Are Systems Inherently Fragile or are they Broken - CrowdStrike | Economies | Politics | Health

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
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Just wakin' up in the mornin', gotta thank God

I don't know, but today seems kinda odd

No barkin' from the dog, no smog

And mama cooked the breakfast with no hog

Ice Cube ~ It Was a Good Day

Fragility - Vantage Point: CrowdStrike (CRWD)

CrowdStrike Holdings Inc NASDAQ: CRWD

I was just wakin' up in the mornin' and I already has a few messages. Computer screens around the world were BLUE, literally, and companies were feeling the BLUE. They were finding out that their businesses were coming to a screeching halt. Airlines could not fly, employees could not login, and the government could not operate. The news was a "normal" update from the cybersecurity company, CrowdStrike, contained errors and had disrupted how Microsoft computers were operating. Ahhh who cares. Well, I like to put things into perspective by providing some context. Roughly 70% of computer systems run Microsoft software and I've recently heard CrowdStrike is the endpoint detection solution for a majority of companies. For me directly, it meant that I was not able to log into my company laptop. I had two simple takeaways from this event:

1. Systems are Fragile - It's amazing that one faulty update, that happens frequently, brought companies and their systems down. How does that happen??

2. CrowdStrike's Reach - I know CRWD is big, but I felt their reach firsthand

Value Trading - I've been watching this stock for quite some time and used this opportunity to buy some options in CRWD as the stock fell hard and fast Friday. The day went by and finally at 3:45 I received a message on how I needed to fix my laptop to get logged in. Then strangely I saw a message saying that I had purchased some stock in CRWD. But I had not placed an order? Remember when I said that I had been watching this stock? Well, I had an "open" order that basically would be triggered if for some strange reason CRWD were to drop to levels I thought were worth buying. Maybe I believe that systems can be fixed just like that update I received. 

Fragility - Vantage Point: Economies and Ecosystems

I have often written about the boom then bust nature of economies. In the economic world we call this growth and then recession or inflation and then deflation. The question is why does this happen? Is the system fragile, are ALL systems fragile -- or is the system broken? I'm not here to truly answer the question today, but I wanted to share this question after watching the CRWD issue bring businesses to their knees. From an economic perspective:

1. Economic Fragility - Will debt bring the US to its knees?

    OR

2. Economies Inherently Broken - Is this part of the regularly scheduled program?

How about our crazy weather. For the first time, in a long time my old city Chicago was impacted by a tornado that touched down. Shingles flew off my roof of the home I still own there and then at my current home I think I heard my howling from the fast-paced winds as the house shook. From an ecosystem perspective:

1. Ecosystems Are broken? - Is the rapidly changing climate going to continue to erode coastlines, cause houses to fall of mountainside cliffs, tornados to touch down in the Midwest and cities to flood around the world?

    OR

2. Ecosystems are Fragile - Are systems inherently fragile and this is how it is and will always be?

Fragility - Vantage Point: Politics

I'll let you fill in the section. Is the system broken or is politics inherently fragile? When the US, the superpower of the world, sees an assassination attempt of a former president during a campaign -- are we really just like the rest of world and ALL politics is fragile? Or have we gotten to the point where the system is broken.

Fragility - Vantage Point: Health

Finally, what better sums up fragility than health. I'm watching President Biden on the campaign trail and compare what I am seeing to my experiences with my aging parents. Is that what we are all thinking? This week, I listened to a neighbor describe her husband's response to chemotherapy as he battles cancer and recalled how that hit a similar tune to experiences in my family. 

I've read and continue to follow the stories around Nate Robinson's health. He was literally called 'Superman' as the 5'9 former NBA guard won 2 slam dunk contests catapulting over people. Now he is battling the fragility of his health as high blood pressure and kidney failure have dunked him to the point of depression. His story discusses how the disease may be genetic but also speaks to human desire as he chose to continue playing as he found out about the diagnosis early in his career. I relate so much to his story as I and many others battle high blood pressure and its wide-ranging effects. Are my issues genetic, caused by my choices, factors beyond my control -- or just part of a fragile system to complex to comprehend. Human life is truly amazing -- but I wonder if it's because we ALL share a story of fragility. One disease, one paycheck, one accident and fragility shows its face. But family, friends, memories, and experiences have the amazing effect of pushing fragility to the back of our minds.

 

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

Investing in Your Health - Pt. 2

I'm a cybersecurity subject matter expert, and I advise companies on risk management practices. I architect, monitor, and complete assessments so that they are fully informed on their cyber hygiene or quite simply their cyber health. One of the first things I ask my clients to do is to create a baseline or what you and I might call is a benchmark of what healthy computers should look like. This principle can be applied to my pillars. I thought Naomi Osaka did an amazing job of assessing her "Mental Health" and not pulling out of the French Open and now Wimbledon, two of the 4 major tennis tournaments. She could have put profits over her health but one may argue she chose balance and I admire her for that. My last post on Investing In Your Health, Investing In Your Health Pt. 1,

talked about some of the trials and tribulations to achieve balance in Corporate America. Spending long hours sitting at a desk, worries over needing to outwork the competition just to be accepted, commuting over 1.5 hours each day collectively took it's toll on me. There is no excuse on my part but moving closer to a suburb which lacked diversity, worrying about the optics of working versus going to the gym, or quite frankly doing anything to jeopardize a well paid and respected job seemed like risky tradeoffs to a person of color. But the one thing I didn't do was properly establish a health baseline or benchmark. Historically, I played sports, thought I was invincible, and didn't grow up adhering to doctor's visits. I began getting annual physicals at work which was a godsend. The metrics were solid at first with a few minor things to work on. But the grind I described above took its toll. I remember being in London for work when I first got word that my father was hospitalized. With a 6 hour time difference, I was getting updates in the wee hours of the morning London time while trying to put on a good face in the office. Upon my return to the states, I traveled home to be with my father and didn't take any time off. I would rush through the hospital to find quiet spaces so the beeping sounds of machines didn't disturb my co-workers. During those moments of uncertainty of my father's health, we made a promise to have our first child if he could just find a way to exit the hospital. Stressful months passed and eventually he defied the odds and the doctor's insistence for us to say goodbye and finally left the hospital. So we kept our promise and had our first daughter. A wonderful blessing but it also brought finding childcare to fit our work hours, coming home to our daughter already sleeping, more responsibility at work, serving on boards, maintaining a home, and monitoring aging parents and the fact that one had already been hospitalized. My next physical was less stellar and showed that some attributes had declined instead of stayed the same or gotten better. I changed my eating habits but all the other stressors of life were still there and growing. We moved states to be closer and help my parents and I no longer had annual physicals after switching jobs and working remotely. I didn't prioritize this activity on my own and lost my health baseline. See It -- Measure It -- Respond, something I help my clients do but I had lost "sight" of my own health. Fast forward ---  a wedding, another child, two homes, starting a business, COVID gripping the country, and losing my father --- I wasn't feeling myself. I finally went to the doctor, got an annual health check which surprisingly resulted with me being hospitalized. Devastatingly high hypertension and it was unclear how long it had gone undetected. While I felt fine, my baseline was at a point that I couldn't be downgraded from intensive care unit for 4 days. I was a wreck and vowed I needed to find balance. So I changed my diet, sleeping patterns, tested my BP 3x a day, took walks, and declined work because I hadn't focused on my health. My Personal Update: I've made lifestyle changes and prioritize my health for myself and my family. I have good days and a few not so great days and every now and then my BP drops into a normal range. My goal is to keep it there and to do that I have to See It, Measure It, and Respond. 

Final Note: I recently lost a friend due to mental health issues and I urge us all to establish a baseline and respond accordingly. Whether it's physical health, mental health, financial health, or spiritual health seek balance and advice to be the best you. Thank you to my doctors for their tireless work and counsel. And to the Naomi Osaka's of the world, thank you for not being afraid to respond when something doesn't feel right.

How to Buy + Sell Stocks

I have some positive news about my side hustle as I've hired 3 people within the last month. So I've haven't traded much in the last few weeks. Here are my trades that expired on Friday 7/02/21 and that will expire in roughly two weeks. If you want to see them, guess the stock and leave a comment in the chat. Be well and stay positive:

Invest in Your Health Pt. 1 | Prism - Esusu | Prism - Nas, KD and Coinbase

  

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) HOW TO SEARCH MY BLOG:	Get Updates to Your Email When I Create A New Post:

Also Coming Soon - a series on #HowtoInvest. People have been reaching especially after the spikes in Gamestop, AMC, and other stock to learn the basics. I self taught myself how to invest beginning at the age of roughly 18 and have never stopped. To be a good investor and ensure you are not gambling (speculating), I'll cover (hardest parts of investing in RED):

Budgeting 101 - How to Fund Ur Investments?

Why Stocks as an Investment?

What is Ur Investment Profile + Personality?

How to Pick Stocks?

When to Buy Stocks?

How to Enter My Trade?

How Many Stocks Should I Own?

When to Sell Stocks?

Am I Speculating (Gambling)?

Investing in Your Health

I miscalculated and dropped the ball on one of my most important pillars, the "Health" pillar. First is accountability, so I ultimately blame myself. I'll be honest, my calculation was I'm young...I can rip and run the mean streets of Corporate America and gracefully exit the rat race around the age of 35. I tell people in life there are always trade-offs and opportunity costs and I gambled that a former 3 sport H.S. athlete, gym rat, college recreation gym user, and even early adult life YMCA member would be able to stave off my "Corporate 15". That's my take on the Freshman 15 you gain in college. I travelled as a consultant for many years and our typical lifestyle was eating out daily and back to the hotel. Back then not every hotel had a gym and to make matters worse, we worked hard. I often traded relaxing, meditating, exercising for working, drinking, and eating out with coworkers. When I came home, I lived in a fancy apartment complex that had an indoor basketball court/gym, well populated exercise room, and an indoor movie theater. But I was rarely home. As a consultant I once got the designation of being a road warrior --- on the road for over a 100 days within the year. 

Then came life in the office. Being a person a color, I adopted the model of getting into the office early and staying late. I was even chastised by fellow co-workers for delaying my participation in their weekly basketball games...I didn't want the boss to think I was a slacker. So I rarely left early but I participated to manage the image of me not wanting to be a team player. My solution I joined the weekly game but came into work early so I could leave on-time to make the games even though my peers rarely changed their schedules. Back then I lived by the office, which instead of being located in the great city of Chicago was out a good ways in the suburbs. Closer to some of the swankiest and highest priced zip codes in the Chicagoland area. This was another of those secrets we deal with in Corporate America. Many office parks are near where the well heeled live and rarely reside in the our city centers and hardly ever near communities of color. To put it in perspective, we had a good swatch of our workers who commuted from Wisconsin...yep you heard me right. But head down, work hard, I'm a team player and long trips to the city on the weekends to live it up or as my pals in the United Kingdom say to get some culture. My apartment had a room  sparsely populated with a machine or two and I wasn't much of an outside walker or runner. To hit my financial goals, I made a trade-off and didn't join the big gym clubs popular in the suburbs a little over a decade ago. I used the tiny workout room in my budget apartment and drove everywhere I went...classic suburban living.  But stop, who's to blame...ME. I am big on accountability and this is a good example of trade-offs and I needed more balance. Notice one thing that I didn't deploy in my toolkit that should have been...a "MINIMUM BASELINE". In cybersecurity we use this minimum baseline to set a security standard for all of the information systems under our control and by not consistently working out and getting annual physicals --- I didn't know my own baseline. 

More to come on Investing in Your Health in Pt 2. 

How to Buy Stocks

So knowing when to sell stocks OR anything in life is arguably the hardest thing to do. When should you sell your house, stocks, car?? The second hardest question to answer is how should I find stocks to buy. So let me take you back in the day, I used learned the following things when I first got started: 

1) I read everything I could about Warren Buffett and realize to invest you need to know your investing personality. More to come on this but I often find your real life personality mirrors your investing.

High Risk/Reward personalities might like the flash of buying stocks like Ferrari (RACE), Tesla (TSLA), Louis Vuitton Moet Hennessy (LVMH), or trading high flyers, day trading, and high risk high reward penny stocks.

Techy personalities may migrate to FAANG stocks. Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG) - parent company of Google...the G in FAANG.

Corporate personalities may like Ford (F), Goldman Sachs (GS), Procter & Gamble (PG), Microsoft (MS), Caterpillar (CAT) --- companies many of my peers wanted to work for when coming out school.

Cost Conscious personalities may migrate to companies meet analytical thresholds. We call that value investing. Sometimes the names are boring but they are steady and pay a dividend (which is the equivalent of getting a stimulus check every quarter): General Electric (GE), Real Estate Companies, Oil Companies, and Utilities like electric, cable, phone, and retail companies.

Loner personalities may gravitate to companies that don't get a lot of hype, quirky, are getting bullied, etc. What comes to mind here are clothing company Skechers (SKX), weed company Tilray, and Collectors Universe (CLCT) a collectibles company that grades things like baseball cards.  Then there a bullied companies (often for good reason) which fall out of favor on Wall Street for messing up: 

Tesla - because Elon Musk was being targeted for his tweeting and 420 comments, 

Lululemon - when their stock got beat up because their CEO appeared to mock curvy women

Gamestop - attacked by short sellers

I believe most people will gravitate to one or two categories. Take me for example, I resonated with Warren Buffett and have read tons of books and articles about the man. He comes across as a cost conscious value oriented guy and that defined me -- simple, no frills, no gimmicks, give me value type of style. But I also am a contrarian and tend to go against the crowd. So when I'm not looking for value stocks, I often look for reasons why the carbon industry was so against Tesla, redemption in Lululemon (after getting rid of their CEO), Gamestop providing a need for many communities that may not always have internet to download games, Disney and other retail companies getting beat down during COVID-19 lockdowns. I like the quintessential story of the getting knocked down and getting back up. That story of opportunity was my family's story. My father and mother, hard working immigrants, came to America worked some of the least flashy jobs but got it done. My father mocked for his West African accent and Ph.D degree and being told you're overqualified. I often look to where cancel culture strikes in the stock market and I bet that if at first you don't succeed, dust yourself off and try again. 

Prism - A look at African + African American Investing

1) Esusu - A company with African co-founders makes me proud: 

Why I'm Watching: 

I like to challenge myself. When I cut the cord, I lost the ability to watch CNBC. So I challenged myself to simply listen to the broadcast on Tune-In Radio. When I heard them announce a company called Esusu, my head turned. I had heard this termed used so many times in my African community. It means to pool money together and usually each week or so the group shares the pool money with one member. So it creates the lottery feeling of getting a big payment once every "x" month once it's finally your turn to receive the payout. Well I listened to Abbey Wemimo, co-founder of Esusu, talk about how he helped to start the firm. I even reached out on LinkedIn looking to connect and as an accredited investor I hope to invest and fund companies like his in the future.

2) The Coinbase Remix - How African-American Rappers and Athletes are Diversifying 

Why I'm Reading: 

For those of us that follow the markets, we were BLOWN away by the opening day value of Coinbase a digital exchange where you can buy, sell, and securely store cryptocurrencies like Bitcoin. They became a public company recently and for us regular folk that is similar to baby being born. They were a private company and once they became public the baby popped out and but this baby was valued @ roughly $100 Billion dollars. So I know that many investors were dancing because they cashed in big time. Some of those investors I was proud to say were African-Americans like rapper Nas (Nasir Jones) who you all know I have in my Top 5 rappers of all time and National Basketball player Kevin Durant. Nas reported earned a $100 Million payout from this investment word on the street is KD cleaned up big time as well. I am happy to see these entertainers diversifying their investments...you will not rap and play ball forever. Very proud of these young brothers.

Nas and Kevin Durant Invest in Coinbase

Hey HENRY - High Earner Not Yet Rich

Oh no, I’ve got to keep on moving.  So I was in my SUV listening to the Sirius XM service and this song came on by Puff and Mase.  A mood comes over you when you hear certain songs and this song made me feel some type of way. 

First, it served as a reminder that we collectively are not getting any younger so don’t be held down by things in life.  Need proof, this great song was being played on a new station they were debuting: Hip-Hop from the 90s-2000s.  Ha! My favorite songs are now playing on an oldies channel.

Second, it’s a reminder to get your mind, health, wealth, and spiritual core in balance.  I stepped away from blogging for a while because life threw me an upper-cut harder than the ones thrown by Mike Tyson or Floyd Mayweather.  The loss of my father this year knocked me down but his well-lived life and legacy serves as a reminder for me and also hopefully for you to NOT BE HELD DOWN.

Third, live your life to the fullest and build a legacy you can be proud of.  Towards the end of college, I remember setting a goal with a few friends that we wanted to retire by the age of 35. I joke that I am Middle-America retired, I’ll explain shortly.  I recently learned that Wall Street likes to describe many of us as a “HENRY” – High Earning Not Rich Yet individuals. So being a HENRY and coming from a humble background has allowed me to evolve and change my target goal over time. While, I still worked towards the goal of retiring by 35, I realized that I didn’t live for myself anymore. I live to build, provide, and teach my family and friends about the importance of economic security and social awareness so that for generations to come we can overcome the obstacles that life will indefinitely throw at us.  Did I reach my goal?    I can definitively say that I have and now it’s time to lean in and assist you on your journey:

Goal 1: Be Middle America Retired – Remember, your family’s humble beginnings. Start modestly and set a reachable goal: For example, having enough income to buy a home in your parent’s neighborhood with the income from your investments but still having enough saving to never work again.

Goal 2: Debt Free – Eliminate debt from you and your family’s life. Just like Kanye, I’m tryna stay recession free…and the biggest pitfall people have during recessions is usually with debt. My buddy Warren Buffet is a fan of this rule too and DOES NOT like to buy stocks on margin (i.e., with debt).

Goal 3: Savings (6 - 12 months of Salary) – You need savings for life emergencies and they will come. Anticipate car break downs, hospital bills, house repairs, and a cushion against job loss.

Goal 4: Multiple Streams of Income – This is one of the most critical areas if you are a HENRY.  Be ready for what made you a HENRY. Capitalism!! Corporations unfortunately have one master…and that’s the stock market. So if they have to deliver a good quarter or more money back to shareholders…they will cut jobs and close plants and yes that includes the HENRY’s.  Don’t get it twisted, they call it “synergies”. When I buy my competitor’s company…I make money by eliminating all of the duplicate jobs. (What do you think will happen now that Charles Schwab just bought TD Ameritrade?  I heard estimates that up to 30% of the workforce could be cut.

Goal 5: A Balanced Core Gives You Freedom – Focus on family, go on trips, change jobs, start a business wisely, and get off of social media and actually build meaningful relationships. Why because you have planned, sacrificed and have flexibility to do it.

How do you get there, build up your pillars:

· Mental Pillar – Target mental growth through degrees, certifications, and self-learning. Find problems to solve, there is always a need for these items.
· Spiritual – Be grounded in something, when life rocks you…you need beliefs and a community to turn to; Volunteer and give back…trust this will make you feel good
· Financial – Economic security creates the ability to provide for you and your family. Find work that is fulfilling but more importantly solves a problem for others. If you had to advertise your personal skills would I hire you over the next person? Buy assets that appreciate, can be passed along, and that do NOT create additional debt. Diversify your income – do you have a retirement account, investment account, rental income, and a side hustle. If yes, Can’t Nobody Hold you down
· Health – Don’t let bad habits keep you down. A strong core should allow you to hopefully enjoy your hard work for years to come. But remember life is precious, so you must work hard to prolong it

Personal Finance - Budget 101 / Free Credit History

I often get a number of questions related to everyday finances and how a reader can improve their financial health.  First thing first, is to take care of the basic key elements.  The second thing is to is to do it as cheaply as possibly.  And yes, don't let anyone fool you...you can Do It Yourself (DIY)!  There are a number of personal finance lessons that I have written about in the past and I will attempt to go back and re-tag all those posts to include the labels "PERSONAL FINANCE".  I will create a link for easy access to these tips but remember you can search the site to find notes and tips to assist you get financially healthier.

1) Going On a Healthy Diet - Budget, Budget, Budget

I am personally a spreadsheet man myself.  I create a very basic Excel spreadsheet that I use to track all my budget needs. So search the Internet and you can find many tools to assist you with Budgeting 101.  The key elements don't change often, so follow these tips:

• Categorize every expense by type and don't use MISCELLANEOUS (Examples: Utilities, Food, Entertainment, Auto)
• Don't you cash unless remember to 'categorize' every penny...exactly "Don't Use Cash"
• At the end of a Month, your goal should be to have more "Income" than "Expenses"
• Don't be afraid to make hard cuts (sacrifice now for a better future, every penny counts)
• Pay down debts quickly, and FOCUS on high interest rates first (Credit Cards, School Loans, Personal Loans)
• Once you pay off debts, try to pay off any new debts 'Each Month'. I know every month
• Yes its okay to have FUN, but budget and categorize it
• Use the extra money from your budget to "Invest In Yourself". The goal is to create a rainy day account

I use spreadsheets and some people use envelopes, but the important thing to remember is to find a system that works for you and to stick to it. Just like working out.

2) Get on The Scale - Check Your Credit For Free

Unless you can pay for everything with cash, then you need to be honest with yourself and "Weigh In" from time to time.  Financially, weighing your self on the scale is "Checking Your Credit History".  This is the one time when you want your numbers to go UP! A higher credit number is much better than a low score.  Now don't get crazy, check your credit annually...no more, no less.  Look for errors and make sure you pay your bills on time.  There are 3 scales that you will need to weigh in with, and they are the 3 major credit bureaus: Experian, TransUnion, and Equifax.

DIY Tip: Don't listen to commercials or some salesperson over the phone, check your report FOR FREE.  Yes, the government passed a rule years ago allowing you and I to have a FREE view of our credit history, once a year...and it can all be done through one website!  If anyone else claims to offer this service, ask them if you will ever be charged...and don't forget to tell them that you are recording the conversation. That should do the trick :)    Here is the link:

AnnualCreditReport