FUTR Family Management

Value of Liberal Arts Education

futrfamily — Mon, 07 May 2012 14:33:19 +0000

Oftentimes, to the unsuspecting, I declare my UC Berkeley education very CONSERVATIVE. For conservatism connotes holding fast to current conventional wisdom. A Liberal education’s definition is based upon exploration of why things either works or is defective. Read Mr. Berkowitz’s article as it points out how the lack of primary education about The Federalist Papers education has lead to choices of life paths arriving in this period of malaise.

The Federalist Papers’s Legacy

Federalist Papers Website

Value of Good Definition

futrfamily — Mon, 07 May 2012 13:58:12 +0000

The precise expression of what you mean is an important piece for relationships. James Grant defines DEFLATION’s falling prices compared with technologically induced price declines. Until today I was unappreciative of this nuance and it’s influence in decision making. Tax rates promote technology’s efficiency; liquidation of over supply the other to reallocate resources more effectively in the economy.

Notable & Quotable — Deflation

The Value of Fair Compensation

futrfamily — Fri, 04 May 2012 15:59:30 +0000

This James Grant’s Notable & Quotable piece from today’s Wall Street Journal presents a great idea for compensation of bankers, portfolio managers and family wealth advisers. FUTR Family Management employed a variation of this method in its investment management contract with its clients. Permitting cash claw-back for taking too much risk is an excellent policy for keeping the managers’ interest aligned with the clients’.

Let the article stimulate your critical thinking. Call us with questions about FUTR’s variation on this theme. Hope this is useful in developing your legacy succession plan.

Noteable & Quoteable Fair Compensation

Value of Berkshire Hathaway Succession Plan

futrfamily — Sat, 21 Apr 2012 16:42:55 +0000

Where are they now? The great succession plans:

UCLA – John Wooden
Alabama — Bear Bryant
Gulf & Western – Charles Bluhorn
Litton Industries – Tex Thorton
Teledyne – Henry Singleton
Ling-Temco-Vaught — James Ling

After reading Jason Zweig’s article, linked below, about who will succeed Warren Buffett, my early investing experiences developed the list above. History suggests no one will succeed the Buffett-Munger Team.

UCLA & Alabama waited a long time to return their respective sports franchises into consistent performers.

The 1960-1970′s conglomerates produced lots of good ink; however, each company was dissipated and eventually acquired and dismantled into a new corporate culture.

One denominator common among all is Leadership’s Vision and Core Values were not part of the successors’ culture except through comparative folklore similar to Paul Bunyan, Davy Crockett and Jeremiah Johnson. The Founders’ secret sauce was not part of the succession plan’s formula.

BRK’s highest value will be delivered by current operating management’s culture when spun-off from Mr. Buffett’s cultural attachments. Read Mr. Zweig’s article and you will see what I mean.

Successor Buffet

Value of The FUTR Forum

futrfamily — Fri, 20 Apr 2012 23:05:52 +0000

FUTR Forum’s theme this year is First, Only, Best. This theme is borrowed from Dr. Lee of Children’s Hospital Los Angeles talk at CHLA’s Leadership Conference last June. We are the first company to develop family trusts as virtual operating companies whose organizational success is based upon development of the family human resources and capabilities to preserve, protect and steward the family’s legacy. We are the only company which views a family’s investment policy as a trans-generational allocation of assets to produce lifestyle cash flow appropriate for each generation’s risk profile . . . we believe selling to the next first generation embodies stewardship practices that encourages participation and preservation of wealth. Best is a tough term because there are many measures for reality . . . our practices are based upon the challenging fiduciary practices found at the Fi360 organization rather than the suitability standard delivered at major, national and boutique broker-dealers. For example, follow the link to our recently published quarterly performance report . . . note that the fee actually paid by the client is lower than the published fee scale. We believe the client owns his/her fee and pays it in arrears. Follow the link to our performance.

Value of a Good Friend

futrfamily — Thu, 19 Apr 2012 15:06:10 +0000

Al Beimfohr was welcomed Home yesterday. He was a friend, mentor and one of the best investors. He founded Canterbury Capital, Knightsbridge Asset Management and supported my founding principles at FUTR. He was a believer in good stewardship practices, a supporter of ideas that could make a difference and delivering value in his clients’ portfolio. Al and John Prichard managed my special situation allocation since 1999 or 2000. I will miss Al Beimfohr but enjoy his legacy in John Prichard and at Knightsbridge. May I be fortunate to met you again at Home, my friend.

Value of Questions Well Asked

futrfamily — Tue, 03 Apr 2012 14:00:03 +0000

Peter Wood’s Notable & Quotable piece in today’s Wall Street Journal is spot on for it delivers great pictures of what you want to learn or happen. It is especially helpful in the discovery of your legacy, investment time horizon and your family’s secret for success.

Who, what, when, where, why and how are great tools for family kitchen table historical discovery. I like “how” best supported by “who”, “when”, “what” and “why”.

How will this be used today? In a Valued Art Project! Enjoy!

The Art of a Question Well Asked

Value of Independent Central Bank

futrfamily — Mon, 02 Apr 2012 15:46:00 +0000

The link to Mary O’Grady’s article about Argentina’s Statists taking over the Central Bank is worth the read as it can be the premonition for the USA. Inflation of 10 – 20 percent means prices double every 3 to 7 years . . . The actual inference is VALUE declines by half every 3-7 years. My first experience with this was in the Seventies when writing my senior thesis at Berkeley. All the USA banks were bailed out of their South American debt which is quite a preference paid by taxpayers. The article explains what happens as the teeter totter’s equilibrium point is disrupted by preferences. As a counterpoint consider Chile’s Monetary Policy solution created by the Chicago Boys.

Central Bankers & Inflation

Values Needed for Instant Wealth

futrfamily — Sun, 01 Apr 2012 15:24:43 +0000

Life becomes very affordable after winning the Lottery or so you would think. The winners inherit wealth beyond their dreams from all of us participants. After a little while drinking in the features and benefits of their new wealth, they arrive at an edge of the cliff of the life they have known. They want to get to the other side without the benefit of a Mentor or Steward because their lives did not require this help living day to day. Inheritances can cause a similar situation when the first generation leaves wealth without Legacy and it’s educational process. May these Lottery winners learn to be good stewards and have a solid Mentor arrive in their lives.

Lottery’s Inherited Wealth

Value of a Federal Budget Debate

futrfamily — Thu, 29 Mar 2012 22:20:54 +0000

A real current event . . . House Passed Ryan Budget! Good news for families who believe their time is PRIVATE PROPERTY. Hope is created with Ryan Budget for future generations and the US Public Debt. Improves outlook for Business & Investing . . . more news in June on how to treat ObamaCare budget resources (as savings???)

Hope this was helpful to your family’s decision making and planning.
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