What do I know?

I’m confused.

I’m confused by the events that led to the death of Michael Brown in Ferguson, Missouri on August 9^th, 2014.  To be honest, I think the majority of Americans share these sentiments….and yet, if you’ve picked up the newspaper lately, you’ve probably seen one of two headlines:

White Police Officer Shoots, Kills, Unarmed Black Teen

Cop Kills “Thug” in Self-Defense

My deduction based on what I’ve seen/read/heard related to the events is that neither headline is fully representative of what occurred.  But even still, this deduction is based on speculation.  The American Media, in a sick way, loves this story because it allows for endless speculation.  And the saddest part is that neither polarized viewpoint is willing to compromise in terms of the end conclusion.  The “facts” are out there in the public sphere, and yet no bystander to these events can say with utmost certainty/logic that they know what happened.

Which leads me to wonder, if people can’t state with absolutely certainty that they know what happened and who was at fault, then why are passions flaring as high as they are?  It is disgusting that this event has turned into a racial battle between blacks and whites (in a general sense).  When logic prevails, we all win, but when speculation and emotion take rise, we all lose, simple as that

With that said, I don’t think there is any doubting that a black child born today, on average, faces more obstacles than a white child in charting a successful, prosperous, life.  And I say this more from a high-level perspective, as blacks in this day in age are more (but not always) likely to attend poorer schools, grow up in non-traditional family structures (i.e. living with a single parent or no parent at all), and live in more dangerous neighborhoods. 

The metaphor I prefer when considering the racial tribulations in America over the past 200+ years, is that of a marathon.  A marathon in which the starting line for black runners is 2 miles before the starting line for white runners.  Consider these facts:

·      The 13^th Amendment, which made slavery illegal, was adopted in 1865 (149 years ago).  This is less than five generations ago, meaning most modern middle-aged African Americans have Great-Great Grandparents who lived during an era of slavery.

·      Brown v. Board of Education, the Supreme Court case which made the segregation of public schools unconstitutional, occurred in 1954 (60 years ago), meaning nearly all parents of modern middle-aged African Americans grew up in an era of segregated schools.

·      The Civil Rights Act of 1991, passed a mere 23 years ago, made racial discrimination in the workplace illegal (whether it be related to hiring/firing, or just general harassment during the performance of one’s work duties). 

It would be optimistically unrealistic to assume that equality was immediately reached with the passing of each of these laws.  While laws become effective on a single day, social change and progress take time.  Think about it...if slavery was legal until 1865, how many slaves at the inception of the 13^th amendment were likely able to read and/or write?  If blacks weren’t provided with equal educational opportunities until 1954, what proportion of this populace was likely on par academically with their white counterpart at that time?  If efforts to allow for equality in voting and opportunities for employment have only passed Congress in the past half-century, how many blacks likely have representative government and jobs on par with their qualifications (rather than their skin color)?

I don’t have the answers to these questions, but they’re important to ask.  For as many generations as I’m aware of, my family has been literate.  We have been afforded the highest level of public education.  We never had to worry about being able to vote or the prospect of facing racial discrimination in the workplace.

So while the Ferguson ordeal paints the picture of a divided, polarized, America, I ask that we consider where we’ve come from and how much further we have to go.  The Media will sensationalize and dramatize this story until their face turns blue…but we know better, because while we still have a ways to go, we’ve come a long way just in the past 2, 3, 4 generations.  And as much as I’d love to be able to press a button that would immediately equalize all races in terms of median household incomes, test scores, and quality job opportunities, it’s simply not possible. 

The Full Spectrum

I used to think that information was like art.  That two people staring at the same painting could come away with two vastly different conclusions.  However, I’ve come to realize that information is much more than a single painting.  It’s an entire gallery.  We, as people, choose which paintings we wish to view, and as such, we may not make it through the entire gallery.  We may stay mesmerized on the first painting that attracts us.

This analogy paints the picture of the current state of information acquisition in the United States, and in many other countries as well.  It’s laborious to walk for hours through the gallery and to offer each piece of art the same amount of respect and attention as the prior…but it’s absolutely necessary.  Considering the extent to which information is already limited via a small network of major news organizations, it is pivotal that all citizens digest as much information as they can from each.  One of the major threats to change in this world is the human desire to listen to those whom we agree with.  F. Scott Fitzgerald once eloquently stated, “At eighteen our convictions are hills from which we look; at forty-five they are caves in which we hide.”  The only true wisdom in this world is realizing that we know nothing.  Those who purport that their age and life experiences have led them to a level of world understanding that allows them to state opinion as fact are dangerous.  Because for every man that states his/her opinion as fact, there lies another man on the other side of the fence who states the corollary as fact.  There is no truth.  There is only wisdom in admitting to knowing nothing.

Sunny San Diego

Thanks to all my family and friends who have been incredibly supportive of my move to the uncharted West Coast.  It's been a surreal two months in San Diego- both in terms of what I've seen and what I've experienced.  Given the beauty of this area it's almost impossible to understand how people decide to live anywhere else; I just assume they haven't been out here to experience the West Coast lifestyle yet.

Nonetheless, no locale, no matter how beautiful, can replace the comfort of having one's family nearby.  For that, I'm incredibly grateful to be able to afford the opportunity to take the quick 6-hour flight home to CT whenever I need to recharge.  The world (and this nation) is smaller than we think, and it'll be a welcome change to see my family twice in a matter of 3 months very soon!

Here's a quick snapshot from my backyard looking out on the bay, with the downtown skyline being just right of the picture.  Enjoy, and have a great week!

The Embodiment of Me

Dad and Mom,

I don’t know if it’s possible to explain through words how much you mean to me.  Every moment I spend considering how lucky and fortunate I am, I think about the struggles you endured, the efforts you put forth, and the love you bestowed upon me.  I can’t help but consider myself the luckiest boy in the world.

I’m crying as I write this, and for good reason, as what you have provided me is nothing short of remarkable.  There is not a single day that goes by that you don’t worry about my well-being before your own.

Looking back to my early years, attending Holland Hill Elementary as a young and ecstatic boy, it’s impossible connect the dots to how I made it to where I am today; impossible, that is, if it weren’t for you.  You are my inspiration, my aspiration.

I can’t imagine how difficult it must have been starting up a life with so much uncertainty after finishing high school- but your love for one another sustained you, showcasing the true meaning of companionship.  And of course you persevered, and recognized that every moment you spent worrying about that which you were unsure, was a moment you were prevented from living, and thus one you could never earn back.

As I said earlier, it is not possible to express through words all that you have done for me, and all that you have directly allowed me to experience.  I attended one of the preeminent school districts in the country, the most ambitious-minded university in the world, and have a career that is the envy of any human on this planet.  But there is no “I’ without you, although not in a literal sense, because of your steadfastness and inspirational perseverance. 

As our lives ironically make geographical diversions as our love for one another grows, I can’t help but anticipate, and get excited about, all that we have yet to experience…together.  We will only grow closer and stronger as the Great Plains of the US attempt to separate us.  And yet, as I move to a place I have never known, I can’t help but feel your souls inside of me, perfecting the embodiment of the fact that your efforts and accomplishments have become realized through my dreams, and now realities.  YOU are the ones who provided me this opportunity in an absolute, and direct, sense.  And for that, I am indebted beyond the aggregate riches of this entire world.

Only one set of siblings can truly say they have the best possible parents imaginable, and I am flattered to state that you are worth more to me than the world itself.  Thank you for giving me the hope and inspiration to turn opportunity into reality. 

Love As One Would Never Know,

Jim

My Investing Philosophy

After going on a 3-year hiatus from investing my money, mainly due to the fact that I didn't have a whole lot of excess capital that didn't go towards my students loans, I've decided to return to the game.  I call it a game, because to me investing is just a slightly more predictable and socially-acceptable form of gambling (although I did just go 3 for 3 in roulette the other night).  If you consider yourself good at predicting the future, you’d make a great equity investor.  So without further ado, here are the three principles I live by when investing my money in equities:

Invest in Companies You Believe In- I made this principle first for a reason…and it’s something that is constantly preached by Warren Buffet as well.  Mr. Buffet was once quoted as saying, “Never invest in a business you can’t understand.”  I’d take this piece of wisdom a step further and say, “Never invest in a business you don’t believe in.”  This requires not only a fundamental understanding of what the company actually does, but a resonating internal passion in the societal purpose the company purports to fulfill.  Ask yourself: out of the entire stratosphere of companies in this world, which would I want to work/shop/learn from?  Which companies could I not live without?  When personally reflecting, Starbucks, Jet Blue, Kayak, Netflix, and Under Armour resonate with me.  For the purposes of this exercise, I only chose public companies that are actually traded on the secondary markets, but I hold great admiration for companies like Wegmans, Trader Joe’s, and Scottrade as well (among MANY others). 

Now that you have a general list in your head of companies that actually MEAN something to you, evaluate their relative valuations in the marketplace.  This may sound difficult, but look at it like this- which of the companies on my list do I believe are undervalued?  It’s not rocket science, it’s personal judgment.  For instance, Under Armour has a current Market Capitalization (perceived overall worth) of just over $9 Billion, while Nike, by the same metric, is valued at $64 Billion.  Do I really think Nike is worth over 6x that of Under Armour?  Absolutely not…especially given the expanding international reach of UA, the hard-to-value “cool” factor of UA products, and quite frankly Nike’s stagnation as an innovative and desirable brand. 

Invest at the Trough of the Market- This alone can earn you astronomical returns, regardless of the company(ies) you choose to invest in.  And to me, this is the most simplistic and tried-and-true approach to making money in a market that is so heavily influenced by high-frequency traders and institutional investors.  Back in ’08, when I was still a High School Junior, the Dow Jones started the year at 12,800.  By March of ’09, the index had virtually split in half, all the way down to 6,600.  There isn't much certainty in this world, but one of the more certain economic theories is that what goes up must come down, and vice versa.  I/you can’t predict with 100% certainty when the next economic trough will occur, or when we’ll be at the peak of the market, but we do know that both are inevitable.  Back to the prior example- in August of 2009 (after the March 2009 economic trough), I purchased shares of Boeing and Amazon, both well-known companies.  By all admittance, I could have invested my money in Don’s Landscaping and been in a good position today.  The Dow Jones Index is now up to almost 16,400 as I write this, Boeing is up 200% since August 2009 (as in, it’s value has tripled!), and Amazon has jumped up 250% in the same period.  Of course, I chose AMZN and BA for reasons more clearly articulated in Principle 1 of my overall philosophy, but Don’s Landscaping wouldn’t have been a bad bet either.  Either way, if you don’t know the markets well, don’t invest your life savings when the economy is spiking (aka now), wait until after we experience another noteworthy downturn so that you can look like a genius to your friends/family.

Invest When Critics are Louder than Consumers- Many people hate the undue influence that a Research Analyst at [Insert Fortune 500 Bank Here] has upon the prices of stocks s/he issues guidance upon…..I love it.  Because while they’re issuing broad critiques from Ivory Towers across the world, actual business transactions and consumer trends are influencing the marketplace in ways that overpaid analysts can’t comprehend.  Research Analysts unfairly discount the power of consumer trends by obsessing over the fine print of quarterly financials, among other immaterial things.  Due to the uniformity brought about by GAAP standards, there is very little fine print that can’t be easily assessed and analyzed by the investing public- and thus that isn't already inherently apart of a company’s overall stock price.  Netflix and Under Armour are prime examples of what can result when misguided analysts input their personal opinions into the highly reactionary world of investor discourse.  These negative opinions artificially lower the prices of the underlying stocks, creating the perfect arbitrage opportunity for logic-minded investors.  Of course, this principle should be considered in concert with Principles 1&2, as while Research Analysts have a great deal of undue influence on the stock prices of companies, sometimes they’re actually right.  There is also merit in the corollary to this argument as analysts can have undue influence on a stock’s price by issuing an upgrade or praising a company upon very little justification.  As much as I enjoy the occasional burrito at Chipotle, for instance, I don’t feel like my $10 burrito provides me with $10 of satisfaction- and it was just announced that Chipotle is raising their prices again.  So good luck to them, and to the analysts who say the company is worth over $18 Billion (while their current valuation is $15.6 Billion), but each region of the US has their own local Mexican hidden gems that can make a meaner and cheaper burrito than Chipotle.  I do, however, appreciate the company’s “Food with Integrity” slogan, as I believe it puts pressure on fast-food America to raise their supplier standards, or face the wrath of consumers.

On this note, I’d like to end with a quote from Teddy Roosevelt and the preface that nothing can stand in the way of a company with a solid vision and open-minded leadership: “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

Why Thomas Jefferson Was A Visionary

Over the past couple years I’ve grown a strong admiration for the works and personal characteristics of Thomas Jefferson. Among my list of historic idols, he parallels Robert Kennedy and Mahatma Gandhi in terms of foresight and leadership, as well as willingness to work toward the common good. 

My initial plan for this blog post was to evaluate three human characteristics that I believe are dangerous, if not moderated.  After coming up with the list (vengeance, entitlement, and hypocrisy), I chose to research opinions from experts on each of the subjects.  However, when I did so, I came to realize that one opinionated historical figure by the name of Thomas Jefferson took a more optimistic view, instead focusing on the traits that make people more tolerant and open.  Without further adieu, here are some of the most insightful quotes from the man, himself:

“The Democracy will cease to exist when you take away from those who are willing to work and give to those who would not.”

Too often we interpret the above under the assumption that rich is synonymous with hard work.  It is not.  The biggest entitlement this country will ever know is the idea of inheritance.  It strikes me as ironic when the son or daughter of wealthy parents scorn the welfare system, while complaining that income and inheritance taxes are too high.  Ignorance argues that when Jefferson refers to the idea of taking from those who work to give to those who don’t, he is describing socialism.  Quite to the contrary, he is referring to the existence of a society fueled by meritocracy, whereby every child born in this great Union is afforded the same opportunity as any other, and thus the success they breed is theirs, and theirs exclusively.  Too much and too long, we have marginalized those of our own race, the human race, because of the families they were born into, the ghettos they grew up in, and the pigments of their skin that they inherited at conception.  Social justice must serve as the great equalizer to ensure that every child has the opportunities afforded to his fellow American kin.  What that looks like at the surface level is ensuring that every child is sated, comfortable, safe, happy, and educated.  Until we vow to provide these rights to children born in our homeland, we are depriving our people of liberty and equality.

“I never told my own religion nor scrutinized that of another. I never attempted to make a convert, nor wished to change another's creed. I am satisfied that yours must be an excellent religion to have produced a life of such exemplary virtue and correctness. For it is in our lives, and not from our words, that our religion must be judged.”

I have never observed a cause that drives more men and women to hypocrisy than that of religion.  If every religious follower served as a disciple to their religion in the manner that their holy book lays out, we would never have another war in this world.  Unfortunately, self-proclaimed devotees have twisted the idealistic principles of the leaders they view as holy to the point where their actions and opinions completely contradict those that their religion preaches. 

The idea that religion is a fixed and stale set of principals is complacent, and furthermore dangerous.  It is not the literal that we should take out of biblical lessons, such as the race, origin, and gender of characters, but rather the overarching and figurative language.  The core of our religions are all similar, yet rather than looking at the messages that unite us, we choose to argue about which god is the “right one.”  This quote from Jefferson points to the reality that there are many religions in this world, and it is virtually against every one of those to judge the worshiper of another.  Even Pope Francis eloquently stated, “All religions are true, because they are true in the hearts of all those who believe in them. What other kind of truth is there?”

Through deep reflection, I’ve developed the belief that religion, as a whole, does more to divide than unite.  While I respect the principals of my own religion, and those of others, I couldn’t care less about the technicalities.  Whether Jesus was resurrected or not, doesn’t change my moral code, the manner in which I treat others, or the faith I have in humanity.  If religion can’t serve to instill ethics and kindness into followers, then what purpose does it truly serve?