Posts Tagged ‘Buffalo’

Tuning Your Ear to the Direction of the Buffalo

Thursday, October 23rd, 2008

Over the past 20 years, I have sold off my entire stock portfolio three times – all times this was within six weeks of a major “correction” in the stock market.   Each time, it was to invest in some real estate transaction.   Every time, whoever was my financial adviser at the time winced as I did this.  And every time, I more than doubled my money in less than three years on the real estate transaction.  This last time, was in early August as I was positioning myself to pursue some great real estate values because of the housing market tanking.

Watching what has been going on in the entire investment community I wonder – why would i ever want to invest in someone else’s business again?   Why are these folks on the stock exchange in the first place?   I run a very successful business and have never relied on OPM (other people’s money).  Why give up control?    I used to think that maybe I was missing something, maybe I wasn’t as smart as these other folks who were taking their company’s public.    Then I participated in this great program at Harvard that helps second stage entrepreneurs grow into mature business owners.   Strangely enough that is called “OPM” as well –   (I am an OPM 35 graduate).    Not one, but several professors there stressed – STAY PRIVATE.    If you’re running a successful company, there is no reason to take it public.

Good advice, but why would I want to invest in someone else’s business that had gone public?   I’ve been joking with my pals lately that it seems that I have learned how to hear the direction of the buffalo running with respect to the stock market.   But really it’s just watching subtle signs and listening to the inner workings of my own gut.

My gut right now is telling me to stay the course with my real estate investing strategy.  I just got another seller today to agree to sell me their house for 50k less than their original asking price.  It’s less than a mile from where my daughter goes to college and the roomates cover the mortgage.   She learned more life skills in the four weeks of house hunting than she has so far in college.   She still laments that spring break in sixth grade where I made her listen to Rich Dad Poor Dad book on tape on the drive to Florida – I think it sank in.

A few years back I wanted to develop better negotiation skills on day to day negotiations so I developed a course and wrote a book called “Cheetah Negotiations” – for the more basic type of negotiations we all do day to day.   I’d say I’ve made my money’s worth with what I learned doing that – many times over.   And just recently, I wanted to figure out just how do I do this “tuning my ear to the direction of the buffalo”  so in the course I just created  called Project Prosperity – I reflected on just how did I learn how to calibrate my gut and tested out and developed a number of activities to do just that.   I create these courses that later turn into books for my own learning first.   If they help other people, great.  But they have helped me tremendously.

After watching the fiasco on Wall Street and the fear being promulgated by our government, I am investing my money in my own way, beating to my own drummer, and tuning into the direction of the buffalo.    At least so far this has kept me from being run over by the stampede.