Business

Sun 2025-3-9 LZ 16:20
• 1 SS
• 2 TC
• 3 PG
• 4 AT AP

• 5 GR_W EF PF
• 6 IDL Assets zentral LZ PMG RES
• 7 PE 4R Kids
• 8 PN

Objects

Kids LZ (RC) - Tue 2025-2-27 Helsinki Vantaa 18:00
• FIN Jahr verlieren Sprache schwach - Spannung - FO VE Sprache + BS schwach
• LZ Deutsche Ehrlichkeit + Direktheit
• Jahr retten - 5. 9. Klasse
• PA PRG BS Perfektion + BS PJ AD bis GR44 AT AP PG AG bis RC
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• ...

FO - ES: BS_MG PG (4R IST)
• G MY 88 L AL MD IT IV LI DR AY
• PE 4R EF PF MA PS PH RL SP IM_HG
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• PG TC Ardino Robot Drones SH SS
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• GR44 AP AT

Codes: Feroniba - essence business management programming (4 relationships: DAKM friendship business family ideals, dharma artha kama moksha - images sound text = 3 media)
• God mysticism 88 (= 8 qualities of God: connected to mystical powers: 1 WI wisdom 2 eternity/infinity 3 multidimensional 4 personal exchange (4R) - (not 100% connected to mystical powers: 5 allmightiness 6 all-loving 7 allmightiness/omnipotence 8 all energies) - and 8 mystical powers: 1 manifestation (up to universes) 2 modification of form, size, quantity 3 high weight/indestructibility 4 telepathy 5 invisibility/disappearance 6 teleportation 7 teleportation of objects 8 levitation/flying) love all-love meditation intuition IV (inner vision) LI (life images) dream analyses
• personal_exchange 4_relationships_(see above) effectiveness perfection media psychology philosophy religions spirituality IM_(all images and means) highest_good
• management business real_estates property_management
• programming technology ... ships spaceships
• IST_(images sound text) media_production film_production painting theatre ... writing

• GR44_(group 44)

VE
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• BS_Delegation (business)

• New

Codes: Verena
• film_production_&_cutting
• jogging
• ...
• learning_Finnish
• business_delegation

• ...

AN
• Yoga + SD
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• PN Schicht + Präsentation 21 Themen, Grafikdesign 21 Schilder + 1 neues Schild
• Malen lernen (PI LR)
• Hobby Aquarium 🐟 🐠

Codes: Anne
• ... + sadhana (spiritual disciplines)
• ... + services ...
• Penthesilea_(hotel) shift_work + presentation 21 themes, graphic_design 21 badges + 1 new badge
• study and practice painting art
• ...

ALG

Start - Thu 2025-2-6 Helsinki Vantaa 9:20
• From: Nobody_annoys/offends Win_win HG GW POL/Economy ... -> PG TC -> AD CS YT MAP -> BS EF PF -> GR AP AT -> RES PMG CV Train SH -> To: SS
• PG - Linux Ubuntu Terminal Tmux Vim Sublime_Text - HTML CSS (JS) C Assembly Webassembly Binary Rust etc.
• WS Web3 Crypto -> BS IDL Assets
• ...

Codes: Algorithm
• ... highest_good global_warming politics/... -> programming technology -> advertisement courses YouTube media_production -> business effectiveness perfection -> group aeroponics autarky -> real_estates property_management caravans ... ships -> ... spaceships
• programming - ...
• websites ... -> business IDL Assets (-> terasof.com
• ...

GICS

PG AI

The Personal MBA

Content
Key Terms - p15
A Note to the Reader - p21
Preface to the 2020 Edition - p23
Introduction: Why Read This Book? - p26
1 Value Creation - p59
2 Marketing
3 Sales
4 Value Delivery
5 Finance
6 The Human Mind
7 Working with Yourself
8 Working with Others
9 Understanding Systems
10 Analyzing System
11 Improving Systems

Praise for The Personal MBA 10th Anniversary Edition

A NOTE TO THE READER

p21 - assuming business school needed not true - majority of businesses require basically common sense, simple arithmetic, knowledge of few very important ideas and principles - PMBA focuses on these - purpose: give clear, comprehensive overview of most important business concepts in as little time as possible - each idea presented in plain language, connections highlighted - book not trying to replace business school programs, but help to build solid understanding of business practice, regardless of level of experiene - aim: read large topic in few hours
p22 - revised and edited edition of PMBA many new concepts, plus small edits to improve clarity of concepts, and additional index features for long-term reference :-)
combine reading PMBA with real-world experience and reap the rewards for rest of your life - hope PMBA helps to make more money, get more done, and have more fun in the process ♡

PREFACE TO THE 2020 EDITION

INTRODUCTION

WHY READ THIS BOOK?

p26 - ... - business angst ... - certification intimiation ...
p27 - imposter syndrome ... -
You Don’t Need to Know It All
p28 - ...
No Experience Necessary
... you’ll find the information in this book more valuable and practical than anything you learned earning your degree -together, we’ll explore 271 simple concepts ... - understand what successful businesses actually are and do
Questions, Not Answers
"Education is not the answer to the question. Education is the means (Mittel, Weg ...) to the answer to all questions." — BILL ALLIN, SOCIOLOGIST AND EDUCATION ACTIVIST
PMBA helps to ask better questions ...
p29 - ...
Mental Models, Not Methods
The limits of my language are the limits of my world. — LUDWIG WITTGENSTEIN, PHILOSOPHER AND LOGICIAN
To improve business skills, don't need to learn everything there is to know - master fundamentals, "mental models" - together they create a solid framework you can rely on to make good decisions - mental models are concepts representing our understanding how things or world works - example driving car, right pedal reacts falsely as brake - model accuracy determines expectations, decisions, behavior, in the long run all results - brain forms models by experiences - often not accurate, you are as one person limited - education makes models more accurate, by internalizing knowledge and experiences from other peoples lives - helps seeing world in new, more productive way - example: many people believe starting business risky, must create business plan, borrow money, business about who you know, not what you know - these exampl. not accurate - correcting models makes you think in more comprehensive way, helps making better decisions
p30 - Inaccurate mental model -> Accurate m. m.:
• Starting business is risky -> Uncertainity is ever-present but manageable part of business, risks can be minimized
• First must write flawless business plan -> Secondary - primarily is understanding critical functions of your business - no matter how much you prepare, there will always be surprises along the way
• Must raise capital before start building business -> Only necessary to accomplish otherwise impossible things (like building a factory)
• Not what you know, but who you know -> Personal connections important, but knowledge is key if you want to use connections to your best advantage
My Personal MBA
Self-education is, I ﬁrmly believe, the only kind of education there is. — ISAAC ASIMOV, FORMER PROFESSOR OF BIOCHEMISTRY AT BOSTON
...
A Self-Directed Crash Course in Business
...
The Wheat and the Chaﬀ
...
The Personal MBA Goes Global
...
Munger's Mental Models
p36 - "I think it’s undeniably true that the human brain works in models. The trick is to have your brain work better than the other person’s brain because it understands the most fundamental models — the ones that do the most work." — CHARLES T. MUNGER, BILLIONAIRE BUSINESS PARTNER OF WARREN BUFFETT, FORMER CEO OF WESCO FINANCIAL, AND VICE-CHAIRMAN OF BERKSHIRE HATHAWAY
p40 - ... - Skip business school. Educate yourself. - ...
Three Big Problems with Business Schools
p41 - ...
...
p54 - ...
A Better Way
... - skipping business school and learning the fundamentals of business by reading this book may be the best decision you ever make.
p55
What You’ll Learn in This Book
"When you ﬁrst start to study a ﬁeld, it seems like you have to memorize a zillion things. You don’t. What you need is to identify the core principles—generally three to twelve of them—that govern the ﬁeld. The million things you thought you had to memorize are simply various combinations of the core principles." — JOHN T. REED, REAL ESTATE INVESTOR AND AUTHOR OF SUCCEEDING
Book teaches fundamentals of sound business practice - quick overview:
How businesses work. A successful business, roughly defined, provides
(1) something of value that
(2) other people want or need at
(3) a price they’re willing to pay, in a way that
(4) satisfies the customer’s needs and expectations so that
(5) the business brings in sufficient profit to make it worthwhile for the owners to continue operation.
Together, the concepts in chapters 1 to 5 (1 Value Creation, 2 Marketing, 3 Sales, 4 Value Delivery, 5 Finance) describe how every business operates and what you can do to improve your results.
...
p56 - ...
Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers - by Karen Berman and Joe Knight - 8 parts, 30 chapters, 285 pages - Amazon
Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree
Accounting Made Simple by Mike Piper
How to Read a Financial Report by John A. Tracy
In addition, online courses like MBA Math (mbamath.com) and Bionic Turtle (bionicturtle.com) are available if you want to explore these topics in even greater depth. (Many business schools and corporate-finance training programs recommend or require these courses prior to enrollment.)
p57 - Quantitative analysis and modeling. We’ll discuss the fundamentals of measurement and analysis in chapter 10, but this book won’t turn you into a Wall Street “quant” or a high-flying spreadsheet jockey. Statistics and quantitative analysis are very useful skills when used appropriately, but the actual techniques are very situational and beyond the scope of this book. If you’re interested in learning more about statistical analysis after reading chapter 10, I recommend:
Thinking Statistically by Uri Bram
How to Lie with Statistics by Darrell Huff
Turning Numbers into Knowledge by Jonathan Koomey, PhD
For an examination of more advanced methods of analysis, Principles of Statistics by M. G. Bulmer is a useful reference.
How to Use This Book
"All truly wise thoughts have been thought already thousands of times; but to make them truly ours, we must think them over again honestly, until they take root in our personal experience." — JOHANN WOLFGANG VON GOETHE, POET, DRAMATIST, AND POLYMATH
Few tips get most from PMBA: browse, skim (überfliegen), scan (querlesen, untersuchen) - don't need read cover to cover to benefit: browsing can give better results, less effort - find section that grabs attention, commit to apply concept to your work for few days - will begin noticing significant differences in quality of your work, and ability to "think like businessperson" - note and pen - book written to make things better, capture thoughts as you have them, makes easier to review major concepts later - notebook makes it easy to shift from notes to create detailed action plans as they occur - review book often, particularly before starting new project - repetition leads to mastery: better internalizing concepts -> improves results more - set reminder in calendar to review book/notes every few months to reinforce understanding and spark new ideas
p57 - discuss these with colleagues - great things happen when everyone you work with knows these concepts and uses same language to discuss how they apply to business
after every concept online reference page, to include in email, proposal, blog post or other communication - helps ensure everyone is on same page, particularly if not familiar with concept you are referencing
There's always more to explore - each idea has many applications, impossible to explore in single book - many great resources in the world of business literature, can deepen understanding about particular mental model - join Josh Kaufman at personalmba.com to explore these ideas in more detail, learn how to apply them to daily work - let's begin

1 - VALUE CREATION

Make something people want . . . There’s nothing more valuable than an unmet need that is just becoming ﬁxable. If you ﬁnd something broken that you can ﬁx for a lot of people, you’ve found a gold mine.
PAUL GRAHAM, COFOUNDER OF Y COMBINATOR, VENTURE CAPITALIST, AND ESSAYIST AT paulgraham.com

p59 - ...
The Five Parts of Every Business
p60 - ... - 5 Parts of every business: 1 Create/deliver value - 2 other people want/need - 3 price willing to pay - 4 satisfy customer's needs/expectations - 5 enough profit for owner to continue operation
...
Ten Ways to Evaluate a Market
p67 - ... - first do some research before starting new business or expanding existing business before you leap (springen, aufschießen ...) - ... - rate each of ten factors below, scale 0-10:
1 Urgency - 2 Market Size - 3 Pricing Potential - 4 Cost of Customer Acquisition - 5 Cost of Value Delivery - 6 Uniqueness of Offer - 7 Speed to Market - 8 Up-front Investment - 9 Upsell Potential - 10 Evergreen Potential -
Add up score - if <50 move to other idea - if 75 and > very good promising idea - implement it - 50-75 potential to pay bills, but won't be a home rum without a huge investment of energy and resources
...
p71 - ... -
Twelve Standard Forms of Value
"Value is not intrinsic; it is not in things. It is within us; it is the way in which man reacts to the conditions of his environment." — LUDWIG VON MISES, AUSTRIAN ECONOMIST
1 Product, create & sell/deliver for profit - 2 Service, provide help/assistance, charge fee - 3 Shared Resource, create durable asset for many, charge for access - 4 Subscription, offer benefit on ongoing basis, charge recurring fee - 5 Resale, acquire asset, sell to retail buyer with profit - 6 Lease, aquire asset and allow using for predefined amount of time for a fee - 7 Agency, market or sell asset/service third party, collect percentage - 8 Audience Aggregation, get attention of group, sell access to that group via advertising, to others looking to reach that audience - 9 Loan, lend money, collect payments over predefined period of time, equal to amount of original loan plus interest - 10 Option, offer predefined action for fixed period of time for a fee - 11 Insurance, take on the risk of specific bad thing happening to policyholder for predefined series of payments, pay out only if thing happens - 12 Capital, purchase ownership stake in a business, collect portion of profit as one-time payout or ongoing dividend
...
p87 - ... -
Hassle Premium
(Schwierigkeit, Ärger ...) - 1 too much time - 2 too much effort - 3 distracts from other priorities - 4 involves too much complexity, uncertainty, confusion - 5 requires costly or intimidating (einschüchternd) prior experience - 6 requires specialized resources or equipment
...
p88 - ... -
Perceived Value
Value is in the eyes of the beholder - more value in eyes of customer, more payment - 4 ways: 1 satisfy one or more core human drives - 2 offer attractive and easy-to-visualize end result - 3 reduce end-user's involvement to maximum - 4 satisfy desire for social status - ...
Modularity
... combine 12 Standard Forms of Value ...

2 - MARKETING

The cardinal marketing sin is being boring.
— DAN KENNEDY, MARKETING EXPERT - Dan Kennedy Books - Amazon

p112 - ...
...
Attention
p113 - ... -
Remarkability
p115 - ... -
Probable Purchaser
p116 - ... -
Preoccupation
p117 - ... -

3 - Sales

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

4 - Value Delivery

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

5 - Finance

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

6 - The Human Mind

Ninety percent of this game is half mental.
— YOGI BERRA, PROFESSIONAL BASEBALL PLAYER AND MALAPROPIST

p239 - After covering 5 essentials how businesses work, we shift gears (Gangschaltung) understanding how people work - businesses built by people for people - value creation and delivery: only if people have needs and/or wants - have to understand how we take information, make decisions, how we decide to act, to create and sustain successful business venture (Unternehmen, Projekt, Wagnis ...) - understand human mind, find better ways to get things done in efficient (wirtschaftlich, ergiebig ...) and effective way
Caveman Syndrome
Every man is a quotation from all his ancestors. — RALPH WALDO EMERSON, NINETEENTH-CENTURY ESSAYIST AND POET
p240 - imagine hundred thousand years o, scanning for food - find root - cobra - run away - disappointed losingag food, but wasn't worth risking life - will share with tribe what food found - know everyone well (about 40 people) - together for protection from wild animals or tribes, make spears and nets, knives and axes, baskets and pots - at camp antelope roasting on fire - discuss day until sleep - tomorrow repeat - p241 - human biology optimized for conditions existed hundred thousand years ago, not our world today - food everywhere, predators (Feinde) not - no constant motion, occupied by sedentary (ortsgebunden, sesshaft) activities like computer, office work - face new threats to brain and body like obesity (Fettleibigkeit), heart desease, diabetes, Alzheimer's desease, cancer = Caveman Syndrome (J. Kaufman), brain and body not optimized for modern world - brain and body tuned for physical and social survival, not sixteen-hour workdays - business not existing long enough to adapt new demands -> don't be too hard on yourself - no one built for this type of work, everyone running demanding new software on ancient hardware
Performance Requirements
Coffee and all-nighters limited - have to take care of yourself for doing good work, or run out of gas long before reaching your goals - mind foremost physical system - oftentimes experienced mental fatigue, emotional distress is signal from body: not getting enough of physical needs: nutrients, exercise, rest - ...
...

7 - Working with Yourself

To think is easy. To act is diﬃcult. To act as one thinks is the most diﬃcult.
— JOHANN WOLFGANG VON GOETHE, POET, DRAMATIST, AND POLYMATH

p283 - body and mind are our tools to get things done - but we may get stressed about what needs to be done - we'll discuss deciding what to do, set and achieve goals, track daily tasks, overcome resistance, be more productive without burning out
Akrasia
Night Guy screws Morning Guy - should do something, but we don't do it - akrasia (Willensschwäche) and procrastination (Aufschiebung) related, but not the same thing: it is feeling you should do something, without necessarily deciding to do it - "should"-feeling not leading to decision or action, even if action seems to be in your best interest - like trying to change habits like smoking, take new action, contemplate an uncomfortable topic, but not leading to action, generating deep frustration - discussed by Socrates Plato Aristotle: ακρασἱα, means “lacking command (over oneself) - Socrates: moral problem, Aristotle: mistaken opinion what a person should do - no cure discovered - instead of fighting both sides in battle of wills, better have strategy recognizing and combating akrasia when you see it
...
Monoidealism
...
Most Important Tasks
You’ve got to think about the big things while you’re doing small things, so that all the small things go in the right direction. — ALVIN TOFFLER, TECHNOLOGY RESEARCHER AND FUTURIST

8 - Working with Others

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

9 - Understanding Systems

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

10 - Analyzing Systems

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

11 - Improving Systems

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

Vocabulary

A
accuracy - Genauigkeit, Exaktheit, Fehlerfreiheit, Präzision ... - p29
appeal - anrufen, ansprechen, appellieren, ersuchen, reizen ... - p116
E
engender - erzeugen, hervorrufen, verursachen, zur Folge haben - p21
entice - abwerben, anlocken, ködern, verführen, verleiten, verlocken, weglocken ... - p112
G
garish - grell, auffällig und geschmacklos, auffallend, herausgeputzt - p67
J
janitor - Hausmeister, Wächter, Pförtner ... - p252
L
leap - springen, aufschießen ... - p117
P
paragon - Vorbild, Ausbund, Text/Schriftart - p114
procrastination - Verzögerung, Aufschieben, Zögern, Prokrastination - prospects - Aussichten, Möglichkeiten, Perspektiven, Chancen, Prognose/n, Vorhersage/n, Ausblick/e, Erwartungen, Erfolgsaussichten, Perspektive/n, (Zukunftsaus-)Sicht, Vorstellung ... - p112
R
rabid (fans) - fanatisch, wild, tollwütig - p114
S
scan - querlesen, überfliegen, durchsuchen, untersuchen ... - p57
scim - überfliegen ... - p57

Financial Intelligence

CONTENTS

Preface: What Is Financial Intelligence? - xi

PART ONE
THE ART OF FINANCE (AND WHY IT MATTERS)
1. You Can’t Always Trust the Numbers - 3
2. Spotting Assumptions, Estimates, and Biases - 10
3. Why Increase Your Financial Intelligence? - 17
4. The Rules Accountants Follow — and Why You Don’t Always Have To - 26
Part One Toolbox: - 36
Getting What You Want; The Players and What They Do;
Reporting Obligations of Public Companies

PART TWO
THE (MANY) PECULIARITIES OF THE INCOME STATEMENT
5. Profit Is an Estimate - 43
6. Cracking the Code of the Income Statement - 48
7. Revenue: The Issue Is Recognition - 56
8. Costs and Expenses: No Hard-and-Fast Rules - 63
9. The Many Forms of Profit - 75
Part Two Toolbox: - 83
Understanding variance; Profit at Nonprofits;
A Quick Review: “Percent of ” and “Percent Change”

PART THREE
THE BALANCE SHEET REVEALS THE MOST
10. Understanding Balance Sheet Basics - 89
11. Assets: More Estimates and Assumptions (Except for Cash) - 95
12. On the Other Side: Liabilities and Equity - 106
13. Why the Balance Sheet Balances - 111
14. The Income Statement Affects the Balance Sheet - 114
Part Three Toolbox: - 119
Expense? Or Capital Expenditure?;
The Impact of Mark-to-Market Accounting

PART FOUR
CASH IS KING
15. Cash Is a Reality Check - 125
16. Profit ≠ Cash (and You Need Both) - 129
17. The Language of Cash Flow - 135
18. How Cash Connects with Everything Else - 139
19. Why Cash Matters - 148
Part Four Toolbox: - 125
Free Cash Flow; Even the Big Guys Can Run Out of Cash

PART FIVE
RATIOS: LEARNING WHAT THE NUMBERS ARE REALLY TELLING YOU
20. The Power of Ratios - 157
21. Profitability Ratios: The Higher the Better (Mostly) - 164
22. Leverage Ratios: The Balancing Act - 172
23. Liquidity Ratios: Can We Pay Our Bills? - 176
24. Efficiency Ratios: Making the Most of Your Assets - 179
25. The Investor’s Perspective: The “Big Five” Numbers and Shareholder Value - 185
Part Five Toolbox: - 191
Which Ratios Are Most Important to Your Business?;
The Power of Percent of Sales; Ratio Relationships;
Different Companies, Different Calculations

PART SIX
HOW TO CALCULATE (AND REALLY UNDERSTAND) RETURN ON INVESTMENT
26. The Building Blocks of ROI - 197
27. Figuring ROI: The Nitty-Gritty - 203
Part Six Toolbox: - 216
A Step-by-Step Guide to Analyzing Capital Expenditures;
Calculating the Cost of Capital; Economic Value Added
and Economic Profit—Putting It All Together

PART SEVEN
APPLIED FINANCIAL INTELLIGENCE: WORKING CAPITAL MANAGEMENT
28. The Magic of Managing the Balance Sheet - 225
29. Your Balance Sheet Levers - 229
30. Homing In on Cash Conversion - 234
Part Seven Toolbox: - 239
Accounts Receivable Aging

PART EIGHT
CREATING A FINANCIALLY INTELLIGENT COMPANY
31. Financial Literacy and Corporate Performance - 243
32. Financial Literacy Strategies - 249
33. Financial Transparency: Our Ultimate Goal - 257
Part Eight Toolbox: - 259
Understanding Sarbanes-Oxley

Appendix: Sample Financials - 261
Notes - 265
Acknowledgments - 267
Index - 271
About the Authors - 285

PREFACE

What is Financial Intelligence?
xi - Worked with thousands of employees, managers, and leaders in companies all over the world, teaching them about financial side of business - our philosophy: everyone in company does better understanding how financial success measured and impact on company's performance -> fii (financial intelligence) - greater fii makes people feel more committed and involved - understand better what they are a part of, what organization trying to achieve, how they affect results, trust increases, turnover (Umsatz) decreases, financial results improve
Came to this philos. by different routes - Karen PhD focused on question whether information sharing and financial understanding by employees and managers positiverly affects company's financial performance - it does - became financial trainer, started BLI (Business Literacy Institute) helping others learn about finance - Joe MBA in finance, experience more practical, Ford and small companies, joined start-up business Setpoint Systems and Setpoint Inc. (manufacturing roller coasters and factory-automation equipment - as chief financial officer (CFO) and owner of Setpoint he learned importance of training engineers and employees how business worked - 2003 joined Karen as co-owner of BLI, worked with dozens of companies (fii courses)
xii - fii not innate ability we have or not - some are better in numbers, some intuitive, grasp eluding rest of us -> fii is no more than set of skills that can be learned - those who acquired these are able to talk with one another in specialized language - most senior executives (not all) come out of finance or pickup skills during their rise - others too often out of luck, relegated to the sidelines
Fundamentally fii boils down to 4 distinct skill sets - if we finish book competent in all:
• Understanding the foundation - ...
• Understanding the art - ...
• Understanding analysis - ...
xiii - ...
• Understanding the big picture - ...
But fii doesn't stop with book learning - like most disciplines and skill sets, must not only be leaned, it must also be practiced and applied - we hope and expect book will prepare you taking actions as following:
• Speak the language - ...
• Ask questions - ...
• Use the information in your job - ...
xiv - ...
Why This Second Edition?
...
... we added many new subjects, including:
• A chapter (ch4) on GAAP versus non-GAAP numbers ...
• A chapter (ch25), examines how marketplace evaluates companies ...
• Lots of additional information about ROI (return on investment), including section on profitability index, a discussion of cost of capital, and an example of ROI analysis
xv - ...
Finally we added additional information about how to increase fii throughout your company - in our training business we work with many companies, who see it as necessary part of employee, manager, and leader education
Book supports development of fii - we hope our experience and advice valuable for readers, enabling you to achieve greater success, personally and professionally, helps company to be more successful - most of all we think after working through book you'll be more motivated, interested, excited to understand whole new aspect of business

Part One
The Art of Finance (and Why It Matters)

ch 1 - You Can’t Always Trust the Numbers
p3 - Reading news shows many ways how people cook (verfälschen, verschleiern ..) their companies' books: recording phantom sales, hide expenses, sequester (abkapseln, absondern, isolieren) some of their properties and debts in mysterious "off balance sheet" - simple technique: sofware company boosted revenues by shipping customers emty cartons before end of a quarter (customers sent back, but following quarter) - other complex techniques, near incomprehensibility (Unverständlichkeit, Unbegreiflichkeit) (Enron company: took years for accountants and prosecutors (Staatsanwälte) sorting out false transactions) - liars and thieves find ways commiting fraud (Betrug) and embezzlement (Veruntreuung, Unterschlagung ..)
arcane world of finance also shows many companies finding legal ways to make their books look better, but they can't make bankrupt company look like profitable one, not for long, but it's amazing what they can do, example: "one-time charge" allows company to cram bad news into one quarter's financial results (to make future quarters look better) -
p4 - shuffeling of expenses from one category into another can pretty up a company's quarterly earnings picture, and boost its stock price - (Wall Street Hournal wrote how companies fatten bottom lines by reducing rentirees' benefit accruals, even though they may not spend less on those benefits)
non-professionls may be mystified to a certain amount - everything else in business (marketing, research and development, human resource management, strategy formulation etc.) is obviously subjective, dependent on experience, judgement and data - finance and accounting produce objective numbers, black and white, indisputable - even if fraud is concerned (unless company really ships empty boxes), how can executives so easily make things look so different than they really are? - short of fraud, how can they so easily manipulate business's bottom line?
The Art of Finance
accounting and finance, like all those other business disciplines, are as much art as they are science - you might call it CFO's (chief financial officer) hidden secret, although everyone in finance knows it - but still we may think that numbers on financial statements or reports must represent reality - this can't always be true, if only because the numbers jockeys can't know everything: what everyone does every day, how to allocate costs, how long piece of equipment will last, how much of its original cost to record in any given year - it is: the art of using limited data to come as close as possible to an accurate description of how well company is performing -
p5 - accounting and finance are not reality, but reflection of reality, and accuracy of that reflection depends on ability of accountants and finance professionals to make reasonable assumptions and to calculate reasonable estimates
tough job - quantify, categorize, make educated guesses relating to numbers all day long
result of these assumtions and estimates is a bias in the numbers - ...

Box Definitions
We want to make finance as easy as possible. Most finance books make us flip back and forth between the page we’re on and the glossary to learn the definition of a word we don’t know. By the time we find it and get back to our page, we’ve lost our train of thought. So here, we are going to give you the definitions right where you need them, next to the first time we use the word. - Box 1

Income Statement
The income statement shows revenues, expenses, and profit for a period of time, such as a month, quarter, or year. It’s also called a profit and loss statement, P&L, statement of earnings, or statement of operations. Sometimes the word consolidated is thrown in front of those phrases, but it’s still just an income statement. The bottom line of the income statement is net profit, also known as net income or net earnings. - Box 2

Operating Expenses
Operating expenses are the costs required to keep the business going from day to day. They include salaries, benefits, and insurance costs, among a host of other items. Operating expenses are listed on the income statement and are subtracted from revenue to determine profit. - Box 3

Capital Expenditures
A capital expenditure is the purchase of an item that’s considered a long-term investment, such as computer systems and equipment. Most companies follow the rule that any purchase over a certain dollar amount counts as a capital expenditure, while anything less is an operating expense. Operating expenses show up on the income statement, and thus reduce profit. Capital expenditures show up on the balance sheet; only the depreciation of a piece of capital equipment appears on the income statement. More on this in chapters 5 and 11. - Box 4

Accruals
An accrual is the portion of a revenue or expense item that is recorded in a particular time span. Product development costs, for instance, are likely to be spread out over several accounting periods, and so a portion of the total cost will be accrued each month. The purpose of accruals is to match costs to revenues in a given time period as accurately as possible. - Box 5

Allocations
Allocations are apportionments of costs to different departments or activities within a company. For instance, overhead costs such as the CEO’s salary are often allocated to the company’s operating units. - Box 6

Depreciation
Depreciation is the method accountants use to allocate the cost of equipment and other assets to the total cost of products and services as shown on the income statement. It is based on the same idea as accruals: we want to match as closely as possible the costs of our products and services with what was sold. Most capital investments other than land are depreciated. Accountants attempt to spread the cost of the expenditure over the useful life of the item. There’s more about depreciation in parts 2 and 3. - Box 7

Goodwill
Goodwill comes into play when one company acquires another company. It is the difference between the net assets acquired (that is, the fair market value of the assets less the assumed liabilities) and the amount of money the acquiring company pays for them. For example, if a company’s net assets are valued at $1 million and the acquirer pays $3 million, then goodwill of $2 million goes onto the acquirer’s balance sheet. That $2 million reflects all the value that is not reflected in the acquiree’s tangible assets—for example, its name, reputation, and so on. - Box 8

Balance Sheet
The balance sheet reflects the assets, liabilities, and owners’ equity at a point in time. In other words, it shows, on a specific day, what the company owned, what it owed, and how much it was worth. The balance sheet is called such because it balances—assets always must equal liabilities plus owners’ equity. A financially savvy manager knows that all the financial statements ultimately flow to the balance sheet. We’ll explain all these notions in part 3. - Box 9

Cash
Cash as presented on the balance sheet means the money a company has in the bank, plus anything else (like stocks and bonds) that can readily be turned into cash. Really, it’s that simple. Later we’ll discuss measures of cash flow. For now, just know that when companies talk about cash, it really is the cold, hard stuff. - Box 10

ch 4 - The Rules Accountants Follow — and Why You Don’t Always Have To
p26 - in this book only a smattering (bruchstückhafte Kenntnisse ..) of accounting procedures - but good having broad grasp of rules accountants supposed to follow - helps to understand why they choose relying on certain estimates and assumptions and not others - some companies prepare financials not following these rules, these documents can be valuable, too
... GAAP ... non-GAAP numbers - ...

Part One - Toolbox

Getting What You Want
p36 - ...
The Players and What They Do
Reporting Obligations of Public Companies
...

Part Two
The (Many) Peculiarities of the Income Statement

ch 5 - Profit Is an Estimate
p43 - Peter Drucker: "Profit is sovereign criterion of enterprise" (sovereign ist right on the money) - profitable company charts its own course, managers run it as they wish to - if it stops being profitable, other people begin poking their noses into the business - manager is judged upon profitability, if contributing to profitability or detracting from it, figuring out ways to increase profitability every day, or just hoping everything will work out
Laurence J. Peter of "Peter Principle" and Yogi Berra: "If we don't know where we're going we'll probably wind up somewhere else" - not knowing how to contribute to profitability, unlikely to do so effectively
Too many people in business don't understand what profit really is, let alone how it is calculated, nor that company's profit in any period reflects a whole host of estimates and assumptions - art of finance might be termed "art of making profit", in some cases "art of making profits look better than they really are" - will see in this part of book how this can be done, both lagally and illegally - most companies play it prett staight, a few end up pushing the limits
p44 - we'll focus on basics of understanding an income statement -> "profit" is no more or less than what shows up there - learn to decipher this document -> will be able to understand and evaluate company's profitability - learn to manage the lines on income statement that you can affect -> will know how to contribute to profitability - learn the art involved in determining profit -> you will definitely increase your financial intelligence - you might even get where you are going
A (Very) Little Accounting
we promised (ch 4) to incliude only smattering of accounting procedures in book - there is one accounting idea, however, that we will explain here -> once you understand it, will grasp exactly what income statement is and what it is trying to tell you - first back up one step, making shure no major misconception lurking in your mind
we know that income statement should show company's profit for given period (1month, quarter, year) - wrong is to conclude inc. statem. shows amount of cash company took in during period, how much spent, and how much left over what would be the profit - no!
except very small businesses doing accounting this way, called cash-based accounting - that notion of inc. statem. and profit is based on a fundamental misconception - inc. st. measures something quite different from cash in thedoor, cash out the door, and cash left over: measures sales or revenues, costs or expenses, and profit or income
inc. st. begins with sales - when business delivers product or service to customer = accountants say made a sale, even if customer hasn't paid for product or service yet - business may count amount of sale on top line of inc. st. for period in question - for cash-based business (retailers, restaurants) sales and cash coming in pretty much the same -
p45

The Matching Principle
The matching principle is a fundamental accounting rule for preparing an income statement. It simply states, “Match the cost with its associated revenue to determine profits in a given period of time—usually a month, quarter, or year.” In other words, one of the accountants’ primary jobs is to figure out and properly record all the costs incurred in generating sales. - Box 11

Sales
Sales or revenue is the dollar value of all the products or services a companyprovided to its customers during a given period of time. - Box 12

Earnings per Share
Earnings per share (EPS) is a company’s net profit divided by the number of shares outstanding. It’s one of the numbers that Wall Street watches most closely. Wall Street has “expectations” for many companies’ EPS, and if the expectations aren’t met, the share price is likely to drop. - Box 13

Cost of Goods Sold (COGS) and Cost of Services (COS)
Cost of goods sold or cost of services is one category of expenses. It includes all the costs directly involved in producing a product or delivering a service. - Box 14

Above the Line, Below the Line
The “line” generally refers to gross profit. Above that line on the income statement, typically, are sales and COGS or COS. Below the line are operating expenses, interest, and taxes. What’s the difference? Items listed above the line tend to vary more (in the short term) than many of those below the line, and so tend to get more managerial attention. - Box 15

Operating Expenses (Once More)
Operating expenses are the other major category of expenses. The category includes costs that are not directly related to making the product or delivering a service. - Box 16

Noncash Expense
A noncash expense is one that is charged to a period on the income statement but is not actually paid out in cash. An example is depreciation: accountants deduct a certain amount each month for depreciation of equipment, but the company isn’t obliged to pay out that amount, because the equipment was acquired in a previous period. - Box 17

Profit
Profit is the amount left over after expenses are subtracted from revenue. There are three basic types of profit: gross profit, operating profit, and net profit. Each one is determined by subtracting certain categories of expenses from revenue. - Box 18

Gross Profit
Gross profit is sales minus cost of goods sold or cost of services. It is what is left over after a company has paid the direct costs incurred in making the product or delivering the service. Gross profit must be sufficient to cover a business’s operating expenses, taxes, financing costs, and net profit. - Box 19

Operating Profit, or EBIT
Operating profit is gross profit minus operating expenses, which include depreciation and amortization. In other words, it shows the profit made from running the business. - Box 20

Net Profit
Net profit is the bottom line of the income statement: what’s left after all costs and expenses are subtracted from revenue. It’s operating profit minus interest expenses, taxes, one-time charges, and any other costs not included in operating profit. - Box 21

Contribution Margin
Contribution margin indicates how much profit you are earning on the goods or services you sell, without accounting for your company’s fixed costs. To calculate it, just subtract variable costs from sales. - Box 22

Part Two - Toolbox

Understanding Variance
p83 - ...
Profit at Nonprofits
...
A Quick Review: "Percent Of" and "Percent Change"
...

Part Three
The Balance Sheet Reveals the Most

Equity
Equity is the shareholders’ “stake” in the company as measured by accounting rules. It’s also called the company’s book value. In accounting terms, equity is always assets minus liabilities; it is also the sum of all capital paid in by shareholders plus any profits earned by the company since its inception minus dividends paid out to shareholders. That’s the accounting formula, anyway. Remember that what a company’s shares are actually worth is whatever a willing buyer will pay for them. - Box 23

Older Version of "Financial Intelligence"

Old: WHAT IS FINANCIAL INTELLIGENCE?

- Book about financial intelligence (fii) - knowing what the numbers really mean - written for entrepreneurs and company owners who need to understand exactly what is happening in their company from a financial perspective - proveides financial knowledge you need to run your business more effectively
You'll learn how to read the 3 major financial statements and how to interpret the information they contain - you learn to calculate critical ratios and understand what they are telling you - you learn why your net-cash in a given time period is not the same as profit, and why you need both profit and cash - you learn using return-on-investment (ROI) tools to analyze big purchases in order to make sure your investments add value to your business - learn managing working capital to improve company's cash flow and profitability even with no change in sales or expenses - read about 3 main methods for establishing the value of your business and many other business tricks of the financial trade
Along the way we'll let you in on the finance profession's little secret -> finance is as much art as it is science - many of the numbers on a business's financial reports are determined by a whole series of estimates and assumptions - if you learn how to assess (beurteilen, bewerten ..) those estimates and assumptions, you will know how the reports you are seeing may be biased (beeinflusst, gefärbt, verzerrt ..) in
xii - one direction or another - understanding the bias helps you making better decisions
Original edition of book just called "Financial Intelligence", published by Harvard Business Press 2006 - designed primarily for nonfinancial managers in large corporations - our company, Business Litercy Institute (BLI), taught basics of finance to many thousands of leaders, managers, and employees in companies around the world
But we noticed: many of our friends acquaintances (Bakannte) entrepreneurs business owners like ourselves found book helpful even though not aimed at them - we realized have more in common than with management clients - Karen started BLI by herself out of home after PhD in organizational psychology - Joe (MBA finance, had worked at Ford and smaller businesses) joined 2 other guys named Joe in starting Setpoint (company manufacturing roller costers and factory-automation equipment), known as "the Joes" - later joined Karen as co-owner of BLI - we both met a payroll (Gehaltsabrechnung/-Liste ..), know what it's like start and run own business - chose Harvard Business Press for creating this book, especially tailored for entrepreneurs and company owners - about this edition:
First ...
xiii - Second ... - Third ...
Some things not tried to do in this book - for example: we don't teach accounting, never mention debits and credits, don't ever refer to general ledger or trial balances - book not another version of "Accounting for Dummies", no advices how to finance your business, do your taxes, buy financial software - plenty of good guidbooks exist - our subject is what you need to know about finance to run your business more effectively - we try to stick to it
xiv - entrepreneur applying for loan might be tempted to try same thing - good to be aware how slippery some of these slopes (Schrägen, Abhänge ..) can be - besides, always entertaining to read about bad guys :-)
...

Part One
The Art of Finance (and Why It Matters)

ch 1 - What Is Financial Intelligence?
p3 - Since we teach finance for a living, we'll begin book in manner of teachers everywhere: by asking questions - Q1 Do you know whether will have enough cash to make payroll next month? Month after that? - Q2 If you are running a start-up, do you know your burn-rate (how fast you are going through your cahsh)? - Q3 Do you know how profitable your company's products or services really are? Do you know that you can be running a profitable business and still run out of cash? - Q4 If thinking about buying new piece of equipment (truck, computer, machine), do you know how to figure the likely return on your investment?

Income Statement
The income statement shows revenues, expenses, and profit for a period of time (month, quarter, year) - also called profit and loss statement, P&L, statement of earnings, or statement of operations - big companies sometimes throw the word consolidated in front of those phrases, but it’s still just an income statement - the bottom line of the income statement is net profit, also known as net income or net earnings - we explain the income statement in part 2

Part 8
Creating a Financially Intelligent Company

ch 28 - Financial Literacy, Transparency, and Your Business’s Performance
p199 - book written to increase financial intelligence, becoming more effective leader - more than the cheaf executive of own company, and entrepreneurship more meaningful - business like baseball, backgammon, wouldn't play before having learned how it is played - knowing rules lets you see your endeavors in big-picture context -> simply people working together to achieve certain objectives - how company operates - able to assess business's performance better, can see which way key numbers are moving, understand why moving in one direction or the other
And there's the fun of it - financial report cards of business are partly reflections of reality, also, sometimes very much so, reflections of estimates, assumptions, educated guesswork, and all the resulting biases (occasionally they reflect outright manipulation as well) -
p200 - your accountant or CFO knows all this, probably hasn't shared that with you - now you ask finance types the tough questions: How to recognize paticular category of revenue? Why chosen particular time frame for deprication? Why is DII on the upswing? After getting past the shock that boss speaks their language, they almost certainly will be willing to discuss the bases for their assumptions and estimates and to modify them when appropriate - may even start asking for your advice about such matters :-)
Better Companies
We have other objective (Ziel, Veranlassung ...) for this book as well -> businesses better performance when fi quotient higher among everybody, owners, managers, employees - thriving (florierend, erfolgreich ...) business better, offers valuable goods and services to customers - stable jobs, pays raises, opportunities for advancement, healthy return for owners, helps economy grow, strengthens communities, improves living standard - ...
p201 - ... - simple antidote to politics: sunight, transparency, open communication - when everyone in business understands company's objectives (Grundsätze) and works to attain them, easier creating organization built on a sense of trust and a feeling of community - in the long run company will always be more successful than less open counterparts - fi training makes big difference - example from above: every quarter getting profit sharing check - fi savvy (Köpfchen, gesunder Menschenverstand ...) managers can react more quickly to the unexpected - famous book "Warfighting" by U.S. Marine Corps, became bible of sorts for special forces of all kinds - in combat marine can't rely on instructions from above;
p202 - instead must make decisions on their own - commanders spell out broad objectives, leave decisions to officers and marines in the field - lesson just as valuable to companier -> decisions can be made more quickly and effectively, company's performance that much stronger
Taking it to the Troops
...

ch 29 - Financial Literacy Strategies
p205 - If goal is financially intelligent company, first step figure out strategy to get there - not one-time course, instruction book, post income statement etc. and expect everyone to be enlightened - people need to be engaged in learning, material needs to be repeated, revisited in different ways, results need to be shared - financial literacy (Bildung ...) must become part of company's culture, takes time, effort, even little monetary investment - but doable -> will outline 3 approaches we have seen work
...
Tools and Techniques
...
Training (Over and Over)
...
Weekly "Numbers" Meetings
...
Reinforcements: Scoreboards and Other Visual Aids
...
p207 - ...

ch 30 - Putting Financial Intelligence to Work
Growing Your Business
p211 - many opportunities to put book's lessons to practical use - one of biggest issues for owners: whether, and how fast try growing the business - many entrepreneurs misunderstand process of growth - not creating profitable company, and growth takes care of itself! - putting in growth mode should be concious choice - not every business owner decides for growth, some prefer running tiny operations, few people on payroll - others choose limiting growth, though opportunities to expand into midsize or large companies - (see book "Small Giants", by Bo Burlingham)
If decide growth, will face series of decisions and choices: when add employees, how fast, which skill sets need most urgently, where and how look for candidates, which cand. to choose for each position - can be tempting making these decisions by the seat of your pants, hiring just because need help right now, or because a friend recommended someone "great" for your business
p212 -
Paths to Growth
p213 - ...
More of the Same
...
Branching Out
...
p214 - ...
Adding New Products and Services
...
Acquisition (Erwerb, Kauf, Übernahme ...)
...
p215 - ...
Going Public
...

Vocabulary

E
elude (sth.) - entkommen, (etw. ausweichen, sich etw. entziehen, etw. umgehen, ...) - p3
G
goldrush - Goldrausch, Goldfieber
O
objective(s) - Grundsätze, Zielsetzung, Veranlassung, übergeordnetes Ziel ...
P
payroll - Gehaltsabrechnung, Gehaltsliste, Lohnliste, Gehaltskosten, ... - p3
R
recession - Rezession

Broken Money

How to Win Friends and Influence People

EIGHT THINGS THIS BOOK WILL HELP YOU ACHIEVE
1. Get out of a mental rut (Alltagstrott, Fahrgleis, Spurrinne ...), think new thoughts, acquire new visions, discover new ambitions.
2. Make friends quickly and easily.
3. Increase your popularity.
4. Win people to your way of thinking.
5. Increase your influence, your prestige, your ability to get things done.
6. Handle complaints, avoid arguments, keep your human contacts smooth and pleasant.
7. Become a better speaker, a more entertaining conversationalist.
8. Arouse enthusiasm among your associates.
This book has done all these things for more than ten million readers in thirty-six languages.

Content
Preface To Revised Edition ....................................................................................................... 4
How The Book Was Written—And Why .................................................................................... 5
Nine Suggestions On How To Get The Best Of This Book ....................................................... 8
Part One: Fundamental Techniques In Handling People
1: If you want to gather honey, don't kick over the beehive ..................................................... 11
2: The big secret of dealing with people .................................................................................. 18
3: He who can do this has the whole world with him. He who cannot walks a lonely way. ..... 24
Part Two: Six Ways To Make People Like You
4: Do this and you'll be welcome anywhere ............................................................................ 34
5: A simple way to make a good impression ........................................................................... 40
6: If you don't do this, you are headed for trouble ................................................................... 44
7: An easy way to become a good conversationalist .............................................................. 48
8: How to interest people ........................................................................................................ 53
9: How to make people like you instantly ................................................................................ 56
Part Three: How To Win People To Your Way Of Thinking
10: You can’t win an argument ................................................................................................ 63
11: A sure way of making enemies—and how to avoid it ........................................................ 67
12: If you're wrong, admit it ..................................................................................................... 72
13: A drop of honey ................................................................................................................. 76
14: The secret of Socrates ...................................................................................................... 80
15: The safety valve in handling complaints ........................................................................... 83
16: How To Get Cooperation ................................................................................................... 86
17: A formula that will work wonders for you ........................................................................... 89
18: What everybody wants ...................................................................................................... 92
219: An appeal that everybody likes ....................................................................................... 96
20: The movies do it. TV does it. Why don't you do it? ........................................................... 99
21: When nothing else works, try this ................................................................................... 102
Part 4: Be A Leader: How To Change People Without Giving Offence Or Arousing Resentment
22: If you must find fault, this is the way to begin ................................................................. 106
23: How to criticize—and not be hated for it ......................................................................... 109
24: A talk about your own mistakes first ................................................................................ 111
25: No one likes to take orders ............................................................................................. 114
26: Let the other person save face ....................................................................................... 116
27: How to spur people on to success ................................................................................. 118
28: Give a dog a good name ................................................................................................ 121
29: Make the fault seem easy to correct .............................................................................. 123
30: Making people glad to do what you want ....................................................................... 125
A Shortcut To Distinction ...................................................................................................... 128

Influence, The Psychology of Persuation

Content
Introduction - v
1 - Weapons of Influence - 1
2 - Reciprocation: The Old Give and Take…and Take - 13
3 - Commitment and Consistency: Hobgoblins of the Mind - 43
4 - Social Proof: Truths Are Us - 87
5 - Liking: The Friendly Thief - 126
6 - Authority: Directed Deference - 157
7 - Scarcity: The Rule of the Few - 178
Epilogue Instant Influence: Primitive Consent for an Automatic Age - 205
Notes - 211
Bibliography - 225
Index - 241
Acknowledgments
About the Author
Cover
Copyright
About the Publisher

Principles

• Principles: Life and Work Hardcover – Illustrated, September 19, 2017 by Ray Dalio (Author) - Amazon
• principles.com; Ray Dalio's Website - New book: How Countries go Broke - and much more :-)))

Good to Great

Contents

Cover
Title Page
Dedication
Preface
Chapter 1 - Good is the Enemy of Great
Chapter 2 - Level 5 Leadership
Chapter 3 - First Who ... Then What
Chapter 4 - Confront The Brutal Facts (Yet Never Lose Faith)
Chapter 5 - The Hedgehog Concept - (Simplicity within the Three Circles)
Chapter 6 - A Culture of Discipline
Chapter 7 - Technology Accelerators
Chapter 8 - The Flywheel and The Doom Loop
Chapter 9 - From Good To Great To Built To Last
Epilogue - Frequently Asked Questions

Appendix 1.A - Selection Process for Good-To-Great Companies
Appendix 1.B - Direct Comparison Selections
Appendix 1.C - Unsustained Comparisons
Appendix 1.D - Overview of Research Steps
Appendix 2.A - Inside Versus Outside CEO Analysis
Appendix 5.A - Industry Analysis Rankings
Appendix 8.A - Doom Loop Behavior in the Comparison Companies
Appendix 8.B - Summary of Acquisition Analysis

Notes
Index
Acknowledgements

About the Author
Back Ad
Praise for Good to Great
Also by Jim Collins
Credits

Copyright
About the Publisher

Poor Charlie`s Almanack

Contents
Acknowledgments
Foreword by Warren E. Buffett
Rebuttal by Charles T. Munger
Introduction by Peter D. Kaufman
Chapter One:
A Portrait of Charlcs T. Munger .................................................................................... 2
Praising Old Age: Munger's Reflections on Aging ...................................................... 27
Remembering: The Children on Charlie .................................................................... 39
Chapter Two:
The Munger Approach to Life, Learning, and Decision Making ................................. 52
Chapter Three:
Mungerisms: Charlie Unscripted ............................................................................... 82
(Highlights from resent Berkshire Hathaway and Wesco Financial annual meetings)
Chapter Four: Eleven Talks .......................................................................................... 148
2. A Lesson on Elementary, Worldly Wisdom .......................................................... 164
3. A Lesson on Elementary, Worldly Wisdom, Revisited ......................................... 220
4. Practical Thought About Practical Thought? ....................................................... 278
5. Harvard Law School Fiftieth Reunion Address ................................................... 302
6. Investment Practices of Leading Charitable Foundations .................................. 322
7. Philanthropy Roundtable .................................................................................... 340
8. The Great Financial Scandal of 2003 ................................................................. 356
9. Academic Economics ......................................................................................... 374
10. USC Gould School of Law Commencement Address ...................................... 420
11. The Psychology of Human Misjudgment .......................................................... 440
Appendixes
I. Recommended Reading Material ....................................................................... 499
II. Articles, Editorials. and Opinion Pieces ............................................................. 502
Index ........................................................................................................................... 522

Acknowledgments

Foreword by Warren E. Buffett

Rebuttal by Charles T. Munger

Introduction by Peter D. Kaufman

Chapter One

A Portrait of Charles T. Munger by Michael Broggie

p2 - " I've gotten paid a lot over the years for reading through the newspapers." (Photo: Awaiting luncheon on the Thames, 1996.)
p3 - Skip business school. Educate yourself. - ...

The Intelligent Investor

Acquisition.com

Philosopy & Psychology

Health

Politics & Nature

Guidelines

Notes

Links

Sessions

• Session 1 • Sun 2025-1-26 Helsinki Vantaa 16:15-20:30 WR bs.html - start ♡♡♡

Building Houses & Ships & Spaceships for Living in Various Autarkic & Harmonious Group Constellations

Content

HG Pyramid

Objects

ALG

GICS

PG AI

The Personal MBA

Praise for The Personal MBA 10th Anniversary Edition

A NOTE TO THE READER

PREFACE TO THE 2020 EDITION

INTRODUCTION

WHY READ THIS BOOK?

1 - VALUE CREATION

2 - MARKETING

The cardinal marketing sin is being boring. — DAN KENNEDY, MARKETING EXPERT - Dan Kennedy Books - Amazon

3 - Sales

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

4 - Value Delivery

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

5 - Finance

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

6 - The Human Mind

Ninety percent of this game is half mental. — YOGI BERRA, PROFESSIONAL BASEBALL PLAYER AND MALAPROPIST

7 - Working with Yourself

To think is easy. To act is diﬃcult. To act as one thinks is the most diﬃcult. — JOHANN WOLFGANG VON GOETHE, POET, DRAMATIST, AND POLYMATH

8 - Working with Others

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

9 - Understanding Systems

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

10 - Analyzing Systems

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

11 - Improving Systems

People don’t like to be sold, but they love to buy. — JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

Vocabulary

Financial Intelligence

PREFACE

Part One The Art of Finance (and Why It Matters)

Part One - Toolbox

Part Two The (Many) Peculiarities of the Income Statement

Part Two - Toolbox

Part Three The Balance Sheet Reveals the Most

Older Version of "Financial Intelligence"

Part One The Art of Finance (and Why It Matters)

Part 8 Creating a Financially Intelligent Company

Vocabulary

Broken Money

How to Win Friends and Influence People

Influence, The Psychology of Persuation

Principles

Good to Great

Poor Charlie`s Almanack

Acknowledgments

Foreword by Warren E. Buffett

Rebuttal by Charles T. Munger

Introduction by Peter D. Kaufman

Chapter One

A Portrait of Charles T. Munger by Michael Broggie

The Intelligent Investor

Acquisition.com

Philosopy & Psychology

Health

Politics & Nature

Guidelines

Notes

Links

Sessions

Building Houses & Ships & Spaceships for Living
in Various Autarkic & Harmonious Group Constellations

The cardinal marketing sin is being boring.
— DAN KENNEDY, MARKETING EXPERT - Dan Kennedy Books - Amazon

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

Ninety percent of this game is half mental.
— YOGI BERRA, PROFESSIONAL BASEBALL PLAYER AND MALAPROPIST

To think is easy. To act is diﬃcult. To act as one thinks is the most diﬃcult.
— JOHANN WOLFGANG VON GOETHE, POET, DRAMATIST, AND POLYMATH

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

People don’t like to be sold, but they love to buy.
— JEFFREY GITOMER, AUTHOR OF THE SALES BIBLE AND THE LITTLE RED BOOK OF SELLING

Part One
The Art of Finance (and Why It Matters)

Part Two
The (Many) Peculiarities of the Income Statement

Part Three
The Balance Sheet Reveals the Most

Part One
The Art of Finance (and Why It Matters)

Part 8
Creating a Financially Intelligent Company