Wednesday, October 31, 2007

Due Diligence

As mentioned yesterday, due diligence is the process of investigating and analyzing a possible investment or business with the goal to determine the proper risk versus reward scenarios. The more and credible the information is, the better the risk can be understood. Most people don't understand where or how to conduct this process or where to get the information.

Also, the source of the information is also key. You may have to discredit some information due to the fact that they may have a financial interest in the decision you make. It is always preferred if you can obtain independent information from multiple sources to assist in your decision.

The very first place to start is with the management or people making the ultimate decisions. What experience do they have in the industry? What is their track record? How long have they in their current and past positions? Do they have experience bringing a company public, or saving a drowning company, or launching new innovative products, etc? Whatever the situation is, the more information around those sets of facts is where to start. Next, check up on the key people around the decision makers. Do they have experience and the resources needed to carry out their defined roles. The bottom line, there are great ideas born everyday, but it takes so much more than great ideas to create wealth. The people involved will determine the success or failure of the endeavor.

There will be more on due diligence in future posts.

The discerning heart seeks knowledge,
but the mouth of a fool feeds on folly. Proverbs 15:14


Tuesday, October 30, 2007

Risk

Risk is another reason people do not act on their dreams. Wikipedia describes risk as a concept that denotes a potential negative impact to an asset or some characteristic of value that may arise from some present process or future event. Risk is the possibility of an event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of impact and likelihood.

This is what stops people in their tracks. They look at the possibilities and only see the challenges. They quickly determine that it is safer to remain where they are at. This is their comfort zone. The longer they stay there the more it becomes a "rut". The only difference between a rut and the grave is the depth.

The positive side of risk is the rewards. What are the possible gains? Is it worth the time, effort, resources in exchange for the rewards? Everything ultimately is an exchange of some kind. Time for relationships, money for return on investment (ROI), good deeds for satisfaction or fulfillment, effort for completion of task, belief for commitment, etc. Is the endeavor worth the result?

Risk assessment is a vital component to building wealth. Not all investments are worth the resources expended to achieve the result. The process to determine this is called due diligence. The more that is learned about the key components of the endeavor, investment, management, etc., the more clear the risk is defined to determine the worthiness. Many do not know where to start to obtain this information, so they automatically determine it is too risky. These are obstacles and limitations that prevent people from building wealth and achieving their dreams.

There is much more on this topic and it will be covered in future posts.

We want each of you to show this same diligence to the very end, in order to make your hope sure. We do not want you to become lazy, but to imitate those who through faith and patience inherit what has been promised. Hebrews 6:11,12

P.S. If anyone is looking to contact me, the email link in the profile will not work. Microsoft Outlook will not send any emails to non standard addresses such as panama-vo.com. You must type in the address from inside your email provider.

Monday, October 29, 2007

What is your AQ?

Everyone is familiar with IQ, or intelligence quotient. IQ is an attempt to measure intelligence; however, it does not have much correlation to building wealth or success. For example, Bill Gates is a college dropout. I was at a conference this weekend where I heard the term AQ, or attitude quotient. I've also heard that "attitude controls your altitude". AQ is a much better indicator for determining success in whatever area of life. There are many synonyms and related term for this. Positive thinking, affirmations, neuro-linguistic programming, and others. But even more important word is behavior. Having positive thoughts is a start, but putting thoughts into action is the key step. "Actions speak louder than words". Another very popular sentiment is "Help others get what they want, and you'll get what you want".

Who is wise and understanding among you? Let him show it by his good life, by deeds done in the humility that comes from wisdom. James 3:13


Last week I mentioned that I would get into some particulars with information few people have. I am not psychic or clairvoyant, but I do pay attention to signs. Last week, the spot price of gold hit $785 per ounce, silver rose about $14.30, the US dollar index plunged to an all time low of 77 and dropping (since going off the Bretton Woods system in 1973 where the rating was 100), the current sub-prime loan debacle, etc. Oil hit $91 per barrel last week. The interrelated signs all point to the decline and possible crash of the US economy. We have had times of recession before, but not like this. We have not seen concurrent signs like this for over 75 years!

I'm not trying to alarm anyone, I'm trying to prepare. What can you do to protect yourself and survive the upcoming times? Eliminate debt as quickly as possible, buy assets that are rising in value (gold, silver, etc.), and educate yourself so you can recognize the signs. This will not happen overnight, but the danger of putting things off and ignoring the signs will lead you to a place you never thought possible. You wouldn't go on a vacation without a road map, don't go through life without one either!

More information is coming in future posts. Stay tuned ...

Friday, October 26, 2007

Balance

Another one of the biggest problems people face is achieving a proper balance among the many interests in their lives - from family, friends, job, spiritual, emotional, physical, financial, ... The list goes on. How does one decide on how much time gets allotted for each area? How important is each one?

What if you acquire wealth for many lifetimes, but lose your health and are not able to enjoy it? What if you have the ideal job that challenges you, pays very well, but you have little home life with your family? Is it worth it?

The simple answer is only you can decide what is the proper balance. These decisions can and will change as your priorities in your life changes. The important thing is to be aware of the important things and people in your life and how they are affected as you journey toward your dreams. Don't be consumed in any one area that other important areas suffers.

For where your treasure is, there your heart will be also. Matthew 6:21

But seek first his kingdom and his righteousness, and all these things will be given to you as well. Matthew 6:33



On a personal note, it's been an honor to share these thoughts with you this week. The coming weeks I will be getting into more personal experiences, information, and insights that I mentioned in the Inaugural post. I believe that I have information that few have, well beyond insights of personal and wealth development. I just wanted to lay the foundation of where my heart is - to help others achieve their goals and dreams in all areas of their lives.

I've set up an email account for you to communicate with me with specific questions and requests. It is DeltaInspire@panama-vo.com. Delta Inspire

Fear

Fear is one of the biggest limitations people face as they go toward their dreams. You might ask why would people fear what they are striving for. Well, there are two main variations of that. First, there is fear of failure. What will my family and friends think if I do this and it fails? What if they won't respect me? What if I lose all my money? What if I can't pay the mortgage? What if I lose my house? What if I lose my spouse?

Do you see how it spirals down to worse and worse things? That is what fear breeds - first doubt, then dread, then it steadily progresses until the worst possible thing imaginable is encountered. (F.E.A.R. - False Expectations Appearing Real) Naturally, when this happens, people stop in their tracks and don't even think of moving forward. Some turn and run the other way. Fight or flight. Many people choose the latter.

The second variation is fear of success. This is less common, but with the same results. It starts with "what if people treat me differently"? What if my family and friends are jealous? What if everyone is out to get what I've acquired? What if the wealth ruins who I am and destroys my family with self-indulgent desires? You don't want that. So you stop.

Many times these fears are self-conscious and you don't even realize they're there. You begin to sabotage your efforts. Things are not going well and you can't figure out why. The process continues until you ultimately give up and concede that it wasn't meant to work out.

This happens all the time. Yesterday, we discussed about breaking through those limitations and barriers. How does one break through fear? There is only one way, that is to face it. It's difficult and very uncomfortable. But as you do it, you begin to realize that it is not so bad. Then it gets easier. Then you learn you can do it. Then confidence develops. Soon you realize that you've conquered that fear. This is the process and it usually takes time, especially at the beginning. The more times you repeat the process with different fears, the easier and faster you go through it.

There are many times that you will be unsuccessful at first. This is where most people give up. Remember, there are a few subtle things that differentiate the successful and the unsuccessful. Successful people fight through those fears and other barriers. You can to, if you want to.

Humble yourselves, therefore, under God's mighty hand, that he may lift you up in due time. Cast all your anxiety on him because he cares for you. I Peter 5: 6,7

The Serenity Prayer
God, give us grace to accept with serenity the things that cannot be changed, courage to change the things that should be changed, and the wisdom to distinguish the one from the other. Reinhold Niebuhr

Thursday, October 25, 2007

Limitations

As you journey down the road toward wealth, there are always obstacles that appear. It can be family, friends, that pesky job (J.O.B. = Just Over Broke), shortage of funds, etc. All of these things have happened to the people who have already created wealth. What's the difference? The only difference is that the people who have created wealth never allow the obstacles and limitations to stop them. They find a way around, over, through the barriers so they can continue on their way toward their goals.

What is that secret ingredient? How do they come up with the solutions? One word, they think! They use their knowledge, their imagination, their friends' knowledge, business associates, libraries, any resource they can get their hands on to find a solution. Once they have the idea, they act. Sometimes the idea doesn't work. They persist, they continue on, until the problem is overcome.

Conversely, what do the rest of people do? They encounter an obstacle. They pause, they fret, they flounder, they wonder "why is this happening?", "why does this always happen to me?", "life is too hard!", and they give up. They settle. They conclude "it's not meant to be".

Which one are you? Are you using your mind to solve, or to frustrate? Are there resources you have not checked? Are there others who have encountered the problem and have conquered it? Look, listen, apply, act, learn. Repeat. Simple formula. When you really get down to it, life is simple, we always complicate things.

Do to others as you would have them do to you. Luke 6:31

Information is not knowledge without action.
Knowledge creates choices.
Choices allow us to change our lives.

Wednesday, October 24, 2007

The Next Step

Being content with what we have is admirable, and sharing with others is always rewarding. But what if you are struggling to make ends meet, looking for a way out of that job that you despise. You still have to put food on the table and pay the bills. Where does wealth fit in? How do you create it if you don't already have it?

Outside of the emotional and spiritual wealth that one can have without money, wealth creation is derived from one thing - leverage. Every wealthy person in the world will agree that wealth was created by the collective combination of resources within one's reach multiplied by the drive and desire of those working together for a common goal. There are many catch phrases out there to describe this - T.E.A.M. (Together Everyone Achieves More), collaboration, synergy, dedication, drive, and determination just to name a few. The key element is how effective the group or individual makes use of their time, money, intellect, skills, and abilities; and more importantly how well they combine those resources with those around them to achieve their continuing and common goal. You've heard the saying "success is a journey, not a destination." Excellence, success, and wealth are all derived using the same principles regardless of the field or business discussed. The applications of how that is achieved is varied only by the individuals implementing those principles.

Keep in mind that leverage does not mean using others for their talent, money, or resources. Any power derived that way will be temporary and usually destructive over time.

So if you are wondering why you have not achieved wealth in any area, monetarily, emotionally, spiritually, look around at those close to you. Ask yourself if you are working together toward a common goal. Are you using the talents God gave you? Are you using your mind to think of solutions rather than focusing on your problems?

Remember, God made man in His own image. Are you reflecting the image of God?

"Let us make man in our image, in our likeness, and let them rule over the fish of the sea and the birds of the air, over the livestock, over all the earth, and over all the creatures that move along the ground." Genesis 1:26

Tuesday, October 23, 2007

The Gift of Sharing

As discussed earlier, wealth can be many things. What we do with that wealth is what is important. Are we seeking just to create more and more, as the bumper sticker says "He who has the most toys, wins"? Is it just a game? How does that fit into the bigger picture? Or, does that matter?

From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked. Luke 12:48

It is more blessed to give than to receive. Acts 20:35

These passages remind us of the importance of philanthropy. If we can't give back to help others, what was the point? We can't take it with us. Not to mention the joy we can feel in the face of others as they show their gratitude. If you prefer the anonymous route, that doesn't diminish the gratefulness of the persons receiving the gift.

Make a difference, leave your mark in this life!

Monday, October 22, 2007

The Correlation

Is there a connection between wealth and the meaning of life? I think there is unlimited correlations. First of all, what is wealth? Webster's dictionary 1st definition of wealth is "abundance of valuable material possessions or resources". The 2nd definition of wealth is simply "abundant supply". This second definition could mean virtually anything of value including love, friendship, relationships, and family in addition to the typically accepted forms of material wealth.

So, what is your definition of wealth? What is most important in your life? Those same things give meaning to your life, so as you can see, there is a direct correlation between the two. What blessings give you joy and happiness in your life? Do you have an abundant supply? Would you like to increase those, or are you content with your blessings?

But godliness with contentment is great gain. I Timothy 6:6

This chapter in the Bible is known for its great warning - "For the love of money is the root of all evil". But it goes on to describe what the rich should do with their blessings: 18Command them to do good, to be rich in good deeds, and to be generous and willing to share. 19In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.

Acquiring wealth, even in the materialistic sense is not bad, it depends on what you intend to do with those gifts. If you are doing it for the benefit of others, as St. Paul points out in to Timothy, you are laying up treasure for themselves as a firm foundation that they may take hold of life that is truly life.

Does this provide a good definition for the meaning of life? I like it!

Saturday, October 20, 2007

Deja Vu

Many of you may be familiar with the movie "Deja Vu" starring Denzel Washington. For those of you who haven't seen it, Denzel is a police detective that for whatever reason has the ability to experience events more than once. In the case of life and death matters, he tries to prevent a horrendous explosion killing many. At one point in the movie, he asks a woman who is integral to the plot if he could tell her something that could save her life and he knew that she wouldn't believe him, if he should? Her reply was "I would try".

Another such example is in a book I read about 10 years ago called Replay by Ken Grimwood. It was a very profound book that affected me and I reread it just last month. In this book the main character, Jeff Winston, dies in the very beginning. A very usual way to start a book, but intriguing. This is a book that grabs you from the start. Upon his death, he awakes to a familiar but surreal surrounding of his college dorm room as a freshman. Despite remembering his death and preceding life, he begins to relive his life without anyone else aware of this supernatural event. How do you tell someone that you have 43 years of life experience when you are 18 years old? No one would believe you. Not your parents, friends, or even spouses. Not only do you have those personal experiences, but you have personal mental history of world events that have happened before they have happened. You are suddenly 25 years younger and reliving your life. Would you do the same things you did before? Would you avoid mistakes you made? Would you capitalize on your past knowledge that has not yet occurred? OK, say you take advantage of that knowledge and create vast amounts of wealth. You have a life that few could even imagine only to find out that you still die when you are 43 again. The process repeats. You awaken and are now 18 again. Why did you go through that? Did you really accomplish anything? Did living a life of luxury have any impact? Did you make a difference and is that important? You start again and this time focus on having the ultimate family life. You are successful with that endeavor and again take advantage financially, but not to attract attention. You have a child that becomes the center of your life, but you still die at 43 again. Now what? After pouring your life into your only child, and that child is gone, and you have to start all over again. Would you go through that again? No, it is too painful. You throw caution to the wind and relive a life of total indulgence, but are always careful to take care to provide enough wealth to do anything without attracting attention. As temporarily satisfying as that may be, you turn 43 and die again. Why is this happening? Who is playing with me? What is the meaning of this? This time, you become despondent and a recluse, but still make use of your knowledge of each lifetime to govern your new lease on life. You again take advantage financially, but not to attract attention. You're just another unusual person out there that has quirky traits and are quickly forgotten about. As your quietly living in seclusion, all of a sudden you notice something different. What could this mean?

I'm not going to spoil things if you decide to read the book. It is excellent. It is easily the most profound book I ever read outside of the Bible. It definitely gets you to think about your own life and ask what if you were in that position?

Well, I'm not reliving past lives, but I feel as though I am in a somewhat similar position. I feel that I have information that very few have that could really impact things - what will I do with it?

This is the start ...

Inaugural

Philosophers have been pondering and extemporizing on what the "meaning of life" is for centuries. Why are we here? What is our purpose? Whether you use the plural version or singular as you contemplate your position, the questions remain.

Religion has on many occasions attempted to answer those questions. You can argue either way that the answers are there.

What if you for whatever reason you had an insight on truly enlightening information on the topic that could potentially change the world, but knew that most would not believe you or do anything about it. Would you try to convey the message? Would you succumb to the will of the masses or would you push on? Would you risk personal injury, financial failure, face being ostracized, or even death if it meant a chance at changing the world? What would you do?

This is my pushing on ...