How About That Person in the Mirror?

Lately, it seems the air is filled with self righteous finger pointing. It seems that all these attacks, if successful, would benefit the finger pointer and his followers at the expense of someone else. I am tired. How about we try something different? Let’s look at that person in the mirror and ask ourselves, “What can I do today to make myself a better person and the world a better place?” It doesn’t have to be all that much, but do something. Make a start.

How about my body? If I think the cost of medical care is excessive, what can I do to lower the burden on our health care system? Can I find a way to eat a healthier diet? Can I undertake and exercise program? Maybe I could drink one less beer this evening?

How about my heart? Looking deeply and honestly into my motivations can be less than pretty. How much gratitude is down in there? How about forgiveness? Can I find a way to make an enemy my friend? Are my goals in line with my understanding of God and my faith? Do I have a generous heart? It doesn’t have to be all that much; you could leave a 20% tip for that waitress schlepping your food on what is obviously a bad hair day.

Do you need to improve your finances? I had to ask that one. After all, this is a personal finance blog. I would also add that improving your relationship with money can put you in a position to do more good in this material world. Maybe you could find a way to work a little harder, a little longer, or a little smarter. All of these options are likely to put a little more money in your pocket. Can you find a way to spend a little less on things that cost you money, like cable TV and a little more on things that pay you money, like stock in a cable TV company?

If we could all spend a little more time finding ways to produce a better crop in our own garden and a little less time chest thumping and trumpeting our moral and intellectual superiority this world might be a happier place.

I don’t know about you, but I still have some work to do with that guy in the mirror.

Matthew 7: 1-5

“Do not judge, or you too will be judged. For in the same way you judge others, you will be judged, and with the measure you use, it will be measured to you.
“Why do you look at the speck of sawdust in your brother’s eye and pay no attention to the plank in your own eye? How can you say to your brother, ‘Let me take the speck out of your eye,’ when all the time there is a plank in your own eye? You hypocrite, first take the plank out of your own eye, and then you will see clearly to remove the speck from your brother’s eye.

If Your Mind Is Empty

“If your mind is empty, it is always ready for anything, it is open to everything. In the beginner's mind there are many possibilities, but in the expert's mind there are few. ” Shunryu Suzuki

Beginner's Mind refers to having an attitude of openness, eagerness, and lack of preconceptions when studying a subject, even when studying at an advanced level, just as a beginner in that subject would. (Wikipedia) It is an openness to learning new things.

Over the last fifteen years, since I made the decision to learn something about the art of investing, I have developed my personal investment paradigm, a mixture of Modern Portfolio Theory, Value Investing with a tip of the hat to the criticisms of Taleb and Mandelbrot. For new readers, Modern Portfolio Theory recommends owning the entire world market through the purchase of low cost index funds, since it is very unlikely that you or anyone else is likely to beat the market over the long haul. Value Investing suggests that the investor buy underpriced bargains, particularly if the pay a healthy sustainable dividend and then hold onto those stocks—FOREVER. Taleb and Mandelbrot have proven conclusively that the world is a much more dangerous place than is described in Modern Portfolio Theory. However, neither of those authors has suggested a useful alternative method for the average investor. Taleb was a highly successful options trader. Unfortunately, that game is a little too rich for my blood.

P.S. Don’t forget about that “age appropriate” mix of bonds, CDs, cash, equities, precious metal, and real estate that is part of your investment contract with yourself.

While I am not flying around the world in a private jet, my personal investment paradigm has helped me achieve one of my goals, a comfortable early retirement. Now, I have discovered that as I have gained a certain measure of expertise, I have lost an equal amount of Beginner’s Mind. Even though I am constantly reading different books on personal finance and investment strategies, I feel as though I have actually read the same book one hundred times or I find when I am reading a book, I am judging it on the basis of my established prejudices.

This is important because my paradigm does not have a clue about what to do in the current environment beyond maintaining my contract with myself concerning the contents of my “age appropriate” diversified portfolio. Bonds and CDs don’t pay spit and stocks are overpriced due to the actions of the World’s central banks. A whole lot of money has been created out of thin air. The entire developed world is carrying a dangerously large debt burden. Interest rates have been held artificially low to stave off deflation. After collapsing in the 2006-2008 slow motion train wreck, real estate has recovered to the point that it no longer constitutes an option for the cautious, uninformed investor, like me.

It is time for me to take a deep breath, open my mind, and consider the possibility of learning a new art. This will involve trusting in the old Chinese adage that when the student is ready, the master will appear, as well as more work than I might find desirable in a comfortable retirement.

As I learn, if I learn, I will share what I have learned with you, my readers.