Browsed by
Category: family

Thoughts on Constructing A Library

Thoughts on Constructing A Library

I am going to jot a few notes on the subject of library (as in, personal book collection, not edifice) construction that I’ve been considering lately.

When reading stories of intellectual and political figures of the past, such as Thomas Jefferson or Napoleon Bonaparte, I realized that possessing a substantial library of works of interest and fame was part of standard operating procedure for literate men of the past. When I say substantial, I am talking about private collections numbering ten to twenty-thousand individual hardbound volumes, or when traveling, taking one or two trunkloads of books with the traveler to aid in research and study.

It’s a pretty different commitment to book warehousing and travel from having a few shelves of things you’ve read, or grabbing a couple books and stuffing them into your suitcase for an upcoming flight. Even in the age of Kindle, it’s akin to having a multi-gigabyte device dedicated solely to storing your library.

I haven’t kept track of how many books I’ve read so far in my life, and it’s not exactly apples-to-apples to include childhood picture books in the same measure as thousand page social philosophy treatises. But even if you excluded everything I read before age 19 or 20, which is probably the point in my life where I got “serious” about reading and was mostly reading non-fiction for information and analysis rather than fiction to pass the time or have my imagination stimulated (although, like many teenagers, I did manage to consume Atlas Shrugged during this “non-serious” period), I would still feel comfortable saying the number is “thousands”, especially if you include partially read titles. Probably less than five thousand, but definitely more than one thousand.

I don’t have most of those titles in my possession. Over the last seven or eight years, I consumed many works (especially about business, investing or economics) digitally, and over the last two years I have become an active “purger”, selling, donating or simply tossing books I didn’t bother to read, didn’t bother to finish or didn’t think I’d get any additional value out of in owning them. Most of what is on my shelf at home right this moment are either unread-waiting-to-be-read, or read-and-coming-back-to-them titles. I guess you’d call the latter “reference” titles, but I actually have few reference titles and I mean more of the idea of doing a full-reread to see how my understanding and appreciation of what I previously deemed a worthy title has changed as I’ve changed.

I wonder if purging is a good approach for a few reasons. One is that I have a child now, and hope to have more. I like to think I’ve spent a lot of time reading and sorting knowledge contained in books and I’ve wasted my time on many in order to find the few quality gems, the essential titles in some field that can quickly give one a nuanced understanding of the major and minor issues alike in some discipline. This time I’ve invested is a sunk cost, and being able to hand over a ready-culled library of the “classics” and “greatest hits” to my children and grandchildren seems like part of the social capital of our family.

A problem I have with this logic is that I found a lot of these books by exploring specific questions I had prior to reading them. I arrived at the good stuff through a meaningful epistemological journey that probably would not be as valuable or even as coherent as it was if I had leapt straight from my starting inquiry to the most elucidated truth in the best book. I had to fight for the knowledge I came by and do my own hard thinking and analyzing as I went. Handing someone a ready-constructed library of “essential knowledge” lacks context and it also lacks respect for their own curiosity.

Similarly, as the RIE-philosophy of infant care-giving reminds us (I think derived from Montessori), when you teach a child something, you take away forever his chance to discover it himself. There’s something cognitively valuable in the act of discovery that inheriting a library might obviate.

On the other hand, “on the shoulder of giants”… so perhaps my issue will see farther than me if they start not at the starting line, as I did, but far beyond the finish line in another race entirely.

Another problem with purging is that we are quickly losing a sense of literary history and context with the rise of Google and Amazon. With Google, we convince ourselves that anything worth knowing can be easily searched for, and that it isn’t important to understand the source or genesis over time of certain ideas, only what the latest conclusions are. With Amazon, we come to understand the literary universe as being composed of recently published, hot-selling titles (usually rehashes of old ideas, reformulated for the latest audience fad or interest) and a few older works deemed “classics” because they don’t manage to offend anyone. There are literally hundreds of thousands of titles people used to read, adore and consider categorical in their respective field that aren’t in print and that are essentially invisible to modern readers unless you know what to look for. There are also thousands of titles that reflect the losing side in a historical conflict, of ideas or arms or otherwise, that are not considered “truthful” simply because that side lost. Those are perspectives worth thinking about still if one wants to hone one’s critical mind and maintain a level of scientific objectivity in one’s thinking.

So I worry that some of the great stuff I’ve come across, my children will simply not see if I don’t keep it in my library for them. Especially if they are about ideas I think are important and honest, but which end up “losing the battle” during our lifetime and become non-PC. Down the memory hole!

Storing all these books has an economic cost. There is also search costs in looking through them when seeking a title out if they’re too numerous. And while I’ve spent tens of thousands of dollars on books over the years, I’ve mostly acquired paperbacks. I wonder if these are durable and can stand the test of time.

I am currently not resolved on the question of “To construct a library for myself and my posterity, or not?” One thing I do know, is that there is something wrong with a home (or office!) that contains no books, or that contains only books selected by others and not by oneself, or received for promotional reasons alone. It would be a major mistake to raise children in a place where books weren’t an ever-present part of their surroundings, even if the total quantity and methodology of selection behind the “library” remains in a negotiated state.

Review – Baby-Led Weaning (#review, #books, #parenting, #babies, #children, #food)

Review – Baby-Led Weaning (#review, #books, #parenting, #babies, #children, #food)

Baby-Led Weaning: The Essential Guide to Introducing Solid Foods-and Helping Your Baby to Grow Up a Happy and Confident Eater

by Gill Rapley, Tracey Murkett, published 2010

If you pay close attention to certain parenting and child development texts, you are likely to notice one of two paradigms at work– the exogenous development approach and the endogenous development approach. Those are fancy words I just thought up to say something simple, which is that you either believe children can develop pretty well on their own, with parents simply playing a nurturing, supporting role; or else you believe that children are mostly helpless to develop on their own, with parents playing a primary, directorial role.

The idea of “Baby-Led Weaning” (BLW) falls firmly into the endogenous development model, along with other philosophies we fancy such as RIE for parent-infant communication and relationship building, self-esteem centered personal growth philosophy, Montessori for educational and pedagogical practice, and nutrition-based health and well-being (ie, vaccine-skepticism). People who take the BLW approach to transitioning their infant to solids, aka “adult food”, see linear continuity between the infant’s ability to feed themselves at the breast and the later skill of the toddler being capable of feeding themself at the table. The BLW user asks the question, “Why should there need to be a period in the child’s eating skills development where they regress to parental intervention with mush and spoon?”

The actual practice of BLW doesn’t require more than a paragraph to describe. So long as your infant has reached the motor skill maturity to sit up on their own (or you are willing to prop them up on your lap for the duration of their “meal”), you can put a small variety of 2-inch long, stick-shaped food items from the adult meal in front of them and let them choose what and how they’d like to eat. If they want more, you can offer them more as they go. The first few weeks and months of learning to eat actually consists of them “playing” with their food by exploring taste, texture, smell and other properties of the foodstuffs– only later do they discover that the food is nutritious and helps to satiate their hunger. Plan on letting them discover at their own pace, cleaning up the inevitable messes and continuing to provide most of their sustenance by breast or bottle until they’re fully capable of getting the majority of their calories and nutrients from shared family meals, likely past the one year of age mark.

That’s really it. While there are certain foods that are easy to choke on (grapes not cut in half length-wise! hard nuts which are difficult to chew! pieces of fish or animal flesh with sharp bone fragments!) and things children may develop allergies to if exposed too early (honey! dairy! peanut butter?!), like the risk of rolling over and crushing an infant via co-sleeping being almost nil for a family that does not consist of alcoholic cigarette smoking fat asses, BLW is essentially safe and the risk of choking is overblown. It turns out that infants have a gag reflex that begins near the front of their tongue and not the back, and most “choking” actually happens with spoon-fed infants wherein the eating utensil circumvents the natural choke-avoidance mechanism and allows food to get into the back of their throat when they haven’t fully developed the muscle control to swallow.

Like most endogenous approaches, the biggest challenge for parents and other adult-caretakers is having patience to let the infant explore at their leisure and behave as comes naturally without thinking they need to get involved and add something to the mix for any reason other than safety. The temptation to “help” the child learn to eat or to show them a more “efficient” way to get the food into their mouth, for example, must be avoided if the child is to develop the important motor skills of controlling food with their hands, not to mention the need to let the child determine that food is safe and enjoyable to eat. Chewing and sucking endlessly on the same piece of sweet potato stick may not seem like an effective way to eat one’s meal for us, but for the infant it is an essential part of figuring out “What is this?” and “What can I do with it?” Infants are highly empirical and don’t really have an ability to learn by causal explanation and the provision of logical theory. They need to just do stuff on their own.

The book is much longer than a paragraph because it spends a lot of time repeating itself, calming potentially frayed nerves concerning overwrought risks, relating a series of “BLW Stories” of parents who did it with their small kids and had success, and interjecting numerous verbatims from happy practitioners seemingly at random in an attempt to build credibility in the approach. This last bit is likely aimed at female readers– sorry moms, but your cultural appropriation model is highly consensus-based due to evolutionary biology.

A good primer for anyone interested in the approach, though you can skim-read it.

3/5

Review – The Snowball (#investing, #books, #business, #review)

Review – The Snowball (#investing, #books, #business, #review)

The Snowball: Warren Buffett and the Business of Life

by Alice Schroeder, published 2008, 2009 (condensed and updated)

This is my second reading of The Snowball. I enjoyed it almost as much as the first, five years ago, and definitely took away different things from this reading than I did last time. At that time, I was just finishing my “personal MBA”  deep-dive into value investing and was interested in Schroeder’s Buffett bio mainly for the information and insight it would yield into Buffett’s approach and track record as an investor. I was surprised to come away from that reading realizing that the book was a moral parable in the form of a man’s life (an incredibly successful, well-known and near-worshipped man) and my second journey through the book was more focused on the question “How should I think about living my life?” than the question “How should I think about investing?”

I found the book most exciting to read and most interesting personally in the exploration of Buffett’s origins and the detailed narrative about the first twenty years of the partnerships that proceeded his investment in Berkshire Hathaway. As the story wore on and it became more about managing what he had and dealing with the consequences of choices wrought long ago, I found myself losing interest, particularly as the Salomon and Long-Term Capital Management sagas carried on for a mind-numbing fifty-plus pages in total.

Buffett’s childhood was far more unusual than I cared to notice in my first reading. He was obsessed with business, investing and the impact of statistics in life not just from a young age, but in ways that were extraordinary even for someone to be described as “doing X from a young age” would imply by itself. Obsessed is not a word I use lightly here. The young Buffett was probably an odd creature to be around, even for people who loved him or found him interesting or were of unusual talent and ability themselves. This seems confirmed in later years when so many people familiar with him describe feeling exhausted after spending just a few hours with him. It helped me to realize how unfair and pointless trying to compare yourself to a person like Buffett is.

When asked by Bill Gates, Sr., at a dinner what single word they’d use to describe the outcome of their life and their success, Buffett said, “Focus.” As Schroeder describes in many places in the book, and especially at length in the final chapter, “focus” means something completely different when Buffett says it versus anyone of lesser ability and different personality. When Buffett says “focus” he means “to the exclusion of all else, with relentless, all-consuming energy, without tiring or being distracted.” There is no balance working behind the scenes. He gave up a lot of “normal” things most other people would insist on or desire in distinction to that which they were focused on, not as a sacrifice but as an inevitability of his personality.

The most obvious and tragic is his relationship with his family and his relationship with himself. Most other people who are driven towards success in their field and the monetary rewards that typically come with it offer up the excuse of their family as their motivation, honestly or not. This wasn’t the case for Buffett, and achieving supremacy in his profession and in his personal net worth really didn’t do anything to enhance his relationship with his family or the way he cared for them. It is indicated on numerous occasions what kind of tradeoff he would’ve had to make to be more involved with his family, and he never did it. It’s an excellent reminder for someone who sees themselves as driven to achieve that these tradeoffs are real and accepting a “lower rate of return” in one’s efforts is a necessary (and happy?) price to pay to maintain a relationship with one’s family, which itself is valuable.

Buffett’s relationship with himself is also instructive in this regard. Many people wonder how money can’t solve most problems, and why people who are super wealthy continue to eat poorly, exercise infrequently and maintain the same limited psychological state and insecurities they possessed before they achieved glory. The answer again is simple– in the drive toward massive wealth, things get set aside and often it is the improvement of the self as a holistic unit that is set aside first in order to claim excess in one aspect.

Of course, we can’t expect Buffett to be perfect. Nobody is, and the point of mentioning this isn’t to point out the man’s flaws, but to explain them. You can’t have Buffett and have these issues resolved to everyone’s satisfaction. They come with the territory. If you want to be “focused” like Buffett, plan on neglecting your family and yourself, quite a bit. That’s only a judgment if you think those things are objectively more important than wealth or self-actualization in the area of generating wealth. That’s not really a judgment I want to make here and I think it misses the point.

Yet, Buffett’s flaws make for a fascinating lesson in a different way. Though Buffett was unusual, and exceptional, and completely driven toward a single-minded purpose from a young age, the path was far from certain that he would need to tread to get to wherever it was that he would end up going. It’s easy to sit here today reading a book published almost ten years ago, recounting events that unfolded over the past eighty, and see what was inevitable as inevitable. But Buffett made mistakes. Many of them, along the way. That’s what’s truly remarkable, that he made mistakes and still arrived where he did. It’s a good salve for a person carrying around the perfectionist fallacy. Give it a rest and get going, you can make some mistakes and still end up alright if Buffett is any example.

I love reading stories like this, stories of flawed people of unusual ability who managed to achieve something heroic even if their life wasn’t truly ideal. I love knowing it can be done. I love knowing what the pitfalls and the tradeoffs are, so I can be mindful of them myself. I love the way I can give myself permission to not achieve what they achieved (in kind or in magnitude) having the benefit of hindsight to see what it truly took that I can’t give, or won’t.

But most of all, I just love watching someone create something from nothing. That creative energy is uniquely human and what I admire most about our species and this little project called “civilization” that we’re all tinkering away on. The Snowball is not as great an investment manual as I originally thought it was (for that, I’d recommend Buffett’s BRK shareholder letters, along with or after reading Graham’s Security Analysis and The Intelligent Investor), but it is an epic moral profile and a captivating read overall because of it.

4/5

Review – Grinding It Out (#books, #review, #business)

Review – Grinding It Out (#books, #review, #business)

Grinding It Out: The Making of McDonald’s

by Ray Kroc, with Robert Anderson, published 1992

Reading through the stories of great entrepreneurs, business people and politicians like Cornelius Vanderbilt or Warren Buffett, it is easy to find a sentiment much like this one from Ray Kroc:

Ethel [his wife] used to complain once in a while about about the amount of time I spent away from home working. Looking back on it now, I guess it was kind of unfair. But I was driven by ambition.

I find this sentiment remarkable for a few different reasons.

The first is how common it is. It seems to suggest that achieving “great things” in a particular field of enterprise is not possible without neglecting one’s family and other personal relationships in favor of the “productive” relationships and activities.

The second is how little awareness of this tradeoff many such people seem to possess, at least until they reach the end of their life and all their glory has already been gotten. Then, as they contemplate their state of affairs, either looking back on the empire they built or ruminating regretfully now that they are deposed (violently or voluntarily), they seem to re-evaluate how they spent their time and decide they came up short in considering family time less important than it should have been. They also seem to be either disconnected from the damage they do to their children and their psyches, or else try to evade such recognition– I think Ray Kroc mentioned his daughter all of two times in this 200 page telling, and while his daughter may not have been critical to the story of building McDonald’s, you’d think she would’ve provided enough value and motivation in Kroc’s life to merit more than a couple passing mentions!

The third is how excusable such high achievers seem to find their behavior to be in retrospect. “But…” is a permission word. It negates what comes before and offers cover. Yes, Ray Kroc was unfair, but… It suggests a different moral framework for studying life or a particular circumstance, one in which the rules don’t really apply and the ends justify the means.

The fourth is what a temptation these great projects must’ve provided to these people, to ignore their family, their health or any number of other values. If I was a successful paper cup salesman but stumbled upon the idea of McDonald’s myself, could I have resisted the temptation to build it and in the process knowingly give up my family, friends, physical well-being, etc.? It is perhaps easy to sit in judgment of another person’s efforts and decisions when the attraction of my own responsibilities is relatively less compelling. It’s easy to go home to my family at the end of the day as they typically offer me more interest and excitement. But would that be the case if millions of dollars and a global business organization hung in the balance? That I don’t know for sure, and perhaps you can’t know until you’re tempted with it.

But that leads to the fifth point, which is to consider whether a story like Kroc’s and McDonald’s could be told any other way. What if in the first 27 pages of the story of this business the quote above was not to be found, nor anywhere in the 173+ pages that followed? What if Kroc didn’t get divorced (twice), didn’t have a string of health issues along the way, came home and kissed his wife and daughter on the forehead five nights a week and spent most of each month at home and around town rather than around the country? What choices would’ve needed to be made differently to support that outcome, and how would the company look different either internally or competitively if that had been the case? How big would Berkshire Hathaway be if Buffett had raised his own children and loved his first wife more considerately instead of reading so many damn books and annual reports?

To ask may be to answer, but it’s frightening (hopeful?) to think otherwise.

Besides neglecting important obligations and personal considerations, what else do stories like these seem to tell us about those who achieve outsize success?

Incredible stamina seems to be part of it. They don’t just work hard, they work all the time. But again, it’s hard to know if this is part of the person, part of the responsibility and opportunity, or both. How would a person not work hard and often at something they didn’t love to the point they were mesmerized by it? Enthralled is a good way to describe the state of mind in relation to the idea of the thing being pursued here.

Also, simplicity. Maybe it’s the bad ghostwriting designed to break the story down for a lowbrow audience but the way these people talk about what it is they did, they rarely come across as great geniuses, though they’re often wits (Buffett is a notable exception here, and Vanderbilt was clearly “sharp”, a word for cunning back then, though it wasn’t clear he was necessarily “intelligent”, while it was clear he was no buffoon). The grand strategy and complexity is often seen in hindsight, knowing how the story ends and having years and years to tell it and thus accumulate various trappings which may or may not be integral to the success. In Kroc’s own words, it was all about Quality, Service, Cleanliness and Value and then spreading it across the land. Their financing was complicated, but it’s not clear it needed to be, especially if the company was less levered and less insistent on growing as fast as it did. Being focused seems obvious, yet important enough to mention it.

Where does that leave me? If there’s a way to build a legacy that doesn’t involve neglecting one’s family and health, perhaps by being more patient, moving more slowly or being less obsessed about the outcome, that is the kind of legacy I want to build. And I have to wonder what kind of personal insecurity or individual idiosyncrasy or whatever it is, that I seem not to have, that would not allow a person to make that choice given the alternative.

But if the only way to make things great is to trash some other part of your life and leave a smoking crater behind, a crater that’s especially painful in the vulnerability of old age, then I guess I better prepare myself mentally for more humble achievements. I’m just not interested in those kinds of tradeoffs and I don’t understand how such achievements could be satisfying without a family to enjoy them with and the sound mind and body necessary to experience it all.

3/5

How We Plan To Develop The Confidence To Let Our Children Be Free (#parenting, #childhood, #risk)

How We Plan To Develop The Confidence To Let Our Children Be Free (#parenting, #childhood, #risk)

A friend of mine once told me that I would not know true terror until I had had a kid. And he didn’t mean that children were terrible or terrifying– he was talking about the sense of dread one carries around being responsible for another human’s life and security. You invest so much time and energy and concern into your child and it seems so very easy for something to go wrong and snuff it out in one awful instant.

That is why I read with interest a blog on “Free Range Kids” that another friend linked me to a few months ago. The premise of the blog is that helicopter parenting and other approaches to child development and risk management are grossly flawed. The author argues that the risks of accidental death, molestation by sexual predators, etc., are overblown and parents tend to do more harm than good in trying to shield their children from such threats rather than raising them to be conscious of the risks and competent to deal with them on their own. It’s another classic example of the intervention versus interdependence mindset.

Reading the blog got me thinking about my own experiences with navigating childhood risk, and how the Wolf and I might approach this subject with our Little Lion and any other issuance in our line. But first, a quick anecdote.

The Wolf and I live near the ocean, and two weeks ago we went down to an area on the water for a morning dog walk. As we passed by the various docks and inlets, we stopped to admire three young boys (probably about age 10 or 11) sitting in small motor dinghy by the shore, clearly about to begin a fishing expedition. The boys were all wearing life jackets and seemed appropriately attired for a somewhat chilly expedition on the water. One boy was working vigorously to start the uncooperative outboard motor while the other two boys chatted and gave him backseat driver advice. It was a beautiful sight!

There were no adults in sight. In fact, on our little walking path there weren’t even any other passersby at this particular moment. While I don’t KNOW that the boys arranged, dressed and transported themselves to their shared outing, it certainly didn’t look like anyone was responsible for the get together but them. And while ten year olds are not toddlers, they’re still quite immature in many ways, but they seemed to be plenty capable to handle the logistics of a fishing trip, the mechanics of motorized water conveyance and the social grace of maintaining a civil and friendly atmosphere in the confined space of a small boat. And they paid attention to safety, wearing their life jackets even on the tranquil waters of the inlet with no scolding adult nearby to remind them.

Such a sight is common where we live. Many young people enjoy surfing, sailing and other water sports and can often be seen biking themselves down to the water and conducting these kinds of outings with limited or no adult supervision. For many water-born children, especially boys, it is something like a rite of passage to either get permission to use the family watercraft, or to be given a small watercraft of one’s own at a certain stage in one’s youth. In fact, it is one of the very special things about living where we live, that this kind of activity is available to young children and that the local culture seems to support it. The harbor patrol stayed in their berths that morning, like many others, as thankfully the neighbors didn’t feel the need to call the cops on a few kids out to have a good time by themselves.

 

The Wolf and I were quite pleased with this entire thing and thought about it as an ideal for our Little Lion to achieve one day as well. We really admired the (unseen) parents for having the good sense and the trust in their children to simply sleep in and let them do their thing! How would children who can go on a fishing trip on their own at age 10 ever become a burden to themselves, their parents or society?

Still, so much could go wrong! The boys could scald themselves with the hot engine and its liquids. They could shred their hand on an exposed propeller. They could get a fish hook in the eye, or topple over into the water and float out to sea. They could get hit by a larger boat. They could get too cold! I’m being facetious, but it is still scary for me on some level to think about the simple things that could go wrong. Then, I started thinking about my own childhood experiences, and those of my parents.

Growing up in the same community, I didn’t spend much time on the waterfront, but I did manage to have an active and independent play life. I spent a lot of time riding my bike around the neighborhood, sometimes with friends nearby and other times by myself. I liked doing “jumps” off the curb, where a driveway sloped up to meet the angled curb in the street. I also liked riding up on steep driveways and then using the momentum to get speed on the way down, often ending in a “jump”. I played “soldier” with neighborhood kids, army crawling over people’s lawns and through their hedges, which they probably didn’t appreciate but we sure thought was a blast.

One of my best friends growing up lived about three miles away from me, in a part of town that was most easily accessed by riding one’s bike through an unpaved semi-wilderness area. Today, that area has an asphalt-paved trail with hundreds of people on it daily, but back then it was dirt (heavily irregular and eroded by rainfall and drought conditions) mixed with tall grass and flowering weeds, strewn with cactus, patrolled by skunks and other odd wildlife and not well traveled by others. Meaning, if you fell or ran into a “bad guy”, it was unlikely anyone would know about it right away. Yet, I made that 3 mile bike ride once a week, sometimes riding home before dark and other times getting picked up by my parents if it got too late. I never had any problems and they always trusted me to be careful.

In another part of town where this semi-wilderness existed, you could ride your bike around dirt jumps and giant puddles created by the high school kids, avoid homeless bums squatting out in the bush and if you wanted to, ride your bike right off a steep cliff into the ocean below. There were no fences or guardrails at the time, although today it is covered with a housing development and a proper, paved and fenced walking trail. My parents never worried I’d become a casualty, and I never heard of anyone else becoming one. The most regretful thing that happened to any young people growing up was a drunk-driving incident on prom night on the paved curve road in town in which these poor kids flipped their vehicle and many fell out and died or had severe brain trauma.

Thinking about my parents, I know Grandpa Lion was a boy scout. Although boy scouts typically go on their camping expeditions in groups, the act of camping in the wilderness itself is basically an invitation to unnecessary risks that don’t exist back in “civilization”. My dad raced dirt bikes, go carts and other motorized contraptions as a child. I don’t know what Grandma Lion did that was risky for a young girl, but I know her brother tells tales of throwing lit firecrackers at other children and shooting pellet guns across his balcony at his friend next door and vice versa. I certainly wouldn’t condone firing pellet guns, even with eye protection, but the point is that young people seemed to do all kinds of dangerous stuff back then and they managed to survive.

 

When the Wolf and I talk about how we hope to handle our anxiety with our Little Lion, a few themes present themselves again and again. First, the goal we have in mind, as mentioned above, is to give him the opportunity to be trusted and provided resources to explore life on his own or with friends and not to create a paradigm of control and “protection”. Second, our plan is to actively look for opportunities to build his knowledge of risk and measure his awareness and responsiveness to it. In other words, building trust in him, and competence to manage risks he will face, will be an ongoing process learned on a case-by-case basis. Finally, we do not feel comfortable just sending him off into the world and seeing what happens but rather, we will observe his level of maturity and personal capability over time and provide him exposure to settings and circumstances, with our supervision, he seems to be ready for and see how he does. If he demonstrates he’s got it, he earns more leniency, and if he demonstrates he is still figuring it out, we will keep working with him on it until both parties can feel secure that the level of responsibility involved is met by and appropriate level of mastery.

That being said, that mastery is always going to be something he will have to create for himself through a bit of his own risk-taking. He can never know HIS limits if he has ever only had the opportunity to deal with OURS. That’s a fact of life we need to be aware of and learn to accept!

Why Do We Write This Blog?

Why Do We Write This Blog?

A few months ago a friend asked me why we write this blog. They wanted to know if we thought we were an expert or an authority on the subjects we talk about, and thus felt it appropriate to share our views. It’s a good question that I was thinking more about and had been meaning to turn into a blog post in reply. So, here’s why we write this blog.

Not experts or authorities, but popularizers

While our level of study and experience with the primary subject matter of this blog varies from quite intensive to novice, we don’t see ourselves as experts and don’t believe we have any special authority on the subject. We don’t write about things we’re interested in to try to provide an “official” analysis or to convey the idea that we ought to be listened to just because we know what we know. Instead, our goal is only to popularize the ideas that interest us and that we consider important.

We popularize for three reasons. One, it improves our lives if more people are interested in the things we are interested in. Two, we find talking about the things we’re interested in to be entertaining and thus enjoyable in and of itself. And finally, we think we’re good at popularizing.

In our experience, we are typically the “gateway drug” of various ideas in our friend network. In other words, we are the first point of contact for many of our friends, on many subjects, to first learn of the existence of a particular idea. That isn’t because we’re super smart, or super knowledgeable, or they are the opposite– it’s simply because we happen to have eclectic tastes that are often orthogonal to our friends own cultivated interests. And because we’re passionate about what we believe in and find ourselves talking about such things quite frequently, there are many opportunities for our friends and other people we know to get exposed to our ideas.

We haven’t had an original idea, ever, though we’ve synthesized a few good notions by mashing unrelated concepts together. We’re not trying to create a scientific revolution or move humanity forward with an invention. We’re content to merely spread what we think are good ideas to other people. More importantly, we think there are common logical threads woven through the core principles of our most important ideals such that there is a coherence to being interested in all of them simultaneously. We’re interested in showing more people how subjects seemingly as diverse as economics, politics, philosophy, nutrition, corporate governance, parenting and family formation can all be linked together by common ideas.

Part of our family’s inheritance

If we produce a premium product on this blog in terms of a collection of ideas, experiences and opinions which together are valuable, we can do a lot of “work” in terms of human capital for our family, including our children. We can pass this resource on to them not only in their present intellectual endeavors, but to future generations who may come to know us only by the written record we’ve left behind. This blog will serve as part of the treasure of our family and we hope it will provide compound interest all its own!

A research emporium

We read a lot. We ask a lot of questions. We spend a lot of time thinking about the things we become interested in. And we have limited memory with which to serve all of these activities and thoughts. Our blog is an extension of our accumulated memory on various subjects. What’s more, it’s searchable with an algorithm, and it is open to the public. We enjoy contributing to the collective intelligence of humanity in this small way, particularly our own! We are always amazed to look back on something we’ve written about in the past and go, “Oh, so that’s what we think about that subject!” And it makes it easier to answer people’s questions or have a deeper discussion when we can reference our previous thinking to others by linking them to a blog post.

A tool to aid in concrete thinking

The practice of writing one’s thoughts down, particularly for public consumption, focuses the mind. It requires one be more thoughtful about what is essential to the idea. It demands one hone one’s rhetorical blade. It just produces better thinking over all to go through an idea enough to try to explain it to others. Our ideas always get better when we try to write about them. Better thinking means better doing.

And a tool to aid our writing

Of course, practicing writing one’s thoughts also means practicing one’s writing. We think we make improvements in that area by writing this blog as well.

It’s fun!

We think we’re good writers. And we like our own ideas. And we enjoy humoring ourselves with our own thinking. Even if no one else comes by to look at what we’re doing or gaze in awe at our commanding knowledge on certain subjects, we’ll be entertained by looking back on what we wrote.

Why Do Some Families Lack Clean Water?

Why Do Some Families Lack Clean Water?

There is an ad pre-rolling on Youtube I have seen several times now that features Matt Damon for Stella Artois/Water.org pitching for some supposed concern they have for “solving the world water crisis.” Ignoring the fact that this phraseology makes it sound like a sudden act of nature and not a socio-cultural phenomenon that so many people around the world go without “clean water”, whatever the hell that means, this ad strikes me as utter bullshit worth commenting on for the following reason:

Damon says they SA/Water.org have partnered to bring clean water to “women and their families” in such stricken Third World environments. Why “women and their families”? Why wouldn’t it be “men and their families”? Don’t these women’s families include men? If so, why aren’t the men doing anything to provide the “women and their (the men’s) families” with clean water? Since women are just as capable as men (Feminist Truth), why aren’t women in these countries able to provide clean water on their own?

Why is clean water something that people in certain countries can do themselves, but in other places, we need Matt Damon and a beer company to shill so people will help out?

This is a fraud on a variety of levels, as indicated by the fact that Matt Damon is a part of the production.

Your Rich Ancestry (#family, #heritage, #wealth, #inheritance)

Your Rich Ancestry (#family, #heritage, #wealth, #inheritance)

To my Little Lion,

We’ve been reading up on the RIE (Resources for Infant Educarers) philosophy of Magda Gerber in more depth since you were born. We were already familiar with the basic principles from observing practicing friends, reading the introductory literature and hosting a RIE-class at our home before you were born. But now we’re eagerly doubling down to make sure we really understand it. The information is digested quite differently when a child like you isn’t a theoretical possibility but a living, breathing actuality. We want to try to get it right.

One of the things Magda Gerber stresses is that the most important thing we as your parents have to teach you is who we are as people. Everything we do and say in front of you you will be paying attention to and learning from. You’ll be internalizing ideas about what is normal, what is desirable, what is ideal or typical for parents, for adults, for people who are more powerful than you in various ways, etc. You’ll also be looking at us as examples of how to relate to oneself, and to others– is it with compassion, empathy, respect and benevolence? Or is it a pattern of vindictiveness, aggressive assertiveness, leverage and manipulation?

We feel relieved that this is really all we need to teach you, although it’s an epic task by itself! It makes sense to us also that this is really all we CAN teach you. If it was a parent’s job to teach their child everything they needed to know, every parent would be bound to fail from the get go. No parents are omniscient because no people are, and parents vary in their ability to communicate and educate about key ideas. But teaching who we are is something any parent can do and will do, as it happens normally in the course of living one’s life. We’re going to be mindful of this reality as we learn more about you, and you learn more about us.

One thing may give you pause, though– we will know almost everything about you, because we will have known you since the moment you were born. But we have lived for several decades before you arrived, and even if we do not mean or want to keep secrets, we can not possibly recount every detail of our lives as they existed prior to your arrival. We will try to share with you what we think is important and worth knowing, but you should understand that there is some bias inherent in this selection and try as we might, we may not always be objective in the telling of the facts. As always, it will be up to you to ask questions and make up your own mind. We hope we can be faithful partners in that process.

Now, there are other things that we can teach you and that we want to teach you, especially things we feel especially well-suited to provide guidance and our individual experience about. Your mother, the Wolf, is a talented home cook despite a lack of professional training, and she is eager to share her skill and passion with you if you’re interested. Your father is a bibliophile and has many books and stories to share with you, and years of methodology on how to extract the most juice from the pulp. These are just a few examples, there are many others.

Aside from teaching you about ourselves and modeling what it is we can model for you, you have a wealth of other family members and family friends who can enrich your life with other skills and wisdom as well.

Your Auntie Lionesses are students of film and photography, business and marketing, athleticism and foreign languages. One has picked up the guitar, which your father has never managed to learn but which he just might if you wanted to give it a go together. They can model great compassion and kindness for you.

Your Grandpa Lion is a mechanical person. He didn’t manage to impart many of these skills to your father, but he can probably be convinced to make good on that missed opportunity by teaching you how to use simple tools and DIY around the house, how to work on cars and motorcycles and other things with engines and transmissions. He’s also an outstanding businessman and leader. He knows how to rally excellent people to a cause he believes in and drive the effort forward to a successful conclusion, a timeless social skill you will benefit from immensely if you can learn it from him. Your Grandma Lion is extremely artistic and creative, with a strong eye for design. She can teach you about how to create a warm, decorated home environment, how to develop style in your clothing. Your Grandma Wolf can teach you about what it is like to grow up in another country, and the experience of leaving home behind to start over in some place unfamiliar. She can model what it means to work hard, which means getting on with life and its challenges and doing it with a smile. She can help you grow up to be bilingual so you’ll have an immediate advantage in your future travels, business opportunities and relationships.

Your mother and father have so may close personal friends with endless things you can learn about from them. One is a pioneer with his family, literally hacking a living out of a remote jungle location far from us. Another is learned in the ways of artisanal butchery and can teach you all about the cultivation and processing of nutritious animal proteins. We have friends who have had corporate careers, and those who are entrepreneurs. We know people who are incredible professional investors and people who are thrifty amateurs. We know people who know all about how to have a good time and others who know about being serious and keeping one’s head down. If you desire a balanced life, you’ll want to consider all these examples and choose what makes the most sense to you.

You have great grandparents and practically innumerable aunts, uncles and cousins on both sides of your family. Your life is so abundant and rich in so many ways, the biggest challenge you will have will most likely be taking advantage of it all– you won’t have enough time or interest, so you’ll need to learn to be selective.

When people think of education, they primarily think of books and schools. There will be some of that in your learning process, no doubt, but where you can learn the most is by interacting with other capable people. Just like us, they can model who they are and what they know and love and in so doing offer you a wealth of ideas on how to get the most out of your life.

All of this you get just for showing up in life!

Notes About The First Ten Days Of Your Life (#infancy, #life)

Notes About The First Ten Days Of Your Life (#infancy, #life)

To my Little Lion,

I wanted to share some observations about the condition of your world at the time of and shortly after your birth, just ten days ago. It may interest you to look back on this some day, and it will be of benefit to me and your mother to remind ourselves of our good fortune, and yours.

You were born during the Winter Solstice last year (it’s New Year’s Day today, so I can already say “last year”, as if you’ve been around so long… we’re already shocked when we realize you have not been around even a month) and what’s more, you were born during a rain storm, the rarest of rare weather conditions where we currently live. Your mother and I are not superstitious people and we don’t believe there is any cosmic agency behind the concurrence of these events, I just find them remarkable because of their natural beauty, much like the nearly perfect weather conditions this morning when I finally took our dog for a walk– cool, breezy, clear, sunny, good visibility all the way off the coast to the island, fresh smelling air after another night’s rainfall.

You were born at home, as planned. The Wolf and I planned for months for that moment, as you were slowly growing inside of her belly, because we thought it gave the most advantages to you and to us. All of our friends who have had children describe the happiest part of the birth of their children as the moment they were released from the hospital and able to come home. We figured, why not just start at home and skip a few steps? We valued the privacy of it, as well. Your mother could labor anywhere she felt comfortable doing so, in an environment she knew well, with only your father and the three birth attendants (the midwife, the midwife-in-training and the doula to comfort your mother) nearby. We looked at your birth as a natural, healthy process and we were concerned that bringing you into the world in a hospital would encourage everyone around you to try to notice what might be wrong with you and your health, rather than what is right. It’s not that we’re anti-hospitals, and we appreciate that we live nearby one in case we needed extra help in bringing you into the world, we just try to live our lives simply and it seemed like we could do without. Your mother took great care to eat well, exercise, think happy thoughts, read a lot about you and how you were growing and how you’d be when you arrived, and so it seemed with such low risks to keep it that way by having you at home.

What did not go as planned was the specific day you decided to arrive! We were expecting you a few weeks from the day you were born. The Wolf and I were methodically going through our preparation checklists each day and week as your expected due date got closer. The day you were born, I was supposed to run to the market and start stocking up on supplies to feed your mother and the birth team. I didn’t get there in time! Your mother started laboring early in the morning and had pushed you out (without any drugs or medical intervention) by the afternoon! We didn’t even get the birth tub here in time for your water birth, she had you right on the bed you sleep in with us at night. The midwife was very kind and let me “catch” you as you came out. It was an exhilarating experience to grab your wet, slippery, bony, hot little body for the first time and lift you up and place you on your mother’s chest. We didn’t know what you’d be — a little boy or a little girl, though your mother says she secretly suspected you were a boy, and every passerby on our daily walks thought for sure you were a boy from the way your mother was carrying you, which is more superstition — but we were excited that you were what you were, if that makes any sense!

The birth team was so great with your mother. The doula arrived first and comforted your mother. Even though you couldn’t LEGALLY be delivered in our own bath tub (well, your bath tub, in your room), which I will tell you more about such silliness when you’re older, your mother labored in there with the doula while we waited for the midwife and her assistant to arrive. Everyone encouraged your mother and gave her the confidence and support she needed to bring you out, even though your father didn’t have any food or drink for anyone!

Your Grandma and Grandpa Lion came over to visit that first night and brought your mother and I some much needed food. They were so excited to see you! Your Grandma Wolf came a few days later, she lives a few thousand miles away and had to quickly change her plane tickets to be able to see you. She’s with us now and will be for the next few weeks. She is a big help for your mother and father, helping with sweeping, cleaning up dishes (your father is rediscovering his penchant for cooking these past few weeks), caring for your dog, doing laundry and even spending time with you which is really her greatest reward. She does all the hard work without complaint, with a smile on her face, getting to spend time with you for even a moment seems to make it all worthwhile to her. Even when you poop and pee on her, the chair, the floor and your dog during your “air time”. (Oh, and your Grandma Wolf is super obsessed with you staying warm, she is always chiding me about it.)

Your Auntie Lionesses came by and pitched in, too. They helped change bed sheets, sweep floors and they gave your mother and father an awesome early Christmas gift– six nights of meals that we packaged and put in the freezer to make more time available for me and your mother to spend with you. You’ve had a few visitors already, mostly your mother’s friends and some of Grandma and Grandpa Lion’s friends. They’ve bought food, gifts and good wishes. We didn’t have a name for you at first. Well, we did, but we hadn’t settled on it. So the first five days of your life created an obsessive mystery for many of the people who care about you. We “revealed” your name on Christmas Day while visiting at Grandma and Grandpa Lion’s house and everyone was overjoyed. Your Grandpa Wolf doesn’t get to meet you, but he gets to enjoy being part of your namesake, which we hope you will be able to appreciate some day.

As I said before, it is hard for your mother and I to believe you’ve only been with us for ten days now. All you know of the world is our bedroom, our living room, our kitchen, the view of the sky on the way to the local bakery and back, the ceiling of your mother’s car, and a few rooms of Grandma and Grandpa Lion’s house. The only people you know about are the few people who have come to see you so far, and most of them looked like funny blurs to you that you couldn’t focus on. You might imagine there are three animals in the whole world, your dog and your grandma and grandpa’s two dogs. We try to keep remembering that everything is new to you right now and everything will be new to you for years to come– you will need patience and your own space to learn and explore the vast diversity of the world and to make sense of it all.

We spend time holding you, but we also give you time on your back — on the bed, on the couch, not yet on the floor but eventually — to look around and move your body on your own. Your movements are jittery and random, but they have great meaning and importance to you. You are working on developing yourself, even when you’re moving around in your sleep, trying to become the person you will be. We don’t ever want to forget that, or try to hurry it, or expect anything of you but that. We resist as much as we can the temptation to “pattern-fit” your behavior right now, especially when people ask silly but well-intentioned questions like “How is he sleeping?”, “How is he eating?” etc. The answer is always, just as you are supposed to, whatever that is each day and night, it’s always changing because you’re always changing, getting a little older and a little bit further along your own plan each moment.

There’s so much more I could say, but this is what I want to focus on for now. Raising you is indeed a challenge, but it’s a challenge we chose and it’s a challenge we love (even aside from all the help we’ve gotten so far). We look forward to each day with you!

Review – Family Fortunes (#wealth, #family, #investing, #business)

Review – Family Fortunes (#wealth, #family, #investing, #business)

Family Fortunes: How to Build Family Wealth and Hold on to It for 100 Years

by Bill Bonner, Will Bonner, published 2012

What kind of habits and modes of thought separate Old Money families from everyone else? How do you build a family fortune? How do you get a family to work together toward a single purpose as the “core” is continually invaded by new spouses and children? How do you invest your prodigious wealth at high rates of return? How do you hold on to your family fortune for 100 years? Why does 100 years seem like a long time when it’s really only 3-4 generations of people?

Frustratingly (maddeningly?), the answer most often given in this book to questions like these is, “We don’t know, but here’s our guess.”

What I didn’t get from this book, then, were many specific, useful ideas for implementing with my own family enterprise– or family-as-enterprise. What I did get, and what will be the focus of this review, are a lot of questions, principles to ponder, and general strategic problems in need of robust solutions. This is not a how-to manual for putting together the essential structure of long-lived family institutions such as tax and estate planning, family organization and branding, household management.

Most people will not have a family fortune to contend with. It is not something that can be acquired through a known formula, but rather it is the outcome of an entrepreneurial process that is, epistemologically speaking, random. Just as one can not predictably create a family fortune, one can not predictably control the size or scope of the family fortune, within certain bounds. In other words, your family may have the good fortune to stumble upon a business opportunity with a significant market capitalization. That’s the first hurdle, and there’s no formula for getting there. Then, that fortune might turn out to be worth $50M, $100M, or $5B. That’s another hurdle, and there’s no formula. Failing to seize every opportunity you are presented with might limit your total fortune, and being eager and observant for those opportunities might extend the limit. But there is no recipe for turning something that is worth $50M into $5B unless it was the kind of opportunity that can scale that big in the first place.

Some market opportunities are worth a lot to one person who owns them (“he made a fortune!”), but they’re still not worth a lot to the market or economy as a whole (limited scale). This is an important point because of the gilded cage nature of family fortunes– once you have one, you’re kind of stuck with it, but it’s really tempting to think you have a lot more control over it than you do, or that it’s a lot more durable than it might be.

Imagine you’re the guy with the $50M fortune. You’re pretty happy with your luck, assuming everything else is right in your life, but you’re aware of people with $5B fortunes. If you can generate a $50M fortune, why can’t you generate a $5B fortune? Are those people smarter? Better connected? More productive? What’s the difference?

Luck, and leverage, but using leverage without blowing up is really just a residue of luck.

So you’ve got this $50M fortune. What can you do with it? If you have it invested in the business that created it, you enjoy a nice income stream from it each year (maybe that’s worth $2.5M, maybe it’s worth $5M if you’re really lucky) and you reinvest where and when you can. If your business doesn’t scale easily though, you can’t put it back in and make more. You’re stuck at $50M. What if you take the $50M out by selling the business? Now you have $50M in cash with no annual return and an investment problem. Where are you going to put $50M to work such that you can, say, spend $5M per year and still have $50M left over to do it again next year? Know any hot stocks? You didn’t make your fortune in investing the first time around, what makes you think you’re going to make it there the second time around just because you have $50M now? (Note: you are statistically and logically unlikely to achieve this outcome if you so desire it.) Know any good businesses for sale? Oh, that’s right, you just sold one!

That’s the gilded cage. You’re stuck with a $50M fortune. It’s a nice problem to have, but it’s still a problem. And nothing changes at scale besides the difficulty of the problem. It isn’t easier but actually harder to achieve yield at higher increments of invested capital due to the economic phenomenon of diminishing marginal returns (if this were not the case, you could infinitely scale things by always adding more resources to every project; DMR ensures that the more you add over time, the less incremental gain you get to the point that you get no return or a negative return, ie, waste). If you had $5B, you’d have even fewer places to put it and you’d have given up an even rarer business opportunity in selling.

Unless your business value is about to become permanently impaired and you can see the writing on the wall when no one else can — technological change, regulatory change, some kind of disastrous political or economic event — your business will never be as valuable to you on the market as it is under your ownership, assuming you’re a competent operator. I’m not going to explore what you do if you’re incompetent because that’s a special case, although it follows the same general logic and leads to the same general investment problems.

I think what this means is that the primary challenge for a family with a fortune in terms of managing their business is to be sensitive to the innovation required over time to maintain the economic value of the assets, to manage the capital structure of their business intelligently (ie, not too much debt) so they don’t lose control because of the volatility of the business cycle, and to build cash up and keep their eyes peeled for a truly unique investment opportunity, the kind that made the first family fortune possible. That means it’s more important to avoid doing the wrong things than it is to try to be finding the right things to do. It also means it requires great patience. If we’re talking about building multi-generational wealth, patience is implied in the premise, but it’s still worth repeating. Bonner emphasizes this frequently– find ways to let time work for you, not against you. He believes luck, advantages and businesses all tend to grow over time so the idea is to set things up so those advantages will accumulate in your favor.

Smart investing is not the way to build a fortune. Some people will build a fortune building an investment business (ie, a wealth manager), but it will not be the investing itself that makes them rich but the operational leverage they gain through their fee structure. Because Bonner is a skeptic of “investing” as a tool for wealth building, he would land squarely on my side of the skeptic’s divide about the value public capital markets play in economic growth. Why should a person find it necessary or valuable to contribute capital to a company building things in other people’s towns instead of investing in opportunities in their own town, right “down the street”? Profit signals and differing equity returns will attract capital from disparate areas and thereby indicate relative value across an economy, but I am skeptical that this process and the capital markets in general would be as big a part of the economy overall as they are presently if we were in anything more closely approximating free market conditions without crony capitalist interventions.

So, you may get lucky and find yourself with a fortune, small or large, from a family business. If you do, hold on to it, appreciate it, care for it, tend to it responsibly and hope you or one of your descendants has an opportunity to take another swing at an uncertain point in the future. But don’t try to force it, and don’t think there’s anything you can do to greatly enhance your opportunity beyond what it is. And understand that it will never be as valuable to you as a pile of cash as it is invested in your business.

The other big topic in the book is building the institutional framework of a long-lived family that can participate in this family business over the generations and can also be “true” to the family culture and values. Family planning is an idea that attracts me, and I have spent considerable time on my own with the concept of creating a family brand (what the ancients’ termed a coat of arms) to identify the family and its enterprises.

The trouble I have with family planning is the same trouble I have with all planning, particularly that of the central variety– what if the individual members of your family don’t really find value in your plan? Obviously, raising them with certain values and viewpoints creates a better chance for a kind of coalescing around this identity and direction. But is that how I want to raise my children, by telling them what is important? I think they can figure that kind of stuff out on their own, just as I did. Hopefully I can lead by example, and provide a demonstration of the virtue of the family virtue. But I think a potentially frustrating consequence of putting this emphasis on building multi-generational institutions together is you might find out your family just doesn’t see the use in them. That’s kind of worse case, though, and doesn’t necessarily argue against the project in general.

Yet, what if you’re successful at this? Building a business and building wealth is a coordination problem resolved by growing trust. Who can you trust more than members of your own family? Creating a family organization based on shared values and common identity and linking that organization to a business entity could allow for a uniquely successful competitive strategy and management continuity over a significantly longer timeline than the average public or private competitor– in other words, huge competitive advantages over time. Simultaneously, this arrangement could solve one of the common problems of families and their constituent members, that being how each as an individual and the family as a whole can achieve security, success and satisfaction with one’s productive efforts and life. As I’ve argued in the past, I believe the family is the best institution for accomplishing this task and it is certainly far superior to the currently dominant model of public corporations (for-profit and nation-states/institutional gangsterism).

3/5