Tag Archive: Manage or Be Managed


“When are we going to realize in this country that our wealth is work?” – Comedy Central Jon Stewart assertion to CNBC’s Jim Cramer

Heard one of the talking heads of the chattering class last week on CNBC extol the virtues of “passive investing” in the face of massive volatility and the long-awaited arrival of a Wall Street correction.

Isn’t “passive investing” an oxymoron or a contradiction in terms, if not just plain dumb?

The basic premise is the 54 percent of Americans investing in stocks and stock-based mutual funds should put all of their investments on auto pilot, automatically “investing” a fixed percentage of their pay checks into company 401Ks or brokerage managed IRAs (Individual Retirement Accounts).

On more than one occasion, Almost DailyBrett has been critiqued for surfing Charles Schwab, Fidelity, Zillow and Wells Fargo each on a daily basis.

Is your author an unreformed capitalist? Please allow me to plead, guilty.

What’s curious is no one seems to raise an eyebrow to those constantly burying their noses into their smart phones, spending an inordinate amount of time on Facebook or Snapchat or bingeing on video games or streaming video.

As Jon Stewart correctly surmised in his 2009 televised pants-zing of Jim Cramer, far too many times retail investors have been sold this notion that markets inevitably go up, so don’t mind volatility and fluctuations. Forget about it!

And if that is indeed the case, panicking only leads to losses. No argument.

The question that Almost DailyBrett is raising and arguing is very simple: Do we want to manage your wealth accumulation or be managed by others who may not have our best interest at heart?

The Day, The Music Died

“I went down to the sacred store; Where I’d heard the music years before; But the man there said the music wouldn’t play.” – Don McLean, American Pie

Your author contends that portfolio management is not the same as day trading. At the same time, the notion of long-term investing makes absolutely no sense. Back in the 1990s, one would have been advised to invest in IBM, Cisco, Intel and Microsoft and walk away.

With the exception of Microsoft, the music stopped playing for these “DinoTech” stocks.

Worse, the 1990s investor would have missed the massive upsides of newly minted 21st Century rock stars, the likes of Facebook, Amazon, Netflix and Google (FANG).

Since the days of the three Gees – Andy Grove, Bill Gates and Lou Gerstner (all retired or in one case, deceased), a new trove of corporate rock stars has ensued – Mark Zuckerberg (Facebook), Tim Cook (Apple), Jeff Bezos (Amazon) and Elon Musk (Tesla).

Don’t you know, these shooting stars will eventually flame out? And as Don McLean wrote and sang, their music will eventually die.

Who will be the rock stars of the next decade? Should we keep some money on the sidelines, ready to buy low and sell high. If we become “passive investors,” we will blindly throw our hard-earned, discretionary dollars at Wall Street regardless of bull market or bear market.

Shouldn’t we be selling near or at the height of the market and buying near or at the low of the market? Or should we just designate portions or our IRAs or 401Ks to this mutual fund manager or that mutual fund manager because they are the “experts”?

Where Do You Shop? What Products/Services Do You Buy?

“I don’t care about a stock’s past, only its future.” – Jim Cramer of CNBC’s “Mad Money”

Almost DailyBrett has his fair share of mutual funds – domestic/foreign; large cap/mid-cap/small cap – and cash under management. Your author also manages four individual stocks, carefully avoiding the perils associated with all eggs coming from one chicken.

Apple: Let’s see, in the morning your author reaches for his Apple Smart Phone, runs to classic rock sounds on his antiquated iPod, and turns on his Mac at work. You bet ya, Apple is part of the portfolio.

Boeing: Considering that Donald Trump is president and more federal dollars are headed for defense and the economy is strong, regardless of market gyrations, Boeing has been a solid buy. The company sold 700 commercial airliners this year and plans to deliver 800 next year. Has your author been transported by Boeing Aircraft? Is the Pope, Catholic?

Nike: Uncle Phil is the founder of athletic apparel market leader and the über-benefactor of University of Oregon Athletics. Nike shoes/gear are worn for morning runs to complement the Nike+ software program on the Apple iPod.

Salesforce.com. Marc Benioff hails from my undergraduate alma mater, the University of Southern California (May The Horse Be With You). Mark is the founder, chairman and CEO of business software innovator, Salesforce.com. Let’s face it, many may claim a cloud legacy, but Salesforce.com was first to SaaS or Software as a Service.

Apple, Boeing, Nike and Salesforce are the four present individual securities in the portfolio of Almost DailyBrett. Are they examined and managed on a daily basis? You bet ya. Will they be there forever? Forget it.

Should an investor, who rejects passivity, consider these individual stocks?

Only your investment advisor knows for sure.

https://www.nytimes.com/2015/08/08/opinion/joe-nocera-on-the-cramer-takedown.html

http://www.cc.com/video-clips/iinzrx/the-daily-show-with-jon-stewart-jim-cramer-pt–2

https://don-mclean.com/

 

 

… and again, again, and again …

Why is it that some of the best and the brightest just don’t get it when it comes to personal public relations?

There will always be bad days.

And with these bad days are the prospects of worse days in the future.

Was Yogi Berra referring to Brian Williams, John Kitzhaber, Anthony Weiner, John Edwards, George W. Bush, Tiger Woods …?

Almost DailyBrett seriously doubts that Yogi recognizes the name, John Kitzhaber, let alone his now-infamous girlfriend, and the state in which he until recently served as its governor.kitzhaberhayes

Having extended our due respect to Yogi, let’s contemplate another famous Berra-ism: “You can observe a lot by just watching.”

Tell the Truth, Tell it All, Tell it Fast, Move On …

The four principles of crisis communications live on, beginning with what mumsys all across the fruited plain have told daughters and sons: “Always tell the truth.”

These four principles or steps in quick order – Tell the Truth, Tell it All, Tell it Fast, Move On — also translate into another adage: Manage or be managed.

  • Brian Williams with his propensity for self-aggrandizement and exaggeration (e.g., starving at the well-stocked Ritz Carlton in New Orleans during Hurricane Katrina) could not or would not recognize the danger signals of his own behavior. Williams became the story (a no-no for any reporter), lost control of this tale and eventually his NBC anchor desk, his position and quite possibly his career as we know it.williamsnbc
  • John Kitzhaber was starting his fourth term as the governor of Almost DailyBrett’s adopted, Oregon. His arrogance mounted over time, including his heavy-handed sacking of the president of the University of Oregon, Richard Lariviere. The ultimate downfall for Kitzhaber pertained to Oregon’s “First Lady” (the governor’s squeeze), her high-salary non-profit job, influence peddling and the governor’s refusal to acknowledge an obvious conflict of interest until it was too late. Yep he had the opportunity to manage, but in the end he was managed and with it he became a poster child for term limits.
  • Anthony Weiner attempted to bluff his way out of the mounting evidence of his “selfies” being sent to designated females from Seattle to New York.
  • John Edwards cheated on his dying wife with his videographer, and stonewalled the media about his love child, Frances, until he was caught by none other than the National Enquirer.
  • George W. Bush had the opportunity to reveal his 1976 DUI arrest in Kennebunkport, Maine (manage), but chose to keep it under wraps until the story exploded four days before the 2000 election (managed).
  • Tiger Woods repeatedly pleaded for familial privacy as TMZ kept listing the names and details of even more women that had affairs with the world’s number one golfer. Woods was managed by the media and his career has never been the same.

Who’s Next?

“I tell our players all the time, ‘As soon as you start going down the wrong track and you start doing something wrong, the clock starts ticking until the day you are caught, because it’s going to happen’…In our world today, you think it’s not going to be found out eventually?” – Nebraska Football Coach Mike Riley

“Who’s Next” is the question posed by Pete Townshend in 1971, but in this case it applies to who or what organization is going to fail to recognize the crisis communication warning signs, eventually losing control of an issue, and then being subjected to a seemingly never-ending story with “legs.”

For BP and its Deepwater Horizon oil platform, the media coverage of the 2009 catastrophic spill that immediately killed 11 workers lasted for more than three months. The multi-billion litigation and the permanent damage to the BP brand continues to this day. “BP” and “Spill” are synonymous terms.oilspillbird

For far too many in the reputation business, crisis communications is simply, response. Certainly, there is a response component to crisis communications, but just as important are the words, prevention and management.

Samsung could have prevented or at least blunted the effect of the movie producer Michael Bay meltdown at the Consumer Electronics Show by practicing how to respond to a faulty teleprompter.

Johnson & Johnson’s Tylenol team managed the discovery of cyanide–laced capsules and provided a text-book example of management that not only saved the brand, but restored public confidence in pharmaceutical industry and generated an entirely new regime of safety packaging.

There is no doubt that we will soon be reading, commenting, tweeting, trolling, memeing about some preventable human or institutional failing as it applies to legal tender, sexual dalliances or personal aggrandizement that could have been prevented or at least managed.

Instead, the story takes off and spins out of control. Eventually the digital ones and zeroes go critical and the reactor core starts to melt down. The monster grows legs and runs for days, weeks, months …

What did mumsy say about telling the truth?

http://www.brainyquote.com/quotes/authors/y/yogi_berra.html

http://www.oregonlive.com/education/index.ssf/2011/12/the_rise_and_fall_of_richard_l.html

https://almostdailybrett.wordpress.com/2014/10/15/loma-prieta/

http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill

https://almostdailybrett.wordpress.com/2014/01/13/damn-the-teleprompters/

http://www.urbandictionary.com/define.php?term=meme

 

 

“Not disclosing the DUI on my terms may have been the single costliest political mistake I ever made … I may have just cost myself the presidency.” – President George W. Bush

“We should have brought it (DUI arrest) up at a time and place of our choosing. I should have made a more convincing case for doing so. Instead I helped George W. Bush keep a secret that almost cost him the White House.” – Karl Rove, Senior Advisor to President George W. Bush

How could a Maine drunk-driving arrest in America’s bicentennial year lead to the infamous hanging-chads election debacle in Florida 24 years later?DUI

As virtually all of us know, George W. Bush used to drink. And with the consumption of alcohol, sometimes more than one or two beers too many,  the probability of a drunk driving arrest increases. That’s exactly what happened to Bush in Kennebunkport, Maine on Labor Day weekend in 1976.

Serving as Governor of Texas two decades later, Bush was asked by reporters if he was ever arrested for DUI. He didn’t tell a fib, but he also did not tell the whole truth about his 0.10 blood-alcohol level DUI misdemeanor, paying a fine and having his license suspended for 30 days.

Instead, he confided that he did not have a perfect record; he engaged in foolish activities as a youth; and he urged fellow Texans to not drink and drive. Having the vantage point of history, we know now this response while technically correct was an opportunity lost.

Reflecting back on his evasive answer, Bush realized that he could have held an event with Mothers Against Drunk Driving (MADD) – and use this backdrop to disclose his own DUI – putting out the negative news at a time and place of his own choosing … and over time making the 1976 Kennebunkport arrest ancient history.

A specifically timed disclosure was exactly the advice of his aides, Rove and Karen Hughes, and conceivably others on the governor’s staff, but Bush stubbornly would not agree to get the DUI out in the public and on the record. Instead, this DUI magically came into the public consciousness exactly four days before the closest-ever 2000 election.

Rove contended that even if this DUI revelation moved 2 percent of the electorate to shift from Bush to Al Gore or from Bush to not voting that would have cost the then-Texas Governor 2.1 million votes. Translated: Instead of razor-thin wins in New Mexico, Wisconsin, Iowa and Oregon – all four of these states ended up in the Al Gore column – Florida’s electoral votes may not have been necessary and history would have been different.

Tell the Truth, Tell it All, Tell It Fast, Move On

I’ve oftentimes said that years ago I made some mistakes. I drank too much, and I did on that night … I regret that it happened, but it did. I learned my lesson.” – Governor George W. Bush to reporters four days before election-day in 2000bushdui

The mantra in effective crisis communications is first-and-foremost to tell the truth. Tell the complete story, tell it as fast as possible (not four days before a national election). Move on quickly, hopefully preventing the story from having “legs.”

Let’s face reality here. Almost DailyBrett has seen cases where personal pride and human nature cause good people to sweep unwanted remembrances underneath the rug, hoping they will never be heard from again. Darn it, these stories have a habit of slithering out just when you least expect them.

We watched in amused horror as former presidential candidate John Edwards denied repeatedly that he had an affair and a love child (e.g., Frances Quinn) with videographer Rielle Hunter while his wife Elizabeth, was fighting a losing battle against cancer.

After days of kicking and screaming, Edwards came clean about the affair with Hunter, but still denied the love child, but even this revelation was not the whole truth. Eventually, the National Enquirer got a story right, complete with photos of Edwards, Hunter and their lovely offspring.edwards1

Did someone say something about Tell the Truth, Tell it All, Tell it Fast and Move On?

Does anyone give a rat’s derriere about John Edwards anymore?

Manage or Be Managed

“The news of the arrest came out at the worst possible time, with only four days to go in the campaign. Many have suggested that I would have served my candidate better had I insisted he disclose it earlier; maybe so.” – Karen Hughes, Counselor to President George W. Bush

When it comes to the most important public relations and brand/reputation management of all, our own personal PR and our own brand and reputation, we all have a choice: manage or be managed.

The campaign apparatus of George W. Bush conducted opposition research on their own candidate, which is standard practice as one knows the other side of the aisle will be digging into the weeds looking for “good dirt.” The Bush campaign oppo research did not discover the DUI, even though it was buried in the public records in scenic Kennebunkport. The erroneous conclusion: The coast was clear.

Instead, the storm clouds with no coincidence came pouring in at the worst time possible for the Bush campaign and with it a sudden break of momentum and the potential loss of more than 2 million votes

We could have been spared the one-month legal spectacle of hanging chads in Florida.

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/06/AR2010110602835.html

http://www.washingtonpost.com/wp-dyn/content/article/2010/03/05/AR2010030502249.html

http://en.wikipedia.org/wiki/Karen_Hughes

http://en.wikipedia.org/wiki/John_Edwards_extramarital_affair

 

 

 

 

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