“In our book, alignment means being a partner in both directions, not just on the upside. Many “alignment” plans flunk this basic test, being artful forms of “heads I win, tails you lose.”
“Don't tell me what you think: just tell me what's in your portfolio.”
Deere & Company Executive to a 28 year old U.S. Navy Supply Officer over lunch in Davenport, Iowa: “We like you Despite the military mindset based upon consumption, not a profit & loss statement. We build farm equipment to serve the world while providing opportunities in small towns in this region. Unlike Washington DC our sidewalks are financed locally and employees take pride in owning the company.”
Knowing next to nothing about markets my major investments at 28 years of age was a Honeywell 401(k) & mortgage with 20% down on a Historic cottage in a former mining town in Jerome Arizona. Lifestyle took precedence: hike / ski / bike northern AZ was important. The humility to know I was a halfwit but not wanting a normal life proved to be accretive.
Enjoying a beer & The Almond Bros at Arizona’s oldest saloon I was hired into the financial services world over a game of pool. Unaware of current mania conditions in the summer of 2000 - focus at the time was 1400 lbs of sod & soil carried up 31 steps at a time to the 1913 Bungalow renovation project.
The NASDAQ crash provided an opportunity for employment at a prominent NYC Wire-house in esteemed Del Mar California. An initial feeling of veneration for successful financial planners wore down to reasonable levels upon learning the background of Vice President Consultants still employed post the severe 2001-2003 cyclical bear market in U.S. Equities.
1998 - Morgan Stanley opens in Del Mar, CA
1999 - Merrill Lynch opens in Del Mar, CA
2000 - March NASDAQ Peak
To my knowledge none of the brokers in my branch lived outside the United States nor worked for a company who had made a product or service with an accretive balance sheet. Nice people but a different perspective.
Willingly accumulating troubled accounts from the Dot Com / Tech Bubble was an educational experience in itself. The past ‘advisers’ truest qualities were from the term ‘broker’ - most were broke extroverts with exceptional marketing skills. Quickly discovered there is a significant difference between a promoter & a business partner.
Mass Psychology of Greed seemed to accelerate upon the adoption of the World Wide Web. “The New Economy” and IPO’s were astonishing resulting in Tulip Mania participation by an unsuspecting public. Possibly more amazing were the advisors hired on the front line with no ownership nor genuine interest in learning to become competent stewards of hard earned investor capital.
Most participants are unwittingly aware of the currency markets rapidly transforming into casinos given the historic debts in world financial systems. Unlike 20 -40 + years ago cash no longer pays any interest within western world areas and the balance sheets of all capricious governments question the intentions of self proclaimed altruistic political authority.
WSR is not a blog focused on greed, fear or get-rich-quick schemes. Our focus is on aiding readers navigating storms on the horizon using tacit knowledge. We didn’t create current pressure systems but the forces at work may be ridden to our advantage.
Mathematics, sentiment & seeking deals where the builders of an entrepreneurial entity share your interests has paid dividends.
Seeking a Contrarian Philosophy is one step -
- Finding ebbs in the tide where management is in line with your interests.
- Accumulation when the market is hated but needed by mankind. Sentiment Indicators.
- Our High Ground is junior resource shares & real estate as we retain a durable competitive advantage.
We’ve found principled management
Comments
Post a Comment