Author Archives: Edward Brownlee

Keep Your Personal Power

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“Energy is the essence of life. Daily, you decide how to use it by knowing what you want and what it takes to reach that goal and by maintaining focus.” ~ Oprah Gail Winfrey

Mentally strong people have healthy habits and mindsets. They manage their emotions, thoughts, and behaviors in ways that help them keep their power and set them up for success in life, according to Amy Morin, psychotherapist and author of 13 Things Mentally Strong People Don’t Do.

Here are nine ways to keep your power.

1. Don’t waste energy complaining.

There’s a big difference between complaining and problem-solving. Venting to your friends, family, and co-workers keeps you focused on the problem and prevents you from creating a solution. Grumbling not only implies you have no power over your situation but also shows you lack power over your attitude.

2. Accept responsibility for how you feel.

Saying your mother-in-law makes you feel bad about yourself, or claiming your boss makes you mad suggests they have power over your feelings. Don’t let other people’s behavior dictate your emotions. Accept that it’s completely up to you to manage your emotions, regardless of how others behave.

3. Establish healthy boundaries.

Giving in to guilt trips and refusing to speak up for yourself gives power to others. Recognize that you’re in charge of yourself rather than blame others for wasting your time or forcing you to do something. Establish healthy physical and emotional boundaries that give you control over how you spend your time and whom you spend it with.

4. Practice forgiveness.

Holding a grudge against someone who has hurt you doesn’t punish the other person. Instead, it only punishes you. When you waste valuable time thinking about a person you feel wronged you, it takes away your ability to enjoy the moment.

Forgiving someone is the best way to take back your power. But to be clear, forgiveness isn’t about saying what the person did was OK. Instead, it’s about letting go of the hurt and anger that interferes with your ability to enjoy life.

5. Know your values.

When you’re not clear what your values are, you’re at risk of becoming more like a helpless passenger rather than a confident driver in your own life. You’ll be at risk of jumping on board with other people’s ideas, and you may be easily led astray. Take back your power by acknowledging your values and living true to what’s important.

6. Don’t waste time on unproductive thoughts.

Have you ever come home from work and spent the entire evening wishing you didn’t have to go back again tomorrow? Suddenly, you’re giving your eight-hour workday 12 hours of your time. Take control over the thoughts that occupy your mind so you don’t provide more brain power to areas of your life that don’t deserve it.

7. Avoid language that implies you’re a victim.

Saying things like “I have to work 60 hours a week” or “I had no choice but to say yes” infers you’re a victim of unfortunate circumstances. While there will certainly be consequences for your decisions, acknowledge that you always have choices.

8. Make your self-worth independent of other’s opinions.

If your self-worth depends on others holding you in high regard, you’ll likely become a people-pleaser. Not everyone needs to like you, nor must they agree with your lifestyle. You can evaluate the merit of criticism you receive but never allow one person’s opinion to determine your self-worth.

9. Be willing to stand out from the crowd.

Self-doubt and fear can make you want to blend in with those around you. But trying to fit in with the crowd will cause you to disguise yourself as who you are. Trust that you’re mentally strong enough to stand out and dare to be different.

“The greatest discovery of all time is that a person can change his future by merely changing his attitude,” says Oprah Gail Winfrey.

References:

  1. https://www.inc.com/amy-morin/9-ways-mentally-strong-people-retain-their-personal-power.html
  2. https://amymorinlcsw.com/about-amy/

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Nursing home care and medical services are now free to the Greatest Generation (World War II veterans) under a new policy by the Department of Veterans Affairs that waives enrollment fees, copays and monthly premiums for the roughly 119,000 World War II veterans still alive.

The no-cost care is effective immediately under the new VA policies announced Friday. Veterans who served between Dec. 7, 1941, and Dec. 31, 1946, are eligible for the free health care. They must be enrolled in VA health care to qualify.

Veterans turned down previously for coverage are encouraged to reapply, as are those denied coverage because of income eligibility restrictions.

Cap Rate

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The cap rate, an abbreviation for “capitalization rate,” is a real estate metric that reflects the expected rate of return on rental property investments.

The Cap Rate, or “Capitalization Rate,” is a fundamental real estate valuation ratio that compares a rental property investment’s annual net operating income (NOI) to its current market value.

The cap rate formula is the ratio between a rental property’s net operating income (NOI) and its fair market value (FMV) as of the present date, expressed as a percentage.

Cap Rate

  • The cap rate is defined as the potential rate of return on a rental property building, such as a commercial real estate investment.
  • The cap rate formula divides the net operating income (NOI) of a rental property at stabilization by the property’s market value as of the present date.
  • < UNK> Real estate practitioners frequently use the cap rate to compare different investment opportunities to determine the property with the most attractive risk-return profile.
  • The higher the cap rate, the higher the risk and potential return – all else equal.
  • There is no reasonable cap rate, per se, because the decision is subjective and contingent on the specific investor’s risk-return profile. Still, most commercial real estate investors target a cap rate between 4% to 10%.

Secret to a Long and Happy Life

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On CNBC’s Make It, 107-year-old Shirley Hodes shares her secret to a long and happy life: Don’t wait for your dreams to come true.

Shirley Hodes, who celebrated her 107th birthday earlier this month in North Carolina, says, “Not everyone has their dreams come true.” If you want to be happy in life, especially as you age, “you must look at other things besides dreams.”

That philosophy means reorienting yourself towards finding joy in small things, in what you can control, and in wanting what you already have. It is about being grateful.

“You must be content with who you are and what you can expect of yourself. Find things that are satisfying,” Hodes says.

Cultivating this kind of happiness mindset requires effort. But the work can pay off: Positivity is linked to a longer and healthier life.

Here are top tips for staying happy as you get older.

  • Think of yourself as fortunate and blessed. Be thankful for all the things and people currently in your life.
  • Believe that tomorrow will be better than today.
  • Focus less on what others have and more on the aspects of life you can feel grateful for.  Don’t get swept up in jealousy or resentment,
  • Find delight daily in the small things. I listened to books on tape, took walks, watched old movies on TV, and had a scoop of ice cream after dinner. Most importantly, family and friends.

Source: 107-year-old shares her secret to a long and happy life: Don’t wait for your dreams to come true  https://www.cnbc.com/2023/09/21/107-year-old-shares-her-secrets-to-happiness-as-you-age.html

Veterans Day 2023 — Saturday, November 11.

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Veterans Day 2023 occurs on Saturday, November 11

Veterans Day is a U.S. legal holiday dedicated to American veterans of all wars. The day pays tribute to all American veterans—living or dead—but especially gives thanks to living veterans who served their country honorably during war or peacetime.
In 1918, on the 11th hour of the 11th day of the 11th month, an armistice, or temporary cessation of hostilities, was declared between the Allied nations and Germany in World War I, then known as “the Great War.”

Commemorated in many countries as Armistice Day the following year, November 11th became a federal holiday in the United States in 1938. In the aftermath of World War II and the Korean War, Armistice Day became known as Veterans Day.

As the nation prepares to observe Veterans Day this year, USAA hopes to challenge the nation to go beyond simple gratitude to create real, positive impacts in the veteran community.

A new survey sponsored by USAA reveals disparities between young military/veterans and their older counterparts in how they prefer to be recognized for their service.

In response to these findings, this Veterans Day, USAA is introducing a new campaign hosted that encourages Americans to “Go Beyond Thanks” to honor our military and veterans by going beyond simple gratitude to create real, positive impacts in the community this holiday and every day.
#GoBeyondThanks

Story of Two Men in a Hospital Room

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There were two men, both seriously ill, who shared the same hospital room. One man got a seat next to the room’s only window. The man was also allowed to sit in his bed for an hour each afternoon to help drain fluids from his lungs. The other man spent all his time lying flat on his back.

The two roommates quickly bonded and started talking for hours on end. They spoke of their lives, their job, children, and wives. Then, one day, the man on the other side of the window expressed how he envied the man near the window. From that day, the man near the window started describing everything he could see outside the window.

The window overlooked a lovely park with a lake. Ducks played on the lake while children sailed their model boats. Young lovers walked arm in arm amidst flowers of every color, and a fine view of the city skyline could be seen in the distance. The man on the other bed began to live for those one hour where he could hear and visualize the world outside the hospital room. The one hour of every day would broaden his world and be enlivened by all the activity and color of the outside world.

One fine afternoon, the man by the window described a parade passing by. Although the other man could not hear the band, he could visualize it as vividly illustrated by the man by the window.

Days and weeks passed by.

One morning, a nurse arrived to examine the condition of the two patients. She found the lifeless body of the man by the window. The man had peacefully embraced his death in his sleep. The nurse sadly called the hospital attendants to take the body away.

The other man grieved the death of his roommate. But, as the day passed, he started missing how his roommate described the view from the window. In the hope of having a peek out of the window and the beautiful world outside, the other man asked if he could be moved next to the window. The nurse happily made the switch. As soon as he was comfortable in his new bed, the man slowly and painfully propped himself to take his first look at the world outside. The nurse delightfully watched as the man attempted to sit on the bed after weeks. But as he strained to turn to look out of the window beside him slowly. He was stunned to see a blank wall outside the window. The agitated man asked the nurse what could have made his roommate lie about the view outside the window.

“There is nothing to see from here. Where are all the wonderful things he saw? He described everything so vividly. Is this a new and recent wall? Why did he give me such vivid details that don’t exist?” He asked

The nurse shook her head and answered his questions, “Perhaps he just wanted to encourage you and make you happy. But, you see, your roommate was blind.”

ATM Scam

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Chase customers lose money to ATM thieves using glue and the ATM’s ‘tap’ feature to steal money from customers’ accounts.

Scammers are using glue to jam the card reader. A nearby stranger would then remind the person looking to take out money to use the tap feature on the ATM.

When you use an ATM’s tap feature, your account remains open for more transactions unless you proactively log out.

https://abc7news.com/atm-thieves-use-glue-and-tap-function-to-drain-accounts-at-chase/12905397/

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Also, look for skimmers at gas pumps and ATMs. Please always look over the card reader before inserting your card, and if possible, use tap to pay!

10 Lessons to Learn from Jeff Bezos

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“You can be grinding for four years with no results and, in the 5th year, become the biggest thing on the planet. The power of not giving up is real.” ~ Jeff Bezos

Here are 10 Incredible Lessons from Jeff Bezos:

1. Customer Obsession: “Start with the customer and work your way backward.” Bezos emphasizes the importance of focusing on customer needs and satisfaction above all else. Amazon’s vision: “To be earth’s most customer-centric company.”

2. Long-term Thinking: Bezos encourages a long-term perspective, often at the expense of short-term gains. He believes that truly great businesses are built over decades rather than years.

3. Embrace Failure: Bezos recognizes that innovation and experimentation come with the risk of failure. He encourages taking calculated risks and learning from mistakes. Amazon has benefitted from this mindset, part of its DNA and culture.

4. High Standards: Bezos insists on maintaining high standards in all aspects of the business, from products and services to hiring and decision-making. He is known for banning PowerPoints and unnecessary meetings to force a high standard of work.

5. Innovate Continuously: Amazon’s success is built on a relentless innovation process. Bezos encourages constant innovation to stay ahead of the competition and meet evolving customer needs. Pushing for “same-day deliveries” is an example of this.

6. Invent and Simplify: Bezos advises his team to invent new solutions and simplify existing processes. This fosters a culture of continuous improvement and efficiency.

7. Frugality: Bezos believes in controlling costs and avoiding unnecessary expenses to maximize efficiency and maintain a lean business model. Large corporations become more efficient over time if they relentlessly focus on staying lean.

8. Think Big: Bezos encourages ambitious, audacious thinking. He believes that thinking small limits potential and that bold ideas can lead to groundbreaking success.

9. Build a Great Team: Surround yourself with talented, passionate individuals. Bezos emphasizes the importance of hiring and retaining top-tier talent. As an entrepreneur, you need to attract people smarter than yourself to work for you.

10. Stay Agile: In a rapidly changing world, Bezos advises businesses to remain flexible and adapt to new opportunities and challenges swiftly. Amazon AWS is the prime example. It was a bold bet that few thought would pay off. Today, AWS is on its way to $100 billion in sales.

Source: Invest In Assets | Stock Market Investing  https://x.com/InvestInAssets/status/1718559795907907679

Lessons from Charlie Munger

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Lessons from Charlie Munger’s latest podcast interview: I have added some context to the interview to help you better understand the stories Munger shared.

1. On retail investors gambling in the stock market,

“They don’t know anything about the companies or anything. They just gamble on going up and down in price. If I were running the world, I would have a tax on short-term gains with no offset for losses on anything, and I would just drive this whole car of people out of business.”

2. Why algorithmic-driven trading firms like Renaissance technology are taking excessive risk

“The easiest trade is to front run what you know, what the average is, what the index funds have to buy, and you know what it is. Exactly. They all know that. And they get their returns year after year by taking the leverage, the midday leverage, up higher and higher and higher and higher. So, they’re making smaller and smaller profits on more and more volume, which gives them this big peak leverage risk, which I would not run myself. And that’s the only way they make these big returns, is to have this huge leverage that would make you crazy if you were already rich.”

3. How Warren and Charlie changed their mind quickly with Diversified Retailing after they realized it was too competitive (and how they made a ton of money after changing their mind) Some context: On January 30, 1966, Buffett, Munger, and Gottesman formed a holding company, Diversified Retailing Company, Inc., to “acquire diversified businesses, especially in the retail field.” Buffett and Munger then went to the Maryland National Bank and asked for a loan to make the purchase. The lending officer looked at them goggle-eyed and exclaimed,

“Six million dollars for little old Hochschild-Kohn?”  Even after hearing this, Buffett and Munger—characteristically—did not question their judgment and ran screaming out the door.

“We thought we were buying a second-class department store at a third-class price” is how Buffett describes little old Hochschild-Kohn.

“We made nothing but money at Diversified. We didn’t exactly make it in retailing, but we made a lot of money. What happened was very simple. We bought this little department store chain in Baltimore. Big mistake. Too competitive. We realized we’d made a terrible mistake as the ink dried on the closing papers. So, we decided just to reverse it and take the hits to look foolish rather than go broke. You just told us how to get us out of this. By then, we’d already financed half of it on covenant-free debt. And they had all this extra cash, and our stocks got down to selling at enormous (discounts). In the middle of one of those recessions, we just bought, bought and bought and bought, and all that money went right into those stocks, and of course, we tripled it.”

4. How wonderful early years gave them a good head start. “Yeah, we bought a little savings and loan company for maybe $20 million. And when we left that thing, we had taken out of our little $20 million investment over $2 billion in marketable securities, which went into Nebraska insurance companies as part of their bedrock capital. So, we had some wonderful early years, which everybody needs. It is a wonderful early year.“

5. Charlie Munger’s Costco thesis – They sold cheaper than anyone else in America – Big, efficient stores – Huge parking spaces – Gave special benefits to people who come to the store in the way of reward points – Make suppliers wait (for payment) until they’ve been paid What made Costco so successful?

“Well, it takes a lot of good execution to do it. You have to set out to do it and then do it enthusiastically every day, every week, every year for 40 years. It’s not so damned easy. So, do you think success is the magic of the business model and culture? Yes. Culture plus model. Yes, absolutely. And very reliable, hardworking, determined execution for 40 years.“

Why did it take Costco decades to open its first store in China?

“The first store they tried to open in China, somebody wanted a $30,000 bribe Chinese culture, and they just wouldn’t pay it. And that made such a bad impression on Jim Senegal. He wouldn’t even talk about going into China for about 30 years after that.”

6. Advice for investors on finding great investments A caveat from me: While Munger advocates heavy concentration (and leverage), most investors still need his IQ or emotional control with volatility.

“You may find it five years after you bought it. Knowing these things may work into it, or your understanding may improve, but when you know you have an edge, you should bet heavily. You know, you’re right. And most people don’t teach that in business school. It’s unbelievable. Of course, you got to bet heavily on your best bets.”

7. Why did he and Warren become partners, “Both kind of similar, and we both wanted to keep our families safe and do a good job for our investors and so on. We had similar attitudes. His advice for an enduring partnership is, “Well, it helps if you like one another and enjoy working together. But I don’t use any one formula. Many partnerships that work well for a long time happen because one’s good at one thing and good at another. They just naturally divided, and each one likes what he’s doing.”

8. Munger feels that Berkshire could’ve taken on more leverage. “Warren still cares more about the safety of his Berkshire shareholders than anything else. If we used a little more leverage throughout, we’d have three times as much now, and it wouldn’t have been that much more risky either.”

9. Munger’s thoughts on VC: “It’s challenging to invest money well, and I think it’s almost impossible to do time after time in venture capital. Some deals get so hot, and you have to decide quickly. You’re all just sort of gambling. [VC] is a very legitimate business if you do it right. If you want to give the right people the power and nurture them, help them. You know a lot about the game’s tricks, so you can help them run their business yet not interfere with them so much. They hate you. By and large, having bumped into many people in businesses with venture capital financing, I would say the ordinary rule is the people in the business doing the work; they, more often than not, hate the venture capitalists. They don’t feel their partner trying to help them because they’re only taking care of themselves and don’t like them.”

10. How could VCs be better? “[At Berkshire], they know we’re not trying to discard them to the highest bid. See, if some asshole investment banker offers us 20 times earnings for some lousy business we don’t sell. If it’s a problem business we’ve never been able to fix, we’ll sell it. But if it’s a halfway decent business, we never sell anything. And that gives us this reputation of staying with things that help us. You don’t want to make money by screwing your investors, and that’s what many venture capitalists do.”

11. Why Warren’s investment in Japan was a no-brainer: “If you’re as smart as Warren Buffett, maybe two or three times a century, you get an idea like that. The interest rates in Japan were half a percent per year for ten years. These trading companies were entrenched old companies, and they had all these cheap copper mines and rubber foundations so that you could borrow all the money for ten years ahead and buy the stocks, which paid 5% dividends. So, there’s a huge cash flow with no investment, thought, or anything. How often do you do that? You’ll be lucky if you get one or two a century. We could do that [because of Berkshire credit]. Nobody else could.”

12. Why he loves companies with a strong brand—the ability to raise prices: “Well, it’s hard for us not to love brands since we were lucky enough to buy the Sees candy for $20 million as our first acquisition, and we found out fairly quickly that we could raise the price every year by 10%, and nobody cared. We didn’t make the volumes go up or anything like that; we just increased the profits. So, we’ve been raising the price by 10% annually for all these 40 years. It’s been a very satisfactory company. We didn’t acquire any new capital. That was what was so good about it. Very little new capital.“

13. What it takes to build Berkshire from scratch today – Intelligence – Work very hard – Be very lucky

14. His view on China: “My position in China has been that the Chinese economy has better prospects over the next 20 years than almost any other big economy. That’s number one. Number two, the leading companies of China are stronger and better than any other leading companies anywhere, and they’re available at a much cheaper price. So naturally, I’m willing to have some China risk in the Munger portfolio. How much is China risk? Well, that’s not a scientific subject. But I don’t mind. Whatever it is, 18% or something.”

15. What about BYD that captivated Munger?

“Guy (Wang Chuanfu) was a genius. He was at a Ph.D. in engineering, and he could look at somebody’s part, make that part, look at the morning, and look at it in the afternoon. He could make it. I’d never seen anybody like that. He could do anything. He is a natural engineer and gets it-done type production executive. And that’s a big thing. It’s a big lot of talent to have in one place. It’s advantageous. They’ve solved all these problems on these electric cars and the motors and the acceleration, braking, and so on.” Comparing Elon with Wang Chuanfu, “Well, he’s a fanatic that knows how actually to make things with his hands, so he has to he’s closer to ground zero. In other words, the guy at BYD is better at making things than Elon.”

16. Advice about building families “Well, of course, you’ve got to get along with everybody. You have got to help them through their tough times, and they help you, and so forth. But I think it’s not as hard as it is. Looks. I think half of the marriages in America work pretty damn well. And will it work just as well if both of them had to marry somebody else? And you’ve got to have trust with your spouse when it comes to things like the education of the children and so forth.“

Source:  https://x.com/SteadyCompound/status/1718861611904241789