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What Do You Value Most in Life?
Before I delve into my latest topic, just want to mention that I added some more absolute return managers to my last comment on the Quebec Absolute Return Fund. As I've stated repeatedly, Montreal has many excellent portfolio managers in both the long-only and absolute return space.
On Thursday, I hooked up again with Pierre Malo, my supervisor when I was working at PSP Investments who is now consulting and working at Jean Turmel's Perseus Fund. The last time we met up for lunch, we discussed process over performance. Pierre is one of the rare good guys I've met in finance. He had to let me go from PSP and I still love meeting up with him, which should tell you a lot. Once again, our conversation touched finance and life:
- Upon greeting me, Pierre told me I look good and told him I feel great, both physically and mentally. Going to gym helps but something about turning 40 last week which made me realize life is way too short to expend my mental and emotional capital on people who drag me down. I also realize that I'm too good with others because that's my nature, but if they don't reciprocate, then I'm wasting my time (one trader explained it to me like this: think about it as a trade where you're initially making money but then it goes against you. At one point, you got cut your losses or else you won't have any emotional capital left)
- We then ordered our food. Pierre ordered the tuna salad and I stuck with my salmon and asparagus. We ordered some white wine to wash it down -- lots of it! (It's fun letting loose, drinking it up once in a while, especially with a former boss who you got along with on a professional and more importantly, personal level)
- Corporate governance was a topic we talked a lot about today. According to Pierre, while shareholders are informed of corporate compensation, they can't vote on it. This means that whether you're a small investor or a large institutional investor, you can't influence compensation at large corporations. The board of directors vote on compensation and these boards are typically stuffed with former corporate hacks looking to repay favors.
- Pierre calls this the "agency problem," where there is a separation between the owners of a company and the managers. He rightly notes that a stock price can be going up for all sorts of reasons (like the sector is in favor) and it's ridiculous to vote in high compensation based on share price appreciation. "There is a huge element of luck involved".
- On my piece on the Quebec Absolute Return Fund, he told me something critical was missing: "what's the risk they're willing to tolerate to generate T-bills + 5%?".
- We then talked about the Osama bin Laden "conspiracy theories" and both dismissed them. Why are there no pictures? Where's the proof? Who cares? All we need are pictures of bin Laden with bullets in his head so some idiots can add fuel to the fire and ensure massive retaliation (just cause bin Laden is dead doesn't mean al-Qaeda ceases to exist)
- I remarked that the world is changing faster than ever. The one thing that worries us both is growing income inequality -- the great divide. We talked about how Bill Gates at least created his foundation and is giving away his wealth for good causes, but there is little political will to tackle the issue of income inequality. Politicians are basically looking out for themselves not the middle class, and certainly not for the working poor.
- That brought us onto a whole other discussion on work and values. I told him that it bugs me seeing civil servants who have the luxury of having guaranteed jobs whine about their working conditions and counting the days till they retire so they can collect a big fat pension while people like my 80 year-old father still work full eight hour days seeing psychiatric patients. But it also bugs me seeing how greedy people in finance are and how they use you as long as you have something to offer them.
- Our society is obsessed with money and things. We measure people by their net worth. It's sad but true. And all for what? Go back to read my comment on turning 40. Andrew Lahde said it best: "I will let others try to amass nine, 10 or 11 figure net worths. Meanwhile, their lives suck . . . What is the point? They will all be forgotten in 50 years anyway. Steve Ballmer [Microsoft chief executive], Steven Cohen [founder of hedge fund SAC Capital] and Larry Ellison [chief executive of Oracle] will all be forgotten.”
- I bring that last point up because over at Zero Hedge some people thought I was all gun-ho about hedge funds in my last comment. I shared my thoughts on hedge funds:
I've allocated to the best hedge funds all over the world. I don't get all hot & horny over hedge funds and know that it's a tough business. Some of the richest and happiest guys I've met in Montreal are anonymous prop traders you've never heard about. They manage their own millions and do not answer to any institutional investor. If I had a choice of collecting 2 & 20 and the stress of managing a hedge fund (including all the marketing bullshit, RFPs, stupid institutional managers breathing down your neck) or managing my own portfolio, I'd opt for the latter. There is way too much hype about the glory of managing a hedge fund. Trust me, it's not as easy or as glorious as it seems.
And that elicited this response:
Leo, if money can buy happiness then it is beyond glorious. The hedgies/VC guys I know spend their spare time (and lots of it) jetting between their various homes, yachts etc. and when bored they buy more real estate and build ever bigger castles while pursuing various interests eg art, car racing, yacht racing, exotic cars etc. I also know guys who run their own book some of whom are structured to deploy their own as well as others capital sometimes in partnership with pro money guys.
- Wow, it sounds exciting jetting across the world between all their beautiful homes, car racing, yacht racing, etc., but I'm reminded of the wise words from my 80 year old father who's seen many rich and poor patients suffering from mental illness: "Leo, I know you don't like listening to your father, but when it comes to money and sex, only too much is enough".
- These are all things and things shouldn't define you as a person. I asked Pierre whether he's truly happy and he said yes. I then asked him if he lost everything, would he still be happy. He told me everything but his wife who he loves deeply (good answer!).
- I then shared a secret with him: "You know I was making very good money at PSP but towards the end, I hated the job. It was like a cancer eating away at me from the inside. I hated the politics of the place but I don't hate anyone there. I'm just very disappointed with some people." He understood exactly what I meant.
- We talked about different people and I told him flat out how some people disappoint me. There are lots of people who talk the talk but few walk the walk. I started accepting donations on my blog last week and very few people stepped up to the plate and actually donated to support my effort. I'm also disappointed with some people who I helped when they were down and out looking for work, personally delivering their resume to presidents and CIOs of pension funds and yet when I ask them to keep and eye out for me, total silence. Talk is cheap! Actions always speak louder than words.
- Having said this, quite a few people have contributed to my blog. One senior pension fund manager who contributed $500 shared this comment with me after I thanked him (I thank all those who contribute any amount, big or small, because it's the thought that counts):
Your product is quite useful (and entertaining), and should simply be valued accordingly. No need for any special thank you. I have casually suggested within my organization that we consider a more substantive contribution, but its best to let various others appreciate the value of what you are doing on their own timetable.
- And here is what one former colleague of mine had to share after graciously donating $100:
I had dinner at Baton Rouge tonight with my wife and me three kids. When I saw the bill, I nearly fell off of my chair. I came back home, feeling dumb about wasting all that money, I went on your blog to read your articles. I went to read your 40-20 article. It was like a fresh breeze. Through your own experience, you are trying hard to remind all of us in the finance world about the true priorities in life. I call this exercise the re-normalization of money-addicted individuals. Call it a medicine but some of your articles are like drugs helping our brains to remember that true things in life can't be bought with money. As you can see, this small donation is like buying drugs at the pharmacy... and it brings me much relief to offset this stupid dinner I had tonight. Cheers my friend.
- When I think of all the good people I met in finance, I can count them on one hand. My ex-boss Pierre is one of them and so is this guy who is currently looking for work and still was decent enough to donate his hard earned money to support my venture. I remember something profound this person told me in his office one day: "They can take away your title, take away your job, but they can never take away what you have in your heart and in between your ears." That advice always stuck with me.
Finally, Pierre let me know about people he admires, great Canadians like Terry Fox and Rick Hansen, people who overcame adversity to teach us that we can do anything once we set our mind to it. Then Pierre told me he admires me. I said: "Me?!? What's to admire about me? I'm just a blogger who has MS. I don't even consider myself disabled." He replied: "You should be proud of your accomplishments. You write about important and sometimes contentious topics. You dedicate yourself to sharing this information with the public. And you're a fighter. That's very admirable."
Thank you my friend, I appreciate your support and look forward to our next lunch.
***Feedback***
I like what a friend from Chicago sent me:
''To live around those we love; to care for and do the little things that magnify courteousness, empathy, and considerateness: those are the things that (to me at least) matter. If we are blessed with doing something that we enjoy and at the same time paying our bills, what more could one hope for?''
Couldn't have said it better myself. Focus on helping others and you'll
find inner happiness. And finally, this George Carlin quote from a man
who declared bankruptcy because his 20 year old son was diagnosed with
paranoid schizophrenia:
Life is not measured by the number of breaths we take but by the moments that take our breath away.
The man was not in a position to donate to my blog but his email and the quote above are priceless.
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leo you made me cry! but my wise mother always told me when i bcame emotional,
STOP FEELING SORRY FOR YOURSELF†
glad to read, you are a lot more healthy from your gym exercising. exercise always helped me get over my life, you know into another dimension of self, very humbling. think i will stop wanting to play golf.
Falak...you got it wrong. Nothing wrong with de-regulation...if you are made to pay if you get it wrong. The banks and the Fed didn't have to pay for getting it wrong. They merely placed more Regulaiton on top of failed regulation.
Regulation...bailouts, "stimulus money" (I would love to give Bernak some of my "stimulus"), to big to fail, and Barney "he made me bite the pillow" Frank and Chris "the brown bag" Dodd regulations - is what has caused the socio-economic angst.
De minimus regulation, with responsibilty for one's actions (or lack there of) is what we all should be writing about,
I only believe in historical precedence. That shows us where, when, decision making MEN really go. That's nOT theoretical. So, although there is "nothing wrong with deregulation" in principle, the past experience of Thirty years, in a position of world domination, TBTB, got it all wrong. That is the reality. That is not theory. I don't junk real deeds. I do junk theory if reality doesn't fit it. This is western practice since three thousand years. It be the very HALLMARK of western civilization. So I'll never junk it. I will junk Friedmanian economics as it makes the powerful more corrupt and absolute power...we've seen it time and time again.
As for the theory of market correction and making the actors pay...its not reality as DOMINANT market players ALWAYS prefer to cheat. There are NO PERFECT SELF REGULATING markets.
"De minimus regulation, with responsibilty for one's actions (or lack there of) is what we all should be writing about,"
Where do you see this occurring in the US? Its devoid of ALL real substance your thesis. It's lovely in theory, I agree!
Money, it's all about the money.
And yes, it can buy happiness.
I value Chinese Solar Stocks most highly in life.
That's rich GrassHopper. Get long Gorilla Glass!
well when the empire collapses and the US sheeple realize that what collapsed is NOT central Keynesian economics but a criminal elite of the 'creme de la creme' entrepreneurs, scions of free enterprise capitalism, that made USA what it is over one century and a half and as a consequence feel this country and its sheeple belong to them like the longhorns did to King Chisholm and the US oil patch to King Rockafella and the railways to King Harriman and the steel/coal patch to King Morgan etc. And the central banking to the PDs via surrogate FED that pretends to be a centralised Keynesian institution but is in FACT a phony facade to a private PONZI. The sneaking realisation is going to dawn on them that the only way out is not more of the same old 'free enterprise' soup but more of FDR's good state governance as neutral, permanent, civil servant arbitration to regulate fairly amongst cannibalistic Oligarchs. Only by balancing private sector huge overpowering structures by transparent counter state-owned power structures will the US come back into the global race. So stop bashing good governance. Having said that, the big state apparatus that spends, spends, spends...since JBJ days, on war and entitlements, has to end for the same reasons. The US people now between a Oligarchic hard rock and a state sector whirlpool.
Double paradigm change required : slim, efficient, neutral governance with Balanced budgets at state and federal level 'poured in concrete Mantra', and reigning in the private Oligarchs. By strong, lean, mean but fair government. And no more patsy, judicial system, the worst scandal of all, as last resort for fair legal justice for all in country.
Come on FDR's ghost and good governance. And stop shitting on debate and long range strategic planning, on sectorial basis, on federal basis, and NOT knee jerk, corporate decision making basis; to please the sheeple and Oligarchs by the fatal "quarterly report" syndrome. The death bed of short term capitalism, fed on free money, no holds barred legislation, that has fed the deregulated financial ponzi for thirty years; organized by the Oligarchs and their paid state sector whores.
Wake up call for a major turnaround or else...
The problem with the financial world is that there is no accountability (maybe the whole world). As your friend states the shareholders have little power over executive compensation. Compensation should be based on results, and executives that allowed bad decisions which resulted in losses should have their compensation reduced accordingly. Hedge Funds or any type of fund should not be making their money from fees charged to clients but rather charge according to the amount of money they make for the client. This would give them incentive to actually make money for the client instead of abusing the client and still making money for their company.
Health
Not angry Leo....just saying...you should have sung Kumbaya instead.
The sappy retarhd who wrote the article is 40? He must have been a real A_hole in his 30s.
Why are there so many angry people on ZH? What's the matter, mommy didn't kiss you enough as a child?
The most important thing in life is to be happy.
-----------------------------------------------------
Happiness is fleeting and circumstantial, joy is neither and from the heart.
The worst author on here by far!
Waiting for your donation bud...
spot the socialist
...socialism's over bud, get with the new trend, not another charity hand-out but capitalisms wonderful Grim Reaper stage about to pay you (and Govt, zombie bankers, pensions, crony business) a visit
Thanks Leo for the thought provoking words. I did take the time to read all the posts here before posting myself and have to say they are for the most part what I'd expect to read on a site dedicated to acquiring a strong portfolio.
For me, what I value most in life is the investments I've made in the lives of others, it is because I know (from recent experience) that the ROI's come back in ways and amounts that sometimes defy explanations and are at times, overwhelming. As is the case these past few days. My oldest son is in crisis and so I sent out the call for help, it is the response to that call that has left me humbled and grateful.
I have found that investments in others brings with it a sense of true purpose and ultimately meaning to life. At least with mine it does. I also know that investing like this does not bear immediate returns, at least any that can be seen, but I also know that the investment echoes on long after I've forgotten it.
My two dollars worth. (silver of course)
''I have found that investments in others brings with it a sense of true purpose and ultimately meaning to life.''
So true, focus on helping others and you'll find inner happiness. Thank you.
Leo,
I agree w/you 100%.
It's not about YOU and ME.
Cast your bread onto the waters, so that they may return seven fold.
Same principle applies in the next life.Matter of fact, it's a command.
If you take the focus off of YOU, and put it on others, you will find inner peace.
The peace that passes understanding.
here's to mediterranean cooking and wine and olive oil and fish grilled fresh and meat eaten fresh instead of under cellophane...But apart from that there is this existential thrill for living summarised by this question that a man can be asked at the end of his life..."What would you like god to ask you when you rise to face Him?..." and the answer : "Did you love enough?"
Doesn't say 'what', 'cos god understands all!
Nik Tahou's cheeseburger Garbage Plate with everything!
Artery cloging, heart-attack on a plate, but so fucking awesome.
''Artery cloging, heart-attack on a plate, but so fucking awesome.''
Garbage in, garbage out! Treat your body kindly my friend, and you'll appreciate the payback for many more years. :)
Thanks, mom.
Hey paesano,
Point taken, although I do try to keep intake limited to couple times a year, max.
I have to say my dog and beer.
My extended family sucks beyond imagination.
My nephew more than likely stole $2500 from my son, in my home. My immediate family has been attacked and denied justice since we said anything.
I'd rather die alone than live with blind trust and pollyanna bullshit.
Oh, and face it the youth are turning to self serving shitbags at a parabolic pace. Pacify them with cell phones, cash and your food and pretend all you want.
they take after their parents
3-D porn.
Liberty.
Wine, women and song.
+ A title like that and no tits? Vot giffs?
I like what a friend from Chicago sent me:
Couldn't have said it better myself.
no you couldn't have said it better yourself, that's why all your articles are cut (crib) and pastes of others work ....now you're even cribbing your friends!
Do you (we) know where you are and why you are here?
... what does it have to do with money?
Aside from my family, curiosity is the spice of life for me. Once I am no longer curious about life and learning something, I'll know I'm just marking time and taking up space.
we are all going to have a "come to Jesus" moment, whether we want it or not.
putting cronies to the sword
...is Leo still around?
So how was the salmon & asparagus?
"Our society is obsessed with money and things. We measure people by their net worth. It's sad but true." Are you becoming disillusioned by materialism ? What does God mean to you ?
"What do you value most in life?"
Leaving aside friends & family.
Someone who exhibits honesty, virtue, ethics & morality when, to not do so, would be easier for them.
Well said nmewn. Couldn't agree more. But I think there's only two olympic size pools of honesty in the whole world
Probably so my friend...maybe it can make a comeback...and with it some integrity.
All that was old is new again? ;-)
The problem is we live in a world of moral relativism. Crack this and you'll have cracked the problem.
The more we have moved away from moral absolutes, the more we realize we need them.
moral absolutes are problematic because we have to say things are wrong and live with guilt.
better to just ghettofy culture...
You are staring at (a connection to) one of the best things in life - the internet(s). Could any of us go back to not being connected?
My dad worked 46 years for Ma Bell helping build the POTS. Today we play with it's grandchild.
Isn't it great!
But... the internet does not even make it into my top 10 bestest things in life.
Deep-fried Spam fritters
When I became aware of the pervasive risks to our society, my initial priority was the survival of my family unit.
As I began to dig deeper, I realized zerohedge was right, on a long enough timeline the survival rate is zero.
At present, my priority, what is important to me is changing my lifestyle so that 1) I have taken reasonable precautions to protect life and property against the coming collapse, but also 2) I am not complicit with the evil being perptrated by elites.
This is my first post, but I've been lurking and reading for over a year and I am grateful to the authors and commenters who are out of the box thinkers and authors in their own right.
Liberty: freedom from control, interference, obligation, restriction,hampering conditions, etc.; power or right of doing, thinking,speaking, etc., according to choice.
There is only one thing of any value and without it, all the rest---family, kids, money, fame and infamy, sex, eating-----is a poor substitute.
Your Physical and mental Health.
If you don't have and take care reasonably good health, you will likely find only soporics in all the other things life has to offer.
I'd trade great health for everything. For with it, everything else is possible and enjoyable.
My Porn collection!
oh yeah, and my wife and kids to.