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Sep 7, 2020

Book the black swan book summary by Nassim Taleb

Coming Soon the Book the black swan book summary by Nassim Taleb



The Black Swan: The Impact of the Highly Improbable is a 2007 book by author and former options trader Nassim Nicholas Taleb. The book focuses on the extreme impact of rare and unpredictable outlier events—and the human tendency to find simplistic explanations for these events, retrospectively.

A Black Swan has three characteristics:

  1. It is an outlier beyond the normal range of expectations because nothing in the past could point to it being likely to happen.
  2. It has a massive impact
  3. Despite #1, we create explanations for it after the fact, making it seem “explainable and predictable.”

Business:

  • “The payoff of a human venture is, in general, inversely proportional to what it is expected to be.”
  • To make a killing in some industry, you need to do something beyond the currently conceived realm of possibilities (be a chef)
  • “Indeed, in some domains— such as scientific discovery and venture capital investments— there is a disproportionate payoff from the unknown, since you typically have little to lose and plenty to gain from a rare event.”
  • “The strategy for the discoverers and entrepreneurs is to rely less on top-down planning and focus on maximum tinkering and recognizing opportunities when they present themselves. So I disagree with the followers of Marx and those of Adam Smith: the reason free markets work is because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or “incentives” for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can.”
  • “In general, positive Black Swans take time to show their effect while negative ones happen very quickly— it is much easier and much faster to destroy than to build.”
  • “Recall the distinction between Mediocristan and Extremistan in Chapter 3. I said that taking a “scalable” profession is not a good idea, simply because there are far too few winners in these professions. Well, these professions produce a large cemetery: the pool of starving actors is larger than the one of starving accountants, even if you assume that, on average, they earn the same income.”
  • “This same point can be generalized to life: maximize the serendipity around you.”

Knowledge:

  • “We do not spontaneously learn that we don’t learn that we don’t learn. The problem lies in the structure of our minds: we don’t learn rules, just facts, and only facts. Metarules (such as the rule that we have a tendency to not learn rules) we don’t seem to be good at getting. We scorn the abstract; we scorn it with passion.”
  • “What you know cannot really hurt you”
  • “To slowly distill my single idea, I wanted to become a flâneur, a professional meditator, sit in cafés, lounge, unglued to desks and organization structures, sleep as long as I needed, read voraciously, and not owe any explanation to anybody.”
  • “But modern reality rarely gives us the privilege of a satisfying, linear, positive progression: you may think about a problem for a year and learn nothing; then, unless you are disheartened by the emptiness of the results and give up, something will come to you in a flash.”
  • “Have you ever wondered why so many of these straight-A students end up going nowhere in life while someone who lagged behind is now getting the shekels, buying the diamonds, and getting his phone calls returned? Or even getting the Nobel Prize in a real discipline (say, medicine)? Some of this may have something to do with luck in outcomes, but there is this sterile and obscurantist quality that is often associated with classroom knowledge that may get in the way of understanding what’s going on in real life.”
  • “I propose that if you want a simple step to a higher form of life, as distant from the animal as you can get, then you may have to denarrate, that is, shut down the television set, minimize time spent reading newspapers, ignore the blogs.”
  • As you give someone more info, the more they will refine and create predictions, and the more wrong they will end up being. They will interpret random noise as valuable data.
  • “Sir Francis Bacon commented that the most important advances are the least predictable ones, those “lying out of the path of the imagination.””
  • “In reality, languages grow organically; grammar is something people without anything more exciting to do in their lives codify into a book. While the scholastic-minded will memorize declensions, the a-Platonic nonnerd will acquire, say, Serbo-Croatian by picking up potential girlfriends in bars on the outskirts of Sarajevo, or talking to cabdrivers, then fitting (if needed) grammatical rules to the knowledge he already possesses.”
  • “To borrow from Warren Buffett, don’t ask the barber if you need a haircut— and don’t ask an academic if what he does is relevant.”


The Triplet of Opacity:

  • “The illusion of understanding, or how everyone thinks he knows what is going on in a world that is more complicated (or random) than they realize”
  • “The retrospective distortion, or how we can assess matters only after the fact, as if they were in a rearview mirror (history seems clearer and more organized in history books than in empirical reality)
  • “The overvaluation of factual information and the handicap of authoritative and learned people, particularly when they create categories— when they “Platonify.””

Mediocristan vs. Extremistan:

  • Mediocristan is the linear, limited difference, expectable realm of human height and running speeds.
  • Extremistan is the unexpectable, Black Swan world of financial markets, book sales, and death by terrorism.
  • “Mediocristan is where we must endure the tyranny of the collective, the routine, the obvious, and the predicted; Extremistan is where we are subjected to the tyranny of the singular, the accidental, the unseen, and the unpredicted.”
  • You can’t lose a ton of weight in one day, but you can lose a ton of money.

The Turkey:

  • “Consider a turkey that is fed every day. Every single feeding will firm up the bird’s belief that it is the general rule of life to be fed every day by friendly members of the human race “looking out for its best interests,” as a politician would say. On the afternoon of the Wednesday before Thanksgiving, something unexpected will happen to the turkey. It will incur a revision of belief.”
  • “Its confidence increased as the number of friendly feedings grew, and it felt increasingly safe even though the slaughter was more and more imminent.”
  • “If you survive until tomorrow, it could mean that either a) you are more likely to be immortal or b) that you are closer to death. Both conclusions rely on the exact same data.”

Sucker Problems:

  • Black Swans are relative to your knowledge and expectations, what is a Black Swan to some may be completely expected to others. The butcher is not surprised before Thanksgiving, but the Turkey is.
  • Avoid situations where you can be a fool in a huge way, avoid dependence on large potentially harmful predictions.

Domain Specific Knowledge:

  • We can learn things in one area and fail to transfer them to another, knowing that all squares are rectangles but not all rectangles are squares does not seem to help us realize that all muslims are not terrorists.

The Narrative Fallacy:

  • When looking back at history, we tend to construct an interpretation that fits into a nice story, when it’s likely that what actually occurred was much more random and unplanned. We want to believe there was a nice clear progression, and that it was predictable, when really it wasn’t.
  • “The way to avoid the ills of the narrative fallacy is to favor experimentation over storytelling, experience over history, and clinical knowledge over theories.”

Silent Evidence:

  • Rarely do we see the failures of a situation, there’s a strong bias towards the winners or a “survivorship bias.” We see the people who were nudged to shore by the dolphins because they survived, not the people who were nudged away and drowned.

The Danger of Averages

  • When you measure “averages” in extermistan, you run the risk of getting useless and dangerous information. If you cross a river that is, on average, 4 feet deep, you will likely drown.

Taking advantage of serendipity (positive Black Swans)

  • Position yourself in an industry with small losses and huge wins, like venture capital, publishing, scientific research, or movies.
  • Don’t look for the precise and local, don’t be narrow minded, don’t try to predict, just move in the right direction.
  • Seize any opportunity, or anything that looks like an opportunity. Positive Black Swans can only benefit you if you are exposed to them. Work hard in chasing such opportunities and exposing yourself to them. Go to parties!
  • Be skeptical of any precise plan within extremistan (government planning)
  • Do not waste time trying to fight forecasters or other people platonifying extremistan.
  • Put yourself in situations where the favorable consequences are much greater than the negative ones. Not necessarily more likely, but more life changing.

The End

  • Missing a train is only painful if you run after it, if you allow yourself to care
  • You can stand above society and the pecking order by choice. By creating your own idea of success.
  • “Quitting a high-paying position, if it is your decision, will seem a better payoff than the utility of the money involved (this may seem crazy, but I’ve tried it and it works). This is the first step toward the stoic’s throwing a four-letter word at fate. You have far more control over your life if you decide on your criterion by yourself.

Jul 20, 2020

Guide to Investing in Gold and Silver by Mike Maloney!




















You can download the book for free using the below link  https://static.goldsilver.com/pdfs/GTIIGS_MikeMaloney.pdf

Author:
Michael Maloney is host of The smash-hit video series Hidden Secrets of Money, author of the bestselling Precious metal book Guide to Investing in Gold and Silver, and founder of GoldSilver.com, one of the world's most highly regarded investment education companies and a global leader in gold and silver sales.

Mike discovered a passion for monetary history, devouring dozens of books and countless web pages. He discovered that the same economic patterns, or cycles, kept repeating over and over throughout history, from ancient times to modern day.

In 2002 to Mike discovered that gold and silver were incredibly undervalued and started buying.

With that newfound understanding, Mike invested his family's wealth 100% in gold and silver, and remains 100% invested in them today.

In 2004, Mike met famed author and financial educator Robert Kiyosaki, of Rich Dad, Poor Dad fame. Robert encouraged Mike to share his understanding of monetary history, economics, and recurring financial cycles with others, so that they, too, would have the ability to secure their wealth and their families' futures against the increasingly unstable stock markets and financial system.

In 2005 Mike founded GoldSilver.com, began writing his book, and started speaking at investment seminars all over the world to audiences as large as 30,000 people.

"For 2,400 years, as people have lost faith in fiat currencies; they have turned to real money in the form of gold and silver," Mike says. "Today, with global debt spiralling and governments increasingly manipulating currencies and taxing savers, the stage is set for a modern 'gold rush' to the safe haven of precious metals just when supplies of those metals are precariously low. The opportunity for those who position themselves in precious metals ahead of the crowd is like none we will see again in our lifetimes.



The Guide to Investing in Gold and Silver is a virtual gold mine of information about Precious metals investing. In the book, Maloney details the history of economics Cycles, flat currency and the short-sighted decisions governments make that cause flat currencies to lose value over time.



Before Understanding the Guide to Investing in Gold and Silver, Let’s understand what Gold is and why it is so valuable.

Scientists believe all the gold on Earth formed in supernovae and neutron star collisions that occurred before the solar system formed. In these events, gold formed during the r-process. Gold sank to the Earth's core during the planet's formation. It's only accessible today because of asteroid bombardment.

So when a Start is exploded in Space, gold is formed on earth and hence it is considered as God’s money, whose intrinsic value will remain forever and again it is limited in quantity.


The guide to investing in gold and silver gives a lot of interesting background information on money and currency. I found this information very interesting to learn about, and would suggest to anyone interested in creating wealth to learn more about this topic. The main point is gold is real money, do not get confused with currency that the governments hand out. It is very important to know the difference.
After all the history and background information is out of the way, Micheal Maloney moves the focus onto insuring you are investing is the right type of gold. The main concepts are:
1.     Watching out for scams where you think you are investing in gold however never get to hold real metal you have bought.
2.     The importance of having a plan
3.     Best way to buy gold and silver is to buy the physical metal that you own and can hold in your hands.






Michael Maloney has broken the book up into four parts, in which he gives you a good idea about what to expect in the book. As you can see, most of the book is made up of historic information he has researched about the history of money, currency and gold.

Part 1: Yesterday
Chapter 1: The Battle of the Ages
Chapter 2: The Wealth of Nations
Chapter 3: Old Glory
Chapter 4: Greed, War, and the Dollar’s Demise
Chapter 5: From Deep in the Woods the Golden Bull Came Charging
Chapter 6: Booms and Crashes
Part 2: Today
Chapter 7: What’s the Value?
Chapter 8:The Dark Cloud
Chapter 9: The Perfect Economic Storm
Chapter 10: Coming in from the Cold...To Cold!
Chapter 11: The Silver Lining
Part 3: Tomorrow
Chapter 12: The Pendulum
Chapter 13: Golden Castles
Part 4: How to Invest in Precious Metals
Chapter 14: Beware the Pitfalls
Chapter 15: Who Are You, and What’s Your Plan?
Chapter 16: Let’s Get Physical
Chapter 17: Everything Is Illuminated in the Light of the Past 


A lot of people think currency is money. For instance, when someone gives you some cash, you presumably think of it as money. It is not.
Cash is simply a currency, a medium of exchange that you can use to purchase something that has value, what we would call an asset. Currency is derived from the word current. A current must keep moving or else it will die (think electricity). A currency does not store value in and of itself. Rather, it is a medium whereby you can transfer value from one asset to another.     

Money

Money, unlike currency, has value within itself. Money is always a currency, in that it can be used to purchase other items that have value, but as we’ve just learned, currency is not always money because it doesn’t have value in and of itself. If you are having a hard time grasping this, just think about a hundred-dollar bill.

Do you think that paper is worth $100? The answer is, of course, no. That paper simply represents value that is stored somewhere else—or at least it used to be before our money became currency.

The answer is, of course, no. That paper simply represents value that is stored somewhere else—or at least it used to be before our money became currency. Later we will study the history of our currency and the gold standard, but for now all you need to know is that the U.S. dollar is backed by nothing other than hot air, or what is commonly referred to as “the good faith and credit of the United States.” In short, our government has the ability to, and has been, creating money at will without anything to back it up. You might call this counterfeiting; the government calls it fiscal policy. The whole thing is what we refer to as fiat currency.    

All currencies in use today are fiat currencies. At first it will sound strange to you, but it will only serve to highlight, and bring greater understanding of, the differences between currency and money.

The Inflation and Deflation in an economy rises due to the expansion or contraction of the currency supply.


Here’s the dirty little secret: Fiat currency is designed to lose value. Its very purpose is to confiscate your wealth and transfer it to the government. Each time the government prints a new dollar and spends it, the government gets the full purchasing power of that dollar. But where did that purchasing power come from?

It was secretly stolen from the dollars you hold. As each new dollar enters circulation it devalues all the other dollars in existence because there are now more dollars chasing the same amount of goods and services. This causes prices to rise. It is the insidious stealth tax known as inflation, robbing you of your wealth like a thief in the night.


Throughout the centuries, gold and silver have battled it out with fiat currency, and the precious metals have always won. Gold and silver revalue themselves automatically through the free market system, balancing themselves against the fiat currency in the process. 

This is a pattern that has been repeating and repeating since the first great currency crash in Athens in 407 B.C. 

Once a government has introduced a paper currency, they then expand the currency supply through deficit spending, printing even more of the currency to cover that spending, and through credit creation based on fractional reserve banking. Then, usually due to war or some other national emergency, like foreign governments or the local population trying to redeem their demand notes (bank runs), the government will suspend redemption rights because they don’t have enough gold and silver to cover all of the paper they have printed, and poof! 


The Author explains about the stupid mistakes people makes in terms of fiat money, people have learned the kind of damage fiat currency can cause and how gold and silver prices were revalued by giving many example and stories from history.

People started converting their notes to coin, and bought anything of transportable value. Jewellery, silverware, gemstones, and coin were bought and sent abroad or hoarded.

In order to stop the bleeding, in February of 1720 the banks discontinued note redemption for gold and silver, and it was declared illegal to use gold or silver coin in payment. Buying jewellery, precious stones, or silverware was also outlawed. Rewards were offered of 50 percent of any gold or silver confiscated from those found in possession of such goods (payable in banknotes of course). 

The borders were closed and carriages searched. The prisons filled and heads rolled, literally. 

Finally, the financial crisis came to a head. On May 27, the banks were closed and Law was dismissed from the ministry. Banknotes were devalued by 50 percent, and on June 10 the banks reopened and resumed redemption of the notes for gold at the new value. When the gold ran out, people were paid in silver. When the silver ran out, people were paid in copper. 

As you can imagine, the frenzy to convert paper back to coin was so intense that near riot conditions ensued. Gold and silver had delivered a knockout blow.

So the book is all about the importance of investing in gold and silver and how over the years the currency value backed by gold is being manipulated by the goverment and the fiat currency has devalued and how it effected the middle class people by creating inflation and hence looting the common people and how can the common middle class people save themselfs from this loot by the goverment.

Jul 13, 2020

The Wit and Wisdom of Charles by T. Munger




Looking for a great book click on the link https://amzn.to/3eIj4wU












About the Author:
Charles Thomas Munger (born January 1, 1924) is an American investor, businessman, former real estate attorney, architectural designer, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett; Buffett has described Munger as his partner.


This book has many interesting and great piece of advice of how to live happy, meaningful, memorable and successful life!






The Author explained the 25 Rules for happy, Successful life and Investing
1.     Reward and Punishment Superresponse Tendency — incentives
2.     Liking/Loving Tendency
3.     Disliking/Hating Tendency
4.     Doubt-Avoidance Tendency — we reach conclusion then don’t have doubts
5.     Inconsistency-Avoidance Tendency
6.     Curiosity Tendency
7.     Kantian Fairness Tendency — we expect fairness
8.     Envy/Jealousy Tendency
9.     Reciprocation Tendency
10. Influence -from-Mere-Association Tendency — ie aspirational advertising
11. Simple, Pain-Avoiding Psychological Denial
12. Excessive Self-Regard Tendency — we think too highly of ourselves
13. Overoptimism Tendency
14. Deprival- Superreaction Tendency — loss hurts more than win feels good
15. Social-Proof Tendency
16. Contrast-Misre action Tendency
17. Stress- Influence Tendency — social proof becomes stronger
18. Availability-Misweighing Tendency
19. Use-It-or-Lose-It Tendency — need to keep using your skills or you forget
20. Drug-Misinfluence Tendency
21. Senescence-Misinfluence Tendency — cognitive decay with age
22. Authority-Misinfluence Tendency
23. Twaddle Tendency — just chitchat and procrastinate
24. Reason-Respecting Tendency — we learn better if we now the reason
25. Lollapalooza Tendency-The Tendency to Get Extreme Consequences from Confluences of Psychological Tendencies Acting in Favor of a Particular Outcome





Jul 6, 2020

The Simple path to wealth by J L Collins!






     


Looking for a great book. Please click on the link https://amzn.to/38w7HXv

About the Author:
JL Collins wrote The Simple Path to Wealth as a guide to money and investing for people who realize that money is important, but would rather spend their time raising kids, advancing in their careers, pursuing other passions and making the world a better place.Jun 25, 2016



Understanding Money:

Most people ignore learning the basics of personal finance because it seems too complex or boring. But in investing a few hours in learning the basics, you can position yourself to make your money work for you, not against you. And in doing so, you can start making decisions independent of money, instead of the reverse.


Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical. If you choose to master it, money becomes a wonderful servant. If you don’t, it will surely master you.





Jun 29, 2020

How to get Rich by J Paul Gatty!






Looking for the book.... Click on the link https://amzn.to/2VuJwU6

How to get rich, read books online














About the Author: J. Paul Getty, in full Jean Paul Getty, (born December 15, 1892, Minneapolis, Minnesota, U.S.—died June 6, 1976, Sutton Place, Surrey, England), American oil billionaire reputed to be the richest man in the world as per Fortune Magazine in 1957. 

Getty was a man of principles, and in his book he explained the valuable and expert advice about life.  At some time of life, he was gone into depression, and then he struggled to control the estate, and this took 20 years to finish. The significant opportunities in the market are not for everyone so becoming rich depends on the desire, creativity as well as on the energy.

 

J. Paul Getty was the richest man of the world according to Fortune Magazine. He was a visionary and a man of principles and value. 


He was a man of principles. Getty promoted working to make society a better place. He was also in support of cooperating with labor unions and as per him, becoming rich also has some responsibilities. These include a positive attitude and a decent character.

This in turn funded many easy-money and selfish millionaires. From his age’s point, Getty offers new management techniques. He discusses how being wealthy and getting rich are different. We appreciate the ageless value of his knowledge. Plus, his business advice holds even now. Hence, we highly recommend this inspiring business biography.


He wrote books about the secret of getting rich and disclosed secrets of their success. Paul Getty explained some critical blueprints in his book that anyone can follow in his footsteps. 

Getty was famous for his wealthy decisions and actions in society, and we felt that the books mentioned responsibilities on individuals for a decent character. The fascinating discussion in the book was a positive attitude, and we appreciate the management techniques discussed in the book.

Ordinary people can also become rich. All they need is enough desire, energy and creativity. 
People who cry over lack of business prospects are just making excuses. Their reasons vary from high taxes, unfair competition through to high-cost of labor. But, if you pay your staff more, they can purchase more. Plus, no business ever ended only due to high taxes. Besides, if you face high competition, use it to your advantage. Rather than taking such steps, many people give up before even starting. It’s because fear and defeat prevent them from seeing opportunities.  


The Young Millionaire  
Getty became a millionaire by age 24 as he wished to retire early, however, his parents tried to convince him to stay productive. This was because many people’s lives depended on their company.
Hence, in 1919, he again entered the oil business. This time he started drilling in South California. He worked with his crew, motivating them. But, due to the in depression in 1929, much like 2020, the firm’s stock fell too much.
In 1930, after his father’s death, Getty started controlling the estate. He also ran the oil company side by side and searched for oil. Getty began buying big oil firms in South California. In 1932, he purchased the Tide Water Associated Oil Company. This was not a friendly merger and hence took 20 years to finish.
Getty was the head of the Mission Corporation in the late 1930s. He bought the Hotel Pierre for $2.3mn. Besides, he also bought a hotel in Mexico. Getty even wanted to enlist for WW2. But, he was too old for that. He learned that his aircraft firm was key to the war effort. Hence, he started to manage the operations. He increased production and stayed at the factory until the war got over. This was the time when he expanded in the Middle East for the oil business. His oil field in Saudi Arabia produced 13mn barrels. By 1954, he had his fleet of oil tankers.
Gettys explained the 10 key rules to reach a financial independence:
  1. Go into businesses you know and understand.
  2. Focus on producer more enormous amounts of good products/services.
  3. Be economical first. Then think of making money.
  4. Don’t ignore new chances of expansion. They can be anywhere. But, check properly and don’t fall prey to the urge to over-expand.
  5. Delegate jobs in your business. But, always be responsible for overseeing your workers.
  6. Reduce costs and improve productivity. This should be the same in both good and bad times.
  7. Take risks. And be ready to use borrowed funds. But, always pay back the loans fast. This will help improve your credit rating.
  8. Always be on the look for new markets and opportunities.
  9. Take pride in what you do. Keep a flexible service policy and solve consumer issues fast.
  10. Wealth comes with responsibility. Hence, use your money to help others. These may also include your workers, shareholders.







Getty give an inside on the different types of People

  • A millionaire mindset needs hard-work, knowledge, and focus. People are of four main categories. But, not each one of them has the traits to become wealthy.
  • People who don’t want to work for anyone – These people are independent. For them controlling their own lives is more crucial than a paycheck.
  • People who want to work for others and share in the profits – This feature is most common in best sales professionals.
  • People who are happy to work for others – These people want the safety of a paycheck. But, they don’t have the confidence and drive to work independently. Or even on commission.
  • Salaried employees who don’t want to help employers make a profit – Such people don’t do much work. And, they don’t even add value to free-enterprise.


The Millionaire Mindset


This mindset focuses on efficiency, profit-motive and cost awareness. In other words, this means having an eye for detail, while saving and making money. Pushing inefficient people into retirement is sensible. Because keeping them in your firm will be more costly.

The Executive Way
  • Good executives are great at directing the activities of their staff. 
  • They’re loyal, productive and can solve issues fast. 
  • These people are creative and independent thinkers. 
  • They don’t micromanage, follow directions blindly or use too much oversight. Instead, they lead by example. 
  • They can both explain and instruct what is needed. Besides, they’re also accountable for the work of their subordinates. 
  • Hence, if it’s good or bad, they take the blame if their supervision was inadequate. Great executives don’t ask others to do things they won’t do themselves. 
  • They praise their people publicly. But never lash out at them in front of others.

Don’t Stress About the Wrong Things

Getty said that many executives are stressed. 
The reason is not that they worry about the amount of their work. Instead, they emphasize keeping their jobs. 
As a boss, he saw stressing about job and overwork as a weakness. Hence, he suggested the use of a positive mindset to handle tough employees. 
He led by example as he was always a hands-on manager. His beliefs were not to push employees to become efficient. Instead, to guide them for the same.
He said that mutual respect and trust are the base for productive communication. 
It’s because negativity is harmful. When people see that their contributions don’t matter, they disconnect. They may even become aggressive and steal things and for them, such acts are justified as the firm distanced them. But, when people turn negative, management puts more boundaries. This in turn further distances people.


Facing Challenges


Getty avoids roundabout bargain. He didn’t delegate. Instead, he directly spoke with union leaders. He told directly that their demands were very high. Plus, he showed the company’s reports stating that real state-of-affairs. Getty gave evidence to back his claims. 

This unarmed union leaders who finally accepted his original offer. When a company’s profits increased in a year, Getty increased wages.



Getty said that labor unions like honesty and straight answers. Once they have the facts, they make sound decisions. Getty knew the rights of the collective bargain. Plus, he praised how unions increased staffs’ living standards. Hence, he never faced issues with unions.


These did mean that negotiations were around better working conditions and higher wages. But, for Getty these demands were reasonable. He understood that employees are like consumers. Hence, the more income they had, the better it was for the nation’s economy.

Great managers face tough situations head-on. American business history has many such turnaround stories. Where executives faced adversity, but then revived their firms. Such stories include Ford Motor Corp, Valley National Bank, American Motors and United Fruit Co. 

In every case, when issues came, managers didn’t run away. Instead, they analyzed the situation and created a plan, and if they wanted more time, they took it, they didn’t panic. 

Also, some of these firms’ managers also had to make sacrifices. This was important to remain in the fight. But, in the end, they emerged victoriously.

Art and Fan Mail

Getty had a considerable interest in collecting art. Plus, he saw great art as a sound investment. For example, he bought the Ardabil Persian rug. This was one of the two best carpets in the Western world. Getty bought it for $68,000 in 1938. Then, in 1958 Getty gifted it to the LA County Museum of Art. At that time the value of this rug was $1 million.
Getty had five marriages and said that none of his marriage worked. His four sons also joined the oil business. They first worked in the firm’s gas stations changing tires and oils. Getty got around 3,000 letters monthly from strangers. They were mainly requesting money, asking for jobs or marriage proposals. Despite being a billionaire, Getty said that true richness is something different. It comes when people do what they like and follow lasting values. As per him, status seekers were very materialistic. For these people status and financial freedom were the same. But for Getty true wealth was following principles and doing something good for the society.

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