Career Mastermind, Sandra B. Tate from TateWorks

Our Career Development mastermind, Sandra B. Tate, Owner of TateWorks provides some suggestions for transitioning your skills from an unsatisfying job to the job of your dreams.

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One of the first questions I ask a new client: Is this the way you thought your life would turn out? And surprisingly few thought they’d end up working in an office or a factory. Most dreamed of achieving more.

How about you? Is this how you thought your life would turn out? Most of us have regrets and most of us would have done things differently, but it’s also true that we can still make our dreams come true no matter our age or financial situation.

Job Satisfaction (or Dissatisfaction)
The most common complaint I hear is job dissatisfaction. My clients have plateaued, or worse, been laid off and are seeking guidance on what to do next. Well, think about it. What are the chances that a 55-year old executive is going to get hired? Slim and none.

But that doesn’t mean these people are in dire straits. In fact, in many cases, this is the first time they’ve had the opportunity to chase that dream.

However, who among us can throw the switch and move out of a paying gig to making it on our own? How long could you go without a paycheck? And how much capital do you have to start a new enterprise – one that allows you to transition out of a job that saps your spirit into a job that juices you up? Every day!

When you work for yourself you don’t mind the long hours. You don’t mind the daily challenges and headaches. Why? You’re building something for yourself. The key is to find the means to transition from your unsatisfying job to your new job without missing a paycheck.

Search the Want Ads
There are plenty of job sites to search – everything from Monster.com to Craigslist.com, which lists local job opportunities by zip code. No

one has to know you’re looking for a new job until you actually land one.

However, word of warning: don’t post a “looking for work” ad on Craigslist or any other site. You can imagine how happy your manager will be when she sees you’re looking for another job. You’ll be looking for your coat on the way out the door!

The local newspaper is another resource for job listings. And if you’re willing (or eager) to relocate, be sure to check out the national newspapers like The New York Times. These big papers list job openings world-wide. London, anyone?

Gradually Build Your Own Business
Would you rather work for a tyrant who steals your ideas in a job with no future, or would you rather detail cars? Frankly, even if you’ve got a Ph.D., most would choose to work for themselves than work for another business.

Okay, so you start a car detailing business (just an example, but a good one) on weekends. Your start-up costs are nothing, you can do the work in your garage listening to your favorite tunes and you can do two cars a week-end for $125 apiece. Your only expense? The ad you run in the local rag.

Or, how about this. Use your current skills but sell them on an “as needed” basis. Virtual assistants are popular with small, growing businesses and individual freelancers and consultants. These professionals can work from home, they can type, enter data, perform bookkeeping – even buy gifts as a person shopper. Now, how do you advertise?

One place to find these kinds of assignments is Elance.com. All you need is a computer, a high-speed dial-up and the skills to handle a variety of administrative tasks. As you build a regular client base and your earnings grow, eventually you can throw the switch and start your own on-line business. Imagine saying bye-bye to that morning crush of cars each day.

The key is actually pretty simple: where are you today and where do you want to be tomorrow? Determine what skills, experience, assets and resources are available and develop a simple plan that (1) allows you to keep bringing in a paycheck and (2) builds additional income

and eventually equips you to transition from one job to a better job or move from one job to business ownership.

Is this how you thought your life would turn out? What’s your dream?

Sandra B. Tate

tateworks.com

Self Directed Invesment Mastermind, Tim Schewe from Confident Trader

Well, our stock-picking mastermind is up next. We thought it appropriate given current market conditions so we asked Tim Schewe from Confident Trader for his views on how to approach investing when everything seems to be heading south.

Thanks, Tim. We could all use a little perspective on what’s happening to our nest eggs.

Whoa! Anybody notice the volatility in today’s markets. Down 777 points, up 900 points? The Dow 30 is bouncing around like a ping pong ball and that makes investors and traders anxious. Volatility is not good for any market. Why?

Volatility is a sure-fire indicator that the market doesn’t know how to value stocks, and in this economy, it’s no surprise to see market index charts that look like rollercoasters. Professional investors are unable to valuate companies and so we see these wild, gut-wrenching gyrations as markets sift through new developments, data and deals.

Congratulations.
You Own an Insurance Company
AIG is a huge financial conglomerate, known primarily as an insurer but those monthly premiums are put to work for the company and AIG was left holding a wad of garbage paper.

So, along comes the federal government with a bailout package that, as of this morning, was approaching $1.5 trillion dollars. And this on top of the largest deficit the U.S. has ever carried.

The feds bailed out AIG, Fannie and Freddie, Merrill, Bear-Stearns but not Lehman Brothers. Selective socialism at its most pristine. And we, the taxpayers and our children and their children, will be paying off this debt as far into the future as I can see. Maybe you have better vision than I do.

Economics 101: Free Markets Are Self-Correcting
Congress bailed out Wall Street completely changing the rules of a free market. The talking heads would have us believe that the alternative to government intervention would have been far more disastrous than a government bailout. Yeah, but that’s not how capitalism works. Only the strong (and savvy) survive and Wall Street’s greed over the past eight years now has us poised on what economists are calling “The Abyss” – a global, long-term depression that would slow economic growth and, in almost all cases, we’d see economies contract. If U.S. consumers aren’t buying goods made in China then China has an economic problem.

The negative sentiment produced by The Abyss has caused credit markets to freeze up, making it more difficult for small- and micro-caps to access capital for business growth. However, this inability to borrow money actually makes it easier to identify companies worth closer examination and perhaps even taking a position.

Sounds weird, but it’s true. Bad economic times point gigantic, neon arrows at prospective buys. They’re the companies that got tossed into the dumpster along with all the other trash. But dumpster diving for bargains in the small and micro markets will equip you to find the gems among the rubble of what’s left of markets that have been living on credit for the past eight years.

Growing Wealth One Stock At A Time
Forget what’s happening with the Dow 30. Long term, it’s irrelevant. The simple fact is that every time the market has fallen – every single time – it’s bounced back stronger than before so, taking a long-term view, turn off the financial news channel and take a nice walk. The doomsayers will just depress you.

Or, start dumpster diving for companies within out-of-favor sectors like financials and home builders. By doing a little on-line research you’ll discover companies that are expanding in spite of (or because of) the economic downturn. In other words, instead of evaluating markets and indices, pick through the trash to find the micro-caps that still have product in the pipeline and a promising future – even if credit markets are frozen solid.

In past issues of Confident Trader I’ve examined the salient data that should be weighed when reviewing a prospectus and quarterly report. Briefly, I look for a reasonable P/E, a solid book to earnings ratio and I love insider buying. When I see C-level execs putting their own assets into the companies they run I consider it a mighty fine prospect for addition to the Confident Trader Portfolio.

I also look for companies that have a promising product, revenue model, service or some other aspect of business unique to that company. Again, with nothing more than a web hook-up, you can access detailed information on any publically-traded company worth the consideration of adding to your holdings.

There are other things to consider – portfolio weighting, sector weighting, time horizon, risk tolerance – a whole slew of other considerations that should be taken in to account before taking a position.

Finally, I don’t want to underestimate the value of imagination. Some self-directed investors might call it intuition, luck or just a happy convergence of circumstances. Dumpster diving for good companies that have been dragged down and tossed out with the garbage during the most painful restructuring of markets I can recall (and I was investing in October, 1987 when the market dropped more than 20% in one session.) actually makes it easier to find quality among the ruins.

This kind of intuitive information is also available on the web if you’re willing to put in the time. For example, let’s say a small piece in the health section of the local newspaper catches your eye – a small pharma about to bring to market inhaleable insulin. Hmm, that sounds a lot less painful than injections for diabetics.

With a little imagination, you can envision the potential such a product would have within the medical community and among diabetics. So, you do a little research, read the company’s prospectus and any other company news and make a decision based on both the numbers and your vision of how this little company with a big product about to come to market just might increase in share price – even in the most volatile and depressed markets.

So, how’s this approach working out? Let’s look at the numbers:

10/2008 Closing Value YTD % Change 2007 % Return 2006 % Return 2005 % Return
Dow Jones Indus. Avg 8579.19 -35.32% 6.43% 16.29% -0.61%
Dow Jones Trans. Avg 3669.48 -19.71% 0.23% 8.68% 10.48%
Dow Jones Util. Avg 344.31 -35.34% 16.59% 12.75% 20.95%
Dow Jones Comp. Avg 3042.2 -30.77% 6.63% 13.27% 7.13%
S&P 100 432.19 -36.97% 3.82% 15.86% -0.92%
S&P 500 909.92 -38.03% 3.53% 13.62% 3.00%
S&P 400 Midcap 548.7 -36.06% 6.69% 8.99% 11.27%
S&P 600 Smallcap 271.4 -31.32% -1.22% 14.07% 6.65%
NYSE Composite 5809.96 -40.35% 6.58% 17.86% 6.95%
NASDAQ Composite 1645.12 -37.97% 9.81% 9.52% 1.37%
NASDAQ 100 Stock 1275.1 -38.84% 18.67% 6.79% 1.49%
Russell 1000 492.13 -38.47% 3.86% 13.34% 4.37%
Russell 2000 499.2 -34.83% -2.75% 17.00% 3.32%
Russell 3000 524.87 -38.19% 3.30% 13.66% 4.28%
CAC 40 (France) 3442.7 -38.68% 1.94% 17.53% 23.40%
DAX (XETRA) (Germany) 4887 -39.42% 22.33% 21.98% 27.07%
Nikkei 225 (Japan) 9157.49 -40.18% -11.13% 6.92% 40.24%
ASX All Ordinaries (Australia) 4291.3 -33.17% 13.99% 19.87% 16.18%
Korea Composite 1294.89 -31.74% 29.21% 3.99% 53.96%
TSE 300 (Toronto) 9600.18 -30.60% 7.16% 14.51% 21.91%
Mexico Bolsa 20310.2 -31.24% 11.68% 48.56% 37.81%
Brazil Bovespa Stock IDX 37080.3 -41.96% 43.01% 32.93% 27.71%

Virtually every market is down and down double digits. As of today, the Confident Trader Portfolio is UP 86.49% YTD. Indeed, the portfolio has shrunk and expanded over the months and years, taking profits judiciously and without greed, or holding for the anticipated turnaround.

The cautious, studious investor will find gems among the wrecks – gems in all sectors. Even financials. (Especially small, regional banks that aren’t carrying a 40:1 lend to book ratio. There are some real gems to be found in this sector.)

My recommendations? Okay, I have a couple.

If you expect to need the money you have invested within the next five years (tuition costs, for example), take some of your stake off the table, lick your wounds and sleep well. On the other hand, if you have a time horizon of five, 10, 20 or more years, what’s occurred over the past few weeks will be a blip on the radar.

There are still plenty of good buys, especially in the micro-cap sector. These companies are usually dumped first in down times as markets make that proverbial flight to quality – financials. Well, global financials is probably not the best play for risk-averse investors.

The key is good research and an open mind. Conduct your research without regard to market activity and focus on individual company activity, growing wealth one buy at a time. If you follow the herd instead of your instincts, the outcome won’t be any where near as satisfying.

This Week’s E-Mail

Got an email the other day from a Confident Trader reader asking me what I thought about contrarian investing in micro-caps. There are dedicated and professional traders who employ contrarian principles to portfolio development but, frankly, not following the herd is just as silly as following the herd simply because it’s your investment model.

Investment models limit buying options and narrow the individual investor’s view. Now, does this mean that I don’t think contrarians are good investors? Nope. I’ve seen Warren Buffet make too many contrarian billions to argue that, in many cases, swimming upstream will deliver handsome rewards. But Buffet isn’t simply a contrarian. He’s not taking a position simply because a company has fallen out of market favor.

Any way, I’ve discussed investment modeling and its inherent bias. I’ve eschewed investment templates and ranted against “systems” because they not only limit the investors’ choices, they also limit the imagination or intuition of investors.

The same logic applies to contrarian investing versus value investing versus buying only for growth for the tax advantages. As soon as you identify yourself as a certain “type” of investor, you take hundreds of profitable options off the table. That’s why I avoid any pre-conceived notions like buy when others are selling or the trend is your friend. Wall Street hogwash.

This relates to my previous article on dumpster diving for gems. Each company must be evaluated on its own merits – past and potential – not on what other investors and traders are doing. Do I want to jump into a highly-leveraged micro when the rats are leaving a sinking ship? I don’t care how contrary you are, you’re catching a falling knife and it’s gonna hurt.

Keep those emails coming. I read every one and share the best.

Happy trading,
Tim

Business Development Mastermind John M. Adams III

John M. Adams III, Founder of the Masterminds’ Round Table, takes an outside-the-box look at business and personal leadership skills and attributes. You can learn more about John’s business consulting and success coaching activities by visiting John’s home base website, hearingtutor.com.

John M. Adams III

President Obama exudes confidence in the face of unprecedented economic and diplomatic challenges, and the confidence is contagious. Americans feel hopeful. They feel that “Change IS Possible,” and that Mr. Obama will deliver us from a terrible, unknown fate.

The country needs this kind of confident leadership in the face of current events and only time will tell if Mr. Obama’s confidence, and the confidence we have in his leadership, are well placed.

I bring up the President for a reason. I think he displays many of the traits of a confident leader in his actions to date. First, he assembled a “team of adversaries” for his cabinet, crossing party lines to pick the best person to run the various activities of government.

The Confidence of Contestability

The selection of the Obama cabinet is a key lesson in quality leadership – the confidence and ability to listen and weigh positions opposed to your own. His cabinet is tasked with providing a variety of opinions and points of view that will be considered and assessed by a leader who isn’t threatened by opposing opinions but, rather, a leader who seeks out these opposing POVs.

How many jobs would have been saved in the American auto industry if corporate leaders had push back? If the corporate realm encouraged contestability – awarded it for innovation – the industry would have stopped producing gas-guzzling SUVs 10 years ago.

The problem is, too many top-tier decision makers live in a “bubble” in which corporate jets and a coterie of yes-men (and yes-women) tag along, agreeing with every misguided notion that crosses their desks.

Strong leaders have confidence in their ability to weigh different opinions and points of view and, like the president, seek out diverse input from diverse sources. This is, perhaps, the most crucial aspect of successful, confident leadership at the presidential and business level.

Strong, confident leaders encourage pushback. They thrive on it.

 The Confidence of Judgment

A strong leader must be confident in his or her judgment. That requires the ability to conduct an impartial analysis of collected opinions and data. Preconceived notions will only be “proved” by partial, biased analysis.

Confident leadership knows where it's going!

This also requires strong leaders to encourage creative expression at all levels. The best ideas often come from the people who actually do the work – and that may be a loading dock worker with an idea for cutting paperwork. The manager who has confidence in his or her judgment will be glad to hear ideas from any employee or resource, such as a professional journal or the morning newspaper.

There’s no such thing as “bad” information. A leader with confident judgment is able to sort out the good information from the bad. Even better, the creative leader is able to turn bad information in to positive results. We can only hope that “The Stim” has the effect President Obama envisions.

 The Confidence to Make Mistakes

Leaders break new ground. That’s what makes them leaders!

 In the process of pushing the envelope, these far-horizon leaders make mistakes. Sometimes, data is mis-analyzed. How many times have we heard about “connecting the dots?” Sometimes, even the best leadership doesn’t connect the dots or anticipate every contingency.

Strong leaders recognize that they make mistakes. It’s part of the territory of being in a leadership role. The difference between confident leadership and managerial leadership is this: confident leadership learns from its mistakes and applies them to future decisions.

Managerial leadership tries to hide or mitigate the mistake, resorting to work-arounds rather than facing an obvious problem straight on.

Now, which leaders do you want advising you?

Leadership Is NOT About Administration

Directors, managers, regional directors of sales, floor mangers and department supervisors, in many cases, perform what amounts to administrative tasks. They “hit the quarterly numbers,” they file paperwork on time and oversee business administration.

This is not confident leadership. Confident leadership is pro-active, even in a business climate that discourages innovation – the case in many small companies where the business mantra is “my way or the highway.” This is NOT confident management.

Business leaders – those in charge – must develop confidence in their ability to withstand pushback. They must be confident in the decisions to see them through. And the most confident leaders are willing to make mistakes and to use these mistakes as lessons – even if they’re expensive lessons.

Confident leadership thrives in any business climate. Failure is never an option.

Paul Lalley, Webwordslinger.com

Paul Lalley, from webwordslinger.com, introduces the concept of information velocity – something every e-business and brick-and-mortar business owner must incorporate into any successful marketing campaign.

If it’s yesterday’s news it’s old news, according to Paul.

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Anybody notice that the speed at which information is delivered in the business realm has increased in the past 10 years? If you hadn’t noticed, chances are your buggy whip emporium is due for a little technical update.

Yesterday's news according to E-commerce Mastermind Paul Lalley

Your customers or clients want information now. Right now. And if you don’t have that information, if you can’t answer the clients’ questions, you’re pounding sand and blowing smoke. No one expects the sales rep, customer care rep or account representative to have all of the answers all of the time, but these client contacts better be able to get that data to the customer like today.

Information Velocity in the 3-D
In the real world, information travels digitally these days. Oh sure, you can run to the FedEx drop box once in a while, but emails get there faster and with FTP services fighting for your attention, there’s no reason that big honkin’ blueprint file can’t be uploaded to the FTP site where it can then be downloaded by the client. It’s instantaneous.

And you and your company look good.

Information is also sent via cell phone, PDA, networks, intranets and camel caravans. The ability to get a proposal, a bid or marketing collaterals into the hands of the prospect quickly often determines whether the client is closed and becomes a part of the business’ expanding client base. Or not.

If your 3-D biz isn’t capable of delivering the goods with blazing speed – now measured in nanoseconds, ooo-eee, your competitors are going to eat your lunch and your breakfast and your dinner. Fast is good. Slow is death in this Age of Digital Communications.

Field reps need data fast wherever they are. They require access to the home office server to pull up client files, specs and other business details from a coffee shop hotspot three time zones away or from a remote location half-way ‘round the world. The ability to access client data NOW separates the pros from those working out of a spare room at home.

You can call anyone FREE using Skype. No excuses there. Sure, telephone time doesn’t replace face time but it’ll do in between handshakes. So call that iffy, on-the-fence-client using Skype. You’ll strengthen the impression of client care and, if the client is a Skype subscriber, the call is free.

Fax it. Email it. Scan it and send it as an attachment. Use file transfer protocol sites, open a password protected on-line home base listing individual rep activities, new assignments, new projects – all the office news available wherever the company rep is in the world.

On-line Information Velocity
Corporate and commercial websites deliver current information fast. Take a look at Tim Schewe’s Confident Trader homepage. In the lower right corner is a live feed listing the top stocks in the Confident Trader portfolio updated at the end of each trading day. Fast, accurate and efficient.

So, if you follow Tim’s investment strategy, and go with some of his portfolio picks, you have everything you need in one place.

Oh, and you have it fast.

RSS Feeds
It doesn’t matter whether you’re the global marketing director at GE or the sole proprietor of Gertie’s On-Line Knit Shop, there’s news within your market. (There must be some hot news out of the knitting community, don’t you think? Maybe not.)

Clients want it fast. Like NOW!

Your company website can deliver the absolute latest industry news using RSS feeds. RSS stands for remote site syndication or really simple syndication depending on who you listen to.

RSS feeds are available from other sites and all of the software required is OSS. You’ll need a feed aggregator and a broadcaster. The reader will require an RSS feed reader available on Google or Yahoo – just about everywhere. In fact, for those buggy whip clients still using dial-up, RSS gets the news out fast, even then.

RSS creates site stickiness – a reason for visitors within your commercial sphere to come back each day to see what’s new – from you. You site may even deserve a bookmark. Now that’s sweet.

Live streaming feeds of everything from stock prices to news casts are available as well. Real time quotes on everything from pork bellies to precious metals available through a spectrum of digital devices – cells, Blackberries, laptops, hot spots and cold – you and the office gang can get the information you need now. And that’s what your clients want – NOW!

Paul Lalley
editor@webwordslinger.com

Our personal and career mastermind, Sandra B. Tate from TateWorks.com gives you

Sandra B. Tate: Career Development Strategist and Mastermind

 some sound advice on keeping your ahead above water during recession, depression and a complete market meltdown.

Let Sandra show you how to recession-proof your life.

Times are hard. Layoffs, a frozen credit market, business contraction, lowered consumer spending – we live in unprecedented economic times. Is it a recession? A depression? Well, whatever you call it, the prudent individual will take steps today to keep his or her job, home and quality of life in tact – especially during these choppy economic times.

So, what can you do today to recession-proof your life? More than you ever imagined.

1. Make yourself indispensible at work. If you’re the only one who can get the copier to work, if you’re the only one who can figure out the order tracking system, the client management system – you’re indispensible. The last one out the door if the business shuts down.

To make yourself indispensible on the job, learn how all systems operate. Understand the order arc, and learn to un-jam the copy machine. The more you know about your particular business the more indispensible you become.

2. Keep up with the industry. Read industry journals to keep up with the latest in technology and trends. This is especially important in high-flying, fast-moving industries like electronics or computer software. What you learned in school? Old news. Stay current, stay valuable.

3. Take courses. Again, the more you know – the more you can bring to the table – the more valuable you are to your current employer. And the more attractive a candidate you are to a potential employer.

Never stop learning. It’s an important aspect of keeping your job.

4. Stay on top of the job market in your business space. Of course, websites like monster.com provide data on jobs world-wide. And the competition is fierce for any job posted.

Instead, visit websites of companies that are in your business space. Often, these sites have a tab for “Employment Opportunities,” something worth a bookmark and regular check backs.

If you’re a recent graduate, contact your school’s placement office – a lot. Keep on them and let the alma mater network work for you.

5. Stop borrowing money. Every time you charge a purchase to a credit card you borrow money. And we all know how easy it is to borrow money using plastic.

Cut up all credit cards except one – for emergencies.

Also, do NOT use one of those credit consolidation companies. They charge a fee for services rendered, i.e. you’re borrowing more money.

If you can’t pay cash, you can’t have it.

Simple rule to always remember: You can not borrow your way out of debt.

6. Trim your expenses. Lower the thermostat. Skip the vacation and enjoy a “stay-cation” from home. Clip coupons. A coupon clipper can easily save 10% on the food bill, no problem. That could add up to over $1,000 a year after tax dollars, so you’d have to earn $1350 to have that extra $1,000 each year. And it takes 10 minutes a week once you get it down.

7. Pay off expensive debt first. A second mortgage runs at about 4.5% interest. That’s cheap money. On the other hand, your overdue credit card payment just bumped your rate up to 29%. That’s very expensive money. Check the rates you pay on all debt and work on the most expensive debt first to make the biggest impact on your finances.

8. Start saving. The first check you write when you pay the bills should be to yourself. Forget the phone. Forget the electric. Pay yourself first, even if it’s just a few dollars a week.

Put this money in a money market account. Your objective? Try to build up six months of living expenses – in cash! That’s money that’ll get you through a layoff without total panic setting in.

9. Keep your Rolodex up to date. Contacts are your best resource in the event you do get laid off or the business closes. Stay in touch with sub-contractors, vendors and other business associates and always keep your eye out for a better, more secure opportunity. The grapevine always has the latest industry news.

10. Supplement your income. Take a part-time job on week-ends. Work from home if you have a saleable skill or can consult. Heck, take a paper route. It’ll cover some of your current expenses and will fill in the gaps in the event of a lay-off.

The key to recession-proofing yourself and your family, your home and your lifestyle, is all in preparation. Start today, even if your job is secure and you’ve got money stashed under the mattress.

Because today the sun may shine. Tomorrow it may rain. Get your umbrella today.

You can contact Sandra at tateworks.com for more information on keep that job in tough times.

Business Consultant and Mastermind, Michael Harrison

We welcome, once again, Australian business development consultant and mastermind, Michael Harrison, from Strategies.com.au.  In this post, Michael examines the role of business leadership in this difficult economic climate.

Leadership must begin at the top.

Whether you own a five-employee business or oversee the world’s most dynamic economy, leadership must come from the top. We’ve seen little in the way of leadership by any nation or national agency in years.

Decisive leadership instills confidence in the direction the business or markets grow. The lack of confidence we see today is the direct result of a complete lack of leadership from any sector of the global economy. The Russians bought Iceland!

Leadership must listen.
There have been numerous reports, some dating back to 2000, that indicate a collapse like the one we’re experiencing now. Lenders were loaning money at a 40:1 ratio of actual lending capital. The whole house of cards was long “studied,” but apparently those who control credit rates didn’t listen to the warnings.

Clearly they thought the bubble we’ve all been living on for the past eight years would last forever. No bubble ever does and the fact is, we’ve all been living on credit since the start of the new millennium at a 40:1 loan to book ratio.

At the company level, good leaders listen without fear. There’s no ego involved. No pre-conceived bias. An open mind is the leader’s most valuable asset.

Peter Lynch of Fidelity’s Magellan Fund used to ask his teen-age daughter and her friends what they were buying. Smart guy. He took advice from teen-agers and made a lot of people a lot of money when he was at the helm of the Magellan Fund. Good leaders listen to good advice – from anyone.

Leadership fosters contestability.
If it isn’t right it isn’t right. But, will your C-level managers tell you it isn’t right? As the company leader do you encourage truth in the face of authority?

Whether we’re talking about the U.S. Federal Reserve or a small, service provider, good leadership looks for sensible pushback supported by good data.

Contestability also contributes to innovation. Example? A newly-hired administrative assistant notes that client data is entered three separate times and offers a plan that requires the data to be entered once. By “bucking the system” and contesting existing administration procedures, that AA should get a raise.

Leadership facilitates.
When I counsel new company managers I recommend an office meeting of introductions followed by the new CEO’s leadership style – a style based on facilitating company processes and meeting company needs.

“I’m not here to tell you how to do your jobs or look over your shoulder to see if you’re doing it right. I’m here to help you do your jobs better in any way. So, in that sense, I’m at your disposal.”

This tears down walls and encourages interaction between all level of employees.

Over the past few years we’ve seen little in the way of economic leadership despite the attempts of some lone wolves crying in the economic darkness. And so, we see the U.S. taking a stake in failing companies and quasi-government institutions. I think that’s called socialism.

Without effective, open and transparent leadership – at all levels – the economies of the world will stagnate.

And so will the growth of your business. Lesson learned.

For additional information, please contact Michael at strategies.com.au

Mastermind Host John M. Adams III on the mend and musing

While Host of the Masterminds’ Round Table continues his recovery from recent knee surgery, he’s had lots of time to think and learn a valuable lesson or three while surfing blogs and websites in his spare time – which is ALL the time ’til he’s back running triathlons.

So what did John come up with in between sessions with Atilla the physical therapist?

Success: It’s Inside You

I’m still recovering from that danged knee replacement, but the down time has given me the opportunity to surf a lot of web logs on personal growth. I’ve also spent time on personal blogs of artists, writers, political hacks and people who are just plain loony.

But I did a little research based on the diversity of blogs I saw – diversity of language, culture, topicality, quality – you name it, there are good blogs, and really awful blogs.

The point, however, isn’t the quality; it’s the quantity of blogs. There are 120 million of these little pixel homesteads where the owner can write, say and post anything s/he wants for all the world to see. Of course, with 120 million blogs, the likelihood of getting seen – at least by lots of readers, is remote. Still, thousands of everyday people create their own on-line space everyday. Why?

We Want to Be Heard
Even if it’s by a dozen readers who stop by now and than to enjoy your rants about the advantages of tin foil hats in keeping alien brain probes from causing migraines. You want to write it, you can and people do. Blogs provide an outlet for creativity – even if it involves tin foil hats.

We Want to Be Known
Andy Warhol’s “15-minutes of fame” for each individual has become a reality. A post to You Tube can go viral and spread like a cold in my office. Everybody knows about it in 15 minutes. Hey, whatever happened to the Obama Girl? Tick-tock, tick-tock.

We Want to be Successful
That’s right. The desire to be successful is within each of us to one degree or another. I saw this in many of the tender blogs written from the heart, and artists’ blog on which photographers and other artists posted their creations like mom posted them on the refrigerator door.

“Look what I did!” “Look at my words.” “Hear my thoughts.” “Hey, Dad, watch me dive!”

It’s all there. And each of these 120 million bloggers is looking for some degree of success. Maybe it’s the number of hits the blog gets. Maybe it’s the blog community that develops – like-minded folks sharing their ideas and opinions. It’s a great way to “belong,” a basic human need satisfied by a blog community.

But sitting here, knee elevated and laptop in place, I see dreams of success in every corner of the web. Websites started on allowance money and big dreams. Small local sites that tell community members how to get to “Maude’s Yarn Shop and don’t forget, lessons every Thursday at 7:00 PM..” In each case, that site owner has dreams of success and it does my spirit good to see so many of us seeking success on our own terms.

So what’s on your mind? Got any dreams you’d like to fulfill? So do 120 million other men and women.

Better get started. You’ll enjoy the journey.

Investment Mastermind Tim Schewe

Cautious investors go with what they know. That’s why they often select blue chip stocks for their portfolios. Blue chips are high-end companies with loads of traction and lots of coverage by the financial media. Everybody’s heard of Microsoft, IBM, Proctor & Gamble – household names that are heavily traded every day.

And this is a good thing. Blue chips add ballast to any portfolio. They tend to hold their value in times when markets are making the proverbial “flight to quality” – with investors closing their positions in lesser-known stocks and moving capital into blue chips, or “quality” as the prognosticators like to call it.

Holding blue chips does add stability to your basket of stocks, but if you’ve put all of your assets in blue chips, well, you’re not going to see the major upturns made by mid-tier companies when the market rebounds – and historically, the market has always rebounded.

The Standard and Poor’s (S&P) 500 Index is a collection of well-known companies from across all industry sectors – from heavy-equipment manufacturers to bio-tech companies. The companies in this index are tracked by sophisticated computer software (computer trading) that detects signals of movement up or down. And a computer-generated buy or sell order can send the entire market in one direction or the other.

But S&P maintains other indices. One of the most important is the S&P Mid-Cap 400. Though the companies that comprise this index are lesser known, under most market conditions this is where you want to put some serious capital. The key is in detecting movements in share price before the rest of the market does. Impossible? Hardly. There are a lot of wealthy investors out there who never owned a single share of Berkshire-Hathaway (with apologies to Warren Buffet). These investors made their money investing in mid-caps.

Don’t Forget Mid-Caps
Not all blue chips stay that way. There was a time, not too long ago, when Ford Motors was considered a blue chip. Today, it closed at $3.00 a share, down 2.6% on the day. The cachet of success has long disappeared from this one-time, must-have stock.

Same with GM, once the bluest of the blue chips. “What’s good for GM is good for the country.” That used to be the street’s mantra. Not anymore.

Toyota has become the largest auto manufacturer and GM’s charts look like a ping pong ball with ‘roid rage. Price swings this year have ranged from $29.50 up to $38 and back down to close the day at $36.11, down 1.61% on the day. Not exactly the conservative growth model preferred by many self-directed investors.

In other words, blue chips just ain’t what they used to be. And what was once blue may find itself in the red very shortly.

In addition, because these major corporations are tracked and analyzed by every brokerage and trading platform, it’s unlikely that you’re going to detect a blue chip breakout before the pros do. In fact, by the time you, the individual investor, hear about the next big upside move, it’s already old news on the street and factored into current share price, up or down.

So, the involved investor (if you’re not, you should be; it’s your money) looks elsewhere for significant growth opportunities. Many turn to the mid-cap market for lots of good reasons.

Ever hear of Guess (NYSE: GES), the apparel manufacturer? It saw a jump of 104% in ’06, leading the S&P Mid-Cap 400. Other top performers? Cytyc (NASDAQ: CYTC) was up 78%. Martin Marietta (NYSE: MLM) up 66%. BorgWarner (NYSE: BWA) up a very nice 86.41%.

These are not fly-by-night, high risk investments. These are well-established companies. They have a history that can be tracked and analyzed for buy and sell signals. These are companies with high share volume each day, indicating consistent market interest and good liquidity for you, the self-directed investor.

Though on the radar of every investment company globally, these and other mid-caps don’t receive the media attention of Coke and Intel. However, the markets track these companies carefully. You just have to know what signals they use to move them to a buy or sell decision. If you can discern these trip wires early, you can earn a lot more than you’ll ever earn putting the bulk of your portfolio in blue chips. Here’s why. It’s all in the math.

Randomly selected McDonalds – a consumable goods company in thousands of portfolios. Everybody knows Mickey D. Well, today it closed at $56.01, up 2.83% on the day. Not a bad day at all.

But, let’s compare MCD against the performance of mid-cap BorgWarner. BWA showed an 86% annual gain in year ’06. For McDonalds to match that performance, it would have to go to $104.23 and we all know that’s not going to happen in the next 12 months. It’s in the percentages.

When working with smaller numbers, a smaller percentage move will have a greater impact. If a $10 stock increases 10%, you’ve made $1.00 per share. If a $60 stock increases 10%, you’re only up $0.60 per share.

Mid-Cap Investing Made Understandable
It comes down to the well-known risk versus reward equation. The higher the risk, the higher the chances of losing money. However, if the higher-risk investment pays off as you anticipate, you make more.

Mid-caps, at least psychologically, carry with them the perception of higher risk than say, the list of 500 companies that comprise the S&P 500 Index. It’s a perception common among self-directed investors and many stock analysts. And yes, investing heavily in mid-caps does carry some increase in risk, but the rewards far outweigh the slight additional risk associated with investing in well-known, established companies like BorgWarner and Martin-Marietta.

There are investors who have developed trading models – sets of circumstance by which they measure and assess the potential for a stock buy or sell. Most are highly-risky, jet-fuelled programs that function globally.

Yet, today, to be a truly successful, professional investor it’s almost a requirement that you specialize in a particular industry or market sector. Even with the most sophisticated trading software, there’s just too much information. So professional investors develop their own trading models, based on predetermined criteria and specific to one arena.

Some choose to focus on a particular market segment – oil and gas juniors, for example. Some focus on a specific region or investment vehicle – French leaseback bonds, maybe. Other self-directed investors prefer to track market segments: there are blue-chip traders, mid-cap investors, penny stock gamblers, ETF junkies, bond brokers and so on.

Here’s the bottom line: Mid-caps tip the scales of risk versus reward in favor of the small buyer, delivering significantly bigger percentage annual returns than blue chips without the need to take on a lot of additional risk – something you would do if you decided penny stocks are the way to go. (They’re not.)

Good companies, with long-established histories, regular, reliable earnings and comfortable capitalizations. A portfolio of well-chosen, well-tracked mid-caps can outperform blue chips, value and growth mutuals, penny stocks, sector funds – you name it. These are quality companies that grow faster than the economy – and certainly faster than the 9.5% the NYSE has averaged over the past five years.

Do Your Homework
Blue chips do add ballast to a well mixed portfolio, so some portion of your assets should be in these premium quality stocks. But the real money is being made in the mid-, small- and micro-cap markets where 50% moves in a single day aren’t unusual.

Never invest without performing due diligence. Look for company reports from analysts and read the company prospectus – even the fine print.

Look for trends in volume and per share price. A stock that’s rising in share price with more shares selling everyday is one to watch, yes? You bet it is.

Move on market trends and the trend lines of quality mid-caps.

Keep liquid so you can move in at the best time.

Know when to sell. This is perhaps the hardest lesson to learn. Some sell way too early and some hang on as share price nose dives. (It’ll come back. You’ll see.)

Stay diversified. Let your quality blue chips keep the ship afloat. But add a little octane to that outboard’s engine by developing a portfolio of quality mid-caps. Great upside potential with little additional risk.

Sandra B. Tate, Mastermind and Success Coach

The Masterminds’ Round Table welcomes its newest member, Sandra B. Tate – a New York-based success coach with a strong emphasis on career enhancement. Sandra’s company, Tateworks, prepares individuals to move ahead in their careers while helping business owners to run their companies with greater efficiency and improved margins.

You can reach Sandra for an analysis of your pathway to a more satisfying and successful professional life at tateworks.com. We know she’ll be a welcome addition to our growing collection of Masterminds in specialized fields.

                                                                                      - Editor

Hey, you got that call-back you’ve been waiting for. HR wants an interview based on your stunning resume. Your one step closer to getting that job.

Of course, no one gets hired on a resume alone. It’s the interview that closes the deal and shows a potential employer that you’re the perfect fit. So, what can you do to nail that interview and nail down a new job? Take a look.

1. Use the web. Even small companies have web sites today so visit the business web site. What do they make or sell? How does your experience make you the perfect candidate? Learn all you can about the company.

This does two things: (1) it prepares you for the “out-of-left-field” question from the interviewer, a common tactic to see how you think on your feet and, (2) it shows you’re ambitious. You did your homework! You get a gold star!

2. Conduct a web search. Google the company name and the names of company principals. Who knows, maybe you went to the same school as the CEO! Couldn’t hurt.

3. Use your network. If you’ve been in “the biz” for a while, chances are you know someone who knows someone who knows something about this company. Make a few calls to learn the inside story – the story that doesn’t appear on the web.

4. Rehearse. Prepare a list of questions you expect to be asked:

• How can you help our company?

• What was your biggest accomplishment at your last job?

• How would you handle network down time?

• Who are your personal heroes?

A good interviewer works from a script of questions so s/he can compare apples to apples when reviewing interview results. So, practice your answers. Say them out loud in front of a mirror until you have your patter down pat.

5. Dress for success. Even if the interview is scheduled for casual Friday, wear your finest. Look the part. And carry an attaché – even if you have to borrow one.

6. Don’t wear cologne, perfume or after-shave. Something as simple as this can sabotage an otherwise great interview.

7. Drive by the office. By familiarizing yourself with the route, parking, the look and feel of the place, you eliminate some of the unknowns that often create interview stress.

Whoa! Be on your toes for this interviewer.

8. View an interview as a give and take. It’s not you being interrogated under the glare of the spotlight. A good interview involves give and take so prepare a list of questions about job responsibilities, chances for advancement and so on. Do not ask what the job pays! You’ll find out soon enough.

9. Be attentive, but relaxed. Don’t slouch but don’t be a robot, either. Make eye contact and call the interviewer by name – the name used during introductions. If the interviewer is introduced as Ms. Smith, call her Ms. Smith. If he introduces himself as Bob Smith, Bob is cool.

10. Follow up with a thank you. You want to stand out and for all you know, that interviewer saw 20 people that day. A simple, hand-written thank you jogs the interviewer’s memory – especially if your note references something that took place during your chat.

It comes down to this: good preparation creates confidence in everything you do. So, prepare yourself to give the interview of a lifetime.

Then WOW ‘em.

In a recent post, Host of the Masterminds’ Round Table, John M. Adams III explained the importance of striking a balance between work and life. In response, SEO Mastermind, Paul Lalley, Webwordslinger, sent us another point of view.
                                                                                                                                                                         – Editor

SEO Mastermind Paul Lalley

I read John’s post of February 9, 2009 with great interest. The subject? Finding balance in one’s life between work and play. And while I respect John and his insightful opinions, I feel that his position on work-life balance is somewhat skewed.

What’s Work and What’s Life?
In his post, John suggests that working smart frees up more time to do other things – enjoy the family, relax, recreate or refresh. Further, my esteemed fellow member of The Round Table puts forth a compelling argument that to have “it all,” sacrifices must be made, either in the workplace or in one’s personal life.

I must respectfully disagree with our host. The concept of work-life balance has been around since the early ‘70s when Baby Boomers were moving in to the work place for the first time. This generation, of which I am a member, believed that money wasn’t everything and that instilling values in our families would produce a generation of independent thinking men and women.

Unfortunately, this “Latchkey Generation” didn’t grow into responsibility. Instead, what I see in the work place among Gen-Xers, is a misplaced sense of entitlement – the belief that the good life is available to all, regardless of talent, dedication and sacrifice.

Frankly, many people don’t want to strike that perfect 50-50 balance implied in John’s post. For these people (and again, I’m one of them), work is actually more satisfying, enjoyable and just plain fun than the vicissitudes of daily life. I’d much rather work at my computer, alone, than mow the lawn – alone.

Balance Is Determined By the Individual
I work 60 hours a week, 52 weeks a year. I work on Christmas. I haven’t had a vacation since 1999. I do this, not because I have to. I work as much as I do because I love it. It’s my passion, so while one billion TV viewers around the world watched this year’s Super Bowl, I was writing at my computer. And you know something, John? I didn’t miss a thing.

My point is simply this – balance in one’s life is an individual choice. There are workaholics, family men and soccer moms, and parents who sacrifice their time and earning power to home school their children.

There are those who seek spirituality by attending a church, synagogue, temple or some other house of worship. Others of us find spirituality in other ways. Some by doing the best job they can for themselves. Of course, customers and clients derive the benefits of this ambition and drive – and that’s what creates business success.

So, what is a balanced life for one is a life out of whack for someone else. And while I agree with John on many of his points, the one point that was left out of his post is this.

You determine what is and is not a balanced life. Your drives and emotional needs will automatically pull you in one direction or another creating balance. It’s important for the individual to consider the feelings of family members to make sure they’re on board with the plan.

Finally, I am by no means recommending that we all become workaholics. On the contrary, there are some people who want the most for the least so they can enjoy the intangibles that “higher” life’s quality delivers. And to these successful men and women, I tip my hat.

It’s up to you to decide what constitutes balance in your life. It’s not necessarily a 50-50 split as John implies. However, we could all take off a day or two now and then.

Hey, maybe I’ll go see a movie this weekend.

Thanks, John.

Paul Lalley
editor@webwordslinger.com