Hello...I am an INVE$TOR

I am an investor. I do not trade my assets frequently. That's speculation, not investing.

I am also a saver, fueling my investments with continuous savings from current income.

I know that every kind of asset entails risk -- even cash, which can be eroded by inflation.

I know that higher returns entail higher risk, in every kind of asset.

I accept those risks, but I mitigate them by owning a diversity of assets.

I regard my home as a place to live, not as an investment. It is not a substitute for retirement savings.

I have an investment plan and a plan for asset allocation, in consultation with a financial adviser.

I invest regular amounts every month, in both rising and falling markets. I know I can­not gauge market tops and bottoms. If I receive a windfall -- a bonus, bequest or gift -- I gradually feed it into my regular investment mix.

I don't pour more money into hot markets nor completely cash out of plunging markets.

I spread my investments among several asset classes, in a mix fitting my age and risk tolerance.

My share of bonds roughly equals my age. I will allocate to stocks a declining portion of my financial assets as I get older.

I rebalance my portfolio every quarter. If the stock market plunges, pushing my stock allocation way below its target percentage, I sell bonds and use my cash to buy stocks.

I force myself to sell high and buy low by periodic rebalancing -- just what is temperamentally difficult for most investors to do.

I know that stocks are risky in the short run, so I hold in equities no money for which I have a likely need in the next three years.

But stocks are not too risky in the long run. They have outperformed all other commonly traded assets over periods of 15 years and longer.

Foreign stocks account for at least 15% of my stock allocation. I believe that developing economies will enjoy much higher growth than the U.S. in the decades ahead.

I never borrow against my stocks. Margin calls could force me to sell good assets at a bad time.

I stick with my game plan. I do not check the value of my investments every day or even every week.

I try to keep my cool when other folks are losing theirs.

I remind myself often: I am an investor.

Leadership, what is it?

"A good leader is a good follower". To be able to lead people, one must first know how to be a good team member. A good leader supports his members and encourages them. He motivates them to strive for the best; makes them feel they are special people. A good leader does not belittle his members but enhances their talents.

Leadership has nothing to do with seniority or one’s position in the hierarchy of a company. Too many talk about a company’s leadership referring to the senior most executives in the organization. They are just that, senior executives. Leadership doesn't automatically happen when you reach a certain pay grade. Hopefully you find it there, but there are no guarantees.

Leadership has nothing to do with titles. Similar to the point above, just because you have a C-level title, doesn't automatically make you a “leader.” In all of my talks I stress the fact that you don’t need a title to lead. In fact, you can be a leader in your place of worship, your neighborhood, in your family, all without having a title.

Leadership has nothing to do with personal attributes. Say the word “leader” and most people thing of a domineering, take-charge charismatic individual. We often think of icons from history like General Patton or President Lincoln. But leadership isn't an adjective. We don’t need extroverted charismatic traits to practice leadership. And those with charisma don’t automatically lead.

Leadership isn't management.  This is the big one. Leadership and management are not synonymous.  You have 15 people under your hierarchy and P&L responsibility? Good for you, hopefully you are a good manager. Good management is needed. Managers need to plan, measure, monitor, coordinate, solve, hire, fire, and so many other things. Typically, managers manage things. Leaders lead people.

Traits of Effective Leaders

...Make others feel important. If your goals and decisions are self-centered, followers will lose their enthusiasm quickly. Emphasize their strengths and contributions, not your own.

...Promote a vision. Followers need a clear idea of where you're leading them, and they need to understand why that goal is valuable to them. Your job as a leader is to provide that vision.

...Follow the golden rule. Treat your followers the way you enjoy being treated. An abusive leader attracts few loyal followers.

...Admit mistakes. If people suspect that you're covering up your own errors, they'll hide their mistakes, too, and you'll lack valuable information for making decisions.

...Criticize others only in private. Public praise encourages others to excel, but public criticism only embarrasses and alienates everyone

...Stay close to the action. You need to be visible to the members of your organization. Talk to people, visit other offices and work sites, ask questions, and observe how business is being handled. Often you will gain new insights into your work and find new opportunities for motivating your followers.

...Make a game of competition. The competitive drive can be a valuable tool if you use it correctly. Set team goals, and reward members who meet or exceed them. Examine your failures, and celebrate your group's success.

SOME QUOTES ON LEADERSHIP...

My grandfather once told me that there were two kinds of people: those who do the work and those who take the credit. He told me to try to be in the first group. There is much less competition. Indira Gandhi

One of the tests of leadership is the ability to recognize a problem before it becomes an emergency. Arnold Glasgow

Effective leadership is putting first things first. Effective management is discipline, carrying it out. Stephen Covey

A real leader faces the music, even when he doesn't like the tune. Unknown Author

A big man is one who makes us feel bigger when we are with him. John C. Maxwell