Capitalogix

Investing In Your Future

I think about investments a lot ... which makes sense given my profession. 

Yet, there are three key investments I think are more important than any monetary investment you can make. 

The first is in yourself - in your physical and mental health. I recently spent a whole month introducing my approach. 

Physical and mental health was a major topic at last weekend's Genius Network Annual Event in Arizona.  I enjoyed listening to speakers like Peter Diamandis, Andrew Weil, Christopher Voss, and Dave Asprey - which brings me to key investment #2.

Find Your Genius Network

"You are the averrage of the five people you spend the most time with." - Jim Rohn

I have always believed that you can predict a lot about your future, based on the quality of the people you spend the present with. That is why I think participation in quality peer groups is critical. Peer groups help us set higher standards for our behavior, help us aim higher in our aspirations, and they help us stay better focused and committed to big-picture goals.

I belong to several executive and business leader peer groups like Genius Network,  EO or Strategic Coach—groups that double as advisory boards, counselor’s offices, and idea factories. They allow me to see, hear, and discuss things I don't normally think about, talk about, or even notice.  Peer groups bring blind spots to my attention and keep me fully connected to trends that are transforming industry on a global scale.

I've gained partners, life-long friends, and ideas that will last a lifetime. I've also started taking my son, Zach, to these events so he can get a headstart. 

Dan Sullivan, founder of Strategic Coach, met my son and proclaimed "The book reader!" 

Good memory. 

Which brings me to my third key investment - and the one I'm most proud of. 

Spread The Wealth

It is not enough to have a good mind; the main thing is to use it well. -Rene Descartes

Like many parents, I wanted to teach my children that, to a large extent, they control what happens to them. One of the first ways I did that was to set up a "game" for them to earn video games. Some parents try to limit the amount of time their kids spend watching TV or playing video games.  Instead, my kids earned their games by reading books. Here is a photo from way back then.

Paid With Play.

Here's how it worked. Every 10 books earned them a video game, and every 100 books earned them a video game console. When they finished a book, it was their right, and my obligation, to take them to the bookstore for us to pick up the next book together. Likewise, when they finished the requisite number of books, it was their right, and my obligation, to take them to the computer store (does anyone remember CompUSA?) for them to choose whatever game (or console) their heart desired.

How Can You Encourage a Jump to the Next Level?

“Don’t just read the easy stuff. You may be entertained by it, but you will never grow from it.” – Jim Rohn

There came a point when I wanted one of my sons to start reading grown-up books. He was comfortable reading a certain type of book, and didn't want to read the kind of books that I read. So, I created a bonus system that counted a particular book as three books. I didn't force him; I just let the easier path to a reward "whisper" in his ear what to read. Once he finished that, he never went back to teen fiction.

It's a great way to learn about your kids.

I used the bookstore to get a sense of how the boys were doing. For example, I might say "I notice that you read five books in that series, maybe you'd like this book". Or, "That sure is a lot of science fiction; what was the last biography you read?" For the most part, though, I didn't care what they read. The key was to get them to want to choose certain books for their own reasons. Ultimately, their preference meant they were learning to love reading - and once you love reading, you'll eventually branch out on your own.

It Puts Them In Control of Their Destiny and Rewards.

My younger son likes competition. He also broke or misplaced many things. So, in order to earn back the Game Boy unit that he lost, I challenged him to read five books in five days. These weren't easy books either. It was designed to stretch him, and also to teach him that he could read a book a night. The bet was that he either finished all the books in the allocated time, or none of them counted towards games or Game Boys. On the other hand, if he read a book a night for two weeks, not only would he get to have his Game Boy back, the books would count towards a game too. It worked like a charm, and we were both happy.

So, Who Got the Better Bargain?

To end the game, as they entered their teenage years, I upped the ante a little. 500 books meant they got a laptop of their choice and had beaten the system. Both boys cashed in ... and probably felt like they were taking advantage of their dad. I got what I wanted, though; my boys love reading, and I was able to teach them two key ideals.

1. The secret to growth is to constantly challenge yourself
2. You can accomplish anything you put your mind to … one step at a time.

That is an investment that pays dividends for a long time.

Here Are Some Links For Your Weekly Reading - November 10th, 2019

Here's a quick reminder about Veterans Day.

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

• Why Futurists are (Almost) Always Wrong. (ZDNet)
• AI Rising: How Companies, Police and the Public are Already Grappling with Artificial Intelligence. (GeekWire)
• Macallan Bottle Sells for $1.9 Million, Breaks Whisky World Record Again. (Forbes)
• Suzy Batiz's Empire of Odor. (NewYorker)
• The 35 Best CEOs in the World, According to Harvard Business Review. (BusinessInsider)

 

Trading Links:

• Lilium is One Step Closer to Making Its Flying Car a Reality. (FastCompany)
• Gartner: Corporate Blockchain Won't Take off for Another Decade. (News)
• Singapore is the World's Most Competitive Economy. What Can Others Learn? (WEForum)
• The Countries with the Most Millionaires. (Statista)
• The Unicorn Bubble is Bursting. (SeekingAlpha)

 

 

A Roller Coaster of Emotions

I recently saw this video during a presentation.

It's hilarious – and a great reminder that it doesn't matter how simple something is (if the stakes are high enough) and the environment is distracting enough. 

That's where automation comes in. Enjoy. 

 

Eliminating fear and greed are great steps to take in the pursuit of eliminating discretionary mistakes.

Think about how many other places this video explains the "why" behind disappointing results.

Here Are Some Links For Your Weekly Reading - October 27th, 2019

 

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

• Jeff Bezos: This is the 'Smartest Thing We Ever Did' At Amazon. (CNBC)
• The Next Big Thing in AI/ML Is. (DataScienceCentral)
• The Pope's First Wearable is a $110 Rosary that Tracks Your Prayers. (FastCompany)
• Science Says You Only Need to Work out for 13 Minutes to Make a Difference. (Parents)
• The 'Blob': Paris Zoo Unveils Unusual Organism Which Can Heal Itself and Has 720 Sexes. (CNN)

 

Trading Links:

• Salesforce CEO Marc Benioff: Capitalism as We Know It as Dead. (TheVerge)
• Google Claims a Quantum Breakthrough that Could Change Computing. (New York Times)
• Tesla Turns a Profit and Builds a Chinese Factory Very Fast. (Wired)
• There Are Now 11 Blockchain Unicorns in the World, with over $1B Valuation, Including Binance, Ripple, and Coinbase. (TheBlockCrypto)
• SoftBank Says It Has Now Invested $18.5 Billion in WeWork, More Than the GDP' of Bolivia, Which Has 11.5 Million People. (TechCrunch)

Here Are Some Links For Your Weekly Reading - October 20th, 2019

Here are some of the posts that caught my eye recently. Hope you find something interesting.

 

Lighter Links:

• Six Lessons We Can Learn from Geniuses. (BBC)
• Breaking down the 10 Need-to-know Emerging Technologies. (ZDNet)
• Understanding Heart Zone Training: All You Need to Know. (BTW)
• How Spotify's Algorithm Knows Exactly What You Want to Listen To. (OneZero)
• A.I. Musicians are a Growing Trend. What Does that Mean for the Music Industry? (DigitalTrends)

 

Trading Links:

• Jeff Bezos's Master Plan. (The Atlantic)
• "Demystifying Artificial Intelligence (AI) in the Corporation". (Forbes)
• Three Big Things: the Most Important Forces Shaping the World.(CollaborativeFund)
• Goldman Sachs: the Economic Run is Not over and the US 'Is Not Close to Recession'. (CNBC)
• Nobel Laureate Robert Shiller Forewarned Investors about the Dot-com and Housing Bubbles. Now He Tells Us Which Irrational Market Behaviors Have Him Most Worried. (BusinessInsider)

 

Sickcare vs. Healthcare

WARNING ... the next picture is potentially NSFW. You've been warned!

.

.

.

Are you mentally ready?

Sorry for the shock! It's a picture of me getting tested at APEX, Dr. Jeffrey Gladden's concierge medical wellness practice. 

Apex treatment plands are individually tailored to optimize your health, human performance, and longevity. They begin with a deep dive into your underlying genetic, physiologic & biochemical makeup, and then benchmark neurocognitive function, body composition, cardiovascular performance, hormonal status and much more. Ultimately, they help you rethink your concepts of aging and decline. Think about it, how many more decades of being healthy, fit, and vital do you want?

Over the past couple of weeks I have shared multiple articles on fitness: 

• Part 1,  Finding A Way
• Part 2, Measuring Normalized Behavior 
• Part 3, Getting Used To A New Normal

It got me thinking about the difference between the way we view healthcare and what healthcare really should be. Healthcare takes care of you once you're sick, but it should really help you stay healthier for longer. 

Many of my friends now believe that with technology and a sustained focus on health & longevity, they can live past 100. They're paying attention to genetic, physiologic & biochemical makeup, cognitive function, body composition, cardiovascular performance, hormonal status and much more. 

And whether they're going to live past 100 or not, I can see the daily results in the quality of their life, and the way they look. 

I fully intend on being here for a long time ... So, I'm building the habits to keep me healthy. I'm investing in wellness care so I don't have to invest in healthcare. 

I encourage you to ask yourself how you can do the same. Ask yourself  "how good can I be?" and "how long can I sustain that?"

What a great investment.

A Day of Atonement

We're sprinting towards the end of the year. With that, stress and high expectations can lead to anxiety and hurt feelings.

Meanwhile, we just finished the Jewish High Holidays.  A few weeks ago was Rosh Hashanah – The Jewish New Year, and this past Wednesday was Yom Kippur – the Day of Atonement.  The practice around these holidays is a good reminder to take account of where you are and appreciate the blessings around you. It was a reminder to me to sprint towards the end of 2019 with the energy of a new year. 

Yom Kippur is a lot like a Catholic confession, but it happens once a year. The service is a mix of contemplation, mindfulness, and contrition.  Ultimately, we apologize for the sins we've committed against ourselves, our communities, our friends, and our faith.  Also important is the promise to do better next year.  On top of repenting, we fast (no food or water) for a full day to make sure we're mindful.  In my case, it also made me sleepy (yes, my son caught me sleeping in synagogue ... I'm sorry for that too). 

 

Looks like I still have some work to do.

It's interesting how little human nature has changed in the past several thousand years. The list of sins is just as relevant today as I imagine it was back then. Even if you have managed to stay on the right side of the Ten Commandments, and haven’t killed or stolen … you have most likely been frivolous, stubborn, hurtful, dismissive, or judgmental (I know I have …).  

To help drive the importance of the day, we ceremoniously read a poem called the Unetaneh Tokef. Below is a brief excerpt because it's a powerful read, regardless of faith. 

On Rosh Hashanah will be inscribed and on Yom Kippur will be sealed how many will pass from the earth and how many will be created; who will live and who will die; who will die at his predestined time and who before his time; who by water and who by fire, who by sword, who by beast, who by famine, who by thirst, who by storm, who by plague, who by strangulation, and who by stoning. Who will rest and who will wander, who will live in harmony and who will be harried, who will enjoy tranquillity and who will suffer, who will be impoverished and who will be enriched, who will be degraded and who will be exalted.

Equally important to recognizing and repenting for your sins, is recognizing and appreciating what you did good as well ... for yourself, your friends and family, or your community. 

All-in-all, it's a nice framework that highlights how you have grown; and, it also shows where you have room to grow. 

You have one quarter left in 2019 to make it your best year yet.  What can you do?  What can you do better?

I hope you all experience growth in your mental state, your relationships, and your businesses.

Here Are Some Links For Your Weekly Reading - September 15th, 2019

Here are some of the posts that caught my eye recently. Hope you find something interesting.

Lighter Links:

 

• New Blood Test Accurately Predicts When People Will Die within 5-10 Years. (BigThink)
• What Brain Supplements Can and Can't Do, According to a Neuroscientist. (FastCompany)
• The No. 1 University in America Now Comes with a Total Sticker Price of Over $293,000. (MarketWatch)
• Tim Cook Used a Specific Communication Strategy in Apple's iPhone Keynote. Here's Why Every Public Speaker Should Too. (Inc)

 

Trading Links:

• Counting on a Black Swan Event? There's an ETF for That. (Bloomberg)
• Jack Ma Ends 20-Year Reign at Alibaba with $41.8 Billion Net Worth. (Fortune)
• China's New Digital Currency Could Encourage Worldwide Use of the Yuan, Says CEO. (CNBC)
• The US Deficit Topped $1 Trillion. the Year's Not Even over Yet. (CNN)
• Trashing Fed 'Boneheads,' Trump Calls for Central Bank to Cut Interest Rates to 'ZERO'. (Politico)

 

Getting Used To A New Normal

In the first part of this exercise series, I talked about mindset and action.

In Part 2, I talked about normalizing your habits and picking consistent, normalized metrics. This doesn't just work at the gym; it applies to life and business as well. 

Today, I want to explain how and why this helps. To do so, we will talk about controlling your arousal states. 

Watch the video, it is only 90 seconds.

 

 

Chemically, most arousal states are the same.  Meaning, the same hormones and neurotransmitters that make you feel fear also can make you feel excited.  They affect your heart rate, respiration, etc.  ... Though, the outside stimuli you experience likely determines how you interpret what is happening.  

In most situations, a heart rate of 170 beats per minute is an indicator of extreme danger (or an impending toe-tag).  If I felt my heart racing like that in a meeting, it might trigger a fight or flight instinct.  I prefer conscious and controlled responses.  So, I train myself to recognize what I can control and to respond accordingly.

One way I do that is by being mindful of heart rate zones during exercise.  

My goal is to get as close to 170 bpm as I can, then stay in that peak zone for as long as possible.

Here is a chart showing a Fitbit readout of an exercise session.

 

As you can see, every time I reach my limit ... I get my heart rate back down.  It becomes a conscious and controlled learned behavior.

Here is a different look that shows effort based on my maximum heart rate.  It is from an app called Heart Analyzer.  

 

 

Recognizing what this feels like is a form of biofeedback; it's not only gotten me better at controlling what happens after my heartrate reaches 170 but at identifying when I'm close – even without a monitor. 

Now, when my heart rate is at 170 bpm (regardless of the situation), I don't feel anxious ... I think about what I want to do. 

I currently use an Apple watch with the HeartWatch app to measure heart rate during the day.  The Oura Ring is what I use to measure sleep and readiness.

These are useful tools.

It's the same with trading ... Does a loss or error harsh your mellow – or is it a trigger to do what you are supposed to do?  

Getting used to normalized risk creates opportunity.  

When you are comfortable operating at a pace, or in an environment, that others find difficult – you have a profound advantage and edge.

Measuring Normalized Behavior – Stop Worrying and Love The Pain

When your doctor tells you that you are fat, it is easy to discount (because you pay them to tell you that).  When your massage therapist tells you that you are getting fat, you've got to listen (because they're trying to be nice to get a better tip).

Well, for the past two months, I've been getting back into fitness.

I used to be a competitive athlete.  In the past, for me, exercise was about gaining an edge and competing better.  In a sense, that is still true (just on a different field).   Now, I work out to stay healthy, fit, and vital while managing the challenges of running a company, navigating an overbooked calendar, and traveling every week.

In my last post on mindset and action, I talked about the habit of conditioning yourself to take the next best step.

This is about focusing on the right things so you can best measure progress.

 

 

Normalizing your habits and picking the right metrics isn't just a habit for the gym.  It's a habit you should pick up in life. If you don't set the right measuring stick you'll always be unhappy or underperform. 

Plan forward – but measure backward ... you have to make sure you're not so focused on the horizon that you don't track what you've accomplished. 

Normalizing the result makes this easier and better.

In running, for example, it is the time it takes me to finish one mile, while never going above 170 heartbeats per minute.

Meanwhile, in trading, we do this by comparing different opportunities based on a constant risk level (for example, the expected return for the next day of $1M, assuming a 2% maximum drawdown).  It doesn't matter what market we trade, or how many trades the system makes ... we can make a fair comparison and get better insights about performance.

Hope that helps.