Mansa Musa Mentality - Building Your Investment Empire

This year I wanted to get back to the basics as I continue on my journey of independently building my investment empire. Back in college, I recall managers coming in from the Toyota car company and telling us how they came up with the concept for the brand, Lexus. Quite simply, they decided to take the best ideas from all the top car companies. I remember it like it was yesterday: German (engineering), Japanese (manufacturing + quality), American (design) produces luxury at a more affordable price. That stuck with me in a major way and I incorporated that into my life.

Mamba Mentality - For the things, I dedicate my life to I try to have a work ethic like Kobe Bryant or Michael Jordan, that Mamba Mentality that I am here to compete and win. I would argue I've received awards and recognition in athletics, academics, and for my execution in the corporate world. Feel free to ask anyone, I've worked with - they will say I'm tough, very competitive, but fair.

Lexus Mentality - For things that I am passionate about but cannot dedicate myself to that craft, I do spend a considerable amount of time learning about that subject but I also borrow or have on speed dial people that know more than me on those topics.

This duality helps me grow my empire which gets stronger as I build my "Network" of friends, colleagues, subject matter experts, confidants, and even detractors. These are people I can call, email, or text at the drop of a dime to help me make an informed decision. The area I'm most proud of is my network extends to virtual experts and confidants that I've catalogued over time. People I've come to trust after listening, reading, or researching their work. Here are a few:

Real Estate (Diana Olick, Sam Zell*, Jonathan Gray*); 

Economics (Mark Zandi, Jason Furman, Fed Governors); 

Healthcare (Dr. Scott Gottlieb);

Technology / Stock Investments (Kara Swisher, John Fortt) (Katie Stockton, Larry Fink*, Mohamed El-Erian, Bill Miller);  African-American Investors (Jay Z*, John Rogers of Ariel Funds, Robert F. Smith* of Vista Capital, Daymond John, Rick Ross, LeBron James, Dr. Dre, Junior Bridgeman, Shaq O'Neal); 

#A-Billi Squad: Warren Buffett*, Chamath Palihapitiya*, Seth Klarman*, Paul Singer*, Bill Ackman*, Carl Icahn*, Mario Gabelli*, Tilman Fertitti*, David Tepper*, Dan Loeb*, David Einhorn*, Ron Baron*, John Paulson*,

*represents my billionaire buddies

Funny thing is this was off the dome (in my head) and most listed here helped shape my thinking or we've made money together. When I combine all these concepts or mentalities into one you get the Mansa Musa Mentality. Arguably the richest person in history, Mansa Musa, ruled over a large empire and put cities like Timbuktu on the map as they were known for their cities and libraries.

In my upcoming posts, I'll be writing about #MansaMusaMentality and how I use my extended network to invest. Almost like case studies, I'll highlight how these contacts guide me on investments such as buying real estate, stocks, precious metals, cryptocurrencies, etc. And I want to foster a community culture, so I'll show you how I learn from them and maybe in the future we can crowdsource or here we call it #tribesource investment ideas for the future.

"Detail" - A Breakdown of my Burlington Northern Santa Fe (BNI) Investment

Year: 2007

Throwback Link: 2007 BNI Investment

I first wrote about BNI on August 15, 2007. This stock makes the #MansaHallofFame because I used my network, in particular Warren Buffett, to find this investment. Warren (part of #ABilliSquad) began making large purchases of the railroad company. I did some research on the company, the products they haul, and whether the stock was selling at a discount to it's long-term value. But it was my long-term relationship with Warren that helped me cement my decision. I knew that he often liked to own companies in entirety. So when he bought more, I repeatedly purchased this stock in large blocks. Don't believe me, click the link - in 2007 I called it my Juvenile "Back That Thang Up" trade. It's not uncommon that investors rally around similar stocks or ideas, so on occasions I join them: #HuntinPacks

Outcome: 

Ironically, because I have a 9-5 job I have never paid to much attention to the comments section. Well 13+ years later, I found this comment on the link I provided in above. The reader complimented my depth of knowledge and inquired whether I thought Warren would takeover OR buy the entire company. As mentioned above, I have researched and studied so many books on Mr. Buffett that I did in fact believe he would eventually buy the company out and I'm disappointed I never had a chance to share that with the reader. But he got his answer just two years after that post:

Warren Buffett made biggest purchase of career; buys Burlington Northern Santa Fe Corp for $26.3 Billion; Warren's company Berkshire agreed to purchase the railroad for $100 a share

Excerpts from Wall Street Journal (Nov. 4, 2009)

And I made roughly $20-25 for every share I owned:

Block Purchases:

08/15/2007  09:41:05 Bought *** BNI @ 79

08/16/2007  12:08:56 Bought *** BNI @ 76

01/22/2008  08:00:13 Bought *** BNI @ 75.61

Sale (due to Berkshire buying my shares):

02/17/2010  15:40:03 Sold *** BNI @ 100

Guess How I Found Out: 

A reader texted me at work and said "I bet you are having a great day". I responded, what in the world are you talking about...and he shared the great news. And this is not just any reader, this is an amazing friend and my mortgage broker, who I've kept in my network and stayed in touch with since my college days. I've purchased and refinanced all of my properties with him and consider him a confidant. Long Live The Empire

#MansaMusaHOF   - designates this stock pick was retired in my Hall of Fame

#ABilliSquad -  Billionaire investors from the Wall Street community that make up my squad. Ya Dig

#HuntinPacks - designates investments I made alongside someone in my network

#MansaMusaMentality

Higher -- Investing, Learning, Purpose

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

Higher

I am writing this post with a heavy heart but also with a continued sense of purpose.  The last few days and weeks have been filled with stories of growing concerns for the coronavirus, the tragic death of basketball legend Kobe Bryant, his daughter, and 7 others in a helicopter crash, and the many tributes at this year's Grammys Award for those we have recently lost -- including Prince and the young brotha Nipsey Hussle.

If there has ever been any doubt as to why I write this blog I hope to clearly shine a light on that today.  My mission is to be free, have optionality, and create long lasting memories of my family, friends, and community that will be cherished for a life time.  With a laser focused work ethic like the legendary Kobe Bryant, I believe this is achievable by building a strong core.  A core built on pillars that will provide you and your future generations a feeling of social awareness and economic security.

After losing my remarkable father in 2019, I still wake up everyday with a continued sense of purpose of not letting his hard work go in vain.  How can I slack off when I have a Spiritual belief that we were put here for a reason (first pillar). If I told you of the obstacles my parents had to overcome just make it to America from Africa you would understand where my determination comes from. I think Nipsey Hussle said it best in 'Higher': "Pops turned 75, he proud what we done; In one generation he came from Africa young" (I changed the age from 60 to 75 in this lyric b/c we almost lost my father when he @ 74 when doctors told us to say goodbye -- but how grand his recovery was and magical seeing him celebrate his 75th)

He and my mom's instilled in us a Kobe Bryant like work ethic when it came to being Mentally strong, my second pillar. Kobe was the ultimate competitor -- he was often described as having ice in his veins.  I was mesmerized by Kobe because I had seen that look before...in my father when it came to education. Occasionally sharing experiences of being discriminated against (even after receiving his PhD magna cum laude, and being questioned in interviews as to how he did he do that; or being told a foreigner would never be a tenured professor), he told us the great equalizer in life is your mind. So it was no shock that one year, I received all 'A's' and stumbled with 1 'B' and I was punished more than my siblings who had NOT even met that mark.  It was a less than gentle reminder that we can't waste the moment, the opportunity to go higher..  John Legend from Higher: "Oh, Lord Can you feel it?  My shoes are scrapin' the sky   I'm so high  We keep goin' higher" 

A strong physical core (3rd Pillar) is always a part of the competitive formula for taking your game higher. Besides the insurmountable chores we were given as kids, my father always found time for us to play and enjoy. The sprints in the yard, the dedication to build a basketball goal in the back yard, and the countless sporting events he drove me to was admirable considering I was a 3 sport athlete in my large high school (HS). In one fail swoop, my father taught me real strength and a need for balance when he took on my legendary HS basketball coach.  No one ever questioned the man who was recently inducted in the HS basketball Hall of Fame and has our HS gymnasium already named after him...and he's still alive. However, my African father did that one summer day.  Being a 3 sport athlete, I am constantly practicing and playing all year. Then in the summer, we were not so SUBTLY reminded of the importance of participating in the optional summer basketball league (where they tracked attendance).  I had never been so afraid in my life when my dad went up to the school and told my soon to be Hall of Fame coach, that his African son had reached 14 and had to have a job.  To me it was like watching David take on Goliath, but for the first time at a young age I saw a person of color showing me a path of optionality.  When your mind is free and strong, you don't buy into the mindset that sports is your only ticket in life. My father was reminding me of the need for balance and that I had responsibilities to my mission...my family and my future.  Strangely after that summer, I didn't experience a drop off (like one would expect)...I went to summer basketball when I could fit it in after work, I still outworked everyone by doing drills at home, and the next summer guess what: my coach offered me a summer job, imagine that he helped me reach my goals and his. Not only was I empowered with options in my life but I was stronger physically:

• Graduated HS Male Athlete of the Year
• Football All-State (Academic)
• 3 Sport Athlete (Football, Basketball, Baseball)
• Recruited to play at the college ranks
• Honor Roll + National Honor Society

Finally, my fourth pillar is Financial. If you're not living in a bubble, we live in a capitalist society. I watched my parents struggle but scrape together the basic building blocks to provide a better life for themselves and their kids. By living within their means, they were able to pay off a very small home (3 bedroom, 1 bath home accommodating 6 people) by working multiple jobs.  They ushered 4 kids off to college and assisted immediate family who relocated from Africa. How does this make the financial pillar? By living within their means and focusing on education, they had 4 kids who paid all that hard work forward. We assisted my parents financially which allowed my mother to retire early, my parent to fix our small home (when needed), and to work a little less harder in their golden years. My future path to economic security is slightly different. Like Kobe, I've been taught to compete at the highest level and diversify my future so I'm less reliant on one boss, one company, or one downturn deciding my fate.  61% of Americans said they don't have $1000 dollars to cover an emergency situation. I am saddened by this stat.

This blog is a road map if you're believe in a path of social awareness and economic security. But please come with your mamba mentality! If my father could achieve a PhD, why should we stop learning. Currently I have a Bachelor's degree and two industry accredited certifications in my field which are like master's degrees because they require extensive testing and re-certifications (studying for my 3rd).  If my heroes can learn the stock market and write books, I can at least pick them up and read. Since I was 18, I made it a personal mission to learn the stock market (it looked important) and understand how to invest my income so that it could become Capital for me. Many of the people I know don't have any capital or investments that make them income outside of their core job. My mission is to ensure we are on a path that doesn't rely on a boss, a company, or a government to give us our freedom, our optionality, or determine when we can have time off to make memorable moments. Hopefully you agree and you keep reaching HIGHER...but don't you know that the devil is a liar  (Thanks to DJ Khaled, John Legend...and Rest In Peace Nipsey Hussle)

Rest in Peace Kobe Bryant

Do you have hops? - Price Hops

I am sitting back, watching a basketball game and I would never ask Kobe Bryant this question..."Hey man you got hops?" Because he and anyone within 100 feet would probably come running up to me, smack me, and then ask why the hell I would ask a dumb question like that. Of course Kobe has hops, he can jump out of the gym!

Well that is not the only thing that has hops lately. For example, most of the things people buy on a daily basis have experienced a term I call "Price Hops". That means that the price has been skyrocketing, off the chain, through the roof, or flat out way too expensive. Take a few basic staples - cheese, milk, eggs, bread, and gas and you tell me that when you go shopping or driving that the you are pulling out more cash. I call it "Price Hops", but you might here the market call it INFLATION.

This definition was provided by Investorwords.com:

Inflation - The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Urbanomics Constant Reminder: Don’t dismiss the facts that are in front of you (trust yourself)

I came up with a term called "Price Hops" and its no wonder that the price of the things that you are buying on a regular basic are costing you more. Inflation is on the rise and market is taking notice by watching the Producer Price Index. And even if you take food and gas out of the measurement, the index would still rise.

Some of the factors affecting inflation:

The price of oil keeps rising - Upcoming inventory data and weather are big factors

The demand of steel, copper, wheat (commodities) is rising (Wheat is at an time high)

The prices of things America imports are up roughly 13% (highest levels since the 80s)


How to profit during a tough economic period (follow the industry buzz):

Buy Large Cap companies, especially Multinational Companies
Buy the Commodities that keep rising - precious metals, mining, wheat, oil
Buy the Equipment Maker of agriculture and oil refiners
Buy the stuff people buzz about even in tough times

I know you want names:
- AK Steel (NYSE: AKS) - great play on the rise in steel
- Celanese (NYSE: CE) - roughly 2/3 of sales come from outside of US
- Use Exchange Traded Funds (ETFs) - JJN, USO, GAZ (examples of funds for nickel, gas, oil, gold, steel)
- Buzz items - No matter how tough the economy is people can't do with those darn flat tv's, dvd's and entertainment programs; I picked up on Zacks.com momentum picks...and for two days in a row they recommended Liquid Crystal Display providers:
AU Optronics (AUO)
Corning (GLW)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
URB UPDATE: The beauty of DOLLAR COST AVERAGING pays off and Avid Technology (recent rise allowed me to recoup all of my loss and I sold my entire position to break even. (More to come on how we turned a bad stock into one that didn't hurt us)
Disclsoure: I sold AVID