Monday, October 27, 2008

Warren E. Buffett - "Put Your Mouth Where Your Money Was"

There is no getting around the fact that the stock market is a scary place to have our money right now. At least that is what many in the media would have us believe. In a short term investment strategy, (the get rich quick investor schemes), I would agree with these media doom and gloom naysayers. However, Warren Buffet like many others who follow a sound long term strategy based on history know that doing the opposite of the masses will generally reap you greater rewards, in the long term. In fact, Warren claims that; "...If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities."

(click here to read Warren Buffett's opinion in The New York Times, October 16, 2008) The close of his editorial opinion says it best: "I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities."

Warren's close says it best for me. This restaurateur had the foresight and the bravery to act against the doom and gloom media provocateurs and put his cash into a business. Entrepreneurs want to grow cash in business and in these economically challenged times your personal money is best put into growing the economy at the small and medium size business levels. This is where the growth is going to continue more so as online advertising is leveling the playing field. Bigger business will be impacted first and hardest causing a negative impact on their employees and their suppliers. If you are presently an employee of a big company then you need to investigate self employment through the purchase and operation of a franchise business. The following presentation I came across from Franchise Research Corporation says it all best. www.franchiseresearchcorp.com/brief2810 Why wait years for your investment portfolio to come back to where it is today when you can get it back quicker in a franchise business. Makes sense to me.

Thursday, October 16, 2008

Do Not Think Negative - Why?

To answer this question we first need to understand the context in which it is asked. For example; if I was trying to lose weight/fat I would want to think negative. My starting weight is 200 and I want to lose 40. In this context, losing negative fat measured in numbers creating a loss is actually a positive. Are you still with me? I didn’t lose you, I hope. If I lost you that of course would be a negative. Why? Because my objective is to keep you reading which would be a positive outcome.

I think we can all agree that a negative is the opposing or opposite of positive. But, as demonstrated with my weight loss example, a negative could actually be a positive. I found a very interesting definition from a 1999 Meadows School, Las Vegas, ‘Debate Glossary’ that argued Negative is: “The side that opposes adoption of the resolution.” Wow! I really like that argument. This would suggest that the adoption side could be wrong if for example it had a negative impact on the majority or the masses. Then, if the majority could get the argument changed to their side then a new adoption would be challenged by the minority and the roles of negative versus positive would be switched. This suggest to me that negative (and positive) are in constant battle with each other and in some circumstances negative is positive and positive is negative. Hmmm. No wonder, many people struggle with the idea of positive thinking.

With the many negative thoughts that constantly argue with our internal rational thinking and emotional thinking meters and radars we will in most cases take the path of least resistance. This would explain to me why so few are truly successful in reaching their hearts desires and goals. Saying to someone “Think Positive” is just another opposing view to adoption and therefore makes the command negative in the mind of the receiver.

So, how do the top achievers reach their goals? Through practice and through trial and error. They have mastered their thinking and, to be a master, you have to expect to fail. But, you pick yourself up and you try and try again. You do this when you want to quit smoking. You do this when you want to get your drivers license and failed on your first attempt(s). You do this when you want to win the heart of the person who is your soul mate. You do this in business and you do this in life. If your dream and desire is strong enough as presented in my examples that most of us have experienced in life then you will adopt a positive plan to succeed and accept the negative as part of the ongoing argument that only strengthens your persistence and tenacity to succeed.

Well, if you are still with me and read this far then I congratulate you on your tenacity and you have just proven to yourself that you can be successful and that is positive thinking.

Thursday, October 9, 2008

'Inch by Inch Life Is a Cinch...' - Mac Anderson

I love this 'Simple Truth' from Mac Anderson:

When I was a freshman in college I learned an unforgettable lesson.
I was having a rough week when there was a lot to do and very little time to do it. I was overwhelmed. I panicked.
That night a friend stopped by my dorm room. When I told him my problem, he said, ?Mac, I'll share something with you that my grandmother told me a few years ago. She said to always remember: ?Inch by inch, life's a cinch. Yard by yard, life is hard.??
I said, ?Bob, come on. Here I am drowning in work and your lifeline is a quote from your grandmother. Come on!?
After he left, however, those twelve little words kept dancing in my head. I took out a piece of notebook paper and listed all the things I had to do in the next three days. That night I began knocking them off one by one.
Three days later I took out that paper and marked through the last thing on the list. It felt great! And then I took out another piece of paper and wrote down the words: ?Inch by inch, life's a cinch. Yard by yard, life is hard.? I then folded the paper and put it in my wallet. As many of you know, I've been collecting quotes ever since.
You see, success doesn't come cascading like Niagara Falls; it comes one drop at a time through short-term, realistic goals.
Experts on motivation disagree on a lot of things, but one thing they all agree on is that your levels of motivation are directly tied to your expected probabilities of success. In other words, if you believe you can do something (the goals are realistic), you're likely to be highly motivated. If, however, you think you can't (because the goals are unrealistic) your motivation level falls greatly.
The lesson here is to continue to dream big dreams, but realize that the short-term goals that take you to the next plateau are the real keys to success

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