheo360.com

**Note: None of my suggestions above is meant as an advertisement or endorsement. I may have had passive investments in some of the businesses listed; however, all suggestions in the post are personal in nature.

 

 

How much is your music worth?

Reading a new book, “Millennial Money: How Young Investors Can Build a Fortune”, by Patrick O’Shaughnessy.

Wanted to share a simple investing principle cited in the book; and something for us to consider, consuming vs. investing…

“In October 2001, the cost of a shiny new, first generation iPod was $500. At the time, the same $500 would have bought you 64 shares of Apple stock. The 2001 iPod has been rendered obsolete ten times over, but the 64 shares are now worth $32,308. Investing is better than spending.”

Of course, Apple just announced their QUARTERLY profit of $18 billion; more than another business has ever earned in one quarter.

The question is, if I had this information in 2001, would I have still bought the iPod? I almost certainly would have borrowed money to buy as much Apple stock as possible. This would make me feel much more comfortable in giving up the $32,308 for spending $500 and getting the utility of iPod in 2001. I believe that is a completely rational assumption.

However, would you have bought the iPod with this information if you only had access to exactly $500? What is your opportunity cost of not having the iPod in 2001? There were other technologies available to listen to music back then remember. I actually think not having an iPod or other digital music device would be a much bigger obstacle.

There are also so many factors that are important here, i.e., when would you have additional cash, how long would you have to “go without”?

My guess is that I would have waited as long as possible and try to get by on my old Sony Discman!

I still have my 2001 first generation iPod, do you think it worth any part of either the original price or the $32,000?

We make trade-offs and long-term decisions every time we make any investment. The opportunity cost of our assets, cash, and liquidity is something to consider.

Keep starting…

Best lesson I learned in 2014 was to ‘just start’….inspired by a book with the same title. It works…

I ‘started’ a number of projects that are promising, some focused on work, some focused on family, some focused on long-term ambitions, some focused on personal development, and importantly, one focused on charity.

The act of doing is a powerful and contagious act.

Just do….don’t think.

What do you want to create?

To help you get going, here is a great 2015 book idea from Seth Godin….

http://www.yourturn.link/

What’s holding YOU back?

Influence “The Psychology of Persuasion” (Book Notes)

My full notes/highlights from “Influence, The Psychology of Persuasion” by Robert B. Cialdini, Ph.D.” :  Influence

Great read for EVERYBODY. I have read Dr. Cialdini’s remarks and Youtube clips. I appreciate his scientific and biological study of how we humans responded to specific triggers.

As typical in this type of book, the principles seem so obvious after reading. However, it was helpful to have them all explained in different chapters.

I have tried to use some of the material in how I think about both my personal and professional life. Especially drawn to the research on social proof. We are all guilty of going into Amazon and looking for the “most popular” item in a category rather than doing research on our own. Short-cuts are amazingly efficient and powerful.

Key points:

– We feel indebted to repay gifts, favors, etc – by buying more trinkets from places like Flyp, which are then, in turn, need to be repaid with another gift.

– When we make a commitment, we tend to stay committed to our stand.

– We imitate, especially when we are uncertain. “Social Proof”, humans prefer “shortcusts”, i.e., “best-selling” “most popular”.

– We like to be flattered. Praise doesn’t have to be accurate to work.

– We want something we can’t have or that is running out. The joy is in possessing rather how important something is to us.

 

Just Start (Book Review/Notes)

Book Review:  Just Start: Take Action, Embrace Uncertainty, Create the Future by Leonard A. Schlesinger, Charles F. Kiefer

“Nothing changes unless you act”

Great place to start reading in 2014, especially those who may be paralyzed by starting (probably includes all of us). We plan too much, strategize too much, and at the same time, this planning and thoughtfulness can provide a false sense of comfort. We’ve been trained to analyze each project fully before committing.

Trying to guess the future based on the past typically turns out to be a poor way to make prospective decisions. If we were starting a computer company 3 years ago, we may have looked at the Dell model and assumed specific growth assumptions and copied some of their features. We would have missed the tablet, the future, and what lies ahead.

This book challenges the reader not to overly focus on prediction reasoning (pattern of thinking and acting based on the assumption that the future is going to behave in a way similar to the present). The future world is not knowable, and because of that we need to also apply “creaction”. This made-up word combines creation and action. As explained in the book:

“The future may or may not be like the past, but you don’t have to spend a lot of time wondering how it will play out if you plan to shape (i.e., create) it.”

“If you can’t predict the future—and increasingly you can’t— action trumps everything.”

“Action always leads to evidence.”

A really important part of the book is that it suggests you “bring others along” in your project. The idea of getting buy-in early by showing evidence is powerful. Simply suggesting a new venture or project based on analysis is the traditional way of making proposals. However, if you can get some early evidence that the assumed benefits and the vision of the venture can be successful, you can achieve much stronger commitments.

“Serial entrepreneurs told Saras Sarasvathy that they believed that the growth of their potential enterprise was limited only by the number of collaborators they could attract, not by how much money they could raise.”

The type of action is also important. The book describes this as taking “smart steps”.

“…the action you take based on the resources you have at hand and never involves more than you can afford to lose, that is, your acceptable loss. Having taken the step, you pause to reflect on what you have learned.”

This is all about not risking too much too soon. This gives you the ability to gather evidence before taking further risks or as the book describes…

“Process of act, learn, build, so you can Act again.”

Of course, you have to know what you want to create before you even take a small smart step. The book has a very good review of passion vs. desire and the role that perseverance plays.

“…the starting point is: what do you want to create?”

“It’s supposed to be hard. If it wasn’t hard, everyone would do it. The hard . . . is what makes it great.”

“In the worst of all possible worlds, you are going to fail quickly and cheaply as a result of using Creaction. That is not a bad thing.”

I found the discussion on how to handle problems really insightful:

“Problems are good news (almost always). Really. Try this: accept the situation to the point of embracing it. Take as a given that it won’t ever change and turn it into an asset. What can you do with the “fact” that it won’t ever change?”

That can be really hard to do and does not come naturally. This is somewhere where your collaborators can be helpful. Have them suggest ways to make the problem an asset. This can change your thinking. I would guess that most successful entrepreneurs are able to make many of their problems into assets. This is something I am going to focus on more in 2014, through practice.

Attached are my full notes from the book. This is a great book for those trying to launch something new this year.  This isn’t specific to starting a business, it speaks to launching any project, any resolution, or anything you fear starting, this is a great start.

 

Buy yourself a gift…

For those that enjoy “networking”, meeting for coffee with other industry peers, you need to buy yourself one of these this holiday season (disclaimer: I have no direct investment or affiliation with Filed Notes):

field notes

I usually buy them from Amazon, also available at their own website, www.fieldnotesbrand.com

The most important part of this post is that in late 2012 someone who asked for my time and advice followed up by sending me a three-pack of these. A year later, I have a catalog of 8 of these, and am never without the handy book.

I rely on technology and try to digitize all of my notes, contacts, and almost everything through Evernotes and other forms. However, when sitting down brainstorming, it is much less intrusive to scribble on this pad and digitize the main points later. I believe they are less intrusive than typing away on a smart phone when meeting someone for coffee.

A huge unexpected benefitis that the pad allows me to be more creative. I find that I allow myself more creative freedoms when taking notes in my discussions on ideas with fellow networkers. In the investment field, we probably need a bit more creativity and less digital note taking. I am still a fan of the productiveness the digital form provides; however, I have been pleasantly surprised by the resourcefulness this small 48 page memo book provided.

Buy yourself a three-pack or try other books.  Also, a great gift to give to colleagues or follow-up your 2014 network meetings. This is a great time of year to try something new.

A big thank you to all who have read and contributed to this blog, I have met and shared ideas with many of you in the past 12 months. I appreciate learning your stories.

Lastly, a few tips for 2014 networking meetings:

1) Offer to pay (if coffee or meal is involved)

2) Have 3 pre-planned questions that you have developed after researching the person you are meeting.

3) Don’t email the person and ask to “get together for coffee” and get some advice. Be different, have something really interesting to discuss. Example, “I hear you were involved with the planning of that panel at the XYZ conference. I read an article regarding the topic you discussed and would like to share my ideas. Can you meet for coffee next week for 20 minutes to discuss? I am available every day between 2-4pm. Thank you.”

4) Don’t start with a discussion on the weather or the latest sports game. (Always difficult for me during football season!)

5) Actively listen and ask questions about that person. Try to have them speak 80% of the time.

6) Keep the discussion to 20 minutes and let them know your time limit before you start talking.

7) Offer to help based on something they said, listen for what  is their main issue/obstacle.

8) Write down the follow-up in your “Field Notes”.

9) Have something very specific to ask them.

10) Put notes into their contact information on your digital database. Keep a log and review at year-end to see who you met with, who you didn’t meet with, and review for outstanding follow-up.

Happy Holidays!

Follow-up: What’s The Buzz

The following was sent to me by a friend, Michael Galano, as a follow-up to my post, “What’s The Buzz”. Great article written by Emile Hallez (Ignites, October 7, 2013). Thanks, Mike!

“Revealed: The Most Hated Industry Jargon

By Emile Hallez October 7, 2013

“Thought leadership” and “low-hanging fruit” are like nails on a blackboard to Ignites readers, who last week bestowed the terms the ignoble crown of most hated in the fund industry.

Among sets of 10 common buzzwords and clichés in last week’s polls, readers voted their disdain for those catchphrases over others such as “solution” and “boots on the ground.”

The polls proved popular among Ignites readers, attracting 700 responses.

Experts have noted that while industry jargon and clichés can make communication more efficient, the use of unfamiliar or vague terms can also lead to discrepancies in meaning and spur confusion during interactions with both clients and associates.

Twenty-two percent of respondents voted “thought leadership” as the worst industry buzzword, over “value add” (16%), “synergy” (14%), “holistic” (10%), “solution” (9%), “leverage” (8%) and “robust” (6%).

Regarding the clichés, 19% of readers disfavored “low-hanging fruit,” just ahead of “Think outside the box” (18%), “Let’s circle back” (15%) and the moderately creepy “Open the kimono” (13%).

“Breaking down the silos” received 9% of votes, while “Skate to where the puck is going to be” garnered 7%.

The buzzword poll received 700 votes, while 668 readers voted in the cliché poll between Sept. 30 and Oct. 4. The most up-to-date results of the poll, which is still open to votes, can be viewed here.”

What’s the Buzz?

WESTF02027

One recent early morning I unexpectedly saw an old mentor of mine as I walked to work. Notice I restrained myself from saying, “ran into an old mentor” or “bumped into an old friend”. Some words/phrases need to be replaced while some need to be retired entirely. When have you ever truly “run into someone”?

This particular person has been a helpful source of advice and perspective early in my career. I still refer back to notes I would take when meeting with him for advice. As true with many of my mentors, I admired how effective he was in building relationships with people, particularly institutional investors.

Early in my career I was concerned about my credibility given my age and lack of experience. I would reach out to several more tenured peers hoping to find ways to prove myself and be more like them when interacting with senior people in the industry. I was young and sometimes intimidated by the knowledge and experience of Chief Investment Officers and Pension Trustees that were more seasoned.

This specific mentor was articulate, confident, and had some of the longest and most trusted relationships. One specification recollection at a client event many years ago stands out. As I was introducing myself to a client and shaking his hand, this mentor came into the room walked over to my new friend and they practically hugged. This client later explained to me, “He’s not our advisor, he’s much more than that, he’s like family to me.” How powerful.

When I met with mentors like him, I typically prepared 3 or 4 questions, hoping they’d be impressed with my thoughtfulness. On one particular meeting with this colleague, I noticed he was taking quite a few notes. At first I was proud of my preparation, “he must really like what I am saying!”

After ten minutes, he shared with me some of the best advice. Like a doctor diagnosing a disease, he identified my particular flaw as being a “buzzword” guy. He went on to provide the cause of the “disease”, my lack of confidence in my position and my knowledge. He was right. I was so eager to let the world know that I knew something, I wanted to sound smart. Without even thinking about it, I threw out every key word of the moment, hoping to impress more tenured investors of my knowledge, skill, and trying to earn their respect.

This mentor never used buzzwords; I couldn’t think of one during our conversation, he had written down over 15 in our conversation (that explained his note taking). If you listen closely to true experts, those that stand out from the “self-proclaimed experts”, you will be amazed at the lack of buzzwords. This is true in any industry.

How often did Steve Jobs confuse his audience with technical words or phrases? He didn’t have to complicate his message; he connected because the product connected with true customer needs.

True relationship builders know the information regarding a product or service so clearly, that their explanations of the information are much more familiar, comforting, and confident. This was a key lesson in my development, one I think about particularly in new situations.
The cure for this ailment was simple, be yourself. Don’t hide behind complexity. Don’t ever try to be someone else, it never works.

Although I realize many of these words and phrases have an important use in our ability to communicate key concepts, I thought (for fun) that I would list some buzzwords/phrases that I think should be replaced from the industry today. Mainly from overuse:

– “Housekeeping items” (so overused at conferences and in meetings)

– “Let’s review the agenda” (ditto above)

– “Decoupling”

– “Participating in the upside and limiting the downside volatility.”

– “Uncorrelated sources of alpha”(over used)

– “Our edge is…”

– “Macro”(sounds so sophisticated and sleek)

– “Stock pickers”

– “Smart beta” (opposed to dumb beta)

Others?

 

 

 

 

The Most Dangerous Risk of All

I wanted to share my book notes from my recent reading of,  “The Monk and the Riddle (book notes), Randy Komisar

Great summer read, good reminder to all about the objective of our efforts and the fragility of our lives.

Really liked the following quote….

“And then there is the most dangerous risk of all — the risk of spending your life not doing what you want on the bet you can buy yourself the freedom to do it later.”

Let me know what you think….