Shooting a Fly with a Shotgun

Once success happens you can no longer say, “I will continue my life now as it was before.” Tennessee Williams in his masterpiece, “The Catastrophe of Success,” lays out a manifesto for the wealthy. His writing is neither flattery of wealth nor demeaning of the trappings that follow. Instead, he points to the mindset that

The Finish Line

None of us are so talented that we don’t need help. Maybe that’s why the below video tugs on me so. Click to watch. http://sports.yahoo.com/blogs/highschool-prep-rally/ohio-runner-stops-state-final-aid-fallen-opponent-100722161.html It’s interesting to note a few things. Both runners are in shape, both have run this track probably hundreds of times, yet it wasn’t enough. At the moment of completion

Money Management In One Lesson

In the classic book, Economics in One Lesson, Henry Hazlitt argues a lucid point. In the absence of strong voices bold enough to contradict bad theory, bad theory eventually argues against itself. Hazlitt points out how economic fallacies are self-expiring. And how the potentially clarifying nuances of the original idea, over time, fall off as

Financial Physics – Part IV

The Safety Net As mentioned in Part III, either we reinvent old ideas (Madonna) or come up with brand new ones. Either way, the market requires we constantly adjust. In this our last installment of financial physics let’s discuss the importance of preparing for change, especially the change you don’t want to happen. I hate

Financial Physics – Part III

15% profitability is your breakeven Why do businesses need a profit? To stay in business! Profits are used to expand, to invest in new ideas, to replace old equipment, and to hire new employees. Businesses that succeed reinvest and reinvent themselves because the world is always changing. If they don’t adapt, the business will fail.

Financial Physics – Part II

Never pay fixed bills with variable money In the second law of financial physics, we move our discussion to the importance of understanding cash flow. In my years of advising clients, I have noticed one main difference between those that find perpetual peace and those who don’t. It all lies in how they pay their