IMANI | FAITH - A Roadmap for The New Year

Happy New Year to you all. On the 7th and final day of Kwanzaa, I want to remind you that you gotta have faith -- I won't tell you what in...but in something. A deeply rooted belief that will serve as your guide or as your beacon. Because one thing I do know is life has its moments that will truly battle test you. Imani is special to me because this is the name of my 3 month old daughter. And the meaning of her name is rooted in one of my core pillars -- Spirituality. 

I was watching one of those morning shows and each year people are fed the same thing over and over. Get ready to make your list of resolutions or let's look back and see what I accomplished against last years list. I believe this exercise great for marketing, especially for gyms (Planet Fitness), exercise clothes and equipment (Peleton), and dating websites (Match) BUT it's mainly a waste of time. The first thing you learn in math, statistics which is recited in the financial stock market is: "Past Performance Does NOT Predict Future Results". So most of the short term goals that people make year to year are arbitrary IF they are not stitched together to support some type of higher plan or roadmap.  I wanted to pause and repeat this, setting goals are good. But you need a larger roadmap that says this is where I am today and this is where I want to be in 1, 3, 5, 7, 10 years. The interim, or short term goals, you set each year are good to write down but they should support this larger mission. This larger mission must be flexible and give you multiple paths to succeed or you will be backed into a corner by your own goal planning. Planning, road mapping, or charting your life like this take faith. As the great boxer Mike Tyson once said: "Everybody does have a plan until they get punched in the mouth. The real key to success is to have the right kind of plan to be able to move forward after they get hit."

It takes IMANI, a faithful commitment, because when adversity sets in how do you respond to that punch? Are you able to lessen the blow through advanced planning (i.e., preparation). This planning allows you to access the situation:

Do I find ways to lessen the blow? (block the punch)

Do I take a different path due to advanced planning? (change strategies)

Or do nothing? (this is my favorite strategy:  keep fighting, reassess later, get guidance)

How to Develop A Roadmap

Be Realistic - Most kids dream of being rich, but the stock market given you hundreds of years of free data. Most investments, NOT ALL, will return roughly 7-10% a year. Why not start will something based in data? (Example: At the end of every year, I compare ALL of my investments and how much they've returned against this benchmark). And if someone promises, guarantees you something higher, yes they are likely lying.

Be Flexible - I argue do NOT label me. So my goal is not to be a professional athlete (like I and every poor kid dreamed of in my day). My goal now is to learn the business of sports, while focusing on being an athlete. My goal now is to learn the music industry, while focusing on being an artist. I can videotape games (millionaire Miami Heat coach Erik Spoelstra's path to being a championship coach), I can be an agent, I can coach...and it just so happens I can ride my god given talents on the court or field for as long as I am allowed. Why, well the thing with very specific goals is if you fail...many lose their way or motivation or fight. If you have a multiple path roadmap --- my options are limitless. Need Proof: LeBron James had an HBO Documentary, Student Athlete, and he has brought a light to what I'm saying: Student Athlete reveals that of the 91,775 men who played NCAA basketball or football in the 2016-17 academic year, 303 were drafted by the NFL or NBA.

 

I can learn the business of music and while I look to drop my mixtape, I can learn about contractual rights, sample clearance, and how distribution work. I appreciate all my favorite musicians BUT my billionaire buddy Dr. Dre became super wealthy when he branded headphones...something we all had been using for years. He made them premium, exclusive, different and made more money than he ever did of the Chronic (no disrespect). Next, is my billionaire buddy, Daniel Ek.  He is the creator of Spotify and with a net worth of $4.5 Billion he makes more than any of my favorite musicians do and he can't rap?? But he set out to solve a problem. My generation was growing tired of radio and ads, we loved the ability to download free music (see Napster), but he recognized the industry and artists would jump at a new opportunity to distribute music over the internet (while not having it stolen for free). I am fan of royalties, but think of it like this --- the artist get's paid every time their song is played...Spotify and its shareholders get paid every time music is streamed.

Have Optionality - For me, I have faith in my probability/stat class in college. It was the best course I've ever taken in life. I understood how people made decisions, why they took the risks they did, and how people are often overconfident because they've miscalculated the situation. So you learn about what's called a decision tree.  As I flashback, my plan at 19 is still going strong:

Use the power of my degree and university to find decent paying job:

Outcome - I appreciate networks and humans wanting to belong to a tribe. I had an internship all 3 years in school until I graduated and most were tied to previous alums proud to recruit from their alma mater. Do NOT under estimate the power of networks getting you a job

Build personal wealth through an investment portfolio:

Outcome - At 19, I took out a loan from college, evaluated the rate and understood what the stock market normally returned (see above). To me it wasn't risky...most people didn't look at the data. It also helped that goal #1 was to find relevant work. My internships helped pay my school debts so my loans could be used to begin building my personal wealth. Do the math, give me a loan for 4% and if I make the standard 7-10%, I can afford to pay back the loan and that just $$ seeded my first portfolio with Datek, which was eventually bought out by TD Ameritrade. I even introduced a few of my roommates on to my theory back then.

Multiple Streams of Income (to reduce risks from systemic oppression):

Outcome - I grinded hard in Corporate America for many years. Have a very tiny pension to show for it. My first year they ended the program...just my luck. But it gave me the ability to build a massive 401K plan over the years, partially paid by my employer. So check the box for retirement goals. I already discussed my personal investment account above, so my income from work was split into a savings account (rainy day ONLY) and a personal use account for my weekends of BYOB restaurants, sports bar, and of course clubbing. I had dream of real estate but I had no experience in the industry so I held off. Accidentally my dream home became my first investment home. I bought during the lows of the 2008 crisis and thank goodness for the lessons I learned early. I disagree with most real estate professionals - like stocks the most important thing in real estate is Price, Price, Price (not location). My real estate gave me, equity, flexibility to rent. and is appreciating because of the price where I bought it. I had people in my ear for the previous 5 years saying buy a home, I thought prices were inflated. Glad I waited.

Have Imani - Faith that you will find a way, but it starts with the spiritual guidance I learned from my parents. The guidance from the teachings of African culture, such as Kwanzaa to respect my elders. This ability to treat others how I wanted to be treated showed up in my job reviews. It allowed me to study, build relationships, and execute even though I was surrounded by people who may not look like me. It gave us something in common once they opened their hearts. For moments they would forget and tell me things like you're different. I politely reminded them, I'm not --- you just have to open your heart to being around more people that don't look like you (like you've done for me and vice versa).

NIA | Purpose - Purpose Driven Investing

 What is your Purpose? I've heard the best inventors, investors, musicians, and operators in the world are driven almost to madness to achieve their mission or purpose. If you recall my post of Netflix movies, you'll find a show called "Mindhunters". This show follows the development of the FBI's first behavioral analysis unit. No disrespect to local law enforcement, but it helped them stop guessing and use clues from the crime scene to narrow down a subject based on their behavior. One of the key persons in the show was an academic that first assisted the FBI as this unit was being developed. What stuck with me was she said after years of interviewing and analyzing people, CEOs and Politicians often have similar traits to the psychopaths they were tracking, interviewing, and studying. So a subtle reminder to be careful in your purpose driven mission because it's a thin line between helping people and filling your self-interest bucket.

So on day 5 of Kwanzaa I challenge you to find your purpose by finding ways to serve. The inventors who solve society's problems are celebrated. Facebook is my rolodex to everyone in my life before their were cell phones (I know imagine there was a time without cell phones). And what a compromise, I hate their data privacy practices but occasionally log on so I no longer have to keep a spreadsheet of my contacts (yes years back I kept a spreadsheet). Today my buddies on Wall Street are falling over themselves for ESG Investing. ESG is short for environmental, social, and corporate governance. So you mean the smartest nation in the world just NOW realized that we should be interested in preserving our planet, social justice and diversity issues, and ensuring that those CEOs who use their power to have relationships with their subordinates maintain good corporate governance. Wow it's 2020 and I need my billionaire friends on Wall Street telling me that ESG is in vogue and now is the time to move away from coal and eventually transition to electric, wind, hydrogen, and other solutions. I need my billionaire buddies to tell me its time to measure how many people of color and women are employed at some of the largest companies in the world AND more importantly how many of those persons are in senior management and C-Suite roles (positions of real power). It's hard for me to take them seriously because I see historically what I saw with colonialism. You stayed with strategies (slavery, coal, colonization, globalization) until they served your "purpose"...and then you peaced out.

So for me my overriding purpose is to serve by teaching those how I continue to build my core, my pillars. Being independent, able to strategically think on my own, able to complete in any setting in any part of the world means I am not easily influenced. We all have obstacles:

• When my last employer couldn't support the need for me to take care of an elderly parent in their golden years -- my approach allowed me to leave
• When I was told not to purchase a home on the South Side of Chicago - my purpose was public/private, a play on doing something that was good for me and my community. My home will double in price soon as I bought during the depths of recession (buy low, sell high) and I assisted in stabilizing my community
• When I first started as an independent contractor people told me I needed the safety of Corporate America -- haha I remembered laughing often and telling people companies stopped offering pensions decades ago. My CEO buddies come on CNBC and speak everyday and must hit quarterly earnings targets. Let's just say, they'll do what they have to make the numbers. I'm not concerned because with my dedication to my craft and 3 certifications, I have the confidence that I will be one of the few left standing --- but am I describing a job or the cutthroat show "Survivor". So I struck out on my own, negotiated deals in my favor, and actually stumbled into the best of both worlds. I have both a Corp job and a startup...funny thing is my client asked me to come on full-time...not me.

My startup company is to invest in people that are underrepresented in Corporate America so we can get them in the door. Next, I plan to invest in real estate for persons that usually get the worst housing selections because no one there isn't much choice for low-income Americans. I also want to create a hedge fund or wealth advisory/family office firm in the next 5-7 years. They don't know it but my mentors: Peter Lynch, Warren Buffet, Cathie Woods, Mario Gabelli, Seth Klarman, John Rogers and a few others have dropped enough nuggets over the years that my investing portfolio is achieving it's purpose - giving me an opportunity to retire early, invest in other projects, and donate to worthy causes.

So I challenge you to define your NIA, and together let's serve with a purpose by investing in our community and the world. God bless 

Stock Update: Today I am employing Tax Loss Harvesting. If you had a big year, many wins in your portfolio...did you know that yes the tax code allows you to sell losers in your portfolio and they offset the gains. You can carry a loss of $3K into the next tax year, no fear the government is here. But imagine that, most middle class Americans can't take advantage of this because they don't own stocks or manage their own portfolios. 

Ujima | Collective Work and Responsibility

 We often hear the phrase..."It Takes A Village", but as COVID-19 rages on I truly wonder if as a country we share those collective values. Growing up in the African community, Ujima or the belief in communal society was on display everyday. As a child, my parents were so avid that we did most things as a group...a community.  For example, when the seasons changed and spring was upon us my parents would remind our large family of the importance of being unified (Umoja) in our work and each of us being determined (Kujichagulia) in adding value to the garden we spent endless weeks of cultivating. Digging, tilling, seeding, watering, and fencing were the activities completed together until the project was done. I remember looking over at the basketball court that was calling me and my younger brothers names but my parents were adamant that we must collectively finish the task at hand first. Weeks and months later, it was hard to believe all of the plants and vegetables that were sprouting (some native to West Africa) in our backyard. I would laugh, my new "responsibility" was keeping our basketball away from the garden. 

The principle of Ujima is so important in my daily life. It helps me collectively work in Corporate America, it assists me in collaborating and debating contracts with companies/vendors, and it deepens my ties with my friends and colleagues who span many races, cultures, and points of time in my life. Successful people in Corporate America constantly talk about the importance of their network --- I call it their Ujima. Why because they use their network to collectively invest, manage risk, and build businesses together. There is not a day that goes by that I don't speak with persons in my network to grow my knowledge, challenge my thoughts, or to invest alongside with me should an opportunity exist. Unfortunately, there are not enough people of color yet that are able to invest in some of the assets I'm interested in. 

I'm sure my parents were teaching us life lessons each year we went out to garden, plant, and work together. Due to these lessons learned as a child, I was able to handle college group projects, Corporate America's hourly team meetings, and the responsibility of communicating goals and objectives that benefit my stakeholders (me, my family, my community). This is why I'm so outspoken about the African and African-American community getting stronger about defining their top 5-10 goals. Then going on an awareness campaign to educate ourselves and other communities about how helping us achieve those 5 - 10 goals will better the global community. For example, I do this for my business, myself, and I truly think this is what people like Ice Cube are trying to do when they create "plans" or "bill of rights" for our community. To avoid missteps made, this is not something to go at it alone, we need a collective to manage the risks, the optics, and fund the push.

My dad laid out our family's Ujima goals, which I think are similar to my pillars:

Education First - I remember having a stern discussion when I brought home all A's and 1 "B"; he knew I had it in me to consistently bring home all A's

Work - At 14, he used his "network" and the CEO of a local retail company gave me my first job at 14. I've never forget that summer I put in 40 hours a week @ $4.25. Boy was I tired that summer.

Health - To many peoples surprise, my father would randomly have us run down the block, and began having us participate is sports an early age. It was critical in our physical development, team/collective awareness, competitive nature, and humility in the face of defeat (we always shook hands). 

Spirituality - No matter what, we always made it to church. I remember reading scriptures to the Church as I completed confirmation and more importantly I remember how my father could lead prayers in both the Christian and Muslim faiths...not an easy task but what a way to collectively bring people together.

I wonder if our community and our plan could rally around some of these principles?? Finally, I would add in this day and age it takes financial support. We need to look to the government but also to these celebrated figures in our community to do their part. To be fair not all of them are billionaires but here a few examples of what some of my billionaire buddies give their money to which helps their communities:

David Tepper (Worth: $13.5 Billion, former minority share owner in Pittsburgh Steelers, now owner of the NFL Carolina Panthers, and MLS soccer team: Charlotte FC) - His donations of $67M to Carnegie Mellon will impact many in that community

Seth Klarman (Worth $1.5 Billion, investor trying to bring MLS soccer team to Las Vegas) - Mr. Klarman is a value investor like myself so we go way back just not as far back and me and Warren. Seth founded a foundation that clearly lays out the communities and areas of interest his donations serve: 

• Advancing understanding of the biological basis of health and illness
• Ensuring a healthy democracy
• Expanding access to vital services and enrichment opportunities in Greater Boston
• Supporting the global Jewish community and Israel

So on the 3rd Day of Kwanzaa, I remind people of Ujima. Don't just call on me for my vote. My community has needs that differ sometimes from that of other communities. It's okay to invest with me to advance, expand and support the global African community. My belief is that investments in my community will ensure a vibrant, diverse, and healthy democracy. Finally, to our growing list of million and billionaires (Jay Z, Robert F. Smith), please continue your collective work and focus on our community's goals just like my buddies David Tepper and Seth Klarman do. Your work will help our growing list of millionaires to learn how to do their part. Peace and love

Quick Stock Note: I finally bought a Roku device. I cut the cord many months back and love the decision. I do miss my sports and wonder if FUBO TV will benefit from those like me willing to pay for live sports. I'm nibbling at this trend, needs more research: Fubotv Inc (FUBO:NYSE)

Kujichagulia | Self-Determination - Own Your Destiny

 On the second day of Kwanzaa, I wanted to chat about Kujichagulia (self-determination). With so many obstacles affecting middle and lower class America, no matter your race you must be personally accountable every day for your actions. These actions each and every day are shaping the path you are and will take in life. I train people and coach them on how to improve their financial and personal well-being and often the common responses I get are:

"If you can do that for me"

"If you think this will work for me"

"So what do you think"

"I don't like all the changes/instructions/direction"

I remind those persons each and every day you choose your own path. I can't do anything for you (you can). I can provide my experiences and journey but you must tell me what works for your life. It doesn't matter what I think, it's your life to live. If you don't like what you see --- why did you choose it? And if you didn't choose anything yet, why do you feel compelled someone has made a decision for you...when they haven't. Do you feel the personal responsibility of having to decide, being accountable for the decision you made, and being on the hook for seeing it through.

For me, when I was 18, I looked back and had already seen a life of systemic oppression. In kindergarten, I was told I'd be yanked out of my public school path and put into a magnet school because of my then smarts. Yes a blessing, but a new path that meant two different buses to school each day and classes where most people did not look like me. I remember my 12th Grade teacher give me a surprising look when I told her I needed my National Honor Society document signed by her. I remember every white person in college, at work, and in my personal life asking me and my friends do we play sports. I remember most vacations, young white teens asking me if I could sell them drugs. I vividly remember coming back to my alma mater to assist with intern interviews and calling a candidate's name and no one came up. As I went to go back to my company's cubicle, a young white man called out, hey I "think" you're looking for me. I said you been sitting in the waiting room the whole time (with other students), why would you NOT answer after I've clearly read your name out loud. He said: "I was scared, I saw a big (pause) man standing there...and". I quietly knew the code he was speaking of. This young white man was willing to miss an interview with a premier consulting firm because a black man IN A SUIT, in a large room full of recruiters (and students) in cubicles (tens of us) --- called his name. Again I repeat, he almost missed an interview because of his privilege and prejudices. 

This is why roughly two decades ago I started this blog with one thing in mind. A determination to always be balanced because I have and will always face obstacles in my life. I needed options so my balance stems from my pillars and I vowed to never be financially dependent on anyone or any company (entity). That why I work in Corporate America on terms I find manageable, own my own startup consulting firm, managed a growing investment portfolio and have a rental property to mine name. I can individually live of each of these separately except for my rental property. I technically retired a few years ago (2 years behind my goal of 35) as I humble enough to retire to a modest ranch home paid off in most urban cities of America. But I'm also determined to help people understand how to be personally responsible for their own path and independence -- but you must be determined to roll up your sleeves and do the work yourself.

Kujichagulia (self-determination)

New Stock Shout-Out: Game Stop (if you read until the end, now tell me how can I like a company so hated)

Umoja | Unity - Unity in Life, Investing, and Service

 I start of this post remember the acts of my late father. He was a professor, spiritual leader, and African elder who took the responsibility of passing down history and culture seriously.  I am a better servant and businessman because of the life principles he shared with me every day. As a professor of geography and sociology, he taught me about how human society developed and evolved and as the world evolved I had deep recognition of different countries and cultures of the world. So I begin my post as he began his prayers: recognizing our ancestors and their contributions, praying for those who've left us but still watch over us, and a principled message to all, but in particular the youth who will carry the torch in the future.  After Christmas, this principled message was about the teaching of Kwanzaa.

Umoja | Unity

My parents were and are the depiction Umoja. They believed so much in unity that for over 20+ years they held a multi-cultural New Year's Eve party that would pack our tiny 3 bedroom 1 bathroom ranch home with over 50,75, 100+ people each year. The goal was to bring Africans from entire diaspora, Americans, and anyone that needed a safe place to ring in the New Years. People would travel from all parts of the US to be at this party. And each year it started the same way:

Prayer - We prayed for Unity, Love, Good Heath, and so much more

Libation - We poured libation and remembered our ancestors and loved ones that have past. This is critical is a year marred by COVID-19. Don't forget

Lighting of Kwanzaa Candles - Finally after teaching the youth about the principles of Kwanzaa (yes Africans bring their kids to a party), a young person from the crowd would light the Kwanzaa candles.

Today is first day of Kwanzaa and I want to remind everyone of the importance of UNITY. We are a village and your actions or inactions can have collateral damage to your network. For example, you have a right to not wear a mask, but if you are the reason why some contracts COVID-19, have you no responsibility in their outcome? I remind people that I have billionaire buddies (not really but you get the point) that most people outside of the business community have no clue who they are:

Bill Ackman, Seth Klarman, Paul Singer, Mario Gabelli, Carl Icahn, Reid Hoffman, Jack Dorsey, Marc Lasry, Steve Cohen, Robert F. Smith. (I held off naming: Mark Cuban, Bill Gates, Warren Buffett, Elon Musk to make my point)

I say this on a day of Unity --- You are not my competition. Truss...so when I or someone asks for a vendor referral, ask for advice on a new investment, help you increase your net worth I implore you to be principled in helping others. This mentality that you did it on your own, you got that great mortgage, house, job, investment on your own is flawed. Everyone has had help along the way. So many where influential in helping me, and yes I did the heavy lifting but the key they gave me to opening that door was so important. We will need to be unified to play in the Big Leagues against my buddies I mentioned above...and truss they believe in herd mentality. Many invest together, donate together, and influence politics together because they realize their is strength in numbers. There is a reason why most of my buddies own sports teams, outside of the countries that own a majority of the oil deposits around the world, sports is the last known cartel. The price NEVER goes down, need proof: just from the list above Marc Lasry (owner of Milwaukee Bucks), Steve Cohen (owner of NY Mets), Tillman F (owner of Houston Rockets)...the list goes on. They partner and invest together often through knowledge sharing and compensating each other when they've truly been helped. I haven't even mentioned my Asset Management and hedge fund billionaire buddies at Blackstone, KKR, The Carlyle Group, and Apollo who often collect 2% of all assets they manage annually and 20% of any profits they make for their uber wealthy clients. We call this 2 and 20 in the industry and the wealthy across the world line up to invest in their funds...not for a hook up or for free...but so that they continue to collectively win.

It's time for us to collectively win...Umoja