Newsletter 10/16 - The Shared Equity Advantage

New Releases

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How to Invest: Masters on the Craft

Imagine sitting down with some of the most successful investors in today’s world. You would learn not only how they achieved their success, but also what they value having reached the top. “How to Invest” not only features interview transcripts from industry titans but also includes knowledge from David Rubenstein’s 30-year career in the cutthroat world of private equity.

Because there is no single magic formula for investing success, “How to Invest” does not include a foolproof step-by-step breakdown to investing without risk. However, it does include a wealth of information to show how investors like Mary Callahan, Sam Zell, Stan Druckenmiller, and Seth Klarman attained prosperity.

This comprehensive book is a wonderful read for anyone who wishes to learn more about the intricate world of investment. Perfect both for those beginning on their investment journey or those with decades of experience, “How to Invest” is bursting with valuable information accumulated over decades-long careers.

Retail Gangster: The Insane, Real-Life Story of Crazy Eddie

“Retail Gangster” is an inside look into the unfathomable scams committed by Eddie Antar, or, as he was known in his commercials, “Crazy Eddie.” You will learn about his humble beginnings, meteoric rise to power, and magnificent crash which included a prison stint. With a background in investigative journalism, Gary Weiss brings Eddie Antar and the unforgettable people that surrounded him to life in this addictive book.

Although this book is nonfiction, it reads like a bestselling thriller. Filled with memorable characters, complex family relationships, and intricate sub-plots, you will not be able to put this book down.

Beyond learning about scams of immense proportion and the people who perpetrated them, you will discover how a magnetic personality and unrivaled avarice can mask bottomless corruption – at least for a time. Even though “Retail Gangster” is a cautionary tale, it is an entertaining peek into the worst New York has to offer.

Hot Takeaway

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Shared Equity

Last week we talked about Borrowed Equity. This week we’ll talk about Shared Equity. This is the ‘Rising Tide Lifts All Boats’ concept. If you work with several companies to build your industry the chances of growth and improved sales for all is much more likely.

In the book Chasing Cool the author shares the story of how Quicksilver turned down MTV at the height of their success when they asked to co-create the female surfer brand ‘Roxy.’ Instead the asked MTV to create the show Surf Girls and include all the main surf brands to join as main sponsors of the show. This drove industry wide sales increase of 12%.

This idea is still very useful today. In a September issue of Fast Company, toy companies Spin Master shared how they use Shared Equity. Rather than hoarding the toy development for themselves they partner with “other toy creators and invest in startups.” They profit share and offer performance incentives which creates a high willingness for creators to work with them.

To succeed faster, seek ‘benevolent market leadership.’

Best Sellers

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How To Get Rich

The most embarrassing book title to be seen reading? Yes. Though its title is cringe, the content within it is very much on topic. The author has done it. He’s rich. Really rich. Somewhere between $400mm & $900mm. This comes up in the book because Felix is speaking from experience and appalls those authors who write on the subject but have not achieved to this level. He’s so successful that he’s best know for owning Maxim magazine and from what we remember, he doesn’t bring it up once. Can imagine?!

Within the book you will not find an instruction guide, but a conceptual breakdown of how to put yourself in the position to become rich. Spoiler alert: you won’t be able to do it as an employee.
Felix is about equity. Keeping-the-equity!

He talks about how to lean into opportunities when they strike. What it takes to turn money into more money. This section of the book is filled with anecdotes from his past, including stories of his very first step into magazines involving Bruce Lee.

He shares suggestions on who to partner with and when to get out of an investment. Mistakes he’s made due to his ego. Most of the time kept him from focusing on the most important thing, getting rich.

The stories and topics are amazingly well written and entertaining. From beginning to end the book will keep you reading and laughing.

Featured Author

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Mike Michalowicz

Michalowicz is the founder of Profit First Professionals. The organization is a community of bookkeepers, accountants and business coaches who are certified as a Profit First Professional. The professionals position themselves as strategic advisors who help clients build profitable businesses by escaping the compliance trap. They are strategic advisors for financial, operational and management improvement. Profit First Professionals’ tools are used by hundreds of thousands of companies. Tools include Clockwork, a strategy for making a business run on automatic.

Michalowicz is also co-founder of Provendus Group, LLC which is a growth consultancy company. The company developed the Provendus Growth Academy and Pumpkin Plan Certification program. The Academy offers a platform for the Certified Provendus Growth Strategist to use for coaching clients, enabling the Strategist to expand his or her business.

Michalowicz is a former small business columnist for The Wall Street Journal and was a business makeover specialist on MSNBC. He is a sought after keynote speaker on entrepreneurial topics. Fabled author Simon Sinek deemed Mike Michalowicz “…the top contender for the patron saint of entrepreneurs.” Michalowicz has shared entrepreneurial insights at TEDx, INC, and creative LIVE. His columns are found in prestigious publications like Harvard Business Review, Open Forum and Entrepreneur Magazine.

Besides Profit First, Michalowicz’s books include Get Different, Fix This Next, Clockwork, The Pumpkin Plan and The Toilet Paper Entrepreneur plus other business advice books. His books have been translated into 20 different languages. Each book provides additional strategy details and tools for ensuring fast and healthy business growth.

In addition to his website, the entrepreneur is found on LinkedIn, Facebook, Instagram, and Twitter. He also does podcasts and has a YouTube channel. 

Show Review

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The Men Who Built America

This is a reenactment series that dives deep into the Golden Age of America. What did Vanderbilt, Rockefeller, Carnegie, JP Morgan, and more do to shape America the way they did!

Learn about how they started and scaled their empires. Each leader was different but all pushed their potential to the limit. Grew their respective businesses as fast as possible. Without many of the laws in place today they brutalized their competition and employees without compassion. The true capitalist nature of early American entrepreneurs is amazing to witness

Curious about the lavish lives they lived and ways they spent their money? And in the case of some, gave it away… Don’t worry, that’s in there too.

An exciting part of the series is hearing about how each icon handled opportunities when they arose. Most often fortune favored them.

For a business leader looking to make a big impact in life and business this series is a match made in heaven. Be inspired big time by the robber barons of the Golden Age of America.

Article Review

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How To Build An Engaged Enthusiastic Company

Building an organization that people are enthusiastic about, fully engaged with, and means allowing people to take risks in an effort to improve the company. According to the company Alex Lee, featured in Fast Company, the key might be offering staff members its own version of Shark Tank meetings twice a year to drive innovation and the bottom line. They call it Spark Tank. Winning ideas get a budget and chance to put their ideas into action. Some win, some lose, but the team always feels part of the bigger picture.

The concept is very similar to a story told about Anchor Steam Brewing in the book Small Giants. Anchor Steam would allow each brewer to bring their home brewed beer in for tastings with the company. They would all give feedback and support. This fostered the team camaraderie and people feeling supported and engaged.

Podcast

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From Circus Clown To Multimillionaire

Perhaps one of the most surprisingly inspiring podcasts we’ve listened to is about a one time circus clown turned multimillionaire David Sivers. A story about following your passion and leaning into something that’s working. The episode comes from the Tim Ferriss podcast.

David started his life wanting to be a musician and ended up taking a position as a circus clown where he learned to entertain while being able to play music. Not exactly his dream job at the time but he learned to love it because he was playing music.

He ended up building CD Baby which has since sold for millions. The story of how he started by creating something he wanted for himself, then expanding to his close contacts and ultimately offering it commercially at scale.

This unbelievable rags to riches story will have you inspired that anything is possible!