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It’s About Controllable Assets

April 3, 2015 by  
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I have a few more insights to share with you, hatched from Jeff’s “book report” on my book. On Addendum B–“When a Billionaire Speaks, I Listen” he commented on Curt Carlson’s advice. Jeff said, “Interesting that Fortune Magazine would say over 30 years ago that we’ve seen the last of the billionaires. But, that may be the typical thought of someone with limited thinking or a small world view.  While the oft-quoted statement by the commissioner of the US Patent Office in 1899 said ‘everything that can be invented has been invented’ may not be correctly attributed to him, it tells the same story. Carlson’s advice to get good people, then delegate is certainly right. The big wealth comes from spreading yourself around or at least by using ‘Other People’s Money’.  I always remember Aristotle Onassis, the Greek shipping magnate who married Jackie Kennedy, saying ‘borrow as much money as you can and always pay it back on time.’”

Hey Jeff, that’s some good stuff from your book report!  I think I will have to give you an A+.  I would add to Onassis’s comment about borrowing money with a very critical qualifier.  Yes, borrow as much money as you can but borrow it to purchase the “right kind of stuff” and by the right stuff I mean use it to purchase assets that appreciate in value and ideally assets that also provide you with cash flow returns as you watch and wait for their value to increase.

Yes, many stocks fit those parameters but for my money the assets that have worked by far the best for me have been income producing real estate (and that’s coming from a former successful stock broker.)  Why real estate rather than stocks?  The biggest reason is because with stocks you cannot control the company or the ups and downs and whims of the stock market. With the right kind of real estate you can at least have some degree of control over the property plus all that money you borrowed will, in the long run, be paid back by your tenants and if you have done it right, you will be collecting cash flow along the way.

So the take away here is that Onassis was partially right when he said borrow all the bucks that you can and always pay it back. But I say borrow all the money you can to buy appreciating assets that you have at least some control over, collect cash flow along the way and let your tenants pay off the money that you borrowed! I bet you can see just how smart that is!

 

 

The Principles of Stick-To-It

March 27, 2015 by  
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As mentioned in the last two posts, the comments made by Jeff Rahill in this little “book report” he sent me has really had me thinking about what I wrote in How to Ignite Your Passion for Living. Even the author can use a little reminder here and there! Here are two more sections he pulled out and comments he made about them that highlight two areas particularly important to keep you on task:

In regards to the chapter “Clone Yourself with the Amazing “L” Factor”, Jeff noted that he uses lists himself and has for a while. He wrote, “Yes, I’ve been a prodigious list maker for decades. I switched from the little scraps of paper to my Day-Timer in 1972. ‘The strongest memory is weaker than the palest ink.’ (Write it down!) I update my to-do list every morning (if not the night before).”

And that is the way to do it. Keep creating lists and you will stay on task and succeed.

In regards to the chapter “The Greatest Lesson in Life. Get Going”, Jeff said, “The journey begins with the first step. Nothing happens until you take action. You mentioned the story of Alive, the plane crash survivors in the Andes. What an incredible story. I have seen that movie and still think about it. Nando Parrado took action and his incredible journey saved his friends. ‘When the morning light comes streamin’ in, I’ll get up and do it again.’ (Jackson Brown) Amen.”

This “get going” advice is something that we need to remember and do at every age and stage of our lives. No matter what you want to do, whether it’s goals you have set for your business, family, or personal health, the bottom line is, you just have to GET GOING!

If you’ve follow my blogs for very long you know that I am also a big time fan of counter acting aging by “keeping moving”.  I am 71 in less than two weeks and my “keeping moving” philosophy—as in work outs, tennis and walking—make me feel like I’m 50. (My Fit Bit measured me taking 22,707 steps yesterday–btw that’s 10.54 miles). Bottom line here is we all need to “get going” and keep going which will improve every part of our lives without question! That attitude and well-kept lists will help you Stick-To-It until those goals and dreams are yours.