Know the Value of Stuff; Not Just the Price

“Price is what you pay. Value is what you get.” Warren Buffett

A father said to his daughter “You have graduated with honors, here is a car I bought many years ago. It is a bit older now. But before I give it to you, take it to the used car lot downtown and tell them I want to sell it and see how much they offer you for it.

The daughter went to the used car lot, returned to her father and said, “They offered me $1,000 because the said it looks pretty worn out.”

The father said, now “Take it to the pawn shop.” The daughter went to the pawn shop, returned to her father and said,”The pawn shop offered only $100 because it is an old car.”

The father asked his daughter to go to a car club now and show them the car. The daughter then took the car to the club, returned and told her father,” Some people in the club offered $100,000 for it because it’s a Nissan Skyline R34, it’s an iconic car and sought by many collectors”

Now the father said this to his daughter, “The right place values you the right way,” If you are not valued, do not be angry, it means you are in the wrong place. Those who know your value are those who appreciate you……Never stay in a place where no one sees your value.

Don’t force yourself to stay where you are not regarded….

Stay where you are appreciated.


Source: https://www.facebook.com/743724219/posts/10159846889864220/

Federal Reserve Raises Interest Rates

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.” FOMC Report

The Federal Reserve raised interest rates 50 basis points (1/2 percent) on Wednesday in an effort to tame inflation that’s soaring at a 40-year high. And, the Fed anticipates that ongoing increases in the target range will be appropriate.

The Federal Open Market Committee (FOMC) is highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run.

Short-term borrowing was nudged up a half a point, and consumers are going to feel the increase in their bank accounts.With a 50 basis-point interest rate hike, you can expect higher costs for:

  • Credit Cards – Your credit card’s interest rate will likely increase slightly within a couple of billing cycles. The size of that increase can vary based on your credit score and credit card provider. A 1% interest rate increase will likely only add a few dollars to your monthly interest payments on a few thousand dollars of outstanding debt. Current average interest rates are close to 16%, but they could be as high as 18.5% by the end of the year.
  • Mortgages – Mortgage interest rates are calculated based on multiple factors, like inflation and the housing supply — but they’re also affected indirectly by the federal funds rate, which influences how much banks pay to borrow money. When that rate increases, the interest on adjustable-rate mortgages tends to follow.
  • Other loans – The federal funds rate is used to calculate the lowest interest rate offered for loans, known as the prime rate. Any loan tied to the prime rate, known as adjustable-rate loans, will likely have a slight increase in interest rates.

If you currently have a fixed-rate loan, your payments won’t change. If you have an adjustable-rate loan, you should take some time to look at its terms, says Jacob Channel, a senior economic analyst at LendingTree: “The last thing you want is to think, ‘Oh, I have a few months before my rate goes up,’ and realize that the rate hike will kick in much sooner.”


References

  1. https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a.htm
  2. https://www.cnbc.com/2022/05/04/3-things-thatll-get-more-expensive-after-the-feds-historic-rate-hike.html

Gratitude, Winning and Success – Cael Sanderson

The foundation for success and winning is based on gratitude.

Cael Sanderson has dominated the wrestling world over the past two decades.

Cael, the collegiate wrestler, went a remarkable 159-0 at Iowa State from 1999-2002, winning four wrestling Division I NCAA National Championships, winning the NCAA Most Outstanding Wrestler award all four years, the only wrestler to ever achieve this distinction and three Dan Hodge trophies.

Cael is the only college wrestler in NCAA history to never lose a match over a four-year career — considered the No. 2 achievement in college sports history, according to Sports Illustrated. (Surpassed only by Jesse Owens’ four world records in 45 minutes as an Ohio State Buckeye track and field phenom.)

Cael, the Olympian won a Gold Medalist, (at 84 kg, during the 2004 Athens Olympiad).

And finally, there is Cael Sanderson, the Coach of the Penn State Nitty Lions Wrestling Team.

Cael arrived as head wrestling coach at Penn State in April 2009. Since then, Cael’s Nittany Lions have won an unprecedented 11 NCAA team national championships in 15 seasons (2011, 2012, 2013, 2014, 2016, 2017, 2018, 2019, 2021, 2023, 2024), the most recent this past spring, when six Penn State wrestlers made the championship finals and four walked away with championships.

Also, during the fifteen seasons, he coached Penn State program to:

  • 38 individual NCAA national titles through 2024.
  • Named Big Ten Coach of the Year 13 times and National Coach of the Year 9 times.
  • 132 All-American honors awarded.
  • In the 2023-24 season, his team went 16-0 in duals, won the Big Ten regular season and tournament titles, and claimed their 11th NCAA team title.
  • Dual meet record at Penn State through 2024 is 277-39-2.

His overriding philosophy is that everything in life and sports — peace of mind, happiness, getting the most out of what you have — springs off an ‘attitude of gratitude.’

Gratitude is right at the foundation of all things, especially his remarkable success and winning as a wrestler and head coach.

What does gratitude mean?

For Cael Sanderson, it means that “you think less about yourself. If I’m grateful, I’m going to think less about myself and more about others, and the opportunities I have.”

“You count your blessings and then you make your blessings count”, says Sanderson.

True gratitude isn’t just if you win. “True gratitude is based on all things — success and failure”, says Sanderson. “If you’re truly grateful, you’re going to maintain that sense of gratitude regardless of the outcome. Otherwise, it’s not gratitude.”

He opined that gratitude is a foreign idea initially to five-star college wrestlers. “Especially when you are a superstar athlete and everybody is kind of serving you and it’s about you. That’s instead of taking a step back and saying, ‘Wow, look how blessed I am.’”

“Getting the most out of yourself and the most out of the blessings that you have.”

When you can take a step back and look at life like that, it can change your perspective. It takes the pressure off. You’re just trying to get the most out of yourself and the most out of the blessings that you have.

Additionally, Sanderson explains that gratitude is remembering that, ‘I do want the pressure. I do want the opportunity to compete for a national championship. I’m grateful that I have this pressure right now because if there is pressure it means I am not quite there yet.’ You can’t forget who you are and what you truly want.

And winning is what you want to do. Gratitude helps you remember why you got into this, to begin with. It’s not about being cool or winning for any other reason — like picking up Twitter followers or anything like that. Who cares about that? If you care about those things, they will steer you away from your true goal.

Gratitude and humility are blood brothers

Gratitude and humility go hand-in-hand. Those two terms are going to help an individual become the best he can be. Because if you’re grateful, you’re humble. You’re always seeking a better way and seeking to improve. You’re willing to be coached, explains Sanderson.

That’s not a common trait. “I coach college wrestling and I have been in the sport my entire life”‘ says Sanderson. “There’s a lot of different levels of coachability. Our best kids are the ones who buy in the most. It means you think of others, you think about the team.”


References:

  1. https://test.statecollege.com/the-word-on-coaching-penn-states-cael-sanderson-on-gratitude/

The 2% Solution: Driving Action for Real Change l

“The problems of racial injustice and economic injustice cannot be solved without a radical redistribution of political and economic power.” ~ Dr. Martin Luther King, Jr.

The 2% Solution grew from the idea that lasting, generational change is possible only through a major investment by U.S. companies in economic justice and development for Black communities.

Inequitable access to capital has impeded the ability of Black entrepreneurs to maintain positive cash flow and cover operating costs in their businesses, explains Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners.

A key factor in this disparity is the lack of major financial institutions in Black communities.

“Only 53% of Black households are properly banked, compared to 80% of white households.”

As a result, Black business owners often rely on Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) for support. However, these institutions are also often underfunded and lack modernized and digital systems.

Supporting CDFIs and MDIs is one of the key pillars of the 2 Percent Solution. By investing capital in these institutions, we’re also investing in Black entrepreneurs and businesses.

The 2 Percent Solution asks U.S. companies to invest 2% of their annual profits over the next 10 years into communities where systematic inequities have hindered progress, says Smith. These investments aren’t acts of charity. They are reparative, enabling lasting generational change and bringing economic justice for Black communities.

“I think that [The 2% Solution] will show Americans there is hope, there is an opportunity for the American dream to now be revitalized. And frankly, to give us all confidence that we can actually make this a better country and a better place to live.” ~ Robert F. Smith, Forbes 400 Summit on Philanthropy

The 2% Solution has the ability to make lasting change in Black communities with a focus on four main pillars of action where an investment’s impact would be long-lasting and broadly felt within the Black community. These main pillars are:

  • Supporting CDFIs & MDIs
  • Healthcare
  • Education
  • Technology and the Digital Divide

The 2% Solution will benefit all Americans. A 2019 McKinsey Global Institute analysis found that eliminating the racial wealth gap would generate $1.5 trillion in GDP, and we can use The 2% Solution to help close the gap between Black and white households.  


References:

  1. https://robertsmith.com/2-percent-solution/
  2. https://robertsmith.com/about-robert-f-smith/

Inflation Swindles Almost Everybody

“If you feel you can dance in and out of securities in a way that defeats the inflation tax, I would like to be your broker — but not your partner.” Warren Buffett

During 2022 Berkshire-Hathaway’s annual shareholders meeting, chairman and CEO Warren Buffett stated, ‘Inflation swindles almost everybody’. Inflation is the decline of purchasing power of the U.S. dollar, the U.S. unit of currency. The rising prices of goods and services, often expressed as the inflation rate, means that a unit of currency effectively buys less than it did in prior years.

Buffett commented that inflation “swindles” equity investors. He elaborated that: “Inflation swindles the bond investor, too. It swindles the person who keeps their cash under their mattress. It swindles almost everybody.” Since inflation is largely a result of loose fiscal and monetary policy. This policy artificially inflated demand and effectively caused a supply/demand imbalance — the cure for which was rising prices to try and lower demand.

He stated that inflation also raises the amount of capital that companies need and that raising prices to maintain inflation-adjusted profits is not as simple as it may seem.

In Buffett’s opinion, “only gains in purchasing power represent real earnings on investment. If you (a) forego 10 hamburgers to purchase an investment; (b) receive dividends which, after tax, buy two hamburgers; and (c) receive, upon sale of your holdings, after-tax proceeds that will buy eight hamburgers, then (d) you have had no real income from your investment, no matter how much it appreciated in dollars. You may feel richer, but you won’t eat richer.”

Additionally, “High rates of inflation create a tax on capital that makes much corporate investment unwise – at least if measured by the criterion of a positive real investment return to owners”, states Buffett.

In a 1977 Fortune magazine article, Buffett conveyed his views on inflation: “The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital.”

He opined that the best protection against inflation is investing in your own skills.

During the shareholder’s meeting, Buffett observed that massive fiscal and monetary economic stimuli during the COVID-19 pandemic are the major reason for high inflation today: “You print loads of money, and money is going to be worth less.”

Buffett views inflation as a necessary consequence of the massive fiscal and monetary stimuli, which “artificially inflated demand and effectively caused a supply/demand imbalance”, to get the U.S. out of what could have been a COVID-19 induced depression.

“In my book, Jay Powell is a hero,” Buffett stated. “It’s very simple, he did what he had to do.”


References:

  1. https://www.investopedia.com/berkshire-hathaway-2022-annual-meeting-and-q1-earnings-5270362
  2. https://www.nasdaq.com/articles/3-lessons-from-what-buffett-didnt-say-at-berkshire-hathaways-shareholder-meeting
  3. https://www.investopedia.com/terms/i/inflation.asp
  4. https://www.fool.com/investing/2022/04/04/warren-buffett-secret-to-getting-rich-is-simpler/
  5. https://www.fool.com/investing/2022/03/27/3-timeless-warren-buffett-lessons-to-apply-right-n/
  6. https://www.cnbc.com/2018/02/12/warren-buffett-explains-how-to-invest-in-stocks-when-inflation-rises.html
  7. https://www.msn.com/en-us/money/topstocks/worried-about-inflation-heres-what-warren-buffett-says-berkshire-hathaway-is-doing/ar-AAWNjq6?ocid=uxbndlbing

Blackstone Group

The Principles that Matter Most to Blackstone Group

Accountability • Excellence • Integrity • Teamwork • Entrepreneurship

Blackstone Group is the world’s leading alternative asset manager. Alternative asset investments refer to financial assets that don’t fall under the conventional categories like stocks, bonds, and cash. An alternative asset manager invests in things that average investors typically don’t have access to, according to Entrepreneur magazine.

Blackstone contends that everything they do is guided by these principles, which define their character and culture . These enduring qualities are the shared convictions that they bring to their professional and personal conduct. They are a fundamental strength of their business.

Some examples of alternative assets include private equity or venture capital, hedge funds, distressed debt, commodities, and real estate. Since they are complex investments that are not regulated by the SEC and can be illiquid, alternative investments are usually held by institutional investors or high-net-worth individuals.

Blackstone operates in four different segments:

  1. Private equity,
  2. Real estate,
  3. Hedge fund solutions, and
  4. Credit & insurance.

Many investors and institutions are looking to take advantage of alternative investments in the current low-interest-rate economic environment. With Blackstone, you have a team of financial asset management experts hunting down undervalued assets and making deals to generate returns for your portfolio. The company is known for delivering excess returns.

“Blackstone reported the best results in our 36-year history”, Blackstone CEO Stephen Schwarzman stated. “Earnings increased dramatically, and all of our key financial and capital metrics reached record or near-record levels.”

They can include private equity, hedge funds, venture capital, real estate, and derivatives contracts, which are investments that are typically intended for institutional or accredited investor. It’s an area of financial services that can be incredibly lucrative for investors.


References:

  1. https://www.entrepreneur.com/article/392789
  2. https://www.marketbeat.com/originals/blackstone-group-nyse-bx-stock-a-buy-after-posting-record-profits/

Building Wealth

Jack Ma the richest man in China said, “If you put the Banana and Money infront of a monkey. The monkey will choose Banana because the monkey don’t know that money can buy alot of Bananas.

In fact, if you offer Work and Business to most people, they will choose to Work because most people don’t know that a Business can make more money than salary.

One of the reason most people fail to build wealth is because they have not been educated or trained to recognise the entrepreneurial opportunity.

They spend alot of time in school and what they learn in school is work for a salary instead of working for themselves.

Profit is better than wages because wages can support you, but profits and owning assets can make you wealthy.


Source: https://www.facebook.com/109901988144184/posts/165519812582401/

The Great Benefits and Joy of Movement

“Anytime you engage in regular activity, you’re becoming this version of yourself that is more hopeful, more motivated, more energized, and better able to connect with others.” ~Kelly McGonigal, Ph.D.

Knowing only great benefits and happiness will result from movement, why are Americans so resistant to making movement a priority in their day?

While our brains and bodies reward us for moving and exertion, we also are built with an instinct to avoid overexertion, conserve energy, to rest, to avoid discomfort, and avoid failure and embarrassment, says Kelly McGonigal, Ph.D., a research psychologist, a lecturer at Stanford University, and an award-winning science writer and author of The Joy of Movement.

To retrain our bodies to encourage movement, we must first start with self-compassion and the practice of gratitude. We must remove the negative connotations from movement and recognize how the practice of movement can be really rewarding on its own.

“Exercise is health-enhancing and life-extending, yet many of us feel it’s a chore.” Kelly McGonigal

Research shows, according to Dr. McGonigal, there are three motivations that keep people moving:

  • Enjoyment – doing something you actually enjoy
  • The activity provides social community or sense of identity (i.e. “I’m a runner”), … positive social connection, and
  • It’s a personal challenge and meaningful to you as you’re making progress toward a goal.

If you can find an activity that gives you all three – you’re hooked for life! Exercise is health-enhancing and life-extending, yet many of us feel it’s a chore and burden.

Movement can be a source of joy and is intertwined with some of the most basic human joys, including self-expression, social connection, and mastery–and why it is a powerful antidote to the modern epidemics of depression, anxiety, and loneliness.

Basically, bliss can be found in any sustained physical activity, whether that’s hiking, swimming, cycling, dancing, or yoga. However, the runner’s high emerges only after a significant effort. It seems to be the brain’s way of rewarding you for working hard.

McGonigal tells the stories of people who have found fulfillment and belonging through running, walking, dancing, swimming, weightlifting, and more, with examples that span the globe.

Along the way, Dr. McGonigal paints a portrait of human nature that highlights our capacity for hope, cooperation, and self-transcendence.

Movement is integral to both our happiness and our humanity. By harnessing the power of movement, you can create happiness, meaning, and connection in your life.

The latest theory about the runner’s high claims that: Our ability to experience exercise-induced euphoria is linked to our earliest ancestors’ lives as hunters, scavengers, and foragers.

As biologist Dennis Bramble and paleoanthropologist Daniel Lieberman write, “Today, endurance running is primarily a form of exercise and recreation, but its roots may be as ancient as the origin of the human genus.”

The neurochemical state that makes running gratifying may have originally served as a reward to keep early humans hunting and gathering. What we call the runner’s high may even have encouraged our ancestors to cooperate and share the spoils of a hunt.

In our evolutionary past, humans may have survived in part because physical activity was pleasurable. It takes about six weeks of consistent moderate movement to see structural and neurochemical changes in your brain. And, increase intensity amplifies the benefits. The harder stuff seems to payoff. Exercise gets easier and more pleasurable sooner.

The key to unlocking the runner’s high is not the physical action of running itself, but can be achieved on continuous moderate intensity exercise. And in fact scientists have documented a similar increase in endocannabinoids from cycling, walking on a treadmill at an incline, and outdoor hiking.

If you want the high, you just have to put in the time and effort. 


References:

  1. https://getmadefor.com/blogs/perspective/the-joy-of-movement-how-looking-backwards-moves-us-forward
  2. https://www.amazon.com/Joy-Movement-exercise-happiness-connection/dp/0525534105/ref=nodl

Kelly McGonigal, Ph.D., is a research psychologist, a lecturer at Stanford University, and an award-winning science writer and author of The Joy of Movement.

U.S. GDP Contracted for the First Time since 2020Q2

A recession is typically considered two consecutive quarters of negative GDP growth.

U.S. economic activity contracted for the first time since mid-2020, with lingering supply chain constraints, inflation at its hottest rate since the early 1980s, expected interest rate increases announced by the Fed, and disruptions amid Russia’s war in Ukraine weighing on economic growth.

The Bureau of Economic Analysis (BEA) released its initial estimate of first-quarter U.S. gross domestic product (GDP).

The main metrics from the report, compared to consensus data compiled by Bloomberg, are:

  • GDP annualized, quarter-over-quarter: -1.4% vs. 1.0% expected, 6.9% in Q4
  • Personal Consumption: 2.7% vs. 3.5% expected, 2.5% in Q4
  • Core Personal Consumption Expenditures, quarter-over-quarter: 5.2% vs. 5.5% expected, 5.0% in Q4

What does the metrics all mean?

The economic metrics are important indicators of the state of the U.S. economy at the start of this calendar year — especially now as the U.S. braces for interest rate hikes to cool inflation and for the possibility of a recession in the near to medium term. A recession is typically considered two consecutive quarters of negative GDP growth.

“It is unfortunate that this GDP rate did not meet expectations, but unsurprising as the U.S. economy remains very volatile with geopolitical turbulence from the war in Ukraine, a global supply chain crisis, increasing inflation and the ongoing COVID-19 pandemic,” Steve Rick, chief economist at CUNA Mutual Group, said in an email. “All of these factors have shrunk GDP growth rates around the globe.”


References:

  1. https://finance.yahoo.com/news/q1-us-gdp-gross-domestic-product-economic-activity-190926750.html

Attitude of Gratitude Tips

“Gratitude heals, energizes, and transforms lives.” Robert Emmons, Ph.D.

How often do you feel thankful for the good things in your life? Studies suggest that making a habit of noticing what’s going well in your life and practicing gratitude could have wealth, health and emotional well-being benefits, according to the National Institute (NIH) of Health News in Health.

The author of “The Millionaire Mind”, Dr. Thomas J. Stanley, tells a terrific story of meeting with several former University of Alabama football players of the legendary Coach Paul ‘Bear’ Bryant, who were all successful business owners and senior executives in companies.  Dr. Stanley asked questions of the former football players. Instead of asking the typical questions, the author asked a simple very focused question.  What is the first thing you learned from Coach Bryant.  All of the former players tell a similar story:

On the first day of football practice, Coach Bryant asked them one question. “Have you called your parents to thank them?” He then says, “None of you got here on your own.  It required your parents to sacrifice many days taking you to little league practices, school, and feeding you and ensuring that you could play football and ultimately be on this team.  None of us got here on our own and we will not win on our own.”

The message from coach Bryant was clear.  You must have an ‘attitude of gratitude’ and realize we all need each other to get where we want to go.

Consequently, the millionaires in the study discussed within the book, “The Millionaire Mind”, agreed with coach Bryant’s assertion. To be successful and to successfully build wealth, you should have an ‘attitude of gratitude’.

Gratitude has two key components, according to Robert Emmons, Ph.D., Director, The Greater Good Science Center at the University of California, Berkeley, and perhaps the world’s leading scientific expert on gratitude.

  • “It’s an affirmation of goodness.” Gratitude permits you “to affirm that there are good things in the world, gifts and benefits” you’ve received.
  • It “…recognizes that the sources of this goodness are outside of yourself … You acknowledge that other people—or even higher powers, if you’re of a spiritual mindset—gave you many gifts, big and small, to help you achieve the goodness in your life.”

The social dimension of gratitude is especially important. It requires you to see how you’ve been “supported and affirmed by other people”. In other words, the grateful person accepts all of life as a precious gift. It does not mean that everything that occurs in life is pleasant and good…bad things and problems will continue to occur in your life. Instead, it implies that we are grateful for both life’s problems (or challenges) and life’s blessings.

Because gratitude encourages us not only to appreciate gifts but to repay them (or pay them forward), the sociologist Georg Simmel called it “the moral memory of mankind.” This is how gratitude may have evolved: by strengthening bonds between members of the same species who mutually helped each other out.

Taking the time to feel gratitude can improve your wealth, health and emotional well-being by helping you cope with stress. Research suggests that a daily practice of gratitude could affect the body, too. For example, one study found that gratitude was linked to fewer signs of chronic inflammation and heart disease.

When life gets challenging, it can be difficult to focus on all the good things we have to be thankful for. Our brains are hardwired to consider the worst possible scenario and remember negative experiences to avoid pain and stay safe.

Gratitude is one way to counteract our natural bias towards negativity and to boost happiness and overall well-being.

The first step in any gratitude practice is to reflect on and appreciate the good things that have happened or are happening in your life. These can be big or little things. It can be as simple as finding a good parking space in your workplace garage or enjoying a cup of Starbucks coffee. Or, perhaps you feel grateful for a close friend’s unexpected cellphone call or compassionate support.

Next, allow yourself a moment to enjoy and appreciate that you had the positive experience, no matter what problems may exist in your life. Focus on and embrace the positive feelings of gratitude.

“We encourage people to try practicing gratitude daily,” advises Dr. Judith T. Moskowitz, a psychologist at Northwestern University. “You can try first thing in the morning or right before you fall asleep, whatever is best for you.”

When you make gratitude a regular habit, it can help you learn to recognize good things in your life despite the bad things and problems that might be happening.

The bottomline is to create positive emotions by being thankful and practicing gratitude every day by following these tips:

  • Take a moment. Think about the positive things that happened during the day.
  • Joy it Down in a Gratitude Journal. Make a habit of writing down things you’re grateful for. Try listing 3 to 5 things for thirty days.
  • Savor and be thankful for your experiences. Try to notice positive moments as they are happening.
  • Relive the good times. Relive positive moments later by thinking about them or sharing them with others.
  • Write to someone. Write a letter to someone you feel thankful toward. You don’t have to send it.
  • Make a visit. Tell someone you’re grateful for them in person.

In short, gratitude heals, energizes, and transforms lives, says Emmons. Religions and philosophies have long embraced gratitude as an indispensable manifestation of virtue, and an integral component of health, wholeness, and well-being.


References:

  1. Stanley, Ph.D, Thomas J., (August 2, 2001), The Millionaire Mind, Kansas City: Andrews McMeel Publishing
  2. https://newsinhealth.nih.gov/2019/03/practicing-gratitude
  3. https://selfdevelopmentaddict.com/2014/12/20/the-millionaire-mind-book-summarynotes/
  4. https://healthmatters.idaho.gov/an-attitude-of-gratitude/