The Lato Letter: Volume 2, Issue 9.

The Lato Letter: Volume 2, Issue 9.

The most recent issue of Forbes magazine (June 24th issue) featured its 2013 Investment Guide.  As with most publications of investment guides there are any number of well-presented ideas of both a bullish and bearish nature.  One of the articles was titled “Money Magic – Top Secrets from 20 Wealth Wizards”.  The article contained insights and advice from investment “wizards”, financial planning “wizards”, economic “wizards” and others.

I won’t go through them all but I did want to quote some words of wisdom from a few of them (in order of appearance in the article). The words of wisdom cover varied subjects from investing to saving and so can be heeded by both current investors and future investors.  Some names might be familiar and others will not.

Warren Buffett (no introduction needed) on investing:

“Don’t let the mood swings of Mr. Market coax you into speculating, selling in panic or trying to time the market.”

Ramit Sethi (personal finance guru and author of I Will Teach You to Be Rich) on saving:

“We feel guilty, we overspend like we overeat and we think, ‘Okay, this month I am going to cut back.’ This taught me that money is a depleting resource and we should focus on setting up systems, automating behavior we want to happen.”

Leon Black (Founder, Apollo Global Management) on entering the investment business:

“Start your career in a place where there is a lot of action, a lot of smart people who understand risk and reward and work hard.  Learn to be patient and learn to be optimistic.”

Leon Cooperman (Founder, Omega Advisors) on getting rich:

“It takes hard work, a passion for what you do and luck.”  & on philanthropy:

“Money enables you to put bread on the table at first, but it also enables you to give back in a big way.”

Alexa von Toppel (Founder, Learn Vest, personal financial advice firm) on spending:

“The best piece of money advice I’ve ever been given is to look at every single one of my expenditures and to not think about it in today’s dollars but in future dollars.”

Dan Ariely (Behavioral Economist, Duke University) on saving:

“The key to being rich is saving and saving early and the problem is that saving is a long term behavior and in the whole repertoire of human behavior, there is almost no behaviors in which we take the long-term future into account; smoking, overeating, unprotected sex.”

Martin J. Whitman (Chairman, Third Avenue Management) on leverage:

“If you are going to be a passive investor, don’t do it with borrowed money.  Bubbles are bound to occur and you can’t insulate yourself from those events if you have large amounts of borrowing.”

Barry Sternlicht (Chief Executive, Starwood Capital Group) on accumulating wealth:

“Pay attention to the big themes because that’s what will help you earn ten times your money.  If you focus too much on the micro, then you can be obliterated by the macro and vice versa.”

Robert Shiller (Economist, Yale University) on accumulating wealth through home ownership:

“The American dream of building wealth through home ownership is a fallacy.  I’ve documented that home prices in real terms didn’t increase from 1890 to 1990.”

Gary Shilling (Economist, A. Gary Shilling & Co. and Forbes columnist) on investment mistakes:

“Play in your own sandbox.  The biggest mistake people make is when they get stars in their eye about the killing someone else has made.  That’s what fueled the dot-com bubble and prompted people to own a half-dozen houses.”

Dick Bolles (Author of What Colour is Your Parachute) four pieces of advice on landing a job:

“Don’t make money the most important thing about finding a job”

“Delay talking of salary, vacation time or health benefits until it’s clear they want you”

“Keeping a weekly diary of the accomplishments of your current job will make it easier to discuss your role when hunting for a new one.”

“Be bold.  The best way to end an interview is to ask; ‘With all we’ve discussed, can you offer me this job?’”

If you would like more detail on the advice of those mentioned above or the article in general, let me know and I will be happy to oblige.  As always, please feel to pass on The Lato Letter or even better, ask your friends, family and associates if they would like to be added to the distribution list.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change without notice.

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