Feb 28

Lets Talk About Mediocrity (Ahem, I Mean Mutual) Funds

by Chris Billows in Business Beller 0 comments tags: Smart Money Management
My first investment was in mutual funds which is what most people invest in because the mutual fund industry is very effective at promoting its products. There is a certain sense of security knowing that everyone else is also buying mutual funds. Unfortunately for the most part we have been sold a product that does what it says but does not deliver what you need. Yes, mutual funds do invest in the stock market. Yes, mutual funds do diversify the risk over hundreds of stocks but no, most mutual funds do not give you the returns you need. Diversify and Die? Mutual Funds will give you built in diversification. Some of them invest in entire stock market indexes, others invest into a combination of stocks and bonds, and some invest into other company mutual funds (which are called Fund of Funds, yikes!). Diversification of your investment money is important. You should never put all of your money into one company. Because you have no control over how that company does or how other investors react to the company’s news, it is best to hedge your dollars by spreading the risk around. Yet it is possible to over-diversify. Because mutual funds […]
Jan 29

How to Pick the Right Stock Picking System

by Chris Billows in Business Beller 0 comments tags: How to Understand Money, Smart Money Management
Just like there are thousands of stocks to pick, there are hundreds of stock picking systems. And more are being created all of the time. But just like most stocks, most of them are not worth your time. This article will tell you what is wrong with most stock picking systems and what to look for in a system that works. There are basically three fundamental mistakes that need to be avoided. They are: 1) Choosing a system that is too narrow. 2) Choosing a system that is too broad. 3) Choosing a system that is too inflexible. Mistake #1: Picking a System that is too narrow Some systems will base their entire strategy on just technical indicators, multi-day candlestick patterns, or some form of divergence. The problem is that all of these systems are only using two factors: price and volume. Imagine if you were about to invest in a horse that competed in racing. Would you be satisfied with only the weight and speed of the horse? No matter how you graphed those two variables, they are only two criteria. You should also be interested in the breed of the animal, the competition it was racing against, the […]
Oct 30

Three Dragons That Steal Your Financial Wealth And How to Fight Them

by Chris Billows in Business Beller 0 comments tags: Smart Money Management
Do you believe in Dragons? No, I didn’t think so. While I do not believe in dragons as actual, living beings I do believe that they exist as three harmful things that can steal your financial wealth. Just like the King Arthur tales of old, these dragons will steal your wealth. Yet evolution has taught these dragons to be more subtle and sneaky and take from you without you even knowing it. Like a Knight of the Round Table you need to challenge these beasts to protect your financial kingdom. The purpose of this article is to tell you about these dragons and how you can fight them. Meeting the Dragons 1) The first is known as The Dragon of Taxes, 2) The second dragon is known as The Dragon of Inflation, and 3) The third and most important dragon is known as The Dragon of Poor Performance. Why is the third dragon the most important? Well, the first two dragons you cannot defeat. The Dragon of Taxes and the Dragon of Inflation are immortal! You see, the Dragon of Taxes represents the government’s ability to levy taxes on your earnings and wealth. Governments are always hungry for more revenue […]
Sep 05

Keep Asking Until You Get The Answer You Want

by Chris Billows in Business Beller 0 comments tags: Customer Service, Defining Life, Human Condition
I just dealt with a situation where my financial institution originally said no to me when I tried open up a new business savings account. I expressed my frustration, then went ahead and asked another branch manager to do the same thing – he said yes. It just proves to me that people are more important than institutions. One person interprets rules one way, the other a different way. The thing to remember is not to ask for something that is unreasonable or illegal. In my case it was about the interpretation about a specific banking package. I explained to both how both the documentation and the staff below them interpreted the account the same way I did. That reasoning did not work with the person who said no, but thankfully worked with the person who said yes. Of course, I am more interested in bringing my personal business to the reasonable branch manager. Giving the answer the customer expects is easily the simplest way to retain them.
Jun 22

Volunteerism is Free but Should be Spent Wisely

by Chris Billows in Business Beller 0 comments tags: Volunteer Sector Criticism
I have been a volunteer on a number of non-profit boards since 1997 and have found that there is an assumption made by paid staff and other volunteer board members that because the time volunteered is free, it is not valuable. This is false and insulting. Like most people, I do not like having my time wasted even if it is freely given. When I have paid work that is either a waste of my time or is overwhelming I can get philosophical and say ‘At least I am getting paid for this’. But when I am placed with tasks that are tedious or overwhelming as a volunteer, I get uptight. The time I spend as a volunteer is both an investment and reward and if I am given volunteer tasks that are unpleasant or unsatisfying, then I am losing whatever reward that I can get from the effort. Managing volunteer time and responsibilities is just as important as managing paid staff time and responsibility, perhaps more so. At the minimum, staff get a financial reward which creates a contractual obligation of their part to get the job done. For volunteers, the journey is the destination. The time they give […]
Jun 08

Who is the Corporation Beholden to? To Future Shareholders/Stakeholders

by Chris Billows in Business Beller 0 comments tags: Corporations Don't Think, Summarizing a Business Organization
I attended a workshop on the risk management responsibilities of being a Director of a corporation. I asked who was the corporation ultimately responsible to: the shareholder or to the customer/stakeholder. He said neither since the corporation is responsible to itself. When I pressed further, he said that the corporation’s assets are to be used to further its goals into the future, not necessarily the goals of the immediate shareholders/stakeholders, though these two usually do align. I was fascinated. This means that as a Director of any corporation (non-profit/for-profit) my fiduciary responsibility means being loyal first to the corporation and its goals. I and the other Directors are to operate the corporation as if it was going to be around another 100 years and then govern accordingly. Our goal is to have the corporation be a service to present and future generations of shareholders and stakeholders. Even though it might be beneficial to sell all of the corporation’s assets now, thereby dissolving the corporation, and distribute them to the shareholders (meeting the shareholder’s need for a good return), this is not good for the future shareholders/stakeholders of the company who cannot be present at the table. The same principle applies […]
Recent Posts
Recent Comments
Categories