Issue #2165
- WEALTHY: 5 wealth-building secrets you can copy (Michael Masterson)
- HEALTHY: A memory booster that’s on your grocer’s produce shelves (Kelley Herring)
- WISE: Jack Welch on having a competitive edge
ALSO IN THIS ISSUE:
- The right – and wrong – way to use a handy e-mail tool (Will Newman)
- A seasoned traveler’s techniques for making every flight better (David Cross)
- It’s Good to Know… about free educational resources
- Add "ukase" to your vocabulary
Imagine if There Were Only 6 Numbers to Choose from When Buying a Lottery Ticket!
Wouldn’t that be great?! Of course, the fewer the choices, the more likely your chance of success, right?
How many choices are there when buying and selling shares? Errmm… a LOT! Hundreds… One of the reasons I enjoy such consistent success from trading is because I only have 6 options to choose from! Except this is even better in a way, because the lottery is pure luck…
… I only have 6 choices AND have a VERY good idea about which choice to make because of the insider signal.Click here to learn more…
"If you don’t have a competitive advantage, don’t compete."
Jack Welch
Do You Have an Investment Advantage?
To become wealthy, you need some kind of investing advantage. Otherwise, studies show, you will probably become poorer.
As a business consultant to the financial publishing industry, I am on a first-name basis with some of the best investment experts in the world. You might think that gives me a big advantage over you. After all, I can reach these hotshots on their cellphones or corner them at company events. But they aren’t allowed to give me personal advice – and the advice they are allowed to give to me is the same advice they give to the readers of their e-zines. If I want to know what they are thinking, I can read their articles.
That said, I have enjoyed several distinct advantages that I have used to increase my wealth. They have given me a much-better-than-average return on the time and money I’ve been investing for the past 10 or 15 years – and I am happy to share five of them with you.
1. I have learned to be humble about my investment skills. (Thirty years of making mistakes and surviving them will do that to you, if you are the least bit sensitive to failure.)
I know how hard it is to predict the success of a person or of a company. There are so many factors involved in success, intangible factors that can’t be tracked by company reports or measured mathematically. Whenever I make an investment in anything – be it a natural resource like gold, or real estate, or a company (either in debt or equity), I begin with the premise that I might be wrong. If the positive results I expect are replaced by strongly negative ones, I get out as fast and as painlessly as I can.
Setting a mental or actual stop-loss point before investing gives me a big advantage over know-it-alls and wishful thinkers. Every marketplace is filled with know-it-alls and wishful thinkers. It is not difficult to outperform them.
2. My second advantage comes from the same source: the humility of past failures.
I use a sliding-scale version of Pareto’s Law to allocate my resources. As an ETR reader, you know that Pareto was a French-Italian economist and the inspiration for Pareto’s Principle, which states that 80 percent of the effects of all kinds of things come from 20 percent of the causes. The investment application of this principle would suggest that I should put most (80 percent) of my resources (money and time) into what I know best. And what I know best is how to start and grow small businesses.
I haven’t started any new businesses since I semi-retired at age 50. But the consulting I do now is based on this formula. Most of the clients I take on are in the information-publishing business, since that’s the business I know best. Next to that, I’ve had the most experience in real estate. So the largest part of my investment portfolio is invested in property.
If you looked at how I spend my time and money from this perspective, you would see an allocation of resources that roughly matches my experience. Half is invested in small business and another 30 percent in real estate. Of the 20 percent that remains, it is pretty evenly divided among stocks, bonds, and precious metals.
You can have the same advantage. Give the greatest weight to what you know best, and be stingy about putting your time and money into what you don’t know.
3. My third advantage is a derivative of this same humility: When it comes time to invest in stocks and bonds and precious metals, I invest conservatively and for the long term.
I have learned from my business and real estate experiences that I can’t control outside market forces. I can’t control, for example, the rate of inflation or the falling dollar or what the Fed is doing about interest rates. What I can do is make the assumption that every market will go up and down in the short term. But over the long term – at least seven years (a typical business cycle) – the trend will be positive.
So when I invest in the areas I know the least about, I am a long-term, "value" investor. I buy into things that have a long-term performance history, and I do it when they are at below-market prices.
You can put this advantage to work for you if you, too, practice value-oriented, long-term investing.
4. My fourth advantage is not the result of my failures but of my successes.
I have learned that if I persist in sticking with my first three advantages – and not abandoning them when temporary circumstances go against me – I will once again succeed. When a good investment goes wrong or a good idea fails, I don’t jump to the conclusion that I should move away from what I know and jump into something I don’t know just because it seems hot for the moment. As a result, I have avoided a lot of big mistakes.
Investor studies bear this out. It doesn’t matter, they suggest, what particular sector you invest in or what particular system of investing you choose, so long as you hold true to the course. The market will eventually correct itself and take care of you. You have to trust it.
5. My fifth advantage is by far the most important.
I learned this about 30 years ago when I was working as a Peace Corps volunteer in Chad, one of the poorest countries in the world. At the time, I was living in a small, three-room, plaster-coated mud house in the middle of N’Djamena, the capital city. The kitchen was a little brick hut in the garden. The bathroom was a toilet and cold-water shower in an outside shack. I was very happy living in that house with K, among friends and colleagues who (like me) were making just enough money to live on.
I remember sitting on the porch on a rainy day, watching our dog bark at a monkey in a tree and thinking, "No matter how much wealth you eventually acquire, you will never be happier than you are right now." I have kept this thought in my head all this time, and it has helped me enormously over the years. Especially when I suffered business and investment failures or was troubled by the threat of a loss in any way.
The things that are most valuable in life cost very little. If I have my health, I can be happy with whatever happens to my wealth. I can work. I can suffer losses. I can begin again.
Like my other four advantages, this one is available to you completely and immediately. Just take a few minutes, once a day to think about it, and the mental wealth it will bring you will multiply over time.
[Ed. Note: Michael Masterson and a group of marketing experts have put together a practically fail-proof program for taking an online business from concept to execution… and beyond. Join our priority notification list by clicking here and be one of the first to learn more about this brand new program.]
Are You Turning “Yes” Into “No”?
Homeowners facing foreclosure are looking for any reasonable way out of their situation. That’s great for investors, because distressed owners have a deep desire to say “yes” when the right solution comes their way. But it’s easy to turn that “yes” into “no” in as little as five seconds.
What makes the difference? Often it’s not what you say, but how persuasive you are when you say it.
And once you learn this proven negotiation strategy, you’ll be able to go to any bargaining table fully prepared.
Sincerely,
Alberto Lugo
MainStreet Millionaire
The Right Way to Use Auto-Responders
By Will Newman
When you’re starting a freelance business, having your own domain name (yourbusiness.com) is not an absolute necessity, but it does have some advantages. For one thing, it adds to your credibility in the eyes of your clients/customers. Plus, it gives you access to several business-friendly features… including the "auto-responder."
You’re at the receiving end of an auto responder whenever you send an e-mail and get a quick response with a subject line like "Out of Office Reply." An auto-responder can be used for other purposes, too. It’s a great way to let business contacts know that you got their e-mail and will get back to them in a short (specified) amount of time.
It’s easy to set up an auto-responder with your Web-hosting service. The "how" of doing it varies from service to service, so you’ll need to check your service’s "Help" file.
A word of warning: An auto-responder message, by its nature, is impersonal. No matter how hard you try to make it sound otherwise, most people receiving your message will be able to tell that it was automatically generated. So be honest about it. Don’t try to fool them into thinking it’s a personal message.
Say what you have to say, providing just enough information to explain why you’re not answering their e-mail immediately. Then follow up as soon as possible with a real personal response.
[Ed. Note: Will Newman is the editor of AWAI's The Golden Thread online newsletter - a free weekly alert loaded with writing and marketing secrets, tips, and insights.]
4 Tips for Happier Flying
By David Cross
I’ve flown over two million miles in the last 15 years, and I’ve discovered many ways to make traveling smoother and more comfortable. Here are four ideas you might want to try…
- Getting Flight Upgrades
If you’re a frequent traveler, here’s how you can get upgraded more frequently:
Airlines have ticketing classes, and each class has different rules that determine things like your ability to change the ticket, whether you will get prioritized on the upgrade list, etc. You can often buy a ticket at the same price but in a higher ticket class. For example, Northwest has ticketing in classes K, T, L, V, Q, H, M, B, and Y. In general, a ticket in class M gives you a better chance of being upgraded than a ticket in class T. When booking, check the different ticket classes with the airline in addition to the price.
- Decoding Plane Delays
When waiting for a delayed flight, you may have been frustrated to find that the "estimated" arrival/departure times posted on the notice boards in the airport aren’t updated promptly. Asking the question, "When did the equipment depart and how late is it?" will give you a more accurate idea of how long you’ll have to wait.
- Jumping Rebooking Queues
Don’t wait in line with all the other frustrated travelers to rebook a cancelled flight. Join the queue (just in case), but use your cellphone to call the airline’s customer service number and rebook through them.
- Sidestepping Inflexible European Airlines
I’m British (though I live in the U.S.), so I know how inflexible and unwilling to make changes to "non-changeable tickets" most European airlines can be. But by calling the airline’s U.S. office, you may receive a much more favorable response – like "There’s a $100 change fee, but I can make that change for you."
I’ve found that airline ticketing policies aren’t always as strict as they seem. By being polite and asking the right questions, you can enjoy a better and more relaxing travel experience.
[Ed. Note: David Cross is Senior Internet Consultant to Agora Publishing in Baltimore and one of the core contributors behind ETR's new Internet business-building program. If you're interested in profiting from all the benefits of starting an online business, click here to join our priority notification list.]
An Apple a Day to Keep Alzheimer’s at Bay
According to recent research, an apple a day doesn’t just keep the doctor away. It may help you preserve your memory, as well.
A new study published in the Journal on Nutrition, Health, and Aging found that foods high in quercetin – a powerful antioxidant found primarily in the skin of red apples – help protect neurons from the free-radical damage that contributes to Alzheimer’s disease.
So go ahead and indulge in crispy, fresh fall apples like Red Delicious, Rome, and McIntosh. And remember: When it comes to apples, the redder, the better.
[Ed. Note: Kelley Herring is the founder and CEO of Healing Gourmet (www.healinggourmet.com), a multimedia company that educates the public on how foods promote health and protect against disease, and is editor-in-chief of the Healing Gourmet book series, including Eat to Fight Cancer. You can learn more about how simple lifestyle choices can improve your health by reading ETR's free natural health e-letter.]
It’s Good to Know: Free Educational Resources
Here at Early to Rise, we’ve always been advocates of education as a means for self-improvement, whether it’s to develop new skills related to your job performance, learn a new language, or just study subjects that interest you. Toward that end, here are a few online resources you might want to check out:
- College courses: The Massachusetts Institute of Technology offers free online courses covering nearly all its undergrad and graduate programs at ocw.mit.edu. Ditto the University of Washington at extension.washington.edu/openuw/. The University of Nebraska offers economic studies at ecedweb.unomaha.edu/teachsug.htm.
- Languages: The BBC offers lessons, including MP3s and podcasts that you can download to your portable music player, in languages such as French, German, Portuguese, Urdu, Mandarin, and Greek at bbc.co.uk/languages. Learn sign language through Michigan State University at commtechlab.msu.edu/sites/aslweb/.
- Theology: You can find free downloads of course materials and podcasts from the Covenant Seminary at covenantseminary.edu/worldwide/.
- Health: Courses are available from the Johns Hopkins Bloomberg School of Public Health at ocw.jhsph.edu.
(Source: Lifehacker)
The Internet Money-Making Secret of a Desperate Housewife.
More bills than money. Dave, bless his heart, was trying, but he just couldn’t keep their heads above water.
Vicky and her husband Dave were caught between a rock and a hard place.
Vicky couldn’t stand to see the pain on Dave’s face.
That night fate intervened… Vicky got her hands on something very special.
What she saw changed her life… forever!
- Patrick Coffey
Word to the Wise: Ukase
A "ukase" (yoo-KAYS) – from the Russian for "decree" – is an edict, an order issued by an authority.
Example (as used by Arthur Laurents in Original Story By): "I took a playwriting course from the noted Prof. A. M. Drummond, a huge man on crutches who right off the bat delivered a ukase never to begin a play with the telephone ringing."
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007
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