Fear Holding You Back?

Of course it is. We hate losses more than we love gains. Worse are the unknowns. What will they say? Failure risks our status.

Starting something new requires us to be awkward and uncomfortable. Beginning requires multiple tries, fumbling and successful repetitions to learn. Mistakes will be made. Attempts will fail. 

Do you focus more on the short term than the longer term? To learn something you need to look forward to the after. What will success look like? More opportunities. More respect. More income?

Go start. Research. Ask friends or coworkers. Read books and articles. Watch YouTube. We will applaud your efforts now and when you succeed.

T. Boone Pickens Remembered

T. Boone Pickens Remembered

How many oilmen propose wind power? The late T. Boone Pickens did in 2007.  He sold his oil business, then opened BP Capital Management hedge funds at 68. Made his first billion at 70. Working with people, adjusting to changing markets, and charity mark his life.

Later in life he reported, “I have earned $4 billion, lost $2 billion and given $1 billion away.” In his 60+ year career T Boone Pickens had many successes, failures, and life’s comebacks.

T. Boone Pickens donated $11 million to the University of Texas Center for Brain Health in 2006. He was talked into having his brain scanned. His brain lite up like a man 30 years his junior. T. Boone was always more interested in being around sharp minds interested in what was new or changing.

Forbes has an article with T. Boone Pickens' Letter To The Class Of 2018. Let’s listen to his advice:

“A fool with a plan can beat a genius with no plan.” - His Father’s

“Keep focused. When you are hunting elephants, don’t get distracted chasing rabbits.”

“Don’t fall victim to what I call the ‘ready-aim-aim-aim-aim’ syndrome. You must be willing to fire.”

“Work hard. Come early, stay late.”

“Be the eternal optimist.”

“The higher the monkey climbs a tree, the more you can see his ass.” - Be confident, yet modest.

After describing his experiences and “Booneisms” he encourages us, “Now go get ‘em!”

https://www.forbes.com/sites/tboonepickens/2018/05/11/ninety-years-of-lessons-learned-t-boone-pickens-letter-to-the-class-of-2018/#3d0b57b3e3c6

Your Wealthy Future

Creating Wealth is a decades long affair. Rarely happens overnight and a quick success can backfire.

A few people win lotto. Instant riches. But a few years later you find former winners in bankruptcy court. They did not know how to keep or invest money. Only how to spend it.

Basics Matter

Spend less than you bring home. 

Save for gifts, vacations, unexpected repairs and layoffs.

Pay off credit cards every month. Losing 18+% interest hurts.

Sign up for your 401K and take the company match minimum. Saving tax deferred your taxes go down more than take home pay.

Have insurance - auto, medical, long term care, renters or homeowners, plus a personal liability policy. Not having insurance can bankrupt you.

Attitude

Fear of Missing Out cause people to pay too much, buy luxuries or take expensive vacations. No one needs a $50,000 wedding. The debt incurred will hurt your relationship.

Diversify your investments. Nobody knows what stocks or bonds will do next. Everyone makes mistakes and have setbacks. Recessions and recoveries happen. Use ETFs - roughly 35% stocks, 55% bonds and 10% precious metals & REITs. 

Drive an uncool car. Cars lose so much value so quickly. Prefer 3-6 year old cars and paying cash. My investment advisor has only owned 4 Toyotas.

Investigate and talk with experienced people before buying. FOMO leads to over paying. Good investors don’t rush decisions, nor join in speculative manias. Bubbles burst and values return to earth quickly.

Real estate is not liquid. If you need to move selling costs are nearly 10%. Don’t buy too big of a home. Make sure the location fits your future plans, then check property is in good condition.

Time

First few years little accumulates in 401K or savings. After ~5 years the returns and dividends start adding up, plus debts are getting paid off. You can see where you are going.

Your mortgage use to be higher than rents. Ten years later less than renting a 2 bedroom apartment. Plus appreciation puts you are ahead.

Learn about subjects one at a time. No one knows everything. Admit you need to know more and ask what seem like foolish questions. If a salesperson is rushing your decision, sleep on it overnight and talk with advisors before buying. 

Your Future

Wealth and savings are desirable because they give you options. Paying for education, buying a home, or investing in a business or real estate. Your future self will be grateful for early sacrifices.

“These are my principles, and if you don’t like them … well, I’ve got others.” - Groucho Marx

Labor Day Reflections

Cloudy 57F morning run looks like the state of labor. Today will be clear and sunny holiday. Skilled and service workers have shortages. Salaries are slowly rising, if your work is in demand.

The future is not clear. Trade war with China affecting businesses and farmers. Slowing economies around the world. Italy and parts of Europe are in recession may slow our economy. Businesses are investing and hiring carefully, not in an expansion mode. The next five years may be challenging. However when has life ever not been challenging?

Today enjoy your holiday and the fruits of your labor. Tomorrow reflect on what your best skills are, what to learn that would help you, and who you can better serve. Research which skills pay more. Careers are built on learning and trying new things.

Benefits of Age

America is a youth culture. Youth is revered and celebrated. Young “Influencers” are the rage to follow. Celebrities tend to be young and beautiful.

Youth is an advantage for creativity and strength. Young inventors and scientists often make impressive leaps of thought. Experienced inventors and scientists combine ideas and processes in new ways. 

Most people start careers with hard physical work. As we gain experience we use our minds more than strength. 

Benefits of Age:

• Comfortable in and knowledgeable with the world
• Patience with process - not much is accomplished in 3 months, but amazing what can be done in 10 years
• Switch from Task to Relationship modes depending on situations
• Relate better with more diverse people
• More empathy due to experiences
• Enjoy other people’s success as much as our own
• Manage health better (but more to manage)
• Faith is stronger and based on experiences

Do you see young inexperienced graduates leading teams or large corporations? No. They have not developed skills to lead people, resolve issues, or experiences to draw on. Encourage your coworkers to develop creative and leadership skills. 

After all we were younger and needed guidance, encouragement and confidence to flourish.  

 “When setting out on a journey, do not seek advice from someone who has never left home.” ~ Rumi

Strategy for China Trade War

No quick resolution for Trade Dispute with China is coming soon. Neither side is backing down and tariffs (taxes) may expand to Europe in the future.

What can your businesses do with a supply chains in China? 

Start evaluating your future profit potential for products: Not every product needs to be relocated. Your growth lines need to be addressed while cash cow products with limited future may remain untouched. Your options:

Split Production: Leave existing production lines to service China and Europe, and move production for USA to North, Central or South America. Savings from shipping and carrying cost of inventory mitigate costs of separate production lines. 

Redesign new models to manufacture in new locations: New products generate more sales and profits. Why move old tools and machinery to a new location? Redesigned products often cost less and be differentiated for higher margin markets. Combine functions on one computer chip, mold parts, additive manufacture, and design for automation to reduce labor.

Raise your prices: Cost of production does not relate to how much products sell for. Spend more on marketing to improve branding and customer awareness. Consumer choice is emotional, not based on lowest cost. Consumers know prices are going up and will be less resistant. Profits will fund your changes.

The worst strategy is to be frozen. Explore your options and prioritize your investments.

Lifetime Learning and Curiosity Required

“In a time of drastic change it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists.” 

- Eric Hoffer, Author The Ordeal of Change (1963) & The True Believer (1951)

No education has ever been complete out of school.  New tools, material and processes improve any service or product. Competition forces businesses to lower costs every year. ~25% of today’s jobs did not exist 10 years ago.

Words are added every year, over 640 to Merriam-Webster dictionary. New meanings are given to old words. Qubit, Geosmin, or Bioabsorbable anyone?

There are more books written every day. New research daily. Ideas are promoted or disproved. Politics and the times change the way we look at things.

Technology is rapidly changing our work. Smart phones, 3D printers, advances in programming, modeling software, virtual training and business practices advance every year.

Be curious. Tomorrow will be different than today. People grow and change. Everyday I try to learn something new or stretch knowledge some way. What are you going to learn today?

Counting Little Wins

Diets don’t work. It’s hard to be disciplined to starve yourself for little reward day after day, week after week. Weight loss takes a lot of time.

Beating yourself up does not motivate you. It just depresses you and kills motivation.

Count little wins will motivate you. Skipped a cookie or snack, win. Walked at lunch, win. Parked further away, win. One less adult beverage, win. Lost a pound, win. Not binging full package of snacks, win. 

3 Rules:

1. You decide what a win is. No one else gets a say.

2. Count only wins. No counting losses.

3. No one is perfect. 

Messed up? Tomorrow is another day. I may mess it up again, am still looking at my wins. Reinforcement of wins keeps you going. Over time you will have results.

“If you don’t take care of yourself, no one else is going to do it for you.” - Jewish philosophy on uniqueness of our potential.

Space is Cool

On the 50^th anniversary of the moon landing, why space is still cool:

  Weightlessness.

  International Space Station uses international technologies – Belgium, Denmark, France, Germany, Italy, Japan, The Netherlands, Norway, Russia, Spain, Sweden, Switzerland, United Kingdom and United States.

  Space walks.

  Every space program experienced failures.

  “Space is hard.” – Scott Kelly after a SpaceX rocket failure.

  Traveling in a Vacuum.

  Lives were lost. Hard lessons learned.

  Moon dust is dangerous, blocks vision, sticks to & degrades materials, grinds up machinery and people may be allergic.

Lunar Rovers.

 China, India, Israel, Luxembourg, New Zealand, and Singapore are exploring space & the moon.

  Slide rules sent astronauts to the moon.

  On budget and on schedule.

  “No one born after 1935 has stepped on the moon.” – Burt Rutan, Aerospace & Spaceship designer

  It will always involve risks.

There is so much we don’t know. Men and Women need to return.

Why You Need a Vacation

Breaks: Weekend trips. Prefer week off (plus a recovery day). You need a break away from your patterns .

Habits: Vacations make us change. Hiking with bear pepper spray. National parks have no or limited cell service and internet. Use those funny things called maps. 

People: Met great people from all over. NY, OH, CA, AZ, MO, TX, AK, MT, ID, OR, WA and Asia. 

Memories: parks have mountains, glaciers, lakes, rivers, alpine meadows, and wildlife. Saw elk, moose, mountain goats, bighorn sheep, eagles, hawks, range cattle, bison/buffalo, horses, prairie dogs, ground squirrels, fox, black bear, and grizzly bear cub. 

Perspective: Climbing to 7,200 feet, rerouting roads & hikes, improvising cooking meals, seeing mountains, changing weather, and stepped on by a horse; how hard can this production problem be?

Take a break from your daily worries and routines. Enjoy your vacation :)

            Glacier National Park, Montana. United States Alps.