We need to shut down tax havens

If an investor from country A buys stock from country B, accounts of country B would record the sale as a liability. If the investor from A record this as an asset in country A, he would be taxed on income of this stock. If the investor in country A were to park it in a Swiss account, he wouldn't be taxed.

Since the financial crisis began in 2008, economic growth has dwindled dramatically, leading to increasing debt. In 2014 alone, income hidden away in tax havens removed $78 billion in tax revenue for European countries.

As we speak, the rich get richer by escaping tax. We need forceful solutions. Tax havens should face economic sanctions and trade levies.We need international compliance. 

We can create an international wealth database to help tax authorities to verify when banks are withholding client information.

Multinational corporations also avoid paying taxes. They earn profits from around the world and apply transfer prices to minimize tax. These practices harm society and add to increasing economic inequality. We need to shut down tax havens.

Don't underestimate the power of a loyal customer - a few tips based on personal experience

The success of a company is tied to the relationship with their customers. Don’t underestimate the power of a loyal customer to spread the gospel of your brand.

Customers are not interested in unclear product propositions. We want to relate to your product in an instant. Your product has to be intuitive.

A loyal customer is valuable. They generate a lot more revenue than others.

A loyal customer talks about your product and return many times to buy your product.

If your product is failing, you need to learn what your customers want. Rethink your product specifications – does it meet the needs of customers?

Visual impression means a lot. If any product is unappealing, it’s hard to get customers.

Your team members are only second to the customer. Hire very slowly, but fire quickly if they are not a good fit.

Consumerism is screwing us up. Own lesser things, have lesser problems in life

How many things have you bought that you have never used before?

Most of us make impulse purchase at the flea market and online. While this trend may not be harmful, it is certainly not without a cost. Hoarding things make it hard for you to stay organized. These things have the potential to destroy our life, take away your attention.

Consumerism have been touted as the engine to fuel the economy. Advertisers also claim that it makes you happier. But today, we want to be anti-consumerism. Buying more things does not make you happier.

You are suffering from consumerism if you bought too many things and if your home and cellar is filled with useless items. Do you still determine happiness by the number of assets you own? Materialism means you have more things to organize and to worry about. Buying more today means less money for tomorrow. Buying more also means contributing to inflationary measures – i.e. your money is worth much lesser.

Many of you will notice that having too much of something does not satisfy. If you have too much of a good food, you begin to get sick of it. Consumerism causes depression because you are in the rat race to continue to buy more, buy newer models of cars and phones.

So what should you do?

Get rid of things you don’t use. Get rid of emotionally charged things. Opt for a simpler life. Experiences hold a higher value than material possessions. Experiences create bonds and they shape our identity more than possessions. A week of family bonding time can strengthen ties. A few more cars will not. You can try being an anti-consumptionist for a while. Detox your life.

Head start to success: Simple principles of a successful career and business venture

Success is unrelated with education

When it comes to business, most people think there’s an official starting line: A degree, an apprenticeship, or stumbling on the right amount of money.

You certainly don’t need an MBA to have a business. Common sense is most important. You will also need to read a lot. Read books written by successful businessmen. It’s the cheapest way to absorb decades of experience.

Will MBA payoff?

The MBA won’t be the one place to pay to receive knowledge and contacts to start a business. After considering the opportunity cost of jobs, MBA fees can go up to $200,000. That’s expensive. But does it lead to success? No, there is no correlation between success and MBA at all.

The 101 of value

You don’t only need to think of a product to tell. It has to be a product that people are interested to buy. Buying decisions are triggered by emotions or specific requirements.

Imagine selling a bottle of stale water to a hiker lost in a desert. He’d be willing to pay just about anything for that lousy bottle, just because it responds to his predominant need. The lesson here? Find your own desperate hiker.

There are four kinds of need

• Desire to acquire and collect thing
• Desire to feel valued and loved
• Desire to learn and satisfy curiosity
• Desire to defend ourselves.

There is no cheap way to communicate with your intended market segment. Sometimes, it’s better to deliver a hand written note than to advertise on social media. People don’t buy a product for its own sake. They buy it because of the end result they’re hoping to attain. For example, a woman won’t pay $20 for a lipstick simply because the color is nice. She buys it because she hopes it will make her more desirable. This is why testimonials are important.

You can close a sale even if the customer is reluctant

The owner of a pet shop can simply convince a prospect by allowing the owner to bring the pet dog for a week as a trial. It is very lightly that the owner will not return the dog. Clients hate to make a bad choice. So we can let them test the product and if they don’t like it, allow a refund.

Communications is key

You might have a great idea, but you need clear communications to implement. If you want someone to do something, you should tell them why. People like to understand what they are doing. If you explain why, you don’t have to micromanage every step.

A simple way to communicate better is to stop putting others down. People can also become defensive and try to save face rather than understand your comments. Create a safe environment for people to share ideas.

Minimalism in reading - the equivalent of speed reading

First, you don't actually have to read everything in a book or newspaper to understand it. In fact, it's impossible to read everything that passes over your desk. Instead, you should get in the habit of selecting and prioritizing what's actually important. 

Second, you don't have to remember everything you read to get something from the material. We develop this misconception about reading in school, where we're under pressure to remember everything we read in our textbooks because we'll be tested on the material.

If you want to retain the information for the future, you'll need to create an easy retrieval system.

Try writing down the crucial information (electronically or on paper), or make highlights and notes in the margins. Then, simply file the materials away. This way you can find the information easily, and it will also take away the pressure of memorizing everything.

We need to get the rape culture out of the way for progress.

 “Like a spider, she drew him into her web.” This was said of an 11-year-old girl when she defended against a guy who tried to rape her. Rape victims across the world are blamed for luring guys to rape women.

In this case, which happened in Cleveland, Texas in 2010, the 11-year-old girl was repeatedly gang raped by several men. You might agree that this was a clear cut case. But the defense said the girl was audacious enough to wear makeup.

Facts were twisted and used to blame the victim. The public were shocked that the men had been “seduced” into such behavior. There was a lot of concern about the case affecting the men for the rest of their lives.

These attitude is the product of the culture we live in. We expect woman to adhere to rules and men’s unspoken policies to avoid getting raped. Girls are told not to go out alone at night, not to talk to strange men you don’t know, not to wear revealing clothing.

We cannot keep putting the responsibility of rape prevention onto the victims makes it easier for people to blame them if a rape does occur.

Rape doesn’t result from the actions of a small number of men. We need to rewrite rules of society.

Buy index funds, but if you insist on trying our stock trading for yourself, read this.

I'm prompted to just tell investors to buy ETFs or index fund. But I realized not many investors are aware of the basics and still believe they can beat the market. So here's a simple 101 of stocks.

You own a business when you own a stock

Every stock represents part of a business, and when you buy stock you’re actually purchasing a share of the company. So in the same way that entrepreneurs can own a business outright or split ownership with other partners, as a stockholder, you can own shares of a company.

But while entrepreneurs and partners work day in, day out to manage their business, as a shareholder you don’t have any responsibility for managing the company and can sell your shares whenever you want.

So stocks are effectively pieces of a company, and many companies make their stock available to the public. This is a strategic decision that depends on the size and financial needs of a company. Every business relies on financing, but some entrepreneurs use their own savings while others come up with the initial capital by asking family and friends like the founders of Google did.

As a company grows, its funding often needs to grow with it. Eventually, the company can become so big that it only has two options for how to raise the massive amounts of capital needed to run its daily operations and make investments

1.        They can borrow money from a bank just like an average person would do to buy a car or a house.
2.        They can sell ownership of the firm for money.

Take emotions out of the equation

Financial news can create distress. Investing is about keeping calm and going for the long term.

In fact, one of the best times to buy stocks is when investors’ emotions drive down financial markets. Market panic is the best tool to get cheap stocks. Don’t feel a sense of “missing out” when your peers make, let 20%, and you sat out of the deal. There is nothing to panic! Investments is best done when you are calm, and your only counterparty is the market.

Don’t invest an amount you cannot afford to lose. Fear can drive people to make irrational choices.

• When looking at a stock, it’s best to act like a five-year-old and keep asking why.
• Why do people like or need the company’s products in their lives?
• Why do they consume its products?
• How is the company making money?

If you don’t know the answers to these questions, its better off buying the entire index through index funds of ETFs.

Today, financial markets are prone to drastic drops and spikes. These changes can be caused by mood swings prompted by over-excitement and disappointment.

Don't make decisions when you are stressed.

Adult humans are naturally unsettled by things they don’t understand. Light ambiguity can be amusing or intriguing, but more extreme cases of ambiguity can induce us to make rash decisions.

Ambiguity will always be a part of our lives. It’s important to be able to cope with it, especially in key situations in life.

Don’t make important decisions when you’re stressed out. Don’t quit your job just because you’ve had a bad day at work. Wait until you’ve calmed down before making any big decisions. If you’re feeling anxious about some kind of ambiguity, you’re not thinking straight.

Millionaires don't all lead luxurious lifestyles. Your goal may be wrong

Many of us want to be millionaires to lead a luxurious life. Yet, I know many millionaires who become millionaires by avoiding flashy lifestyles. They prefer to be financially secure and independent.

Financial independence simply means you can avoid work and lead a credible lifestyle - travel, have fun, mean just below your means.

Many people prefer a lifestyle they cannot afford. They drive cars, drink wine, gamble, go for expensive holidays. They stress over how to afford their lifestyles. The alternative is to consume lesser and you can immediately be richer. Rich is a relative term when you compare what you have to how much you need.

Productivity at work and at home. Develop habits, stop multitasking and say no more often

When you make something into a habit, doing it becomes painless and effortless. Consider your daily habits. Perhaps you make yourself a cup of warm tea right after you wake up. If you have done this for years, it becomes a habit and it is painless. If something is important to you, make it into a habit. At first, you have to do it conscientiously and repeatedly. One day, it will be automated. 

Multitasking is a waste of time. Imagine you are using a water host to clean the floor. You need to focus on one source and you need high pressure. If you split the source into a few hosts, the effect of cleaning is weakened. Give that one thing you do undivided attention. Move on after you completed the one thing.

Say no more often than yes. Pick what you agree to do carefully. A simple rule is to make "no" your default answer. Do only the most important things in life.

What happens when you fail to spot blurring of lines between sectors and market segments

A technological innovation disrupts. Before the 2000s, Dell was a market leader and enjoyed massive profit margins. After that, Apple introduced tablets which ate into the market share of laptops and computers.

It may not be easy to spot trends ahead of time, but leaders must try to navigate hints and signals. Nokia didn’t act on the series of patents that Apple was filing secretly over the years.

You need to find talent that can spot developments early in an industry, and develop a taste for cross sector analysis. Disrupt happens when one industry crosses into another. Think about the implications of mobile phone technology and the financial sector. Major changes to take place soon. The same will happen in other industries when sectors merge.

Intelligent investors understand the importance of stock-market history

This is an excerpt of a summary of the Intelligent Investor. You can choose to read the article or simple read these next 3 words to save your time and pain – buy index funds.

Looking back through history reveals that the stock market has always been defined by regular ups and downs. Often, these fluctuations can’t be foreseen. The unpredictability of the market means that investors need to be prepared – financially and psychologically.

Economic crises, like the Wall Street crash in 1929, are a fact of life, and happen from time to time.

Thus you need to ensure that you can take a big hit and survive. This means that you should have a diverse stock portfolio, so your investments don’t all get hit at once.

What’s more, you should be mentally and psychologically prepared for crisis. Don’t sell everything at the first sign of danger. Remember instead that, even after the most devastating crashes, the market will always recover.

And while you can’t predict every crisis, looking at the history of the market will give you a better idea of its stability.

Once you’ve determined that the market is stable, focus on the history of the company in which you’d like to invest.

Look, for example, at the correlation between stock price and the company’s earnings and dividends over the past ten years. Then consider the inflation rate, i.e., the rise in prices generally, in order to see how much you’d really earn, all things considered.

For example, you calculate a 7-percent return on investment within one year, but if inflation is at a 4-percent rate, then you’ll earn a return of only three percent. Think carefully about whether it’s worth the effort for only a three-percent return!

When it comes to shrewd trading, a knowledge of history is a fine weapon, so be sure to keep it sharp.

The first thing you should do before you invest isn’t to look at a stock’s history. That’s important, sure, but what’s more important is looking at the history of the stock market itself.

Work Email Tips

When you are working on a document, don't leave the email open. Deal with work one thing at a time. Distraction is painful. You take twice or more time to go back to what you were working on.

Read your email aloud or in your mind before sending. There will almost be always silly mistakes. You want to look professional.

Keep emails short. Try to rewrite them so that you can your points delivered the shortest possible way.

If you bcc someone, do it because you don't want to get that people flooded with replies. But always tell the rest of the group who is bcc-ed. You don't want the embarrassment when the person in bcc replies.

I find that changing the title to focus on the new key points is important. Helps you find the content you need quickly.