Cash is King: The only true measurement of success is money
Is your mum rich? – No, mine neither and she’s the most successful person I know.
In the city money and particularly the size of your bonus is success - a guaranteed cast iron fact propagated by the former masters of the universe. And yet I cannot be the only one who is amazed on a daily basis by the fat, lazy, talentless but incredibly rich “success” stories I see. Obviously they’re right and we’re wrong and they are successful and we’re failures. But what about mum?
Let’s face it they have the boat, the £10m house just off Sloane street, the red Italian sports car and a place in Cap Ferrat whereas we …don’t. So whenever they speak we listen and they’re right and we’re wrong again….
Nope people – absolutely wrong - they’re just rich – maybe they were born that way, maybe they were lucky or maybe they made it because they had some arithmetic ability or creative talent but it doesn’t make them better or even…a success.
Is Bill Gates a successful man because he’s rich – No – he’s a success story of our times because he happened to change the way we all live because of a brilliant mind – and into the bargain he seems like a good guy who is generally interested in helping others. He’s successful, he’s rich and we like him; Richard Branson? - Hell yeah – we love the guy. The fat rich guys wallowing in the Hamptons? Dick Fuld – successful? Fred the Shred? Roman and the Oligarchs – rich beyond belief – successful? I’ll take my mum….. or Saint Bill
Define your own success criteria and only measure yourself against that – if you make it money alone you’ll be doomed to failure because like the best boxer in the world there’s always someone bigger just around the corner….
And speak up – for goodness sake people - just because someone is worth £300m or a yard or two (that’s a Billion pounds folks) – disagree with them and argue with them- don’t bow down before them - their money does not make them God – it just makes them rich…..
Live a little people – be happy – you are already a success. Just ask your mum.
Mamamarkets
Showing posts with label Fuld. Show all posts
Showing posts with label Fuld. Show all posts
Wednesday, 8 April 2009
Successful guys are never wrong
Just ask Rupert Low – The former Chairman of Southampton FC, which is currently in administration. Not his fault. It never is? When has the guy at the top of your organisation ever taken the blame – when is it ever his fault. The economy; the staff; his managers; the competitors; the industry, the regulators - anyone but the boss.
This guy blamed Barclays – how ridiculous can you get?
The bankers – they blame other bankers and the regulators - surely they can look at themselves just once and admit it.
Any big guys out there listening – take it on the chin – we work; you win; you take the credit we work, you lose; you take the blame – surely that’s a fair deal.
Please, please let us not hear these excuses any more – stand up and be counted and admit you got it wrong. You have passed failure on the way to success so give it a hug again on the way down – we’ll respect you more.
Mama knows her markets
Just ask Rupert Low – The former Chairman of Southampton FC, which is currently in administration. Not his fault. It never is? When has the guy at the top of your organisation ever taken the blame – when is it ever his fault. The economy; the staff; his managers; the competitors; the industry, the regulators - anyone but the boss.
This guy blamed Barclays – how ridiculous can you get?
The bankers – they blame other bankers and the regulators - surely they can look at themselves just once and admit it.
Any big guys out there listening – take it on the chin – we work; you win; you take the credit we work, you lose; you take the blame – surely that’s a fair deal.
Please, please let us not hear these excuses any more – stand up and be counted and admit you got it wrong. You have passed failure on the way to success so give it a hug again on the way down – we’ll respect you more.
Mama knows her markets
Wednesday, 1 April 2009
Protest pah - we did it better back then...
Spot the difference - Yep no lamposts and sunshine - the naughties version look like they're off to Glastonbury!
Tuesday, 10 March 2009
Luck, Leverage and Theft in the Markets – Mama knows
So you’ve seen the media hype from the socialist journalist middle classes who take every opportunity to stick it to the bankers – Fred the Shred, Dick Fuld – “Greedy *ankers” - the story that is pure porn in the business pages these days! But do you believe it?
Arrogance to blame
Mamamarkets doesn’t know the individuals but she knows the type - extreme hubris and upper percentile intelligence is a pre-requisite on the floors of the city – success and environment invariably lead to a glitzy marble sheen of arrogance.
But is that arrogance enough to cause global meltdown on the scale we are seeing? Don’t you believe it and don’t believe the hypocrisy of the fawning city journalist – promoted by snippets of planted knowledge over the years – now pushed to the fore and pretending to be the voice of the people – the arrogant “greedy bankers” still paying his kids school fees and holiday in St. Barts.
The fault is ours – yes you and I - and every single one of us that sat on our new B&B sofa in our lateral space apartment boasting of the 100% growth in our house value over the last three years and the 25% returns on our stock portfolio.
Ask yourselves the question – How do you think YOU made those returns? You must know it’s impossible with cash. If you lent $100 to anyone how much would they pay you for the use of those funds – 5% yes; 10% maybe; 15% unlikely unless they are worried they can’t pay back the principal – 25% - come on get a life – they aren’t going to pay it back.
So how did your fund manager, your advisor or your stock portfolio perform so well? There are 3 ways; 2 legitimate and 1 Madoff - let’s ignore the latter because a hustle is a hustle whether that be short-changing in the supermarket or short changing at the Board table.
Legitimate 1: – you got lucky and bought Google at a buck – well done – now just don’t expect to get lucky again and again. Even Buffet failed this year.
Legitimate 2: You invest in normal market products with yields of 10% and you leverage it 4 times meaning a gross return of 40% and net 20% (assuming interest rates at 5%). Does this look risky to you? Well it is and you still only make 20% a year. Remember who pays you 10% a year when the market is 5%?
Ignorance no defence
Don’t plead ignorance now please and pretend you didn’t understand leverage – you bought a house didn’t you?
So yes blame every investor and shareholder including yourself. Investment banks have targeted returns every year of over 25% return on capital - impossible but what’s the worst that could happen if you worked there – you didn’t make it – lost the lot, blew up the bank and lost your job. If you didn’t try and gave back the capital you lost your job anyway and the next sharp shooting arrogant master of the universe rolled straight in from Harvard. Investors and shareholders demanded 25% returns – Which as we have already established takes luck, leverage or theft.
Who were these investors and shareholders? – That was You and Mama here with an arrogance to match that of Mr Fulds and Mr Goodwin but at least they got to keep the house and a pension to pay for it I guess.
Mama knows her markets
Mamamarkets
So you’ve seen the media hype from the socialist journalist middle classes who take every opportunity to stick it to the bankers – Fred the Shred, Dick Fuld – “Greedy *ankers” - the story that is pure porn in the business pages these days! But do you believe it?
Arrogance to blame
Mamamarkets doesn’t know the individuals but she knows the type - extreme hubris and upper percentile intelligence is a pre-requisite on the floors of the city – success and environment invariably lead to a glitzy marble sheen of arrogance.
But is that arrogance enough to cause global meltdown on the scale we are seeing? Don’t you believe it and don’t believe the hypocrisy of the fawning city journalist – promoted by snippets of planted knowledge over the years – now pushed to the fore and pretending to be the voice of the people – the arrogant “greedy bankers” still paying his kids school fees and holiday in St. Barts.
The fault is ours – yes you and I - and every single one of us that sat on our new B&B sofa in our lateral space apartment boasting of the 100% growth in our house value over the last three years and the 25% returns on our stock portfolio.
Ask yourselves the question – How do you think YOU made those returns? You must know it’s impossible with cash. If you lent $100 to anyone how much would they pay you for the use of those funds – 5% yes; 10% maybe; 15% unlikely unless they are worried they can’t pay back the principal – 25% - come on get a life – they aren’t going to pay it back.
So how did your fund manager, your advisor or your stock portfolio perform so well? There are 3 ways; 2 legitimate and 1 Madoff - let’s ignore the latter because a hustle is a hustle whether that be short-changing in the supermarket or short changing at the Board table.
Legitimate 1: – you got lucky and bought Google at a buck – well done – now just don’t expect to get lucky again and again. Even Buffet failed this year.
Legitimate 2: You invest in normal market products with yields of 10% and you leverage it 4 times meaning a gross return of 40% and net 20% (assuming interest rates at 5%). Does this look risky to you? Well it is and you still only make 20% a year. Remember who pays you 10% a year when the market is 5%?
Ignorance no defence
Don’t plead ignorance now please and pretend you didn’t understand leverage – you bought a house didn’t you?
So yes blame every investor and shareholder including yourself. Investment banks have targeted returns every year of over 25% return on capital - impossible but what’s the worst that could happen if you worked there – you didn’t make it – lost the lot, blew up the bank and lost your job. If you didn’t try and gave back the capital you lost your job anyway and the next sharp shooting arrogant master of the universe rolled straight in from Harvard. Investors and shareholders demanded 25% returns – Which as we have already established takes luck, leverage or theft.
Who were these investors and shareholders? – That was You and Mama here with an arrogance to match that of Mr Fulds and Mr Goodwin but at least they got to keep the house and a pension to pay for it I guess.
Mama knows her markets
Mamamarkets
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