by Scott Pape |December 24th 2006
According to market scuttlebutt a consortium led by Macquarie Bank is planning to make a takeover bid for Santa Ltd.
Market pundits say the fat man has been running his operation like a charity, and there have been concerns that his gift list, which ranks every child in the world as either ‘naughty or nice’ smacks of discrimination.To achieve its internal target rate of return the consortium will place Santa’s little helpers on individual workplace agreements and outsource the overnight delivery to Federal Express. The current delivery provider, Reindeer’s ‘R’ US Pty Ltd, is said to be reviewing its legal entitlement, claiming it has a binding agreement that’s set out in a Christmas carol. Spokesdeer for the company, Mr Rudolph, says the news couldn’t come at a worse time. ‘I have 12 reindeer I’ll have to lay off a week before Christmas. It’s not like these guys aren’t economical – all they ask for is a few carrots to be left out at each house’.
A corporate Christmas
Christmas has always been a little corporate. After all the modern image of Santa was first designed by the marketing people of Coca-Cola. So it’s no surprise that retailers, whose sales skyrocket in the festive season, and the banks, whose Christmas comes in February when all those credit cards aren’t paid off, are forever pushing a capitalist Christmas of increasing consumption.
Like most adults, I no longer dream about what’s waiting for me under the Christmas tree – if I want something I’ll simply buy it myself (unless of course a long lost relative wants to shower me with a Ferrari). So, given that it takes no real effort to purchase an expensive present on plastic, the gifts I give my loved ones are books that have inspired me. Not only are they a cheap present that won’t break the Barefoot bank, but they have the ability to make a positive difference to the people you care about most in a way that no treasure from Tiffany’s can.
My all time favourite business books don’t change from year to year. Napoleon Hill’s Think and Grow Rich is still the number one choice from my library. Published more than 70 years ago, Hill was one of the first authors to profile the wealthiest people on the planet and formulate their answers into 13 principles of success. These are as relevant today as they were when they were written during the Depression.
My Christmas gift to my loyal readers is to share with you the books that I’ve read throughout the year that have made it to my version of the Barefoot book club for 2006.
Free to Choose
This year we saw the sad passing of one of the true giants of economic philosophy, Milton Friedman, whose writings have influenced generations. In the book Free to Choose: a Personal Statement, Friedman and his wife Rose explain the power of free markets. He argues that ‘the most important single central fact about a free market is that no exchange takes place unless both parties benefit’. Few books have shaped my (economic) thinking more than Free to Choose. A leading libertarian, Friedman is attributed with coining the phrase ‘there’s no such thing as a free lunch’. Respect.
The Bull Hunter
One of the most enlightening books on the current commodities boom comes from Dan Denning’s The Bull Hunter. Denning explains that ‘just as the sun shines upon half the world, there is always a bull-market raging somewhere on this planet’. The book explains the economic implications of the current migration of money from the West to the East better than anything I’ve read. Best of all it talks in terms of investing with ‘precision-guided investments’ – which is really just another term for low-cost index funds (the investment tool of choice for the wise investor).
The Psychology of Persuasion
Influence: The Psychology of Persuasion by Robert Cialdini is a must for anyone wanting to know how marketers manipulate us to part with our hard-earned. These deep-seated psychological triggers, which Cialdini dubs ‘weapons of influence’, have been scientifically researched and are applied on a daily basis from the salesroom and the bedroom. A fantastic read for any consumer.
Sex Money Kiss
Another book that took my interest this year was Sex Money Kiss by legendary rocker Gene Simmons. At first glance Simmons seems to be like any other rock god, purportedly having bedded thousands of women and living a crazy rock star life. Yet delving into this quasi self-help book I was surprised to learn that Simmons was more than a clichéd rock’n'roll cowboy. His life is encapsulated in the line ‘I chose a certain lifestyle: hard work, no drugs or booze and no marriage – it has served me well’.
He is also a true entrepreneur, having strategically marketed KISS to becoming one of the most financially successful bands in history. While some of his philosophies are a little hard to handle, he is nevertheless a modern-day miser (and proud of it), advising his readers to ‘treat your life as if it was a cash-only proposition. If you don’t have the money for something, don’t buy it’.
Grow Rich with Peace of Mind
Finally, one book that I have only recently discovered is one of the last books Napoleon Hill wrote before his death in 1970, called Grow Rich with Peace of Mind. Hill wrote this from the perspective of a man who had made (and lost) great fortunes in his lifetime. It could almost be viewed as an updated version of Think and Grow Rich, which reminds me of another good book that is soon to be updated for the new year … The Barefoot Investor’s Five Steps to Financial Freedom.
Think back to the presents you received last Christmas. If you’re like most people you’ve probably can’t remember one of them. Once you’ve stripped away the wrapping paper along with the marketing hype, few of us can. Yet giving a good book really has the ability to change someone’s life for the better. If you’ve already done your Christmas shopping why not buy yourself a special Christmas gift that will hopefully keep on giving?
I’d like to take this opportunity to wish every Barefoot Investor out there a very Merry Christmas. I’ll see you again in 2007, and as always … tread your own path!
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