Author Archives: Edward Brownlee

Self-Worth: Self Confidence is Not Enough

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Self-worth is a profound concept that speaks to our inner value and sense of deservingness. It encompasses how we perceive ourselves, how we evaluate our abilities, and how we believe we should be treated by others.

Your self-worth is not tied to external validation or achievements. It resides within you, waiting to be acknowledged and nurtured.

Jamie Kern Lima, author of the new book ‘WORTHY: How to Believe You Are Enough and Transform Your Life,’ is a New York Times bestselling author, former Denny’s waitress turned founder of IT Cosmetics, which she grew into the largest luxury makeup brand in the US. She made history as the first female CEO of a brand in its 100+ year history when she sold it to L’Oréal in a billion-dollar deal.

Most important thing you’ll read this Year

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Possibly the Most important thing you’ll read this Year…

The following is the philosophy of Charles Schulz, the creator of the ‘Peanuts’ comic strip.

You don’t have to actually answer the questions. Just ponder on them. Just read it straight through, and you’ll get the point.

1. Name the five wealthiest people in the world.
2. Name the last five Heisman trophy winners.
3. Name the last five winners of the Miss America pageant.
4. Name ten people who have won the Nobel or Pulitzer Prize.
5. Name the last half dozen Academy Award winners for best actor and actress.
6. Name the last decade’s worth of World Series winners.

How did you do?

The point is, none of us remember the headliners of yesterday. These are no second-rate achievers. They are the best in their fields.
But the applause dies.
Awards tarnish.
Achievements are forgotten.
Accolades and certificates are buried with their owners.

Here’s another quiz. See how you do on this one:

1. List a few teachers who aided your journey through school.
2. Name three friends who have helped you through a difficult time.
3. Name five people who have taught you something worthwhile.
4. Think of a few people who have made you feel appreciated and special.
5. Think of five people you enjoy spending time with.

Easier?

The lesson:

The people who make a difference in your life are not the ones with the most credentials, the most money … or the most awards. They simply are the ones who care the most.

Source: Weird and Amazing Stuff

Mermaid or Whale?

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Recently, in a large city in France, a poster featuring a young, thin, and tan woman appeared in the window of a gym.It read: “This summer, do you want to be a mermaid or a whale?”

A middle-aged woman, whose physical characteristics did not match those of the woman pictured on the poster, responded publicly to the question posed by the gym. She had a whale of a lot to say:

“To Whom It May Concern,

Whales are always surrounded by friends: dolphins, sea lions, and curious humans. They have an active sex life, get pregnant, and have adorable baby whales. They enjoy stuffing themselves with shrimp, playing and swimming in the sea, and visiting wonderful places like Patagonia, the Bering Sea, and the coral reefs of Polynesia.

Whales are wonderful singers and have even recorded CDs. ?They are incredible creatures and virtually have no predators other than humans.They are loved, protected, and admired by almost everyone in the world.

Mermaids don’t exist.If they did exist, they would be lining up outside the offices of psychoanalysts due to their identity crisis. Fish or human would prove quite a quandary for even the most skilled of therapists.

They don’t have a sex life because they kill men who get close to them, not to mention how could they have sex? Just look at them … where is IT? Therefore, they don’t have kids either. Not to mention, who wants to get close to a girl who smells like a fish store?

P.S. We are in an age when the media attempts to convince us that only skinny people are beautiful. I prefer to enjoy ice cream with my kids, a good dinner with a man who makes me shiver, and good chocolate with my friends. With time, we gain weight because we accumulate so much information and wisdom in our heads that when there is no more room, it distributes out to the rest of our bodies. So we aren’t heavy, we are enormously cultured, educated, and happy.”
—-Copied from Brian Horne page—-

Excessive Regulations and Overreaching Antitrust Actions are Top Risks

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Over 75% of CEOs Believe Government Policies Are Undermining American Free Enterprise, Cite Excessive Regulation and Overreaching Antitrust Actions as Top Risks ~ The Business Roundtable CEO Economic Outlook Index

This quarter, eighty-five percent (85%) of Business Roundtable CEOs plan for capital investment and expectations for sales are up by double digits from last quarter. Additionally, these CEOs’ plans for hiring ticked up modestly.

“This quarter’s survey results underscore the resiliency of the U.S. economy and suggest accelerating economic activity over the next six months,” said Business Roundtable Chair Chuck Robbins, Chair and Chief Executive Officer of Cisco. “To further strengthen the economy, the U.S. needs to double down on policies that spur domestic investment and bolster American competitiveness. The Tax Relief for American Families and Workers Act is at the top of that list. The House passed this vital measure in an overwhelmingly bipartisan vote, and we strongly encourage the Senate to swiftly follow suit.”

Business Roundtable CEOs were asked whether they believe that current government administration policies are undermining American free enterprise. Over 75% of CEOs answered “yes.” Of those who answered in the affirmative, 92% of CEOs cited excessive regulation and 63% cited overreaching antitrust actions as policies by federal agencies are undermining or present a risk to the free enterprise system and the benefits it provides.

“A large majority of our CEOs are worried that excessive regulation and overreaching antitrust actions are eroding the foundation of free enterprise and the benefits it provides. We urge policymakers to recommit themselves to promoting economic growth, creating more American jobs and increasing economic mobility,” said Business Roundtable CEO Joshua Bolten.

References:

  1. https://www.businessroundtable.org/media/ceo-economic-outlook-index/ceo-economic-outlook-index-q1-2024

You Have Greatness Inside of You

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If you’ve ever felt like who you are is not enough.

Jamie Kern Lima, the founder of the billion-dollar company IT Cosmetics, just released a new book called “Worthy: How to Believe You Are Enough and Transform Your Life.” In it, she shares her framework for reframing rejection and feeling worthy of success. If you’re looking for practical, inspirational advice for beating the self-doubt that’s holding you back, then her book may be for you.

Favorite quote:
“Don’t let your doubt doubt yourself out of your own destiny.” – Jamie Kern Lima

Jamie’s journey, from adoption to battling self-doubt, led her to advocate for women’s empowerment. She’s a mother of two, investor, speaker, and philanthropist, funding leadership training in over 100 prisons and shelters and donating $40 million+ to help women facing cancer.

Jamie Kern Lima, author of the new book ‘WORTHY: How to Believe You Are Enough and Transform Your Life,’ is a New York Times bestselling author, former Denny’s waitress turned founder of IT Cosmetics, which she grew into the largest luxury makeup brand in the US. She made history as the first female CEO of a brand in its 100+ year history when she sold it to L’Oréal in a billion-dollar deal.

Chinese Communist Government Economic Strategies Baffle Economists

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In the capital city of Beijing, the Chinese Communist authoritarian regime is grappling with the harsh reality of self-inflicted economic struggles.

The ongoing real estate crisis in China presents a significant challenge to the Communist Party, with industry giants like Evergrande and Country Garden facing liquidation orders. Chinese citizens heavily were invested in real estate, with approximately 70 percent of their investments allocated to this sector, twice the amount seen in the United States.

The long-term real estate fundamentals have changed — China’s population has likely peaked, urbanization is slowing and home ownership is already very high.

Moreover, official economic figures released by the People’s Republic are often met with skepticism from experts, who believe gross domestic product (GDP) numbers are fantasy. For example, Foreign Policy reported that China’s economic growth in 2023 may have been significantly lower than the stated 5.2 percent, possibly around 1.5 percent.

China’s overall debt-to-GDP ratio is about 300% and rising, which is the highest among emerging markets and higher than most advanced economies. While China’s central government debt is relatively small at just above 20% of GDP, debt at the local government level is estimated to be more than 70% of GDP.

A debt crisis is typically a liquidity crisis  

Additionally, China’s government has substantial assets that can help pay debt. More importantly, a debt crisis is typically a liquidity crisis, and in the case of China, high domestic saving kept by capital controls at domestic banks means that more than 95% of China’s debt is domestic debt, financed by relatively stable domestic deposits and not subject to sentiment change of international investors.

Despite the Chinese Communist regime’s message of China being “open for business” to the global business community and financial elites, the reality paints a different picture. Beijing’s autocratic government enacted a draconian law that requires domestic and international companies operating in China to share business secrets and intellectual property with the Communist Party. This policy has raised concerns about the country’s investment and business environment. While the intention behind such measures may be national security and autocratic control related, it also poses challenges for companies operating in China.

Bottomline, the Chinese economy is plagued by a litany of challenges.

Local governments are struggling with financial difficulties after three years of pandemic spending and declining land sales. Some cities in China can’t repay their debts and have hadto cut basic services or reduce medical benefits for seniors.

The real estate crisis has deepened. Plunging home sales have pushed developers like Country Garden to the brink of collapse. The crisis has spilled over to the massive shadow banking sector, causing defaults and sparking protests across the country.

Youth unemployment has become so bad that the government stopped publishing the data.

Foreign companies have grown wary of Beijing’s rising scrutiny and are pulling out of the country. In the third quarter, a measure of foreign direct investment (FDI) into China turned negative for the first time since 1998.

Foreign investors beware when investing capital in an communist and autocratic country.

References:

  1. https://www.msn.com/en-us/news/world/xi-s-economic-strategies-baffle-even-chinese-economists/ar-BB1jpZa9
  2. https://www.npr.org/2023/08/16/1193711035/china-economy-tao-wang-interview
  3. https://www.cnn.com/2023/12/27/economy/china-economy-challenges-2024-intl-hnk/index.html

Backdoor Roth IRA

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A Backdoor Roth IRA is a clever strategy used by high-income earners who find themselves ineligible to directly contribute to a Roth IRA due to income limits. Let’s break it down:

  1. Traditional IRA: First, you contribute to a traditional IRA. This contribution is made with pre-tax dollars, meaning you get an immediate tax deduction for the amount you put in. Essentially, you’re reducing your taxable income for the year.
  2. Conversion to Roth: Next comes the “backdoor” part. You convert the funds from your traditional IRA into a Roth IRA. This conversion is done after the initial contribution. Keep in mind that when you convert, you’ll owe taxes on the amount you’re moving over. So, it’s not a tax-free maneuver.
  3. Why Do It?: The backdoor Roth IRA strategy allows high earners to bypass the income limits that typically prevent them from directly owning a Roth IRA. While it may result in higher taxes initially, the long-term benefit lies in the future tax savings of having a Roth account.
  4. Passing It On: Another advantage is that if you anticipate having funds left in your traditional IRA, you can pass that money on to your heirs in a Roth IRA. Roth IRAs have no required minimum distributions during your lifetime, making them a useful estate planning tool.

Remember, this strategy is entirely legal and not a tax evasion scheme. It’s a way for high earners to access the benefits of a Roth IRA despite income restrictions. 🌟

Eight Lessons from Think and Grow Rich

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Napoleon Hill in his landmark book “Think and Grow Rich” provided a guide to personal development and wealth creation.

Here are eight practical lessons from the book:

1. The Power of Positive Thinking: Positive thinking can shape your actions and reactions, and ultimately lead to better outcomes.

2. Definiteness of Purpose: Having a clear, defined purpose can act as a guiding light in your journey to success. It provides a framework for your actions and decisions.

3. Value of Self-Discipline: Self-discipline is a fundamental trait for success. It enables you to stay focused on your goals and resist distractions or setbacks.

4. Mastermind Principle: Surrounding yourself with people who inspire, challenge, and motivate you can provide a support system and collective intelligence that propels you toward success.

5. Learning from Failure: Failure is not a setback, but a stepping stone for growth. It provides valuable lessons that can guide future actions.

6. Continuous Learning: Lifelong learning is vital in personal and professional development. It keeps your skills and knowledge updated, making you more valuable in your field.

7. Taking Initiative: Taking the initiative, instead of waiting for opportunities to come to you, sets you apart and can lead to increased responsibilities and, consequently, a higher salary.

8. The Art of Selling: Learning how to sell – be it a product, a service, or your own skills and abilities – is a crucial skill that can lead to financial success. It’s not just about persuasion, but also about understanding the needs and wants of others and providing valuable solutions.

Think and Grow Rich (An Official Publication of the Napoleon Hill Foundation)

Wealth and Gratitude

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“He is a wise man who does not grieve for the things which he has not, but rejoices for those which he has.” ~ Epictetus

When we think of wealth and financial independence, the word and thoughts that usually come to mind is more…more money and financial assets, more big boy toys and larger estate homes. But according to most Stoics or philosophers, their insight is that once your essential needs are satisfied, the easiest way to create wealth and achieve financial independence is to want less.

“Wealth consists not in having great possessions, but in having few wants. He is a wise man who does not grieve for the things he has not, but rejoices for those which he has.” ~ Epictetus

Source: X (formerly Twitter)

Invest for the Long Term

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“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” – Warren Buffett

“Historically, the stock market has doubled on average every 10 to 12 years,” according to Ron Baron. Thus, staying invested in equities over longer periods increases the likelihood of positive returns.

Never forget, when you sell a stock, the taxman will be at the head of the line for their cut of the profit

Historically, the U.S. economy has grown on average 6%-7% nominally per year, or doubling every 10 or 12 years, and the stock markets have closely reflected that growth.

As GDP Has Grown, So Has the Stock Market

U.S. GDP in 1968 was $968 billion, 55 years later it is $27.9 trillion. That’s over 28 times greater than it was in 1968.

The Dow Jones Industrial Average was around 944 and the S&P 500 was 104 in 1968. They are now 37,690 and 4,770, respectively.

Not taking risk is the greatest risk!

Belief before ability! Self belief is immensely powerful, the most successful people believe in themselves almost to the point of delusion!

References:

https://www.baronfunds.com/sites/default/files/baron-investor-baron-growth-fund-12.31.23.pdf