I am writing this latest post 34,000 feet above the Earth, as my wife and I are on a well deserved vacation. Thankfully, I have a lot of magazines in-hand, and am able to think about the world of business a little more deeply than normal.
I was reading an article in Money magazine about Warren Buffett's latest series of investments for Berkshire Hathaway (NYSE: BRKA), looking for hints about how I can build my portfolio while also looking for clues that signal how our economy will shift. As a PR guy, I am always interested in how candidates leverage the weaknesses of one another to claim their economic program is better than the other person's. While Buffett has made some interesting choices over the last few months, he gave me something to think about that went far beyond this article.
Most investors think like Buffett and invest for the long haul. After all, we have seen how equities have consistently grown, and how markets have a way of shaping up just when we think things cannot get much worse. We make initial investments in companies. We get to know the systems and processes that comprise the company.
Based on what we have learned over time, we shift our holdings in certain companies or fund groups. We form relationships with companies as if they are people. We may not get holiday cards to talk about how our "friends" have grown through the years, but we do get annual reports and dividend checks.
This is all about time, and time is money, right? Not necessarily. Maybe the altitude is shaking my brain cells a bit, but let's get philosophical for a minute.
Mathematically speaking, "is" is another word for "equals."
With that in mind, we would assume that if a=b, then b=a.
If time "equals" money, why don't we think of money being equal to time?
If investments are measured (in part) by the duration we hold them, why aren't our investments measured by some sort of temporal dollar? As investors, why don't we flip the tables a bit, thinking of our friends and family as a portfolio of investments that require that same sort of attention?
If anyone out there is a philosophy major who can explain this to me, I am all ears. For the rest of us, though, I am starting to think that our portfolios need a different set of measurements beyond dollars and cents. Many investment managers are so close to their portfolios and investments that they treat them differently -- and sometimes, better -- than their own families.
They form a relationship with their investments, much in the same way that they form relationships with people. We all view time differently, but we need to think of the relationship between time and our investments differently as well.
In previous posts, I have challenged IU readers to connect with the corporate communications and investor relations departments to get information. Challenging your friends is a way to strengthen friendships. Friendships and relationships require work; the best ones are those where both sides work together... over time.
To that end, I want to share some great news on my end of the IU world. I have accepted a position with DKC Public Relations, Marketing and Government Affairs (www.dkcnews.com) to help formalize a presence for the agency in Chicago. This is a great opportunity that came to life because of an investment I made 13 years ago.A once former colleague is now present again, thanks to keeping our relationships ongoing.
With relation to time, I think it makes sense to look at it like you suggest, but I would think the ups and downs of the market can put some stress on that "relationship"
I think you would have to be able to distance yourself a great deal from the ups and downs of the market for it to be a healthy relationship.
Congratulations Michael! I agree--relationships matter. Too bad so many people are willing to throw them away in the name of time, money and imagined slights and insults.
Congratulations Michael. I think you are right it is important to continue to build "relationships". I have heard of a concept called relationship banking where it is said that you can actually take good banking practices and use them for your human relationships. For example you deposit good deeds into peoples accounts (in theory) and then they give back to you with interest. When you get them to do things for you they become your creditors and you owe them a similar favor in return to settle the debt.
I am with you on this one; relationship banking is such a simple theory. I am a big fan of ALLY BANK. They practice what they preach when it comes to speaking to a real person. They embrace time to the point that they recognize its importance in one's day-to-day life. When was the last time a company appreciated your schedule?
@Micheal It is good to be able deal with companies that offer that level of customer centric service. I have not had the pleasure of dealing with Ally bank but from what you say they seem to be on the right track when it comes to customer service.
@Scott I guess Micheal was busy making deposits in his family's individual relationship banking accounts. If we consider it in terms of money he's depositing an intangible asset but just the same very valuable.:)
Let's go into an Econ 101 conversation and talk about opportunity costs, shall we? I could have caught up on sleep or I could have written a post for IU. You won, my sleep time lost. Trust me, man, I was working. :) I am back in Chicago and raring to go! Let's hope my portfolio feels the same way....
Very true. The fact is that all the money is sort of pointless unless you have relationships -- people -- who matter enough to you that you enjoy spending some of that money on,
Having known you for a long time - I can say that your strongest ally has always been your wonderful sensitivity and enormous heart. Both have served you well and will continue to be at your side in your new position.
@Michael, I second all that's been said earlier about how profound this post is and how much I hope you enjoy your vacay...
There's a saying that no one ever lay on his/her deathbed and said, "Gee, I wish I'd done more housework!"
That's because when we leave this world, the only thing of importance is the loved ones we leave behind. I am particularly reminded of that every April as I prepare to mark the anniversary of my father's death in 1999 from a brain tumor. At age 68 he was at the top of his game with money, freedom to travel, investment security, status, achievements, honors, awards. But when he received his diagnosis of an inoperable glioblastoma, the most virulent type of tumor, the only thing that sustained our family during the shocking three and a half months before his passing was love.
Settling his estate was complex, and the task fell to me. I would have traded every dime of that money for more time...the one thing that we couldn't buy.
Couldn't agree with you more....my Dad died of leukemia and I know what you went through.....It is a post like this that validates why I have never equated time with money in real-world terms. Your father would be very proud of you.
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