The Dalbar Quantitative Analysis of Investor Behavior (QAIB) is an annual report from research group Dalbar. In short, this study analyzes how average investor returns stack up compared to major market indices. Here are the numbers for the trailing 20 years, ending on Dec. 31, 2015. These figures include the dot-com bubble and the housing market bust (all returns annualized):
- Standard & Poor's 500 index 8.19 percent
- Barclays Aggregate Bond index 5.34 percent
- Average equity (stock) investor 4.67 percent
- Average fixed income (bond) investor 0.51 percent
One of the most successful investors in the world, Warren Buffett started reading books about investment since he was 8 years old. But there is one particular book that changed his life i.e. “The Intelligent Investor”. The book is written by Benjamin Graham, former Columbia Business School Professor. The book is first published in 1949. In the book Graham shared his philosophy that how important the investment is. He further advised about buying stocks when they are undervalued and holding them for a long period time.
“Intelligent investment is more a matter of mental approach than it is of technique,” writes Graham. “A sound mental approach toward stock fluctuations is the touchstone of all successful investment under present-day conditions.”
Leaked internal memos revealed that the company, which once accepted advertisements only from progressive organizations that share the company’s values and worldview, had decided to adopt an “open advertising policy in which determinations about which advertisements we’ll accept are based on the content of the ad, not the group doing the advertising.” That meant the site would now accept ads, and money, from “organizations that represent all points of view, including those with which [Change.org’s leaders] personally (and strongly) disagree."
Berning observed that “the bigger distinction between Change and MoveOn isn’t in what we take down — it’s what we choose to promote. MoveOn Petitions is an explicitly progressive platform, and we only solicit and promote (via things like emails to members, expert campaign support, etc.) progressive petition campaigns.” His organization, therefore, “would never solicit, lean into, or amplify a right-wing petition. Change.org on the other hand is a for-profit that explicitly markets itself to conservatives and doesn’t just host right-wing petitions, it actively promotes them. It is a fundamentally different approach.”
Nevertheless, there are real differences between introverts and extraverts that shouldn't be ignored. For one, introverts really do prefer solitude and quiet time more, on average, than extraverts. Also, the latest science of introversion suggests that extraverts are more driven to engage in social interactions that particularly increase social status or social attention. Extraversion seems to be fueled by dopamine, particularly through the reward circuits of the brain that cause us to get excited by the possibility of "appetitive rewards" in the environment, such as money, power, sex, and social status.
“Usually, when people from different worlds are dealing with each other, they get into conflicts and then dig in their heels deeper,” Berk says. “But because the stakes are so high and it’s moving so fast, no one doubts that if you don’t get a handle on this battle in the Atlantic, then the immediate consequences will be really grave. So they’re willing to do this kind of pragmatic trial and error. They start to see that ‘I can’t dig in my heels--I need this other person to learn from.’” In the face of a common enemy, Americans worked together in a way they never had before.
Pearl Harbor did make individual Americans willing to do hard things: pay more in taxes, buy billions upon billions in war bonds, endure the shortages and disruptions that came when the country’s entire economy converted to wartime production. Use of public transit went up 87 percent during the war, as Naomi Klein points out in This Changes Everything; 40 percent of the nation’s vegetables were grown in victory gardens. For the first time, women and minorities were able to get good factory jobs; Rosie the Riveter changed our sense of what was possible.
Start trying a simple mindfulness practice when you wake up, which can be anything from quietly taking a few deep breaths to meditating for 20 or 30 minutes. Dr. Seppälä explains why this is so important: “Meditation is a way to train your nervous system to calm despite the stress of our daily lives. When you are calmer, you are more emotionally intelligent and make better decisions.” Not a bad way to start the day.
"Authenticity requires a certain measure of vulnerability, transparency, and integrity." -Janet Louise Stephenson
“Stress reduction has leadership implications,” says Gary Sherman, lead researcher on the study. “It can unleash leadership potential in employees who might otherwise not show it.”
Before they ran the hormone study, Sherman and another team of researchers tested a different hypothesis. The researchers looked at something they called “empathic accuracy,” the ability to detect others’ emotional states. They wanted to know whether leaders had a greater or lesser ability to empathize. It turned out that the more responsibility a leader had, the less accurate he or she was in identifying the emotional states of others. The paper also examined whether study subjects were accepting of inequalities in status and power. The leaders with more responsibility were most comfortable with the idea that some groups were superior to others. “The results of the study were a little disheartening,” says Sherman. “But it did follow from what we know of something called social dominance orientation.” In other words, strong leaders are poor empathizers who accept the notion that social inequality is natural and morally acceptable.
Principles of Persuasion
1. Reciprocity (obligation to give when you receive)
2. Scarcity (people want more of those things there are less of)
3. Authority (people will follow credible knowledgeable experts)
4. Consistency (looking for and asking for commitments that can be made)
5. Liking (people who are similar, pay us compliments, or cooperate with us)
6. Consensus (people will look to the actions of others to determine their own)
"VCs are equity investors playing for that singular big win, expecting that many of their investments will not return anything or very little. These investments must be inherently risky to hold the promise of outsized returns. Because of that risk, no rational investor would structure an investment as a loan with merely some modest interest as the return.
A startup that could be risk-free enough to draw down bank debt early on is almost never the sort of fast-growing company sought after by VCs. VCs may participate in early debt rounds, but the debt is actually a sophisticated form of equity. In easy money times, such as now, startups can also take down a form of bank debt called venture debt, to augment the equity. Many startups as they mature become suitable for working capital finance, which is best provided by a bank."
The new equity crowdfunding regulations are updating the eight-decade old Securities Act of 1933 and the Securities Exchange Act of 1934. “Companies across the United States, for the first time since 1933, will be able to seek investments from ordinary Americans without having to go through the expense and rigor of a full-public stock offering,” says Richard Swart, the chief strategy officer of the equity crowdfunding event coordinator NextGen Crowdfunding, in an email with Entrepreneur. In essence, equity crowdfunding was only available to sufficiently wealthy individuals. As of May 16, all individuals will be able to invest through equity crowdfunding.
"We've seen entrepreneurs of various different capacities build great companies," says Adeo Ressi. "Some of the best NBA players are not big, tall guys - they're all different shapes and sizes. What they don't have in terms of height they make up for with real passion and conviction. There's no test to measure that, except the test of hard knock. When you get punched in the face 10 times and get up and keep going, that's the ultimate test."
Simon Sinek says, “People don’t buy what you do; they buy why you do it. The goal is not to do business with everybody who needs what you have. The goal is to do business with people who believe what you believe.”
Sinek explains that this nearly visceral response to brands like Apple are biological, and different parts of our brain respond to different parts of the Golden Circle. The two parts of our limbic brain are responsible for emotions (trust, loyalty), and decision making, but it’s non-verbal, which is why we say things like “I don’t know, it just feels right.” We can’t verbalize the decision, we just know it’s the right decision, appealing to the “why” of the circle. The neocortex is responsible for analytics and language, the “what” and “how” portion of the Circle.
"If success was all about achieving the goals we set for ourselves, I’d achieved mine… So why was I so unhappy? Because, much like Bill and Mary, the “success” I had was inspired by fear, not passion. I’d never really stopped to ask myself if this was meant to be. All I knew was what wasn’t meant to be… the roller coaster ride. What fuels you? Is it fear or inspiration? Considering what fuel you put in your tank is powerful.
Subconsciously, I was living in reaction to my childhood experiences, and it was time for me to reprogram my beliefs… Specifically, the ones I held to be true about money, entrepreneurship and success. As renowned author Wayne Dyer says: “don’t die with your music still in you.” Is it okay to still have fear? Yes, it’s expected. The most successful people are constantly leaning into the edge of their fears. What makes them special is that they act anyway."
“Allow your children — or the guys that you’re leading — to make those mistakes. That’s where you’re going to get your best ideas. If you’re constantly critiquing [recruits] on how to do things, they’re never going to learn to solve the problems themselves.”
“As training progresses, the explanations start happening more,” says Lopez of his recruits. “The more you explain why you’re making them do what they’re doing, the more buy in, and the more efficient they are in doing the task. The goal is to be as patient as I can, and explain things as well as I can, without me saying ‘Because I said so.'”
"Scorpios have a fear of failure which they keep hidden extremely well, should their confrontation not be successful, or their career fail, they will simply use their adaptive skill to quickly move and and leave the bad experience behind. Do not ever expect them to fess up or share their tale with anyone however because this shows signs of weakness and Scorpio always wins, they are always the self-proclaimed best! One of the reasons they seem like they always accomplish their goals is because they set tangible short-term goals that they know they can accomplish, they know what they are capable of and this is what they go for."
Bill Gates Foundation
Open and Honest about Disappointment
Resiliency: Moments of Reflection, Opportunity
"For me, personally, I like that clarity. I often will ask people who I work with -- especially people who report to me -- are we really clear on what we’re signed up for? What does success look like?
Probably the most important thing I’ve learned working with Bill, Melinda and Warren is how important their long-term commitment is to the causes we work on. They are relentless. They call themselves 'impatient optimists.' I like that. Bill Sr. says it beautifully: 'Who have we helped today? Are people better off as a result of our work?'"
"Here was leadership, Tom Peters style: facilitating the work of great people, not beating the chest trying to be the great person. Here was leadership, Henry Mintzberg style: not a cult of the single ominpotent figurehead, but a firm with just the right amount of leadership to unleash individual talent and initiative.
In all, the company was very entrepreneurial, very capitalistic, and very engaged. Psychologically, it was a collection of startups, not a mushrooming bureaucracy. It was also handily outperforming its more traditional peers. In decentralizing power, it found a way to unleash the power of an engaged workforce. With less leadership, it was leading the way."
One major distinction between rich people and everybody else is the way they choose to get paid: Rich people choose to get paid based on results they produce, not how much time they work.
"Rich people usually own their own business in some form. They make their income from their profits," self-made millionaire T. Harv Eker explains. "Rich people work on commission or percentages of revenue. Rich people choose stock options and profit sharing in lieu of higher salaries."
"I can't afford it."/"How can I afford it?"
"I work for my money."/"My money works for me."
"Don't take risks."/"Learn to manage risk."
"My house is an asset."/"My house is a liability."
"Find a good company to work for."/"Find a good company to buy."
"I'll never be rich."/"I'm a rich man."
"I'm not interested in money."/"Money is power."
Robert Kiyosaki writes in the personal finance classic, "Rich Dad Poor Dad."
Robert Kiyosaki, author of the book, "Rich Dad, Poor Dad" filed for corporate bankruptcy through one of his companies, Rich Global LLC. "I took Kiyosaki's brand and made it bigger," Zanker told the New York Post. "The deal was I would get a percentage, and he reneged. We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his 'Rich Dad' brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said 'no.' "
So, the truth: Right now, today, is the best time to start something on the internet. There has never been a better time in the whole history of the world to invent something. There has never been a better time with more opportunities, more openings, lower barriers, higher benefit/risk ratios, better returns, greater upside, than now. Right now, this minute. This is the time that folks in the future will look back at and say, “Oh to have been alive and well back then!”
"For biologists, says Kuiken, crowdfunding platforms could become an alternative to the long, grueling process of filing a federal grant and then waiting for the money to come in months later. With crowdfunding platforms such as Experiment.com, biologists can come up with unique projects for very targeted research interests. And, best of all, these researchers may not be required to share a significant portion of the funds raised with the university for overhead costs if the crowdfunding money is classified as a “gift” rather than a “grant.” Synthetic biology projects have raised more than $90,000 in support from various crowdfunding websites, including Kickstarter, Indiegogo, and Rockethub."
Stanford Business School:
Sales runs the world.
Know your negative space, partner with a lion.
Ask for big things, you will be surprised that you can get them.
Maintain customer perception of product and observation of organization.
"Most theorists consider that the key responsibility of an embedded power group is to challenge the assumptions that comprise the group's own mindset. According to these commentators, power groups that fail to review or revise their mindsets with sufficient regularity cannot hold power indefinitely, as a single mindset is unlikely to possess the flexibility and adaptability needed to address all future events.
According to Chris Argyris (2004), there are two dominant mindsets in organizations: the productive mindset and the defensive mindset. The productive mindset seeks out valid knowledge that is testable. The productive reasoning mindset creates informed choices and makes reasoning transparent. The defensive mindset, on the other hand, is self-protective and self-deceptive. When this mindset is active, people or organizations only seek out information that will protect them. Truth can be shut out when it is seen as threatening. The defensive mindset may lead to learning based on false assumptions or prevent learning altogether (Argyris, 2004).
There is a double relation between the institution embodying for example an entrepreneurial mindset and its entrepreneurial performance. Firstly, an institution with an entrepreneurial philosophy will set entrepreneurial goals and strategies as a whole, but maybe even more importantly, it will foster an entrepreneurial milieu, allowing each entity to pursue emergent opportunities. In short, philosophical stance codified in the mind, hence as mindset, lead to a climate that in turn causes values that lead to practice."
"Scorpio, Leo, Taurus and Cancer signs were the most likely to earn $100,000 or more per year while Aquarius and Capricorn signs were most likely to earn $35,000 or less, according to the survey, which included more than 8,700 workers and was conducted nationwide across industries. Pisces, Sagittarius and Capricorn were the most satisfied with their current jobs, and Gemini and Cancer reported being the least satisfied.
Taurus (April 20 - May 20) Taureans are reliable, practical and honest; they are methodical and work well in teams. Additionally, these folks like jobs that deal with artistic or extravagant things. Compatible professions include jobs in finance, accounting and interior design. Nursing, engineering, law, marketing, public relations and higher education also fit the bill for jobs attuned to Taureans -- good thing those are jobs they reported in the survey.
Gemini (May 21 - June 21) Gemini's need a profession that keeps them motivated and interested -- no two days at work should be the same. Gemini from the survey reported working such jobs as art/design/architecture, nursing and personal care, sales, law enforcement, firefighting and machine operation -- all of which are right up a Gemini's alley."
"With stunning Rocky Mountain views, a booming technology scene, a large natural food industry and a culture that appreciates locally made goods, it’s no surprise that Boulder tops our list. Nationally recognized brands hail from the city, including Justin’s, a maker of organic nut butters, and Crocs, the casual footwear company famous for brightly colored clogs. Boulder has abundant resources for entrepreneurs, including several co-working spaces, capital investors and incubators. Business owners can also join the Boulder Chamber to attend networking events, get listed in its directory and find out about programs such as Boulder Young Professionals, which hosts social, volunteering and professional development events."
"[Brooke] Kroeger writes in her 1994 biography, “Nellie Bly: Daredevil, Reporter, Feminist.” “As the most famous woman journalist of her day, as an early woman industrialist, as a humanitarian, even as a beleaguered litigant, Bly kept the same formula for success: Determine Right. Decide Fast. Apply Energy. Act With Conviction. Fight to the Finish. Accept the Consequences. Move on.”
"Two key ratios that can help you track your profitability:
• Gross margin: This is a company’s revenue minus total costs directly involved in producing the product or delivering the service, divided by revenue. This shows what percentage of sales is left over after direct costs, and it’s an important measure of efficiency. Examining this can guide you on when you need to adjust prices or volume in order to keep more of what you sell.
• Net margin: This is a company’s net profit measured against sales and takes into account all expenses related to the business (such as bank fees and other general overhead). This margin tells you how much of every dollar in sales your firm is keeping after all expenses are paid."
"Sales of organic products have increased to $35 billion in 2013, according to the Organic Trade Association, but experts say production has not kept pace. 'The number one thing we have to do in America is grow the size of the market,' says Barnraiser CEO Eileen Gordon Chiarello. 'What this does is gives consumers a more direct way to accelerate that change.'"
"You have to learn and recognize that you will be making mistakes. Your success and your stories are going to be redefined depending on how you reinterpret those mistakes and learn from them and pick yourself up. So, the bottom line is that it’s hard, but try and try harder. That is the way you are going to get on top."
"In the start-up there was a sense of being unique, doing something no one had ever done. If you didn’t do it, it never would be done. It should be generally understood – every moment is unique, you are a unique person[...] I’m most passionate about longevity. I feel like I haven’t done enough. We’re either in denial or acceptance about the “reality” of our mortality, so we don’t do enough. Extreme optimism or extreme pessimism takes you to the same point."
"People ask me, 'What are you most proud of?' " says Jon Stewart. "I think I'm most proud of the fact that I moved here. I tried it. Nothing happens unless you set the wheels in motion. So to me, that was everything -- whether those wheels squeaked a lot or didn't move sometimes didn't matter. I could walk home from a comedy club at three in the morning, no money, after I bombed in front of four Dutch sailors and was like, 'Yes!' I loved … every … minute … of it."
"In 1954, when Henry Ford II showed union leader Walter Reuther the new robots on his assembly line, he supposedly quipped "Walter, how are you going to get those robots to pay your union dues?" Reuther answered, "Henry, how are you going to get them to buy your cars?" That balance is a challenge we all share."
"Brian Grossman runs Sierra Nevada's new facility in North Carolina and is also working with the water. As The Salt has reported, it's critical to match the flavor profile customers want. 'You know, that's what defines a great brewer — consistency. There's plenty of people out there that make these wonderful beers, but can they make it every single time?' he says."
"Remember, it’s always better to be at the bottom of the ladder you want to climb than the top of the one you don’t. Be productive and patient. And realize that patience is not about waiting, but the ability to keep a good attitude while working hard for what you believe in."
"Not only is employment growth sluggish, but many of the jobs that are being created—in health care services and retail—are poorly paid and hardly tenable. And we fail to measure or account for those trying to craft self-employed or entrepreneurial lives, which may number only a few million but whose long-term impact on the future economy will be huge."
"Patagonia: Last year, the popular retailer launched $20 Million & Change--an internal venture fund that will plow money into startups working to find sustainable solutions in the areas of clothing, food, water, energy, and waste. Patagonia has tripled its profits in the past five years; this is the company's way of giving back."
"Companies need to find meaningful ways to align their cause initiatives with the self-interests of consumers. We call this “profitable good” and while it may feel strange to reward consumers beyond the feel-good effect of the cause, it is the only way to drive meaningful and scalable social impact and sales."
"Small business owners reported lenders providing increased access to credit over the last 12 months and a greater willingness from the entrepreneurs themselves to put their own personal savings into their new business ventures, according to a new Kauffman Foundation study."
"Lobdell's firm, Napa Sonoma Wine Tasting Driver, charges $30 an hour for a booking that typically lasts about 7 hours. He recently hired extra drivers on contract, as work has picked up along with the economy. "
"Richard Branson has spearheaded so many ventures, charities and expeditions throughout his career — it would have been impossible to prepare fully before launching them all. In fact, he was likely not prepared or qualified for any of them. He’s a perfect example of why the “chosen ones” choose themselves."
"As a middle child, you're in very good company with notable U.S. Presidents and celebrities such as Abraham Lincoln, John F. Kennedy, Winston Churchill, Bill Gates, Donald Trump and Steve Forbes. Though often a late bloomer, you find yourself in power careers that allows you to use your negotiating skills... and get that all too-needed attention. Those wonderful social skills that you have learned as the middle child -- negotiating and navigating within your family structure -- can prepare you for an entrepreneurial role on a large scene."
"It’s important for parents to become exceedingly self-aware of their words and actions when interacting with their children, or with others when their children are nearby. Care enough to train them, not merely treat them to a good life. Coach them, more than coddle."
"Don’t be afraid to ask questions. Go to Whole Foods. Don’t be afraid to go in there. Talk to the guy that has had success … Don’t give up. I was discouraged many times. One day, you didn’t sell anything and it’s like, ‘Oh my gosh!’ Don’t get discouraged. You’ve got to keep plugging away. As long as you believe it’s good and it’s good for the environment and it’s healthy and good for people, if you really know that, keep plugging away."
"Interestingly, a high self-awareness score was the strongest predictor of overall success. This is not altogether surprising as executives who are aware of their weaknesses are often better able to hire subordinates who perform well in categories in which the leader lacks acumen. These leaders are also more able to entertain the idea that someone on their team may have an idea that is even better than their own."
"Asking for advice encouraged greater cooperation and information sharing, turning a potentially contentious negotiation into a win-win deal. Studies demonstrate that across the manufacturing, financial services, insurance and pharmaceuticals industries, seeking advice is among the most effective ways to influence peers, superiors, and subordinates."
"Gallup’s State of the Global Workplace report, conducted in 142 countries, finds that only 13% of employees worldwide are truly engaged in their jobs. And the report has more bad news: 63% of employees worldwide are not engaged in their jobs. They don’t hate their jobs, and aren’t necessarily negative --- they’re just there. And an additional 24% are actively disengaged.
One of Gallup’s biggest findings ever has been that the success or failure of an enterprise is primarily determined by whom you name manager. If millions of businesses around the globe started to name the right people manager tomorrow, and ensured that those managers encouraged employees’ development and focused on their strengths, engagement worldwide would skyrocket."
“Every experience has its pluses and minuses,” explains Czech-born Petra Nemcova. “If we only focus on the negative, then we go down the spiral. If we can focus on the 5% positive, then we become stronger… And it’s not just that we become stronger, but we can also empower ourselves and others.”
"According to venture capitalist and former Intel executive Bill Davidow, 'Marketing must invent complete products and drive them to commanding positions in defensible market segments.' Indeed, Steve Jobs was a genius at market segmentation, product positioning, masterfully controlling the message, and most importantly, figuring out what people wanted before they even knew it themselves. That's marketing."
"Corporate and product positioning, value proposition, competitive positioning, market segmentation, promotion strategy, how to make a big splash on a shoestring budget, and what it really takes to enter an established market and gain market share over entrenched competitors. Those are all key concepts for any business owner. You'll be far more effective learning them on the job than from books."
"By adding less expensive, group related programs and information products to your business model you will meet the masses, rather than individual clients, and your revenues will increase accordingly," says business strategist and author Suzanne Duret. "One of the ways to develop products is to simply reproduce one or more of the services you are currently offering," she says. "For instance, create a group program or an event, record the informational pieces and use them to create an audio or video product."
"Mr. Tew's efforts benefited from newness, shrewd marketing and the Internet's lightning-speed word of mouth. After first persuading his friends and family to buy pixels to make [www.milliondollarhomepage.com] seem legitimate, he then began touting his site, and himself, to bloggers, who directed traffic Mr. Tew's way. The media in Britain picked up on his venture, fueling more visitors.
In mid-September, Mr. Tew's Web site landed on the "Movers & Shakers" feature of Alexa.com, which ranks the world's Web sites by the number of people who visit them. Marketing executives often troll Alexa.com, which is owned by Amazon.com, to check out what's hot and what's not, and at one point Mr. Tew's site reached Alexa's No. 2 spot. That brought in a new wave of advertisers."
"The truth is that every remarkable executive, entrepreneur, VC, or business leader I've ever known has done things his own way. Granted, they had friends and mentors--people they trusted and listened to--but they always trusted their gut to make the final call. And they didn't sweat that they were different. Unconventional. Strange. Eccentric.
The only thing they all had in common was how different they were. Some were extraverted but most weren't. Lots of them had a chip on their shoulder, like they had something to prove. Some had bigger-than-life egos and a relentless need to reinforce it. Most started with nothing, but some didn't. They generally weren't 'happy go lucky' people. Most didn't have a dream or a vision. They just did what they loved and were great at making things happen."
1. Think like an immigrant: stay hungry.
2. Think like an artisan: take pride.
3. Always be in beta: never finish.
4. Always be entrepeneurial.
1. Quiet Your Inner Voice
2. Argue With Yourself
3. Act Like You Are Curious
4. Find the Kernel of Truth
5. Focus on the Message Not the Messenger
People get rejected for jobs for two main reasons, said Eleonora Sharef, co-founder of HireArt. One, “you’re not showing the employer how you will help them add value,” and, two, “you don’t know what you want, and it comes through because you have not learned the skills that are needed.” The most successful job candidates, she added, are “inventors and solution-finders,” who are relentlessly “entrepreneurial” because they understand that many employers today don’t care about your résumé, degree or how you got your knowledge, but only what you can do and what you can continuously reinvent yourself to do.
» Chronicle of Higher Education: "On Leaving Academe"
"While attracting start-up capital can be a challenge, Lohr conceded, the government is helping to mitigate this difficulty by pumping federal stimulus money into entrepreneurial endeavors through grants and small-business loans, particularly those endeavors in emerging sectors that help solve problems, such as green technology. For a business idea to be successful in attracting any kind of funding, Lohr said, the potential business has to fill some kind of need.