Two success habits to get yourself ahead of the crowd

There are good habits and there are also bad habits. And the great news is that we have control over which habit to form.

Habit is a regular practice or tendency, which often is hard to give up. Habit is an automatic reaction to a specific situation. Habit can be addictive such as drugs… (Dictionary)

We have many habits whether we know them or not. Something we do repeatedly long enough will become a habit. Check in your experience for yourself to see the force of habit such as which foot you put your shoe on first, your daily sleep schedule, ….even how you work.

There are good habits and there are also bad habits. And the great news is that we have control over which habit to form (yes, it’s hard and tedious and of course requires discipline to form good ones).

From my own experience as well as deep study of successful billionaires (they are often older than 80 years old and have lived long enough to prove what works and what doesn’t), these two habits will serve us and form a basic for great successes.

The first one is habit of promptness. This includes being on time to an appointment. It is to pay debt when it’s due. It is to meet an obligation or keep a promise of any kind. Essentially, promptness is being a person of integrity, a person of one’s own word. If you are what you say you are, you are much further ahead of the crowd. People can count on you and want to do business with you.

The second one is habit of thrift. Thrift element is often a deciding factor to any business success formula. By being thrifty, one will instantly recognize any opportunity to lower overhead and production cost. This will translate into increasing profit. In addition, a person of thrift will always have a reserve. A reserve will enable one to meet contingencies and carry one through tough times. A reserve will also make it possible for one to expand or make improvements without having to borrow.

Practice those two habits (promptness and thrift) until they become your second nature. They will greatly help you achieve your goals.

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About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

If you would like to have a conversation, open your email and send me an inquiry at coach@hoanmdo.com

Masayoshi Son: how to build a billion dollars company from a big dream

Masayoshi Son is the founder of Softbank and the richest man in Japan. He’s known to the world as:

  1. Lost 99% net worth ($70 billion) overnight in the dotcom crash.
  2. Invested $20 million into Alibaba which is now worth $140 billion
  3. Bought Vodafone Japan for $15.1 billion
  4. Bought 70% Sprint for $20.1 billion

When asked what he would want people to remember about him after he leaves the earth: “A crazy guy who bets on the future.”

The following is the except from Son’s interview with HBR in 1992 when Softbank was 10 year old. This is how Masayoshi Son started Softbank:

For a year and a half, I did research and made business plans. While I prepared, I had no income. I spent money, I had a new baby. My wife was worried. All my friends, my father, my mother, everybody was worried. They asked me, what are you going to do? You spent years studying in the United States, and now you aren’t doing anything. I spent all my time just thinking and thinking, studying what to do. I went to the library and bookstores. I bought books, I read all kinds of materials to prepare for what I would do for the next 50 years.

I came up with 40 new business ideas—everything from creating software to setting up hospital chains, since my wife’s father is a doctor and has a hospital. Then I had about 25 success measures that I used to decide which idea to pursue. One success measure was that I should fall in love with a particular business for the next 50 years at least. Very often, people get excited for the first few years, and then, after they see the reality, they get tired of the business. I wanted to choose one that I would feel more and more excited about as the years passed.

Another factor was that the business should be unique. That was very important to me. I didn’t want anyone else doing exactly the same thing. A third was that within 10 years I wanted to be number one in that particular business, at least in Japan. And I wanted to pick a business where the business category itself would be growing for the next 30 to 50 years. I didn’t want to choose a sinking ship.

I had all those measurements, about 25 in all, and 40 new ideas. I took a big sheet of paper, and I drew a matrix and put down scores and comments for each. Then I picked the best one, which turned out to be the personal computer software business. That was the start of Softbank.

…….

I thought about making software myself and starting a software business, like I had done while I was at Berkeley. But, I thought, if I make good software, who would sell it? Making software and selling software are entirely different businesses. Even if I make good software, if there’s no one to sell it, I’d have to close the business.

I looked around for someone who was selling software, and I couldn’t find anyone. So, I thought, if no one is going to do it, I should do it. I made a list of the software producers and went to see them to find out what kind of software was available.

………

I had a very long-term vision. I didn’t have any evidence, but I believed in myself. I believed that someday I would have a very big company, a global business, and a very successful company.

While in college, Masayoshi Son wanted to become financially independent as soon as possible. He started looking for jobs that only required 5 minutes working and would pay $10,000 a month. His friends thought he was crazy. There were illegal jobs such as selling drugs but Masayoshi Son did not want to do anything illegal.

Masayoshi Son learned from Konusoke Matsushita, the god of management, that inventions can generate money. He set out to do inventions. His goal was to have a new idea for inventions every day. He would set his clock to go off in 5 minutes and in these 5 minutes he would come up with one invention. He wrote all those ideas in a notebook. This notebook has 250 ideas logged.

Through this process, Masayoshi Son chose one idea and created a patent which later sold to Sharp for $1 million. This was when he was still at University of California Berkeley and 21 years old. When also in college, Masayoshi Son create video games and later sold for $2 million when he returned to Japan.

Reference: https://hbr.org/1992/01/japanese-style-entrepreneurship-an-interview-with-softbanks-ceo-masayoshi-son

Quotes from Masayoshi Son:

“Life is short. I will regret if I don’t act boldly when I am young.”

“Because time is limited. We must live life to the fullest.”

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About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

If you would like to have a conversation, open your email and send me an inquiry at coach@hoanmdo.com

 

What you master uses you

Bruce Lee had a quote saying to the effect that it’d be better to practice a kick 10,000 times than to practice 10,000 kicks.

When I was learning Karate in college, I was taught 5 katas within a semester. I could perform those 5 katas fairly well. I thought I was good.

When I joined the Musokai Karate dojo, I was surprised that many blackbelts could do only one kata Naihanchi Shodan.

I only found out what Bruce Lee said was right when I sparred with my seniors. Even though I knew 5 katas, I could not even touch them. Their moves were natural,  simple, precise, effective, and fast.

In other words, I was thinking what to do while they did not. They were used by their techniques while I were using my techniques. While I was trying to figure them out, they saw openings for effective actions and delivered what worked. Before I could figure anything out, they already finished their attacks.

I was lucky that Shihan Arakaki saw what I was doing and pin-pointed it out in a way that I got it.

Once I got it and was able to actually do it, I lived in a new world, the world of Musokai Karate (as Shihan explained, the word “Musokai” also means “an organization of infinite thought or action without conscious efforts”). Practices became more fun even though more challenging. Sparring also became more fun and more effective. What was ordinary, trivial and boring suddenly became extraordinary, fun, energetic, and challenging. A simple move like walking became a totally different move involving many different parts of the body. I loved learning Musokai Karate so much that I never missed a practice unless a real emergency came (I did live about one hour driving away from the dojo, was working full time and doing a MBA).

Once I was able to do Musokai karate, I lived into the world of Musokai Karate. Even I now live in another state, I come to live in that world whenever I practice or spar or teach Musokai Karate or come back to the dojo. And I do so without thinking or figuring out. In other words, what I mastered uses me.

I’d invite you to check in your own experience: what you master uses you. In order to master the art, you must discover for yourself.

P/S: Musokai Karate headquarter is located in Salt Lake city, Utah. There are classes for both adults and kids. If you are looking for a unique training experience and the opportunity to train with the world-class master who not only masters the art but also can teach you to master it, please check out Musokai Karate or its facebook page at https://www.facebook.com/okinawakaratedocenter/

Shihan Arakaki is the author of many best selling books. His English book “The Secrets of Okinawa Karate” is my bible and training manual while I am away from the dojo.

If you are in Salt Lake city, Utah, you and/or your kids are invited to try out one class. Click on the Musokai Karate website for detailed schedule and contact information.

 

 

 

Warren Buffett – Educational videos

The following is a collection of videos of Warren Buffett. There are few videos of him that I watched and listened to for the entire year repeatedly everyday when I was learning value investing. I hope it will helps you as well.

P/S: if you find a new video of his, I’d appreciate you to leave the link in the comment

HBO documentary of Warren Buffett in 2017 (#mustwatch):

Warren Buffett shared great lessons for small businesses and entrepreneurs :

Warren Buffett at University of Nebraska 2003:

Warren Buffett speaks to University of Georgia students in 2001:

Warren Buffett on how to stay out of debt (#mustwatch)

Warren Buffett & Bill Gates talk to students

Warren Buffett in India (#mustwatch)

Berkshire Hathaway Annual Meeting playlist

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Other popular articles:

  1. A SPECIAL GIFT FOR YOU – WHY SHOULD I HIRE A COACH?
  2. Making 6 figures? How to avoid being one of 69% of Americans who have less than $1000 in the bank.
  3. This simple skill is worth millions, helped many become millionaires, billionaires
  4. How to guard yourself against negative influences
  5. 20 minutes that can change your life
  6. How to get your dream job with no experience – Lessons from Bill McDermott
  7. Making 6 figures #2? How to avoid being one of 29% of American households with no retirement savings
  8. Life lessons from a Uber driver who was laid off
  9. Leaders are readers

About the author: Hoan Do is a certified leadership coach. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups to share with other leaders about transformational leadership and coaching. He has trained many leaders via mastermind groups, workshops, and one-on-one coaching.

A few words about intrinsic value

Intrinsic Value of a stock

A stock is worth only what you can get out of it. In other words, a stock is the present value of all its future dividends. 

P = sum of (dn * (1+r)^n)     r = interest rate, dn = dividend in year n

Even if a company retains earnings, it must pay dividends later or all money is lost. 

“A cow for her milk

A hen for her eggs

and a stock, by heck, 

For her dividends.

An orchard for its fruit

Bees for their honey,

And stocks, besides,

For their dividends.“

The investment value of a stock is the present worth of its net dividends to perpetuity. 

For stock with constant dividends, P = d/r

PE = d/(r*e)  e=earning per share

or PE = total dividend on common / (r * total earnings on common)