Happy New Year
America Needs a National Business Plan
“We need a business plan that should include being the most efficient. We’re not at war with ourselves, we’re at war with China and Russia. Their governments are subsidizing everything,” says John Hope Bryant, founder of the non-profit Operation HOPE, Inc. “We’re shooting at each other when we should be better together.”
"We need a business plan that should include being the most efficient. We're not at war with ourselves, we're at war with China and Russia. Their governments are subsidizing everything," says @johnhopebryant. "We're shooting at each other when we should be better together." pic.twitter.com/phNjGwOBSx
— Squawk Box (@SquawkCNBC) November 7, 2022
Many think that we should have gridlock in Washington and “…should have a divided government, what we have is a divided people,” states Bryant.
Political free agents
When solving problems is the goal, and not simply picking winners and losers, talking with folks that you may not have a natural affinity to or agreement with almost always makes more sense than not.
Frankly, Bryant just want people to learn to think for themselves, to further realize that they are in the driver’s seat in their respective lives, to expect more from themselves, and to demand more from those who call themselves their leaders and representatives; whether it be in community, national or in the world of politics.
Blacks should all be political free agents from time to time, making both Democrats and Republicans “work” for our vote. We should all remember that FedEx made the U.S. Postal Service a better 2-Day mail service carrier, almost over night.
Now, when Bryant say things like this, people often wonder whether he is a Republican for some reason. Well, the answer is no. But respectfully, he has problems with both my Republican and Democratic friends, so no one should get a pass here. African Americans need results in their community these days, and that is why I am down with what I call the “Get It Done Party.” I just want folks to “get it done.”
I remember when in 2002, Operation HOPE became the only non-profit organization to host two U.S. Presidents in one week; former President Clinton in Harlem (arguably our “first Black President” – smile), who co-taught a Banking on our Future financial literacy course with me, launching our Harlem Partnership together, and thereafter President George W. Bush in South Central Los Angeles, on the 10th anniversary of the revitalization of community following the 1992 Rodney King Riots.
Now, no one in the political establishment said a word about President Clinton and HOPE and me. But when we brought President Bush to South Los Angeles and to First A.M.E. Church, led at that time by my spiritual father Reverend Dr. Cecil “Chip” Murray, our co-host for the event, you would thought the world had come to an end. I was derided by some at the time for hosting the President, mildly threatened with reprisals, and my “real black man” credentials were no doubt called into question — but we persisted, and we moved forward. And everything worked out just fine. And when I am asked why we hosted the President of the United States, my response is simple and immediate — because he’s the PRESIDENT, that’s why.
References:
Small Cap Company Investment
For small caps, the key investing question is whether they can grow into successful large cap companies and then sustain that success. Remember, Amazon and Microsoft began life as a small cap company.
To address these questions, long-term investors should focus on three key elements throughout their investment research:
- long-term growth opportunities,
- durable competitive advantages, and
- management quality.
The stock prices of small cap companies tend to be more sensitive to economic and market changes. Thus, looking at the long-term prospects is essential to the investment process.
Small Cap Companies
Developing an approach and commitment to investing in small caps can be a driver for your investment success. An investment process of extensive research and evaluation can give you an edge over passive products,.
The equity universe is vast, and only a small fraction of the stocks in it are large companies. This leaves plenty of choice for small cap investors, but few investors are skilled enough to successfully navigate through the thousands of choices and identify the best opportunities. As long as there is innovation and disruption, there will be attractive small businesses that have the potential to become larger and successful.
You should always seek and research these investment opportunities.
References:
Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth.
Risks: All investments are subject to risk and may lose value. Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost
- Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta.
- Beta measures a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition.
- Upside Capture explains how well a fund performs in time periods where the benchmark’s returns are greater than zero.
- Diversification cannot guarantee a profit or protect against loss.
- Downside Capture measures how well a fund performs in time periods where the benchmark’s returns are less than zero.
- Active Share is a term used to describe the share of a portfolio’s holdings that differ from that portfolio’s benchmark index. It is calculated by comparing the weight of each holding in the Fund to that holding’s weight in the benchmark. Positions with either a positive or negative weighting versus the benchmark have Active Share. An Active Share of 100% implies zero overlap with the benchmark. Active Share was introduced in 2006 in a study by Yale academics M. Cremers and A. Petajisto, as a measure of active portfolio management.
- Sharpe Ratio is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better a fund’s risk adjusted performance.
- Standard Deviation (Std. Dev.) measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility (risk).
- The Dow Jones Industrial Average is a price-weighted measure of 30 U.S. blue-chip companies. It covers all industries with the exception of Transportation and Utilities. The total return version of the index is calculated with gross dividends reinvested.
- The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The indexes are unmanaged. Index performance is not fund performance; one cannot invest directly into an index. The indexes include reinvestment of dividends before taxes. Reinvestment of dividends positively impacts performance results.
Essentialism: The Disciplined Pursuit of Less by Greg McKeown
Essentialism is a disciplined way of thinking and acting that allows you to discern the vital few from the trivial many. It’s about learning to do less but better so that you can make the highest possible contribution.
Say no to the good so you can say yes to the great.
It’s only possible to do some things, so being selective about what you say yes to is important. Focus on the essential things that will have the biggest impact. Take a close look at your life and identify the things that are not essential. Once you know what they are, eliminate them from your life so that you can focus on the things that are truly important.
It’s okay to say no to requests, even if they come from people you care about. If something is not essential, don’t be afraid to say no so that you can focus on the things that are.
Protect your time since it is your most valuable resource, so please keep it carefully. Don’t let other people steal your time or pressure you into doing things that are not essential.
And it would be best if you took care of yourself. Ensure you get enough sleep, eat healthy foods, maintain close relationships, and exercise regularly. When you take care of yourself, you’re better able to focus on the things that are essential.
Essentialism is a powerful way to live a more meaningful and fulfilling life. It can help you learn to focus on the truly essential things and make the biggest impact.
Six Selling Tips to Sell Anything to Anyone:
Once you achieve success selling, “You recognize opportunities everywhere because you believe in yourself.” ~ Fredrik Eklund, author of The Sell
Knowing how to sell a product or service is an important skill. Learning more about how to sell regardless of the customer can help you improve your skills and develop strategies for success.
In this article, here are six tips for how to sell anything to anyone.
First, it’s essential that you research your customer. It’s important to know who you’re selling to because it helps you communicate effectively to your them, which can then lead to more sales.
Learning more about the customer’s needs, wants, lifestyle, motivations and perspective. From there, you can adapt your sales pitch accordingly. For example, if you know that a customer is interested in convenience, you can focus on the aspects of a product that make it easy to use.
1. Don’t just sell products and services. Sell results and solutions.
Don’t talk about what your product can do. Take time to list the benefits of your products and services and how they might improve your customers’ lives. Talk about what the product can do for your customers.
You don’t sell a camera by saying it can shoot video at 25,600 ISO. You sell it by telling people it can shoot video in the moonlight.
2. Get into your customer’s world.
Talk about what they care about…their problems, fears, and desires. Then start discussing ways they can solve them with your product or service. They’re likely to give an immediate “Yes!”
3. We are emotional creatures, not logical.
Sell towards emotions and feelings. For instance, if you want to sell a family business, you can discuss your family’s problems and explain how you feel about their situation.
Additionally, selling yourself is important because it helps you communicate your own value and can create a personal connection. When customers can envision your value, they may be more likely to trust you and feel comfortable enough to buy from you.
4. Be Specific.
Don’t say, “Lose weight fast.” Instead, say: “Lose 10 pounds in 3 weeks without diet and exercise!”
5. Take advantage of FOMO (fear of missing out)
Set a hard deadline when the sale ends and create a sense of urgency.
– Show social proof
– Use countdown timers
– Highlight limited availability
– Use language that creates urgency
6. Don’t make it boring.
Be entertaining, exciting and exotic. Don’t sound like a generic company. Put jokes in your text. Be different.
Finally,
- People want to do business with someone they like.
- Selling is nothing more than playing up the good and playing down the bad.
- Every successful person knows how to fail well.
- Everybody wants what everybody wants.
References:
Fasting Mimicking Diet
“Autophagy, literally translated as ‘self-eating,’ promises clear skin, more energy, and weight loss. Autophagy is triggered at around the 17-hour mark and peaks at 72 hours.”
To trigger something called autophagy, which means ‘eating itself,’ through this process, old cells are broken down and recycled to form new cells.
It has been hailed as the answer to everything from reducing the symptoms of long-term COVID-19 to nixing tiredness to losing stubborn fat. Its proponents talk about its vast effect on the body and how it offers a spring clean of sorts.
Michelle McKenzie, a nutritionist who designed a fasting-mimicking diet, says, “Autophagy means self-eating, and it’s like a recycling plant, taking the waste and damaged cells which aren’t functioning as well, then using them to make new cells and proteins.”
Dr Valter Longo devised a fasting-mimicking protocol, a way to eat thrice daily while your body still thinks it’s only getting water. With the food being minimal and portions minuscule, rations are measured to make sure they come under the threshold to keep the body in fasting mode. But, still, better than just water, I tell myself. And, besides, I want all those touted benefits.
References:
https://www.standard.co.uk/lifestyle/autophagy-fasting-benefits-what-is-it-how-to-b1111484.html
Long-Term Investing the Baron Capital Way
“We became successful by buying great businesses and holding on. We didn’t get to be successful by buying and selling.” ~ Ron Baron, Founder, CEO and Chairman Baron Capital
In a world focused on short-term results, fads, and news, most people overlook the power of acquiring and holding valuable assets. It’s important to adopt a mindset that emphasizes the long-term benefits of ownership.
Ron Baron’s philosophy: Not taking risk is the greatest risk. Question everything. Standard of performance comes from the top (CEO). Belief before ability…The most successful people believe in themselves almost to the level of delusion. Obsession. Exceptionalism takes time.
Baron Capital’s Approach to High-Conviction Investing
Conviction is having a strong belief in the fundamental underlying value and growth prospects of an investment, based on thorough and ongoing research and analysis.
Investors with high conviction believe that their investment in a particular stock, asset, market sector, or investment strategy has a solid foundation and is likely to succeed over the long term, despite market volatility or contrary opinions.
Conviction is an integral risk management mechanism. While diversification is traditionally associated with risk reduction, Baron Capital believes that investing more in the companies they know best results in lower risk. Thus, at Baron Capital, conviction-based investing is less a strategy and more a philosophy – a philosophy that honors the depth of insight over the breadth of selection.
Conviction-based investing is at the core of Baron Capital’s portfolio construction and management processes. Their strongest skill is their ability to thoroughly research and understand the inner workings of a business, analyze its growth trajectory and competitive advantages and how robust they are, and assess how qualified and motivated management is.
“Owning awesome businesses and holding on to these great investments for the long-term, not buying and selling, is the secret sauce to build wealth.” ~ Ron Baron, Founder, CEO and Chairman Baron Capital
References:
Don’t Worry About a Thing
“Worry never robs tomorrow of its sorrow, it only saps today of its joy.” ~ Leo Buscaglia
In raggae legend Bob Marley’s lyrics, he sang:
“Don’t worry, about a thing
‘Cause every little thing, gonna be all right
Singin’, don’t worry, about a thing
‘Cause every little thing, gonna be all right…”
Unfortunately, many people fail to heed Marley’s sage advice to not worry, since constant worrying, negative thinking, and always expecting the worst can take a toll on your emotional and physical health.
It’s been demonstrated that worry and anxiety robs you of joy, peace of mind and your health. Dr Charles Mayo, founder of the Mayo Clinic stated, ‘There’s a growing mountain of evidence to suggest that worry is the chief contributor to depression, nervous breakdowns, high blood pressure, heart attacks, and early death. Stress kills. I’ve never known a man to die from hard work, but I’ve known a lot who died from worry.’
‘Do not fret or have any anxiety about anything.’ Philippians 4:6 AMPC
Worry is like a rocking chair; it uses up all your energy but where does it get you?
Leo Buscaglia writes, ‘Worry never robs tomorrow of its sorrow, it only saps today of its joy.’ He’s right!
Mathematically speaking, it doesn’t make sense to worry. Psychologists tell us that roughly 30 per cent of what we worry about never happens; another 30 per cent has already happened; 12 per cent is about unfounded health concerns, and an additional 20 per cent involves worrying about the little things. That leaves only eight per cent. Think about that! We worry 92 per cent of the time for no good reason at all, and it’s killing us.
What’s the answer?
‘Do not worry about anything, but pray and ask God for everything you need, always giving thanks. And God’s peace, which is so great we cannot understand it, will keep your hearts and minds in Christ Jesus. Brothers and sisters, think about the things that are good and worthy of praise. Think about the things that are true and honourable and right and pure and beautiful and respected…And the God who gives peace will be with you’ (Philippians 4:6-9 NCV). That’s God’s answer to worry!
Prayer Point:
Father, I so crave peace in my life, when so much is in turmoil. Help me to meditate on Your Word today and create an oasis of peace within me. I pray that Your Holy Spirit would come and dwell in my life and slowly build up my ability to handle the pressure I feel under. You are Lord over every circumstance; I submit my life to You today. Amen.
May Peace, Joy and Abundance of God be with you today and always!
Five Tax Strategies
Five tax-aware strategies that could help you discover opportunities to save on taxes.
At the end of the calendar year, if you take the time now to learn the tax rules, you may discover opportunities to help save on your taxes.
Here are five tax-aware strategies to consider now.
1. Make charitable donations now to get a 2023 tax deduction or consider “bunching” gifts to climb over the standard deduction.
Do you itemize your taxes? If yes, you may be able to reduce your taxable income through charitable deductions if you are eligible. Let’s dig into the rules.
For 2023, the standard deduction is $13,850 for single filers and $27,700 for married couples filing jointly. But what if you are very close—but not touching—the standard deduction? There is a strategy you can consider: bunching your 2023 and 2024 charitable donations together in 2023 to climb above the standard deduction.
2. Harvest your investment losses.
While you are reviewing your portfolio, consider if your current asset allocations still align with your long-term goals. If you discover losses in a taxable account, you could use those losses to offset any realized capital gains for 2023. If appropriate, you can always repurchase the investments, but be sure to do it at a later date and avoid the wash sale rule.
To set this strategy into motion, tally up your potential losses, then sell out of losing positions that no longer make sense to hold. You can use those losses to offset any realized capital gains. If you still have losses left over, you can offset up to $3,000 of ordinary income annually and carry forward any remaining losses to be utilized in subsequent years.
3. Be strategic with your annual exclusion gifts.
Annual exclusion gifting is a common way to help your estate pass on assets tax-free.
Here are the basics: You can give any number of people up to $17,000 in 2023 without triggering a taxable gift, according to the IRS. That number climbs to $34,000 for married couples. The IRS calls these amounts the “annual gift tax exclusion,” which simply means if you give that amount or less you generally don’t need to report it to the IRS. But be aware that a married couple “gift splitting” does require the filing of a Gift Tax Return (709), regardless of the amount.
4. Review your investment location with an eye toward taxes.
In investing, “location” can matter when it comes to taxes. For example, there are different tax implications depending on which types of investment accounts you choose.
With a taxable brokerage account, you are taxed on interest, dividends, capital gains, or distributions from mutual funds as they occur.
In a tax-deferred retirement account, like an individual retirement account (IRA) or 401(k), you’ll generally pay taxes when you eventually withdraw the assets.
In a Roth IRA, earnings and distributions are tax-free as long as you are over age 59 ½ and the account is at least five years old.
Depending on your long-term investment goals and investment preferences, you could benefit from a tax standpoint by investing in more actively-managed mutual funds in your retirement accounts and by investing in exchange traded funds (ETFs)—which are generally more tax-efficient because they tend not to distribute a lot of capital gains—in your taxable account.
Consider this: There’s a saying: Don’t let the tax tail wag the investment dog. While this move may be right for you, it reminds us not to make moves to minimize taxes in your portfolio unless it aligns with your long-term investment strategy.
5. Contribute to or max out your retirement plan if you are able.
Contributing to a retirement account can lower adjusted gross income and taxable income. In 2023, the 401(k) contribution limit stands at $22,500, and if you are 50 or older, you can save an additional $7,500 in catch-up contributions for a total of $30,000. The IRA contribution limit totals $6,500 in 2023, with a catch-up contribution of an additional $1,000 for those 50 or over. And if your plan allows and you believe your income tax rates may be higher in retirement, you may also want to consider the Roth option. It doesn’t have to be one or the other—you can make contributions to both as long as the total contribution does not exceed the overall contribution limit. Be aware, however, that Roth accounts are funded with after-tax dollars, so those contributions won’t lower AGI.
Get started now.
As you review your financial picture, consider these five ideas to help you prepare your way to a successful tax season.
References:
Still I Rise
Still I Rise
Maya Angelou (1928 –2014)
You may write me down in history
With your bitter, twisted lies,
You may trod me in the very dirt
But still, like dust, I’ll rise.
Does my sassiness upset you?
Why are you beset with gloom?
’Cause I walk like I’ve got oil wells
Pumping in my living room.
Just like moons and like suns,
With the certainty of tides,
Just like hopes springing high,
Still I’ll rise.
Did you want to see me broken?
Bowed head and lowered eyes?
Shoulders falling down like teardrops,
Weakened by my soulful cries?
Does my haughtiness offend you?
Don’t you take it awful hard
’Cause I laugh like I’ve got gold mines
Diggin’ in my own backyard.
You may shoot me with your words,
You may cut me with your eyes,
You may kill me with your hatefulness,
But still, like air, I’ll rise.
Does my sexiness upset you?
Does it come as a surprise
That I dance like I’ve got diamonds
At the meeting of my thighs?
Out of the huts of history’s shame
I rise
Up from a past that’s rooted in pain
I rise
I’m a black ocean, leaping and wide,
Welling and swelling I bear in the tide.
Leaving behind nights of terror and fear
I rise
Into a daybreak that’s wondrously clear
I rise
Bringing the gifts that my ancestors gave,
I am the dream and the hope of the slave.
I rise
I rise
I rise.
From And Still I Rise by Maya Angelou. Copyright © 1978 by Maya Angelou.