Zhang Yin


wealthymatters.com

Below is an inspiring story of a truly extraordinary woman.I found the original post here : http://invincibleprobity.wordpress.com/2011/02/24/the-american-spirit-now-comes-from-china/ 

The story is a must read for entrepreneurs and would be entrepreneurs, women and anyone interested in a human interest story.

When I have some down time I usually hang out at my home in the Rocky Mountains of northwest Montana, USA.  This is a wonderful place of very few people and lots of big mountains and beautiful scenery.  It’s a special region of rivers and streams and lakes … and billions of trees.  As opposed to the eastern part of this huge state, where agriculture and cattle reign, northwest Montana has long depended on its biggest industry – timber and wood products.  But this industry, faced with steadily increasing restrictions on logging in our national forests and steadily rising competition from cheaper products from overseas, has been in slow decline for the past forty years.  It seems like another small lumber mill that had been around for a century is closed down every few months. 

In 2009 even big corporate mills started closing.  One of these was the Smerfit-Stone Container mill in Frenchtown near Missoula.  A second Smerfit-Stone container mill also filed for bankruptcy in Canada at the same time, and Smerfit-Stone mills in Arizona and Quebec had closed earlier.  The company naturally cited “the unprecedented global economic recession [which] has weakened demand for packaging”, but a major portion of the truth has been left out of the Smerfit-Stone rationalizing, including the fact that it had failed to upgrade its equipment to meet modern advanced capabilities and had retained its dependence on expensive freshly logged timber to manufacture its cardboard containers.  This is another American industry that has long been locked in the past while taking profits for today and failing to improve its competitiveness in the arena for tomorrow.

Like so many American industries that were forged by great visionaries of the past, the American wood products industry is a microcosm of the nation as a whole over the past forty years.  It all seems like an ingrained resistance by today’s Americans to learn the lessons of generations that went before.  If perhaps not for Americans, however, the Greatest Generation definitely did set an indelible example for others. Read more of this post

A Critique of the Giving Pledge


Wealthymatters.com

Following is a very nice critique of the Giving Pledge and the Buffett-Gates style of philanthropy.I found it a couple of days ago at http://heybrowncow.wordpress.com/2010/10/07/are-gates-and-buffet-teaching-the-world-how-to-live-the-american-way/ . It points out the good and the bad in the effort.The red text are points I find particularly interesting.How do you feel about the Giving Pledge? On what points do you agree/disagree with the author below?

Are Gates and Buffet teaching the world how to live (or give), the American way?

By Dingzi

AMERICAN billionaires and founders of The Giving Pledge Bill Gates and Warren Buffet may be heading next for the Nobel Peace Prize. Imagine what a heap of good the billions that have been pledged can do to make a better world.

Having persuaded 40 fellow American super-rich to pledge at least 50 per cent of their wealth to charity by the time they die – the collective pledge has reached US$1.25 billion – the two philanthropists are taking the campaign international. Read more of this post

Charlie Munger


wealthymatters.comFor all those who are like who the heck is this Charlie?And there are many who would ask the question where I come from. Charles Thomas (Charlie) Munger is an investment manager. He is Vice-Chairman of Berkshire Hathaway Corporation and Warren Buffett’s long term associate. Munger is also the chairman of Wesco Financial Corporation, based in Pasadena, California. Wesco Financial is an 80.1%-owned subsidiary of Berkshire Hathaway. It began as a savings and loan association, but now controls Precision Steel Corp., CORT Furniture Leasing, Kansas Bankers Surety Company, and other ventures. Wesco Financial has an equity portfolio of over $1.5 billion dollars that is concentrated in Coca-Cola, Wells Fargo, Procter & Gamble, Kraft Foods, US Bancorp, and Goldman Sachs.

Buffett has often publicly stated that he regards Charlie Munger as his partner.  In fact Charlie Munger owns enough Berkshire Hathaway stock to be a bona fide billionaire in his own right. There are many similarities between these two long time friends.However the lesser known Charlie Munger is not a carbon copy of Warren Buffett.There are distinct differences in the way in which the two long -time friends think .Ofcourse what is so fascinationg is how both these people’s thoughts mesh to create a better whole.Also Warren Buffett is known to devote his time almost exclusively to his business, while Charlie Munger, who does not involve himself in the day-to-day operations of Berkshire, is a generalist for whom investment is only one of a broad range of interests.

Charlie Munger is a great admirer of Benjamin Franklin.His thoughts are compiled in a 500 odd pages tomb called “Poor Charlie’s Almanack”.

Charlie Munger believes in thinking about things by inverting. So to understand how to be happy in life, Charlie will study how to make life miserable; to examine how businesses become big and strong, Charlie first studies how businesses decline and die; most people care more about how to succeed in the stock market, Charlie is most concerned about why most have failed in the stock market. Read more of this post

Are You Born To Be A Billionaire ? Self Assessment Tool


wealthymatters.comIf you weren’t born a billionaire and are not banking on marrying a billionaire or thinking of taking to crime or plunder in a big way, your best chance of becoming a billionaire is through business. So do you have it in you to become a self-made billionaire through business?

1. CAN YOU QUIT SWEATING THE SMALL STUFF?

Can you quit spending an inordinate amount of time on perfecting your product or service ? Can you instead focus on building your business and its systems ? Do you need to attend to every little thing that goes on in your business or can you delegate?If you can focus on the big picture,you are one step closer to building a big business.

2.  ARE YOU A VISIONARY ? CAN YOU SEE THINGS BEFORE ANYONE ELSE DOES ?

Self-made billionaires like Dhirubhai Ambani and L.N.Mittal were or are  not just great businessmen. They don’t just dominate industries–they transform them and spawn new ones. This requires great vision. Billionaire entrepreneurs do not just work within the confines of the current market, they anticipate things much further afield. They see things that no one else does.

3.  DO YOU HAVE A FIRM BELIEF IN YOURSELF AND YOUR VISION ?

To crack the $1 billion barrier, you need total, unwavering belief in your vision–and an immutable will to pull it off.

4. CAN YOU HANDLE RISKS ?

Do you have the courage and confidence to check fear and doubt and stay the long course.Can you think clearly in the face of danger?Can you stay cool?Can you find ways of managing risk? Read more of this post