Michael Masterson: The Most Important Person You Don’t Know

by Alexander Green, Investment U’s Chief Investment Strategist
Monday, November 15, 2010: Issue #1388

I receive thousands of questions from readers each year. But there’s one that I’ve never been able to answer satisfactorily:

“How do I get more money to invest in your recommendations?”

My traditional answer is, “Work harder, spend less, and save more.” As generic advice goes, it’s not bad. But it doesn’t change lives.

Michael Masterson does, though – and that’s why you should get to know him…

Michael Masterson: Your Own Personal Time Manager

Michael is one of the wealthiest and most successful people I know. He’s launched dozens of businesses in several different industries, some of which have grown beyond $100 million. (One has grown beyond $300 million.)

He’s too discreet to tell you this himself, but he has fabulous homes and offices all over the world. Standing on the back patio of his oceanfront home one day, I told him the word spectacular is overused. People should save it for special occasions… like when they’re looking out at his view of the Pacific coastline.

Michael Masterson is the real deal – an astonishingly successful businessman who now devotes most of his business life to mentoring others.

In my last book, The Secret of Shelter Island, I confessed that I could never have completed my first book – which went on to become a New York Times bestseller – without his help. No, he didn’t help write or edit it. He showed me how to create the time to do it myself.

At the time, I was drowning in trips, meetings and deadlines and was about to actually mail my advance back to the publisher, Wiley & Sons. “I’ll do it later, when I have more time,” I reasoned.

Michael recognized this for the cop-out it was – and showed me exactly how to create the time to realize my most important goals. This came back to me a few days ago as I was reading Michael’s superb new book – The Pledge: Your Master Plan For An Abundant Life.

Why Michael Masterson Encourages Accelerated Failure

I practically wore out a highlighter in the first 100 pages. You’d have to work and struggle for years to gain the actionable insights he shares in these pages. Let me give you an example.

Michael is a big proponent of failure. In fact, he advocates accelerated failure. If this kind of advice goes against everything you think you know about business, it underscores how unconventional his approach is… and reveals that his advice is anything but generic.

Michael’s goal is to show you how to succeed, of course. But there are several reasons why he encourages accelerated failure.

• Every business venture involves risk and some risks simply won’t pay off. That’s okay.
• Most people suffer from analysis paralysis. Planning is great, but too much is evidence of fear, not prudence. Michael encourages you to stop peering off the high dive and lean forward.
• Some marketing ideas work. Others won’t. But rather than sitting around theorizing about what will and what won’t, start testing. If something works, great. It if doesn’t, modify it or drop it. Then try again.
• You’ll learn more from your failures than your successes as a business owner. So start taking action.

And if you say you don’t have the capital or experience to start your own business, Michael disagrees….

A Lifelong Mentor for $16

Michael Masterson came from a humble background, started with nothing and had no personal mentor to show him the way. He learned the old-fashioned way, through trial and error.

Now he’s dedicated his life to sharing his experiences, showing you how to succeed in businesses that require little or no money upfront. The alternatives are either staying stuck where you are, or having to learn everything the hard way. Neither is terribly appealing.

I know dozens of people who say Michael didn’t just help them, but changed their lives. (My friend and colleague, Steve Sjuggerud, Editor of True Wealth, told me that his income increased 10-fold within two years of being mentored by Michael Masterson. Steve went from having an income problem to an income tax problem.)

Unfortunately, it’s not possible for Michael to personally mentor everyone. But The Pledge is the next best thing. Michael doesn’t just challenge you to achieve what you really want. He reveals the specific concrete steps to make it happen, whether your goals are health, wealth, happiness or all of the above.

You can’t put a price on this kind of knowledge. And I don’t know anyone who wouldn’t benefit from reading this book.

The Pledge is available at bookstores nationwide. Or click here to pick up a copy on sale at Amazon for around $16 – and get an exclusive free report as part of the deal.

As for future readers who ask me how to get the money to buy my investment recommendations, I’ve already told my editors to send them three words of advice:

Read The Pledge.

Good investing,

Alexander Green

Bo, Human Interest, Michael Masterson

Is the Media Gaming You?

by Alexander Green, Chief Investment Strategist
Monday, August 9, 2010: Issue #1319

Almost every day, friends and business associates forward me media stories about the economy or the financial markets and ask me to comment.

But my comment on every story – whether bullish or bearish – is always the same: “Perhaps.”

Perhaps the economy will experience a double-dip recession. Perhaps gold will hit $2,000. Perhaps the market will surprise everyone and rally in earnest.

But if this is too indefinite for you, let me emphasize a few certainties…

The Media’s M.O. is Bad for Your Bank Balance

It’s certain that the media doesn’t know who is right or wrong about the stock market, interest rates or currencies.

It’s certain that the “experts” they’re interviewing don’t know either. (Although there is a good living to be made by pretending to know.)

It’s certain that the media doesn’t exist to help you grow your portfolio or achieve financial independence. Rather, the media exists to sell advertising. The best way to maximize advertising revenue is to attract readers (and viewers). And the best way to do that is to have something – anything – sensational to say. Sensationalism grabs people’s attention – and that’s all sponsors really require.

This works beautifully for the media. But does it work for you? Of course not. The media is out to game you.

Hunting for a Good Stock? Ignore the Media and Ask These Nine Questions Instead

Never once have I met an investor who said he made a fortune in the market by constructing a worldview based on media reports and then shuffling his or her money around accordingly.

The very idea is absurd. So rather than listening to some pundit or self-styled guru who has the world all figured out, take a look at the smaller picture. In particular, if you want to make money in the market, seek out a great business and ask:

1. Does the company have good economics? In other words, is it part of an industry that isn’t driven by price competition alone?
2. Does the company have a consumer monopoly or brand name that commands loyalty?
3. Are the earnings on an upward trend with good and consistent profit margins?
4. Is the debt-to-equity ratio low, or the earnings-to-debt ratio high? Can the company repay debt, even in years when earnings are lower than average?
5. Does the company have high and consistent returns on invested capital?
6. Does the company retain earnings for growth?
7. Does the business have high maintenance cost of operations, high capital expenditure or investment cash outflow? (If so, that’s not good.)
8. Does the company reinvest earnings in good business opportunities? Does management have a good track record of profiting from these investments?
9. Is the company free to adjust prices for inflation?

Look for Facts, Not Fluff

As a stock market investor, these are things that are definitely worth knowing. And if you don’t have time to uncover the answers yourself, at least listen to someone who does.

And notice something important. None of the questions above make a good headline. They don’t grab your eye. They don’t force you to pay attention. At least not like “Dow 4,000!” does…

So don’t waste your precious time chewing on economic punditry. Warren Buffett said it best: “Let blockheads read what blockheads wrote.”

Good investing,

Alexander Green

Bo, Business/Finance