Here is a link to a Wall Street Journal Article (2012 02 03) Nonprofit’s Backers Mobilize. The astounding issue is Susan B. Komen for the Cure’s support of Planned Parenthood. With Komen’s $300 million endowment, why would they not establish centers dedicated to mamagrams, breast examinations and breast cancer education. Planned Parenthood ought to employ such a Komen agency and make it grants for that particular specialty. I have been a casual donor to Susan B. Komen for the Cure as a sponsor of friends’ intentions and appreciation for the plight of breast cancer patients. I wonder if my friends’ intent were to unwittingly support Planned Parenthood.

Each investor is protect his private property. In 14 months we’ll know what was protected.

Intrinsic value is created by risk takers who creatively solve problems for society through their profits. If profits are siphoned off to unproductive activities such as government, that economy slows and investment is curtailed because risks and cost have increased.

This is a big picture for a microcosm for sustaining family wealth. If one generation over taxes another through distribution demands, then the ability to take risk is diminished. Or, if family governing values become capricious, then boundaries become blurred and discipline atrophies. Similarly, if compensation is insufficient for risk taking and creativity, total wealth declines in terms of intrinsic value and margin of safety.

This Russian story is a proxy to illustrate an economic truth: private property, risk taking and it’s compensation cannot be found without the rule of law determined by a fair and impartial judiciary.

Is your family’s vision and governing values congruent and supportive of it’s economy?

Will talk more about this facility as we progress with our research and decision making process. It will complement our strategy and methods for utilizing life insurance as an alternative investment.

One, an retina-eye specialist, talked about remote medicine project to combat blindness in Armenian infants. Remarkable! Do one operation, teach one and mentor one . . . all part of the doctor’s vision to be first, be bold and be best . . . as a floor rather than ceiling.

Then, he demonstrated the power of diagnostics over the Internet.

Great medical diagnosis will become just a click away.

Happy Father’s Day tomorrow to all fathers and their families.

My first boss had a similar approach in the 1973-1974 economic disruption caused by wage & price controls . . . supply disruptions and discouragement by heavy handed policies. He reminded us that even in the Great Depression 70% of business was still happening. Participate patiently with perspective!

Do you ever notice the number of successful companies born in the crucible of economic troubling times?!

Remember this too will end if we live life well like the Greek owner & my first boss. This too shall end as Solomon admonished. Families welcome new members; enjoy the fruits of their labor and plan for their futures.

Family Wealth, Keeping It in The Family

. The focus of our discussion was “why families do not make it beyond the third generation?”. The primary reason is the inability of the first generation to see beyond their own life time; conflicted with their desire for their creation to survive indelibly. For this reason, only 15 percent of qualified families today will make it to the third generation.

The Second Generation is a critical juncture because it bridges the founder’s dreams with today’s circumstances. Generally it is more family focused. Consequently, this generation may not feel the same energy and drive as its predecessors. The Founder’s succession and development plan is born of expectations to “carry on in my tradition” and “thinking the way that I do”.

The missing ingredient for becoming a 15 Percenter is a common family vision and governing values. It is these elements that encourage relationship among family members. Without it, the only thing that is shared are family genetics. Competing goals or goals unrelated to the Vision pull in opposing directions diminishing the ability for the family to grow its intellectual capital.

Becoming a 15 Percenter Legacy requires patience, prudence and perspective as developing a Vision and Governing Values is a process and a way of life.

As discussed in earlier posts, there is a
movement afoot as evidenced by the hearings in the Education & Labor Committee under Rep. Miller to nationalize retirement accounts to “solve” the Social Security bankrupt position. Financial Repression will also be applied to “solve” Medicare, Medicaid & the healthcare debacle on which we now embarking.

Financial Repression is were sovereigns, usually in LDCs, cap interest paid on savings, increase reserve requirements and direct the types and to whom loans are made. Banks and other financial institutions are coerced to buy the sovereign debt.

Chile was a prime example until Milton Friedman’s Chicago Boys arrived in the 80′s. Now Chile’s spending and investment policies reflect growth- industry & jobs.

A fiscal diet by all levels of government will bring us physical health for mind, spirit and body.

Our spending policies must change much like dieting for good health. Goals provide motivation and good cheer as milestones are met. If it took the last 100 years to arrive in this predicament, why must are expectations be unrealistically faster to lose the weight and drag of outlandish spending by our political royalty of preferences?

Another inference from this discussion is that today is close to the date we begin working for our families and ability to pursue our individual happiness.

My solution was to drive my wife to Anthropology and Soma to return items. We invested time wisely since our goals for supporting the economy were fulfilled. Tranquility in our pursuit of happiness closed the day with a smile, giggle and a kiss good night.

All the best on this Friday, May 13, 2011!