Why Beating The Market Is An Uphill Skate

It is absolutely possible to beat the market, just as I’m sure it’s possible that someone could climb Mt. Everest in a pair of roller skates.

It is so improbable, however, that it’s rendered a fruitless, if not counterproductive, pursuit.

After 16 years in the financial industry and seeing countless great investors eventually humbled by market forces they could not control, I’ve finally relinquished my skates.

Know Your Greek

First, we must define what it means to actually “beat the market.” We’re not talking about simply outperforming one of the major stock or bond market indices, like the S&P 500 or the Barclays U.S. Aggregate Bond.

Investors who take more risk than these benchmarks in years when taking risk is rewarded could—even should—have a higher expected rate of return. But doing so does not equate to a feat of investing brilliance. No, in order to claim dominance over the market, an investor must achieve a higher risk-adjusted rate of return—the prized, yet elusive, alpha.

Beta, in investing parlance, is the market. The market equals the number one. An investment with a beta of 1.5 is taking on more risk than the market and should enjoy a proportionately higher reward when the market has an upward trajectory, but you should also expect to lose more on the downside. An investment with a beta of less than one should respond to market stimuli with less gusto, or volatility, than the market.

Beta is all around us, but alpha is more like a shrouded ghost investors occasionally glimpse, but rarely capture. When the alpha ghost is captured, it does what those of us who regularly interact with ghosts already know—it slips through our grasp.

Depending on the year, you’ll find statistics confirming that the majority of actively managed funds—mutual funds and hedge funds, whose very existence is justified only by clinging to the hope of attaining alpha—underperform appropriate benchmarks. In any given year, 50% to 90% fail to beat the market.

An even more colossal failing is shown in active managers’ ability to beat the market over an extended period of time, or even a few years consecutively. A Vanguard study, which confirmed previous research, found that only 18% of active managers were able to outperform their benchmark over the 15-year period from 1998 through 2012.

Fully 97% of them underperformed in at least five of those years and “two-thirds of them experienced at least three consecutive years of underperformance during that span.”

Ivy League Investing

It’s always been hard to beat the market, but now it’s become “nearly impossible” according to Julie Segal at Institutional Investor magazine.

And Segal is speaking for the realm considered to be the last bastion of alpha—institutional investors, like Ivy League endowments.

Why has alpha been slipping away from even the brightest investment minds in the business? Charles Ellis, who served on Yale University’s investment committee from 1992 until 2008, tells Segal that volume on the New York Stock Exchange has increased more than 2,000 times in the past 50 years. Ellis also states that during the same time, the balance of trading in the U.S. has swung from 90 percent individuals to roughly 90 percent institutions.

In 1987, there were 15,000 people holding the coveted Chartered Financial Analyst (CFA) designation, the gold standard for money managers. Today, there are more than 110,000 CFAs worldwide.

It’s called the “paradox of skill.” As everyone’s skill increases, relative outperformance diminishes. Investors are smarter and more competitive than ever, and as a result, they’re unable to profitably exploit a dwindling number of market inefficiencies. The market has gone from being pretty darn efficient to ridiculously so.

Sadly, investors lose an awful lot of beta in their quest for alpha.

You have a choice: You can keep trying to climb Mt. Everest with a storm moving in and roller skates for footwear, or you can position probability in your favor and join the movement toward low-frequency trading and evidence-based investing.

If you enjoyed this post, please let me know on Twitter, @TimMaurer.

Embrace Low-Frequency Trading

I love Michael Lewis’ writing, but I have some surprisingly good news to share about the high-frequency trading scandal revealed in his new book:

High-frequency trading is not likely to hurt disciplined, long-term, low-frequency-trading investors. In fact, it might even help.  bondpit

Yes, it is almost impressive that Wall Street has managed to produce yet another scandal, even under the ever more watchful eye of regulators and the media since the financial industry imploded in 2008.

And no, I don’t favor high-frequency trading or especially its less-sophisticated cousin, day trading. I thought former hedge fund manager James Altucher put it best when answering the question, “Should I day trade?”

“Only if you are also willing to take all of your money, rip it into tiny pieces, make cupcakes with one piece of money inside each cupcake and then eat all of the cupcakes.”

However, high-frequency trading, this scandal du jour, seems to actually push trading costs and bid/ask spreads (effectively, the net cost of purchasing a security) down for investors. High-frequency traders aren’t doing it out of the kindness of their heart, mind you, but it’s the large number of medium-frequency active managers who are losing out, not disciplined low-frequency investors. Wall Street’s movement toward high-frequency trading is only making a stronger case for passive asset class management—a major component of which is low-frequency trading.

The primary benefits of low-frequency trading are the reduction of trading costs, the minimization of taxable events and, especially, the avoidance of falling prey to what financial writer and artist Carl Richards calls “the behavior gap”—the difference between what the average investment returned and what the average investor earned. Sadly, investors have earned meaningfully less than the investments they buy simply because they don’t hold them.

I’m not talking about pure indexing, although you could do much worse than establishing a diversified portfolio with Vanguard index funds and/or exchange-traded funds.

I’m also not talking about pure white-knuckle passivity.

I’m talking about combining the art and science of investing in the form of evidence-based investing—creating a portfolio that is broadly diversified, combining the asset classes that have historically given you the most return for your risk with the asset classes that have tempered portfolio volatility enough to stick with your plan.

Evidence-Based Investing: 101

The fundamental aim of investing is not to actually make money--but to have a better life.

The primary objective of investing in stocks, however, is to make money. The point of investing in bonds, then, is to help you stay invested in stocks when the waters get choppy. The net effect should be adding value to your life, in accordance with your values and working toward your goals.

Evidence-based investing forces us to submit all of our opinions and informed guesses to actual peer-reviewed evidence. The evidence shows, after all, that it is nearly impossible to “beat the market.”

There is adequate evidence, however, that certain asset classes—slices of the market—have outperformed others. For example, you already know that stocks have historically outperformed bonds. Additionally, small-cap stocks have outperformed large-cap stocks and value stocks have historically outperformed growth stocks.

Of course, those asset classes that have historically produced outsized returns have also required an iron stomach at times in order to reap your reward. Their highs are higher, but their lows are also lower.

The objective, then, is to orchestrate a portfolio that accepts the risk you can withstand, and then blend that risk with the proper stabilizing agents to lessen the volatility, helping ensure that you stick with the plan.

Can You Expect More Return With Less Risk?

In short—yes, because a truly diversified portfolio is indeed greater than the sum of its parts . There are two ways to reduce overall portfolio volatility:

1)   Own less volatile asset classes.

2)   Own less correlated asset classes.

The foremost portfolio stabilizing agent is fixed income, and since the primary reason we hold fixed income is to stabilize, it only makes sense to hold the most stable of the stable—FDIC-insured CDs, Treasuries, agencies and, only if you’re in a high tax bracket, AAA-rated municipal bonds.

Yes, I omitted corporate bonds from that list as well as high-yield “junk” bonds, because these varietals tend to exhibit more equity-like risk characteristics. If you’re going to take risk, you may as well do it in an asset class that rewards you better—stocks.

But as Larry Swedroe, author of Think, Act, and Invest Like Warren Buffett, shows, it’s possible to add an equally or more volatile asset class and see the overall volatility go down .

He compares the traditional 60/40 portfolio—60% S&P 500 (stocks) and 40% five-year Treasury notes (fixed income)—to a flip-flopped portfolio with 60% in Treasuries, but a vastly more diversified 40% in equities, skewed in the small, value and international directions (and away from the broader market).  The results?

In short, the 40/60 portfolio with diversified equity holdings outperformed the 60/40 portfolio with substantially less risk. (By the way, I’m not recommending that you should have a 40/60 portfolio—I’m simply demonstrating the benefits of thoughtful diversification.)

The only way this works is if you join the low-frequency trading club. Don’t set it and forget it. Set it, calibrate it when necessary through rebalancing, and only make more meaningful changes when your ability, willingness or need to take risk changes.

If you enjoyed this post, please let me know on Twitter, @TimMaurer.

 

20 Lessons We Can Learn From 20-Year-Olds

20 YO Graphic-01It’s become enormously popular to publicly lecture 20-somethings.  I’m not a 20-something, but my regular interaction with the Millennial generation as a college instructor leads me to conclude that we may have more to learn from 20-somethings than we have to teach them.

Here are 20 lessons in LIFE, WORK and MONEY inspired by the Millennial generation:

In LIFE…

Nobody responds well to being lectured.   Despite the ineffectiveness of self-righteous bombast, it seems never to be in short supply.  Insisting that someone else sees how wrong they are may guarantee that we will feel more right—but it doesn’t necessarily make it so.  Even if you have good intentions, the best time to teach someone something is after they’ve asked for input.

Life needn’t be so strictly compartmentalized.  Work, family, leisure, service, worship and artistic expression are elements of life that remain segregated for most.  But this schizophrenia of roles leads to inauthentic living in one or more of these venues (and drives us crazy).

We should give ourselves permission to be more of who we are and less of who people want us to be.  There’s an externally successful business owner who shows up at my gym for his morning workout dressed to the nines in a suit and tie.  He didn’t come from a meeting—he just thinks it’s important to send a message everywhere he goes that he is successful (and he’s happy to announce it).  The Millennials’ refusal to engage in such posturing is often mistaken for aloofness or apathy, but it’s really more about a healthy yearning for authenticity.

Being miserably busy is not a good measure of self-worth.  Busyness is no virtue.  It leads to forgetfulness, distraction and tardiness.  And it’s exhausting.

We are human beings, not human doings.  We tend to explain who we are by listing what we do for work and what we have accomplished professionally.  Millennials are more comfortable in their own skin and more capable of enjoying time that can’t be measured in terms of productive output.

 “American” is not actually a language.  Millennials are the first generation in decades who don’t take American pre-eminence for granted.  They’re expanding their personal and professional horizons with international travel and picking up a second or third language.

Traditional education is overvalued.  While Millennials are known for having overpaid for higher education, their dissatisfaction with what they got in return—fueled by their angst over the loans that now burden them—are serving to ensure that they and their children will spearhead the biggest education overhaul in a couple centuries.

In WORK…

Being a slave to work is no badge of honor.  Being the first in and last to leave may send a message to the types of people who value an ascetic work regimen, but it will also send a message to your family and close friends that your work is more important than they are.  Which message do you want to send?

We’re not all productive in the same ways and at the same times.  Sure, there are advantages to being an early bird, but the best employees will figure out where, when and how they work most effectively, and the best bosses will encourage them to do so (to a mutually beneficial end).

Work and life aren’t something to be balanced, but instead something to be integrated.  That we must balance work and life implies that they are seemingly opposed forces incapable of being effectively blended, but the most effective leaders and satisfied employees find ways to bring work to life by inviting more life to work.

Success is overrated.  Boomers have made an art form of becoming successful, or at least appearing so.  Success certainly isn’t a bad thing, but when the visible representation of success (more impressive titles, bigger houses, nicer cars, granite everything) takes precedence over those for whom we supposedly became successful to serve, we have a problem.  This isn’t even a generational thing.  It’s never really been true that reaching the pinnacle of success is what ultimately makes our lives fulfilling—it’s really significance and meaning for which we hunger.  Millennials seem to have a better handle on that.

In MONEY…

You don’t have to “get settled down” right away.  Financial planner, Roger Whitney, told me “[Millennials] are getting married later in life [than Baby Boomers] which gives them time to mature and be more financially secure when entering marriage.”

Money shouldn’t be a taboo topic of discussion.  30-something personal finance writer, Arielle O’Shea, finds Millennials to be more open about money.  Even if it’s because they’re more cynical about financial security, having seen a couple bubbles burst and many of their parents split over financial issues, Millennials seem to be more open to discussing their personal finances (to good effect) with each other and in public.

We don’t have to own everything—sharing is ok too.  Having to own everything we touch in this lifetime may be good for auto and home improvement companies, but it’s certainly not the most efficient or inexpensive way to do things.  Airbnb allows users to swap living spaces, Lyft offers a network of drivers when you need a ride, and that’s just the tip of the iceberg in the growing sharing economy.  Millennials are making and saving money with services like these, according to Forbes writer, Maggie McGrath.

The acquisition of real estate is overrated.  Creating stability, building equity and getting tax deductions are all good things—but losing money and depriving yourself of the freedom and flexibility to be mobile are not.  Millennials haven’t abandoned home ownership, but we all need reminding that it does have its drawbacks and shouldn’t be a foregone conclusion for everyone all the time.

We can and should embrace the role of technology in our financial lives.  The financial services industry is known more for hindering progress and clinging to antiquated, high-margin practices and procedures.  Millennials, however, are creating and “using websites such as Mint, You Need a Budget or Manilla, which not only help to track spending, but serve as accountability partners with e-mail alerts when spending limits are exceeded,” according to Mary Beth Storjohann, founder of Workable Wealth.

Youth isn’t a license to embrace reckless investing.  Carmen Wong Ulrich, host of Marketplace Money on APM says “[Millennials are] less likely to want to risk investing their money in the markets, but that also means they’re more likely to stay away from the financial products (and marketing) that burned their parents.”  Indeed, losing money isn’t a good strategy, regardless of your age.

Experiences are more valuable than things.  David Burstein, Millennial author of Fast Future: How the Millennial Generation Is Shaping Our World, acknowledges that 20-somethings are spending more than any past generation on travel and eating out, but it’s because they place a higher value in deepening interpersonal relationships and creating lasting memories.

The “traditional” notion of retirement isn’t necessarily an ideal.  Millennials tell me that they expect to be working a long, long time.  They don’t expect pensions and don’t trust Social Security, leaving them with little choice, but they also don’t idolize the notion of full-time feet-in-the-sand retirement.  They plan to work longer and enjoy themselves more along the way, many of them hunting more for a calling than a job.

You can do well and do good at the same time.  Profit or charity—take your pick?  The Millennials have invited us to consider that we don’t have to choose between Robber Barron or do-gooder.  In addition to Google’s unofficial motto—“Don’t do evil”—companies like Toms and Warby Parker give one pair of shoes and eyeglasses (respectively) for every pair sold.

Every generation finds comfort in the norms it helped establish and relishes in the norms it helped deconstruct—but the outgoing generation tends to not-so-quietly mourn when the incoming generation does the same.  Pew Research calls the Millennials confident, connected and open to change.  Yes, it’s a little scary that 20-somethings are changing the way we live, work, play, invest and worship—all without even asking our permission!  But it’s not necessarily a bad thing.

If you enjoyed this post, please let me know on Twitter @TimMaurer, and if you’d like to receive my weekly Forbes installment via email, click HERE.

7 Steps To Creating The Best Personal Task Management System With Trello

7 Steps-01I have tried more productivity systems and tools than could possibly be productive.  Stephen Covey’s 7 Habits are deservedly legendary, and I’m better for every habit I’m able to employ.  David Allen’s Getting Things Done (GTD) methodology was even more helpful for me, especially because it seems to hone the best of Covey’s principles to a more elegant simplicity.  But both of their complete proprietary systems proved too much for me to maintain long-term.

After keeping up for a few weeks—even past the 21 days that supposedly cement a new habit—I always failed to maintain the system after a reliably random task turned into a seemingly wasted day followed by a week of piled emails and unfulfilled pledges (and all of the guilt and shame to boot).

Another reason I’ve failed to maintain well-meaning systems is that after the initial novelty wore off, the checklists and to-dos all seemed to become rote and, well, boring.  I needed something more visual and engaging to hold my attention.

Then Ryan Carson, the founder of Treehouse, introduced me to Trello (via blogger Leo Babauta).  Trello is a highly visual (free) online collaborative project management tool (with access online and on iOS and Android devices), but Carson re-engineered it to become his go-to personal task management system.

I’ve been using it for five months now without fail, synthesizing everything from Covey and Allen that stuck, along with Carson and Babauta’s wisdom, to create the only task management system that’s ever really worked for me.  Here’s how it works for me and could work for you:

skitch

1)     After creating a Trello account, create a new “board” and call it Tasks.  Each board is comprised of vertical “lists”—these will function as your task prioritization system.  Then, each new “card” you add to a List represents an individual task.

2)     Create your lists.  My lists are a conglomeration of what I’ve learned from Covey’s 7 Habits and Allen’s GTD.  My first list on the left is called “Big Rocks”—the priorities in life that I want to consume the majority of my time.  Next is “Today,” the list of items that I hope to accomplish today, followed by “Incoming,” new tasks that have yet to be prioritized.  As you might guess, “This Week” houses the tasks I hope to accomplish this week; “Later,” those tasks I’d like to get to eventually but are not yet urgent; “Waiting On,” that which I’ve accomplished but requires action on another’s part; and “Done,” a list of the tasks I’ve accomplished that day.

3)     Whether you call it Big Rocks or Big Picture (Carson) or Most Important (Babauta), create a list under that heading with your biggest priorities in life.  Mine are Spiritual, Family, Health, Writing/Speaking, Business and Personal.  Now, click on your first prioritization category listed; you’ll see an option to “Edit Labels.”  I recommend making each of your Big Rocks a specific color, and clicking “Change Label Titles” will allow you to give each color a name corresponding with your Big Rocks.  Now, each time you add a new task, you can color code it with an appropriate label.

4)     Add tasks.  If you’re importing tasks from another system or just want to do a brain dump, add all of your tasks to Incoming and then decide where to put them later.  Click “Add a card…” at the bottom of the appropriate list and type a brief description describing the task to be performed.  Before you even hit the green “Add” button, hit the drop down in the bottom right corner and that will give you the option to add a label.  Once the task is added, a host of new options can be seen by clicking on the card itself.  Here you can give the task a longer description, create a checklist within the task, attach a file or give it a due date.  Preferring the GTD approach, I keep it simple and trust my daily prioritization ritual.

5)     After adding a bunch of new tasks, it’s time to prioritize each one by placing it in the appropriate list.  Simply click and drag the card with the task you’d like to prioritize and move it to the appropriate list.  If your lists span beyond the edge of your screen, you can simply hover on the screen’s edge and watch the board traverse in that direction, allowing you to place the card in the list of your choosing.  You can also grab and drag the screen in any direction you choose.

6)     The one essential habit you must form for this—or any other task management system— to work is to perform a review of your tasks board each morning.  Ryan Carson recommends taking 19 minutes to start every day organizing your to-dos.  “Limiting this to 19 minutes,” he says, “keeps you focused and ensures you don’t spend all your time prioritizing instead of doing.”  First, add any meetings or calls on your calendar that day to Today with a precursor (M) for meetings and (C) for calls, along with the time. Then, relocate new Incoming tasks to the appropriate list.  Review This Week to determine which tasks should be completed Today.  Then, review Later to see which tasks should be bumped up to This Week and scan Waiting On to determine if you need to nudge someone else.  Only keep tasks that were completed for a single day in the Done list, purging this list each morning by either moving the task to Waiting On or archiving the task.  You can archive individual tasks by clicking on the card’s drop down, or you can “Archive All Cards in This List” by hitting the list’s dropdown in the upper right-hand corner.

7)     Now, the fun part—getting things Done.  If you spent 19 minutes reviewing your board in the morning, you shouldn’t need to look at any lists except for Today and Done for the remainder of the day.  Throughout the course of your day, move completed cards to Done and reprioritize Today, leaving the next action to be performed at the top.

One of the perpetual faux-tasks that leads many of us astray from the completion of actual tasks is our email.  As Claire Diaz-Ortiz reminded me this week, “Email isn’t work.”  It certainly feels like it, but email is more a conduit leading us to tasks than a task in itself.  Your email inbox is also a horrendous task management venue because it distracts us from the next task on our priority list, but we do often send and receive tasks through email, so Trello provides us with an answer:

Hit “Show sidebar” in the top right of your Trello screen; under the Menu header, click on Settings, then click on Email settings.  This will allow you to copy and paste a specific email address that will send emailed tasks from your inbox to the board and list of your choosing.  (Be sure to create a contact for that email address—something like Trello Tasks—and you won’t have to remember the email address.)

Trello is intended to be an interactive project management solution for groups, but it has become my highly-individualized, personal task management system of choice.  The interactive, visual nature of Trello is what attracted me to it and has kept me using it, but the best part about it is that you can create your OWN system within Trello.  Once you do, or if you already have, I’d love to hear about it.

If you enjoyed this post, please let me know on Twitter @TimMaurer, and if you’d like to receive my weekly Forbes installment via email, click HERE.

Subtract Tasks From Your World; Don’t Let Them Multiply

by Jim Stovall

We succeed by doing a lot of things very well.  There are people who do a lot of things but don’t do them well, and people who do things well but don’t do many things.  We don’t succeed based on what we meant to do, intended to do, expected to do, or made a note to do.  We succeed or fail based on what we actually do.

I find a lot of people in the business world today who confuse activity with productivity.  They take on a lot of tasks but get very little done.  These people often allow their work to create more work.

For example, something will come in the mail that requires them to respond.  Their response might take 10 minutes to accomplish.  Instead of just taking care of the task and moving on, they will set it aside, create a file, diary it on their calendar, move it to a later date, find the file weeks later, address the task at hand, mark it off their list, and close the file.  These people can generate several hours’ worth of work and mounds of clutter over one, tiny, little task.  They allow their work to multiply.

As a general rule, whenever possible, handle all communications via writing, phone, or email once.  Certainly there are exceptions when the task will require more time or thought, but for most mundane tasks, it’s much better to do it now.

Efficient and successful people accomplish many tasks in this manner.  There are several occasions every day when someone has asked me to respond, and if I take a few moments and do it now, I am able to accommodate the request.  If I let the task multiply, I am likely to never do it as it is prudent to give this individual a few moments, but I can’t afford to give them a few hours.

If you work alone, this is important, but if you interact with an organization each day, it is critical.  If you allow your own tasks to multiply, they will explode geometrically throughout the organization.  If someone else takes care of your calendar, coordinates your schedule, or handles your filing, your 10-minute task today can be a two-hour task for you later that creates many more hours of effort and energy for your entire team.

Being effective and efficient is often a matter of deciding what to do and what not to do, then budgeting how much time you can expend on each task.

As you go through your day today, subtract tasks from your world.  Don’t let them multiply.

Today’s the day!

Welth: Is It Wurth It?

A few weeks ago, I had the privilege of conducting a 40-minute radio interview with one of the great business leaders of our time.  (I’ve split the interview into four ten-minute podcasts, the links for which follow this post.)  Truett Cathy is the founder of Chick-fil-A and the author of several books, most recently, Wealth: Is It Worth It?  He’s well suited to ask and answer that question, because after beginning his restaurant career over 60 years ago with a single eatery, he’s built one of the nation’s most successful and well-loved restaurant chains. But interestingly, an adjective he’s not entirely comfortable putting before his name is “rich.”  He says, “One of the worst things I can imagine someone saying about me is, ‘He’s a rich old man.’”

But it would be hard to argue either of those.  After all, Mr. Cathy is 90 years old and falls at number 375 on the Forbes 400 list, with an estimated net worth of $1.1 billion.  However, he defies his age by going to work nearly every day and carries himself with the humility and grace of a line cook, not the founder and chairman.

Wordplay

Wealth is a hot word these days; especially in the financial services business, everyone wants to be about wealth.  So now, instead of being financial advisors or financial planners, stock brokers, insurance salespeople or bankers, everyone is a wealth manager or wealth consultant.  If you work with them, their commercials suggest you’ll be one of the people golfing all day or travelling around the world on a $1 million sailboat or sitting on the beach (with your wealth manager, of course) toasting the purchase of your new 5000 square foot beach home.  Don’t get me wrong—there’s nothing wrong with golf (except that it’s a miserable sport, chasing that little white ball around); and sailing, for those who know how to do it, is sublime; and if you have the money, right now is a great time to be buying a beautiful beach property—but dangling this utopian envy in front of everyone is what I don’t like about the financial industry’s co-opting of the word wealth.

We tend to believe today that the three words “money,” “riches” and “wealth” are generally synonymous, and I do believe that in the contemporary vernacular, they are.  But that wasn’t the initial intent.  Money and riches, if you follow them back to their original root words in ancient languages, always meant something similar to what they mean today.  Wealth, on the other hand, had a much deeper meaning.  It meant enough.  Contentment.

In Wealth: Is It Worth It? Cathy cautions us of the trappings of financial accumulation, giving us insight into how living through the Great Depression and seeing his own father left emotionally destitute by his inability to provide for his family in that incredibly difficult time informed his own belief system around money.  Far from demonizing dollars, he gives us a framework for virtuous money dealings grounded in Solomonic wisdom.  (Cathy is unabashed in sharing that his money philosophy is grounded in his Christian faith, but he also draws on wisdom from sources neither canonized nor ordained and never seems to get preachy.)

Is it worth it?

But Mr. Cathy isn’t convinced wealth is worth it even after you “earn wealth honestly,” “spend wealth wisely and save it reasonably.”  Even then, we still have the capacity to let wealth accumulation overtake us.  He concludes that the only way wealth is really worth it is “…if you give it generously.”

While this resonates as truth, I admit my skeptical self wants to conclude it’s easy for those blessed with abundance, like Cathy, to admonish the rest of us on the value of charity.  Even he acknowledges it’s unlikely that his children or grandchildren will ever suffer from want.  But having now read his personal and financial story and talked with him, I find not an ounce of inconsistency or inauthenticity.  He applied the same approach to money when living through the Great Depression and standing over the grill in his first restaurant as he does today encouraging us to deconstruct and rebuild our view of affluence.  I also cannot think of a time personally, or with hundreds of clients over the years, in which this particular proverb did not hold true: “If I give water to others, I will never be thirsty.”

One of the highlights of Wealth: Is It Worth It? is an interview Cathy conducted with a friend he has forged in pursuit of his campaign for generosity, the venerable Warren Buffett.  He asks, “Warren, how do you define wealth?”  Buffett answers, “Wealth is having enough.”  Interesting, isn’t it, how wisdom changes so little even over thousands of years.  There is plenty of money out there and a lot of riches, but whether among the rich or the poor, we could all use more enough.

There are many more life-giving tidbits you’ll find throughout my radio interview with Truett Cathy.  The show is organized into some bite-size portions below:

1)     Introduction: A blessing to some and a curse to others 
2)     Friendship w/ Warren Buffett; money and children
3)     Truett’s father; living through Depression; discomfort w/ being rich
4)     “Retirement is misery!”; Chick-fil-A’s secret; when to start giving

Check out comedian, Tim Hawkins, hysterical ode to his favorite restaurant, Chick-fil-A!

Tim’s Tools

Tim is pleased to provide readers with access to a selection of tools that can be used to apply the lessons learned on TimMaurer.com.

 

Personal Money Story

 

Personal Money Story.  This simple exercise will help you understand what what drives your personal money values. To download, click below:

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Life Taking, Life Giving - BLANK

 

Life Taking, Life Giving.  This simple exercise will help you understand what you do in life that provides fulfillment and those activities that don't. To download, click below:

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