Business

  • The Flow of Planning

    090705 Compass I was in Columbus Ohio last week for a series of meetings and strategic planning sessions.

    I love getting away from the business in order to work on the
    business. That means stepping back from day-to-day issues, to look at
    the bigger picture. It also means getting back in-touch with goals and
    intent.

    In a sense, the process acts like a compass, which sets the general direction for the journey.

    In addition, preparing for a series of meetings, like this, is a lot like working on a business plan.

    Personally, I've found that that one of the primary benefits of
    creating a business plan has almost nothing to do with the plan itself.
    Working on the plan, immersing yourself in the ideas and possibilities,
    and ultimately choosing what stays-in, versus what's filtered out …
    there is magic in that.

    Yes, the plan is important.  But it is the planning that takes you from thinking … to feeling … to knowing.  That's where the real benefit of business planning comes from.

    A Good Sign.

    Sometimes you hear a question and it takes the air out of an idea.
    Other times a question helps you make a new distinction or consider an
    alternate and better course of action.

    At our planning sessions, last week, there was a lot of those
    pushing, pulling, probing, and deep thought … yet it built momentum. 
    So, I felt like we were on the right track.

    How to Tell You Are On the Right Track.

    I
    tend to be analytical.  Yet, over time, I've come to believe that one
    of the best tools to measure whether you are on the right track is how
    you feel.

    Have you ever gotten a phone call from someone, and when you saw or heard that it was from them, you wilted?  In
    contrast, have you ever become more animated and energized while
    interacting with someone else?  It is easy to recognize the difference. 

    Each person has different thoughts, people, or situations that trigger these positive and negative states.

    In sports, this positive state is often referred to as being "in-the-Zone".  It is also called "Flow". 
    It happens when someone is fully immersed in what they are doing, and
    has a feeling of energized focus or awareness, full involvement, and
    success in the process of their activity.

    090705 Challenge_vs_skill

    Being in Flow feels good. On some level, when you are in Flow, you know you're on the right track.

  • Software to Help You Manage Your Mind

    Visual Thinking, Idea Mapping or Mind-Mapping … whatever you call it, there are some terrific new tools available to help you think, plan and write better.

    I find I'm using it more often and for more things, like: note-taking, process maps, brainstorming and presentations.

    How Does It Work?

    Mind-Mapping is related to outlining. So you already know how to do it.  It is intuitive, and makes it
    easy to see thought structure and relationships. It also makes it easy to review and re-organize the framework that organizes your data. Here is an example showing what you can do with a tool like this.

    090607 Uses of MindMaps

    How Can You Use Mind-Mapping Software?

    I use this type of software like a virtual whiteboard.  It helps me organize a meeting or present a thought process. What used to be a form on a piece of paper, now becomes the dynamic center of collective focus.  For example, here is a map template from Mindjet's MindManager; it is used to evaluate an
    idea using SWOT analysis (which stands for: strength, weakness,
    opportunity, and threat).

    090607 SWOT

    The structure of the outline and actually
    helps control focus and trigger new ideas. And the software allow me to add detail and new items in any order.  The result is better understanding and often, new ideas and possibilities.

    Brainstorming.

    The computer age has made it a lot easier for me to collect data. Then what? Data is a raw material, but I often want to think better …
    rather than to just have more data. So, I use visual thinking tools to help me
    make sense of lots of ideas. It often helps me see relationships and
    move items around to places where they fit better, or trigger new
    thoughts.

    PostIt_Board 278p For brainstorming, the software is a lot like writing ideas on Post-It Notes and moving them around on a whiteboard.  I like being able to enter information the order
    that occurs to me, rather than having to understand the bigger picture.

    In fact, it's by placing all the seemingly random bits of information
    page and dragging them around into piles, that the bigger picture often
    reveals itself to me.

    To do that, I try to figure what relates the piles, and I create a label for that category. I then try to figure out how categories fit together, and ultimately come up with a better understanding of the thought framework. From there, it doesn't take much work to fill out weaker areas of the outline, adding an idea here, moving an idea from there.

    The Software Tools.

    Even if you tried a tool like this before, it is time for a fresh look.  These tools have evolved and are worth having and using.

    Mindjet's MindManager is the tool I use most often. The current version is stable and mature, with a nice feature set and the ability to export information into a variety of programs and formats. I especially like the new option to export a live branching version of the mind map in PDF format.

    090607 MindJet Example

    Mindjet offers a template gallery for you to download 70+ sample maps to use.

    Another tool I've been using more of lately is Tony Buzan's iMindMap.  Buzan is a well-known proponent of mind mapping and has created a visually appealing tool.

    090607 Creative Solutions Examples with iMindMap

    It's compelling, and I'm trying to use it more. They also have a nice collection of videos explaining the software and concepts behind mind-mapping that is worth exploring.

    Personally, though, for real work I find myself going back to Mindjet product.

    In addition, there's an open-source version called FreeMind. Here's the link to try that tool as well.

  • Software to Help You Manage Your Mind

    Visual Thinking, Idea Mapping or Mind-Mapping … whatever you call it, there are some terrific new tools available to help you think, plan and write better.

    I find I'm using it more often and for more things, like: note-taking, process maps, brainstorming and presentations.

    How Does It Work?

    Mind-Mapping is related to outlining. So you already know how to do it.  It is intuitive, and makes it
    easy to see thought structure and relationships. It also makes it easy to review and re-organize the framework that organizes your data. Here is an example showing what you can do with a tool like this.

    090607 Uses of MindMaps

    How Can You Use Mind-Mapping Software?

    I use this type of software like a virtual whiteboard.  It helps me organize a meeting or present a thought process. What used to be a form on a piece of paper, now becomes the dynamic center of collective focus.  For example, here is a map template from Mindjet's MindManager; it is used to evaluate an
    idea using SWOT analysis (which stands for: strength, weakness,
    opportunity, and threat).

    090607 SWOT

    The structure of the outline and actually
    helps control focus and trigger new ideas. And the software allow me to add detail and new items in any order.  The result is better understanding and often, new ideas and possibilities.

    Brainstorming.

    The computer age has made it a lot easier for me to collect data. Then what? Data is a raw material, but I often want to think better …
    rather than to just have more data. So, I use visual thinking tools to help me
    make sense of lots of ideas. It often helps me see relationships and
    move items around to places where they fit better, or trigger new
    thoughts.

    PostIt_Board 278p For brainstorming, the software is a lot like writing ideas on Post-It Notes and moving them around on a whiteboard.  I like being able to enter information the order
    that occurs to me, rather than having to understand the bigger picture.

    In fact, it's by placing all the seemingly random bits of information
    page and dragging them around into piles, that the bigger picture often
    reveals itself to me.

    To do that, I try to figure what relates the piles, and I create a label for that category. I then try to figure out how categories fit together, and ultimately come up with a better understanding of the thought framework. From there, it doesn't take much work to fill out weaker areas of the outline, adding an idea here, moving an idea from there.

    The Software Tools.

    Even if you tried a tool like this before, it is time for a fresh look.  These tools have evolved and are worth having and using.

    Mindjet's MindManager is the tool I use most often. The current version is stable and mature, with a nice feature set and the ability to export information into a variety of programs and formats. I especially like the new option to export a live branching version of the mind map in PDF format.

    090607 MindJet Example

    Mindjet offers a template gallery for you to download 70+ sample maps to use.

    Another tool I've been using more of lately is Tony Buzan's iMindMap.  Buzan is a well-known proponent of mind mapping and has created a visually appealing tool.

    090607 Creative Solutions Examples with iMindMap

    It's compelling, and I'm trying to use it more. They also have a nice collection of videos explaining the software and concepts behind mind-mapping that is worth exploring.

    Personally, though, for real work I find myself going back to Mindjet product.

    In addition, there's an open-source version called FreeMind. Here's the link to try that tool as well.

  • Seth Godin: Why Tribes, Not Money Or Factories, Will Change The World

    Terrific video from the TED series.

    Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.

    Direct link to the Seth Godin's Tribe Talk at TED.

    I'm seeing more examples of Tribes. For example, Facebook and Twitter have become an important part of my day and business process.  I am pleasantly surprised by how many people have offered ideas, opinions and insights that make a difference and move things forward.

    Everything old is new again.  Welcome to the tribe.

  • Seth Godin: Why Tribes, Not Money Or Factories, Will Change The World

    Terrific video from the TED series.

    Seth Godin argues the Internet has ended mass marketing and revived a human social unit from the distant past: tribes. Founded on shared ideas and values, tribes give ordinary people the power to lead and make big change. He urges us to do so.

    Direct link to the Seth Godin's Tribe Talk at TED.

    I'm seeing more examples of Tribes. For example, Facebook and Twitter have become an important part of my day and business process.  I am pleasantly surprised by how many people have offered ideas, opinions and insights that make a difference and move things forward.

    Everything old is new again.  Welcome to the tribe.

  • Capitalogix Commentary 05/24/09

    090523 Magician A good magician misdirects your focus with clever patter, distracting gestures and a pretty assistant.  Why does that remind me about the current state of market perception and the economy? 

    Perhaps in part because of the rosy picture the recent rally paints, while few notice the plunge in S&P 500 earnings.  That means the great bargain you think you are buying isn't such a bargain.

    Stocks Are Expensive Again.

    The chart below, from Chart of the Day, illustrates how this plunge in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio).

    Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1936 into the late 1980s, the PE ratio tended to peak in the low 20s (red line) and trough somewhere around seven (green line). The price investors were willing to pay for a dollar of earnings increased during the dot-com boom (late 1990s) and the dot-com bust (early 2000s).

    As a result of the current plunge in earnings and the recent 2.5 month stock market rally, the PE ratio has spiked to the low 120s – a record high.

    090523 Stocks High PE Ratio

    Click here for a different perspective on this chart. 

    Precious Metals Are Performing Well.

    At the same time, there is another trend worth watching.  Money is moving to gold.

    090522 Gold is Hot Banks and Retail Are Not

    The chart displays the relative performance of several market sectors over the past few weeks.  The chart below shows the same data, but compared to Gold as the baseline.  It highlights how dramatically the other markets have under-performed recently.

    090522 Gold Performing Better

    The recent financial crisis has clearly re-ignited investor interest in precious metals.  Many believe that gold and silver are good bets during tough times – and a hedge against inflation.  So it doesn't surprise me that I'm hearing more investors using Warehouse Depositary Receipts to actually take delivery of the asset rather than just speculating.

    What To Expect.

    A short-term bounce wouldn't surprise me here.  The markets have held-up fairly well after the big rally.  So another test higher makes sense.  However, based on the weakening internals, the intermediate-term outlook is looking more bearish to me.

    Business Posts Moving the Markets that I Found Interesting This Week:

    • Will the Fed's Medicine have Inflationary Side-Effects? (WSJ)
    • Treasury's Next Phase Of Bank Rescue: Buying Toxic Assets. (Dealbook NYTimes)
    • Two Tech IPOs This Week: Is The Dry Spell Over? (NYTimes)
    • Financiers In China Are Getting Leery Of Dollars & Are Accumulating Gold. (Forbes)
    • Russians Offers to Invest $200 Million in Facebook at $10 Billion valuation. (WSJ)
    • Despite Russia's Struggling Economy, Its Market Surges. (NYTimes)
    • Is A Low VIX Good? Not In My Experience. Who's Afraid Of the Bear? (Money)
    • More Posts Moving the Markets.

    Lighter Ideas and Fun Links that I Found Interesting This Week

    • How Well Can You Live In India On $2 Per Day? (Slate)
    • Verne Harnish Insights & Best Practices for Growing Leaders and Companies. (Blog)
    • In Praise of Dullness: the CEO Traits That Most Help Them Thrive. (NYTimes)
    • When Will Computer Intelligence Surpass Our Own? (NYTimes)
    • IBM Unveils Software to Find Trends in Vast Data Sets. (NYTimes)
    • Kindle Books Now Account for 35% of Sales When Available. (Business Insider)
    • Why Predictions Based On Search Were Wrong About 'Idol' Winner. (MediaPost)
    • More Posts with Lighter Ideas and Fun Links.

  • Capitalogix Commentary 05/24/09

    090523 Magician A good magician misdirects your focus with clever patter, distracting gestures and a pretty assistant.  Why does that remind me about the current state of market perception and the economy? 

    Perhaps in part because of the rosy picture the recent rally paints, while few notice the plunge in S&P 500 earnings.  That means the great bargain you think you are buying isn't such a bargain.

    Stocks Are Expensive Again.

    The chart below, from Chart of the Day, illustrates how this plunge in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio).

    Generally speaking, when the PE ratio is high, stocks are considered to be expensive. When the PE ratio is low, stocks are considered to be inexpensive. From 1936 into the late 1980s, the PE ratio tended to peak in the low 20s (red line) and trough somewhere around seven (green line). The price investors were willing to pay for a dollar of earnings increased during the dot-com boom (late 1990s) and the dot-com bust (early 2000s).

    As a result of the current plunge in earnings and the recent 2.5 month stock market rally, the PE ratio has spiked to the low 120s – a record high.

    090523 Stocks High PE Ratio

    Click here for a different perspective on this chart. 

    Precious Metals Are Performing Well.

    At the same time, there is another trend worth watching.  Money is moving to gold.

    090522 Gold is Hot Banks and Retail Are Not

    The chart displays the relative performance of several market sectors over the past few weeks.  The chart below shows the same data, but compared to Gold as the baseline.  It highlights how dramatically the other markets have under-performed recently.

    090522 Gold Performing Better

    The recent financial crisis has clearly re-ignited investor interest in precious metals.  Many believe that gold and silver are good bets during tough times – and a hedge against inflation.  So it doesn't surprise me that I'm hearing more investors using Warehouse Depositary Receipts to actually take delivery of the asset rather than just speculating.

    What To Expect.

    A short-term bounce wouldn't surprise me here.  The markets have held-up fairly well after the big rally.  So another test higher makes sense.  However, based on the weakening internals, the intermediate-term outlook is looking more bearish to me.

    Business Posts Moving the Markets that I Found Interesting This Week:

    • Will the Fed's Medicine have Inflationary Side-Effects? (WSJ)
    • Treasury's Next Phase Of Bank Rescue: Buying Toxic Assets. (Dealbook NYTimes)
    • Two Tech IPOs This Week: Is The Dry Spell Over? (NYTimes)
    • Financiers In China Are Getting Leery Of Dollars & Are Accumulating Gold. (Forbes)
    • Russians Offers to Invest $200 Million in Facebook at $10 Billion valuation. (WSJ)
    • Despite Russia's Struggling Economy, Its Market Surges. (NYTimes)
    • Is A Low VIX Good? Not In My Experience. Who's Afraid Of the Bear? (Money)
    • More Posts Moving the Markets.

    Lighter Ideas and Fun Links that I Found Interesting This Week

    • How Well Can You Live In India On $2 Per Day? (Slate)
    • Verne Harnish Insights & Best Practices for Growing Leaders and Companies. (Blog)
    • In Praise of Dullness: the CEO Traits That Most Help Them Thrive. (NYTimes)
    • When Will Computer Intelligence Surpass Our Own? (NYTimes)
    • IBM Unveils Software to Find Trends in Vast Data Sets. (NYTimes)
    • Kindle Books Now Account for 35% of Sales When Available. (Business Insider)
    • Why Predictions Based On Search Were Wrong About 'Idol' Winner. (MediaPost)
    • More Posts with Lighter Ideas and Fun Links.

  • Capitalogix Commentary 05/01/09

    "Sell in May and Go Away" is a popular market aphorism.  Still, the markets continue to hold up well despite less than favorable news.  Usually I consider that a bullish sign.

    This chart shows that the S&P 500 Index has dropped dramatically the past two times it rose above its upper Bollinger Band line (indicating a market high), while the Bollinger Band Width was narrow (indicating low volatility).  Well that is where we are again, and with low volume as well. 

    090501 SP500 BB Squeeze

    I am watching the 20 day moving average (which also serves as the recent up-move's trend line).  A break below that might trigger another big move down).

    This Week's Featured Market Chart.

    Many investors have looked at the early 1930s for some insight into the current economic/stock market environment. While there are significant differences in the global economy and political landscape between the current environment and that what occurred in the early 1930s, there are also many similarities (bank failures, bankruptcies, severe market declines, etc.).

    For
    some perspective on the current stock market rally that began on March
    9th, the chart below illustrates the duration (calendar days) and
    magnitude (percent gain) of all significant Dow rallies that occurred
    during the 1929-1932 bear market (solid blue dots). For example, the
    bear market rally that began in October 1931 lasted 35 calendar days
    and resulted in a gain of 35%. As this chart illustrates, the current
    Dow rally (hollow blue dot with the pale yellow "You are here" label)
    is slightly below average in both duration and magnitude relative to
    the average 1929-1932 bear market rally (hollow red dot, with the pale
    blue label).

    090501 Chart of the Day Bear Rally Comparison

    So, as big as this rally seems … It still might be a bear market rally.

    What's Happening In the Legal Industry Says A Lot About the Market.

    I
    used to be a lawyer, and still have a number of friends who practice
    law. I don't normally use law firm data as a trading indicator; but
    these are not normal times.  I suspect that there are a number of early
    indicators we can glean from watching this industry sector.

    090501 Bankruptcy Law is Hot First,
    this weekend a bankruptcy partner in a large Dallas firm told me that
    he is seeing a big upswing in business. This implies a big increase in
    the number of bankruptcies to be filed in the coming months. I'm
    hearing similar things from friends around the country; that right now,
    the hottest section in many law firms is its bankruptcy practice.

    I
    think that means that the economy hasn't fully digested the damage done
    by the economic slow-down.  Frankly, I'd be surprised if it had.

    The
    other side of that coin is that law firms are downsizing and laying-off
    people because there simply isn't as much transactional work as there
    used to be.  The big example here is that Skadden Arps offered its associates one-third of their pay to take the year off.

    At
    Skadden, I'm sure many of them thought, nice work if you can get it. 
    However, I also suspect that a lot of talent will jump ship to
    corporate jobs.

    This might be the economic season that lawyers
    start to pursue other business interests.  Historically that has often
    been a positive mutation for businesses.  Research shows that a
    disproportionate number of corporate executives have legal degrees. 
    So, I'm looking for more lawyers to join start-ups roll-ups during the
    next downturn.  And I'll take that as an early indicator of recovery.

    When
    legal transactional work starts picking-up again because of mergers and
    acquisitions … I'll take that as an even better indicator that the
    recovery underway.

    Business Posts Moving the Markets that I Found Interesting This Week:

    • Stocks End Higher As Fed Sees Recession Easing. (AP)
    • Only 37% of WSJ Readers Said They Think The Economy Is Improving. (Forums)
    • Semiconductor Sales Fall 30%, Continuing Sharpest Downturn In Years. (WSJ)
    • In Major Shift, Apple Builds Its Own Team to Design Chips. (WSJ)
    • Starbucks Reports Steep Earnings Decline. (NYTimes)
    • Microsoft and Verizon in Talks to Launch iPhone Rival. (WSJ)
    • More Posts Moving the Markets.

    Lighter Ideas and Fun Links that I Found Interesting This Week

  • Capitalogix Commentary 05/01/09

    "Sell in May and Go Away" is a popular market aphorism.  Still, the markets continue to hold up well despite less than favorable news.  Usually I consider that a bullish sign.

    This chart shows that the S&P 500 Index has dropped dramatically the past two times it rose above its upper Bollinger Band line (indicating a market high), while the Bollinger Band Width was narrow (indicating low volatility).  Well that is where we are again, and with low volume as well. 

    090501 SP500 BB Squeeze

    I am watching the 20 day moving average (which also serves as the recent up-move's trend line).  A break below that might trigger another big move down).

    This Week's Featured Market Chart.

    Many investors have looked at the early 1930s for some insight into the current economic/stock market environment. While there are significant differences in the global economy and political landscape between the current environment and that what occurred in the early 1930s, there are also many similarities (bank failures, bankruptcies, severe market declines, etc.).

    For
    some perspective on the current stock market rally that began on March
    9th, the chart below illustrates the duration (calendar days) and
    magnitude (percent gain) of all significant Dow rallies that occurred
    during the 1929-1932 bear market (solid blue dots). For example, the
    bear market rally that began in October 1931 lasted 35 calendar days
    and resulted in a gain of 35%. As this chart illustrates, the current
    Dow rally (hollow blue dot with the pale yellow "You are here" label)
    is slightly below average in both duration and magnitude relative to
    the average 1929-1932 bear market rally (hollow red dot, with the pale
    blue label).

    090501 Chart of the Day Bear Rally Comparison

    So, as big as this rally seems … It still might be a bear market rally.

    What's Happening In the Legal Industry Says A Lot About the Market.

    I
    used to be a lawyer, and still have a number of friends who practice
    law. I don't normally use law firm data as a trading indicator; but
    these are not normal times.  I suspect that there are a number of early
    indicators we can glean from watching this industry sector.

    090501 Bankruptcy Law is Hot First,
    this weekend a bankruptcy partner in a large Dallas firm told me that
    he is seeing a big upswing in business. This implies a big increase in
    the number of bankruptcies to be filed in the coming months. I'm
    hearing similar things from friends around the country; that right now,
    the hottest section in many law firms is its bankruptcy practice.

    I
    think that means that the economy hasn't fully digested the damage done
    by the economic slow-down.  Frankly, I'd be surprised if it had.

    The
    other side of that coin is that law firms are downsizing and laying-off
    people because there simply isn't as much transactional work as there
    used to be.  The big example here is that Skadden Arps offered its associates one-third of their pay to take the year off.

    At
    Skadden, I'm sure many of them thought, nice work if you can get it. 
    However, I also suspect that a lot of talent will jump ship to
    corporate jobs.

    This might be the economic season that lawyers
    start to pursue other business interests.  Historically that has often
    been a positive mutation for businesses.  Research shows that a
    disproportionate number of corporate executives have legal degrees. 
    So, I'm looking for more lawyers to join start-ups roll-ups during the
    next downturn.  And I'll take that as an early indicator of recovery.

    When
    legal transactional work starts picking-up again because of mergers and
    acquisitions … I'll take that as an even better indicator that the
    recovery underway.

    Business Posts Moving the Markets that I Found Interesting This Week:

    • Stocks End Higher As Fed Sees Recession Easing. (AP)
    • Only 37% of WSJ Readers Said They Think The Economy Is Improving. (Forums)
    • Semiconductor Sales Fall 30%, Continuing Sharpest Downturn In Years. (WSJ)
    • In Major Shift, Apple Builds Its Own Team to Design Chips. (WSJ)
    • Starbucks Reports Steep Earnings Decline. (NYTimes)
    • Microsoft and Verizon in Talks to Launch iPhone Rival. (WSJ)
    • More Posts Moving the Markets.

    Lighter Ideas and Fun Links that I Found Interesting This Week

  • What I Love Best About the Kindle, Amazon Took From Vegas.

    Disruptive Technology:

    090306 Tivo Logo I
    remember the first time I used TiVo. I instantly knew it was a
    disruptive technology that would change how people watch TV. It's even
    better than I thought I was. That doesn't mean it was a great
    investment in the stock market; but it was a terrific investment in the
    household.

    And the ripples of this technology are still being felt
    whether you're using TiVo or some other digital video recorder.

    The Kindle is a Disruptive Technology Well-Placed In the Consumer Adoption Cycle:

    Using
    a Kindle reminds me of the first time I used TiVo. Only this might be
    different, because we're several generations of technology further
    along. And the world is ready for it.

    The
    Kindle 2 is ergonomic and reasonably fast. It is a great way to read. 
    It also has a built-in Internet connection, which means you have access
    to content virtually anywhere. And it just so happens that the content
    you want is the content Amazon sells.

    Chances are you already go to Amazon's website.  Because of
    economies of scale, not only do they have a bigger inventory, they have
    a bigger community of users who rate the books and write reviews of the
    books.

    A few years ago, Barnes & Noble and Borders tried to compete
    with Amazon online. As a user, I went to the competitors' site once or twice … but the
    first time Amazon had the book I was looking for and the other site didn't … or
    the first time that Amazon had reviews of a product and the other site didn't –
    well, that was all it took to stop going to those sites.

    And
    Amazon
    continues to extend that edge with bigger inventories, more product
    lines, and a truly mature delivery pipe. Their storefront and
    shopping cart has been used tens of millions of times is an important
    part of the value proposition.

    Psychologically Smart, Part 1: Amazon Banks on Funny Money:

    090306 casino chipsOnce you have a profile on
    Amazon, it doesn't feel like you're spending money. Casinos know the
    token is treated differently than cash.

    On the Kindle, Amazon makes it easy for you to
    buy with "one click" over their "Whispernet" always-on data network.
    So you don't hear or feel your money as it leaves your account. This is
    brilliant.

    Psychologically Smart, Part 2: Amazon Banks on Your Addiction to Instant Gratification:

    Even better, though, is how they handle samples.  It is already changing how I use Amazon. With the Kindle, I
    have instant gratification.

    I can find a book and download a sample in
    seconds. In many cases, the Kindle version is dramatically cheaper than
    the old paper version. So, I suspect that I'll be downloading samples
    of many books. And when I like the author's writing style or find a few
    ideas that I can use, I'm one click away from being able to read the
    rest of it (even if I'm in a meeting or stuck at the airport).

    Over
    time, I might find that I prefer certain books in paper format. On
    the other hand, I've been surprised by how likely I am to read a little
    of this and a little of that.

    And being able to have a whole bookshelf
    is a pretty cool competitive advantage too.