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The Most Important Lessons from Business

  
  Education
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Number 1 is never to get in over your head. Not having staying power will prevent you from reaping the benefits that occur on those small number of businesses you own that need just a little bit more before striking the gusher.

Number 2 is never under any circumstances accept an offer out of the clear blue sky for your share of the business that seemingly is good, but where the party offering you the buyout knows much more than you do. I have lost millions on many occasions by accepting a quick profit in a deal where it turned out if I waited a year or two or three, I would have realized a tremendous windfall.

Number 3 is not to mix romance with business. Romance should come out of business not business out of romance. The romantic aspect will cause a strain and make you look foolish too all your colleagues.

Number 4 is not to have 3 person partnerships as too many coalitions can form, and you will be involved in diplomacy rather than business.

Number 5 is to keep your business consistent with the idea that has the world in its grip. Give your customers what they want, and give returns and the customer is always right.

Number 6 is to be sure that you are aligned with the forces in Washington that control so much of life these days, and have so much in perks and profits to give to their cronies.

Number 7 is to associate yourself with good partners, and good friends, and good employees whose loyalty goes beyond the dollar or the clock. An ounce of loyalty and integrity is worth more than a pound of immediate profits. When the going gets tough, and it always does in business, you need to have the loyal ones. Certain groups and certain belief systems are aphoristic and proverbial for their disloyalty and tendency to deceit and they should be avoided.

Number 8 is to always remember that when dealing with a family business, the loyalty of the family members is to themselves but not to you. The worst short term frauds and cons, and some of the worst long term cons, I have been victimized in had a father and son working in concert to deceive you into giving them your chips. (more…)

JIM CHANOS: Charity Can Be A Sign Of Fraud

  
Analysis, Education
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Legendary short seller Jim Chanos gave an extensive interview to Salon.com about how to spot fraud and corruption in business.022609Wiesel19BS

 It’s an incredible coincidence that the story was published today, since the news broke that former Enron CEO Jeff Skilling, a man Chanos helped put behind bars, could be getting out of jail early.

Enron is held up as the paragon of 1990s corporate greed. There, not everything was as it seemed despite excellent press all over the business world and a great reputation.

The point is that companies can build amazing brands without being amazing businesses, and as Chanos points out, part of that brand can be doing charity work. (more…)

Advice and money making system

  
Education, Life
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This advice from Henry Clews is all you will need to make money.

But few gain sufficient experience in Wall Street to com-
mand success until they reach that period of life in which
they have one foot in the grave. When this time comes
these old veterans of the Street usually spend long intervals
of repose at their comfortable homes, and in times of panic,
which recur sometimes oftener than once a year, these old
fellows will be seen in Wall Street, hobbling down on their
canes to their brokers’ offices.

Then they always buy good stocks to the extent of their
bank balances, which have been permitted to accumulate for
just such an emergency. The panic usually rages until
enough of these cash purchases of stock is made to afford
a big “rake in.” When the panic has spent its force, these
old fellows, who have been resting judiciously on their oars
in expectation of the inevitable event, which usually returns
with the regularity of the seasons, quickly realize, deposit
their profits with their bankers, or the overplus thereof,
after purchasing more real estate that is oa the up grade,
for permanent investment, and retire for another season to
the quietude of their splendid homes and the bosoms of their
happy families.

What follows is very important in so many ways.

If young men had only the patience to watch the specu-
lative signs. of the times, as manifested in the periodical
egress of these old prophetic speculators from their shells
of security, they would make more money at these intervals
than by following up the slippery ” tips ” of the professional
“pointers” of the Stock Exchange all the year round, and
they would feel no necessity for hanging at the coat tails,
around the hotels, of those specious frauds, who pretend to
be deep in the councils of the big operators and of all the
new ” pools ” in process of formation. I say to the young
speculators, therefore, watch the ominous visits to the Street
of these old men. They are as certain to be seen on the eve
of a panic as spiders creeping stealthily and noiselessly
from their cobwebs just before rain. If you only wait to
see them purchase, then put up a fair margin for yourselves,
keep out of the u bucket shops “as well [as the “sample
rooms,” and only visit Delmonico’s for light lunch in busi-
ness hours, you can hardly fail to realize handsome profits
on your ventures.

Great stuff,indeed, written over a hundred plus years ago.

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