The summer has been very interesting, and in many ways very rewarding for me personally. The rewards I mention are not financial, though I am sure you would agree there is nothing wrong with a few extra bucks in your pocket. No, what I am talking about is the gratification that comes from being associated with people who in some way you may have helped. Specifically, there are people who are clients of mine who in some minor way I have helped through investing. For example, I recently recieved notice that a client who opened a new business had the enterprise go live with a very interesting business. We talked about the idea and he has refined it into a product which has a great deal of potential. One never knows how these things play out as the business world is tough in almost every area, certainly in markets which offer large rewards. Still, helping people start and reach for their dreams is wonderful and very gratifying.
Another example is a client who is very diligent recently sent me an email notifying me of an upcoming appearance on television for her small business. She is a super lady who tries very hard with her candy business, and I was overjoyed to see the television spot and I hope it really helped with her orders.
A few other anecdotal stories deserve mention as well. A young man recently came to me with some money he wants to invest. He is only 13 years old but he has already saved some capital and wants to see it grow. He is also interested in learning about investing so I gave him some informtion about books to read and how to pursue his objectives. As I get older, and I think most people who have had success financially might agree with this, more focus and satisfaction comes with helping others attain their dreams. You realize people are not that concerned with rates of return, but having enough money so they have the freedom to do what they want to do. It may be retiring early, buying a new house, renovating a new house, starting a new business, expanding an existing enterprise, sending a child to college, whatever. Investing money successfully can help people do those things, but it certainly is not easy.
Investing is spending money today so you will have more money in the future. Just as important, is how any individual is forced to grow intellectually by investing. You can spend money without knowing anything about what you are investing in, which in my mind is not intelligent. When you invest and work at it, you learn about the entire world, about what companies are doing all over the globe, and almost every sphere in the world affects your companies. Weather, sports, politics, culture, music, fashion, nothing should be ruled out. As a result, an investor is constantly forced to learn, which means you are growing. You grow or you die. While you are at it, there is plenty of struggle and adversity, but the rewards are well worth the effort.
We are now, as Lincoln said, "Getting to the stub of it.", regarding the upcoming presidential election. The conventions are in the next two weeks and the debates will follow. I recently read where only 5%, or 15 millon people out of 300 million in the country, will decide the outcome. I am sure you might agree neither side will probably call you after they win to see what your thoughts are on how to proceed forward. What will be very interesting is to see how both parties approach the election. The important issue is which leader is better able to lead the country in the future. Politics is a subject which you cannot avoid and there is much to hate about it. However, the next few months will be interesting for any observer, whether you vote or not.
Apple defeated Samsung in a trial regarding patents for phones. The result is the smart phone business will get more competitive. The companies most affected by the decision are Apple, Google, and Microsoft, all financial and cultural heavyweights. Personally, I think the first two are in the strongest positions and I think they have all been great businesses. However, in the future I would not go against Apple or Google.
http://www.bloomberg.com/news/2012-08-25/apple-patent-victory-seen-spurring-wider-range-of-smartphones.html
Mario Batali is a legend in the culinary world and has some great advice for any enterpreneur in this interview-
http://www.nytimes.com/2012/08/26/business/in-mario-batalis-kitchen-please-refrain-from-shouting.html?ref=business
Apple is introducing a new mini-Ipad and a new I-phone in the fall.
https://allthingsd.com/20120825/confirmed-new-ipad-mini-will-debut-in-october-after-latest-iphones-september-bow/
John Bogle is a giant in investing world and has some great advice for any investor. I personally disagree with his ideas about index investing versus active management, but I do think index investing is a great way to invest for a lot of people. http://seattletimes.nwsource.com/html/businesstechnology/2018994009_bogleworry26xml.html
The online poker controversy just gets worse. http://www.lvrj.com/business/online-poker-s-window-of-opportunity-may-be-closing-167464895.html
Finally, I hope all readers have a great week, if you have any comments, thoughts, questions, or ideas about the blog post, please share them! Thank you for reading.
Y H & C Investments, Yale Bock, and the family of Yale Bock own positions in securities mentioned in the blog post. Investing in stocks can lead to the complete loss of your capital
. As always, on any company mentioned here, past performance is not a guarantee of future returns. Investing involves risk of losses on invested capital. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.
Here are some Seeking Alpha articles Yale Bock has written about specific companies.
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