No one listens. That’s not 100% true. But it’s a good working assumption. If you gave someone money and proffer some advice — even in an area you know something about — the chance they’ll listen is slim to none.
Hence, to avoid being personally frustrated, you have four options:
1. Invest in ventures you control.
2. Buy securities you can sell quickly, e.g. listed securities or (less quickly) pricey modern art.
3. Trust your manager. Sleep with his foibles.
4. Stop giving advice. This is hard for some people (including me) who were once entrepreneurs, i.e. they controlled their own business.
That’s it.
The stock market hates uncertainty. Greece. Upcoming rate hikes. Bond yield resurgence. GDP uncertainty. China. Europe.
Personally, I remain optimistic. One day we’ll wake up to a Greece solution — either Greexit or a big bailout package. Both will kill the uncertainty and we’ll move on. A Greexit is not the end of Europe, or the start of World War III.
In this choppy world, diversification remains key. Best two areas: local real estate and contemporary art.
Another choice is dividend stocks. Latest US Equity Insights from Deutche Bank has this:
Here’s DB’s chart. Click on it. You’ll see it in its full glory. You can return by hitting your browser’s “back” button — the arrow pointing left. I wouldn’t touch Ford, McDonalds, AT&T or Verizon. But the others have interest.
Update on crowdfunding. It’s a perfect way to start your new business.
There are two types of crowdfunding: product or project and equity. The first gets you money to build your shiny new product. As reward your funders receive your product (when it’s available) at a discount. The second gets you money to build your shiny new product. As reward your funds receive a small piece of your business and maybe some product.
The first has been around for a while and is well-established. There have been huge successes, like the Pebble Watch.
The second is just getting off the ground. The SEC was to meant to establish equity crowdfunding rules years ago. But, as usual, it has been dragging its feet. Some states have heard the call and have legalized equity crowdfunding in their state — using it as a successful economic development tool.
The New York Times did a big piece last week, “Tired of Waiting for U.S. Action, States Jump into Crowdfunding.” Click here.
Old, but still wonderful.
MYRON Greenberg, a wealthy L.A. businessman received a letter of Audit from the IRS. It really upsets him and he called his Accountant, Saul Meyers.
MYRON: (pleading): “Saul, what are they doing to me? Why are they doing this to me?”‘
Saul (calming); “Myron, don’t worry about it. I’ve got all the receipts, the account is up to date, it’s no problem. But let me give you a bit of advice. When you go to the Audit, make a bad impression. Wear the crummiest, dirtiest clothes you got. Have holes in your shoes, ripped pants and look shabby . I mean really look terrible, because if they have a little sympathy, they’ll go easy on you.”
Then Myron called his Lawyer, Charlie Steinberg. His Lawyer said:
CHARLIE: “Myron, it’s no problem, I’m sure they got the receipts, I’m sure everything is up to date, you’ve got a great accountant, don’t worry about it. Let me give you a tip. When you go to the Audit, it’s very important that you make a good impression. Wear your best suit, and your shirt with a silk tie and cuff links and shine your shoes, look like somebody. Because if you look like a somebody they’ll espect you and will go easy on you.”
Now he’s torn. He calls his rabbi and tells him about the conflicting advice.
RABBI: “Myron, it reminds me of sometimes when I perform a wedding. The bride’s father will tell his daughter that on her wedding night to wear a nightgown with a high collar and long sleeves and a full-length robe…cover up, you know, be a little demure.
“And the mother says, `Don’t be silly. Wear a low cut “negligee” with the cleavage sticking out — look a little sexy’..
“Myron I will say to you, just like I say to the Bride on her wedding night, it makes no difference what you wear, you’re still gonna get f**ked.
Harry Newton who spent wonderful hours chucking stuff out this weekend.
My Chuckout Rule: If I haven’t used it in a year, chuck it.
Apple’s Developer Conference is on today. The big news is the release of code for Apple Watch developers. That should lead to an explosion of new Watch apps, and hence zillions more Apple Watch sales. Apple has a remarkable number of exciting things which will push sales in coming years, including Apple Pay and CarPlay.
Saudi Arabia makes me sick. The best thing we can do is to develop our own oil and never to buy another barrel from Saudi Arabia. They’re about to kill a young man who developed a blog focusing — in the mildest way — on religion and personal freedom. As his “reward,” he’s getting 1,000 lashes and ten years in jail. Since his health is not good, the lashes will probably kill him. His case has caused an international outcry, which the Saudis have ignored. Please read this short piece about Raif Badawi. Click here.
