Sunday, October 19, 2025

Peter Lynch, the famous stock investor said, "If you don't understand what you own, you're toast". Here are my thoughts on that...


If You Don’t Understand What You Own


If you don’t understand what you own,
You’re sailing blind through tempests blown.
The numbers rise, the tickers spin,
But hollow faith won’t save your skin.

The market hums a siren song,
Of easy wealth, of getting strong—
Yet shiny things can rust and fade,
When bought in haste, in hope mislaid.

Know the bones beneath the name,
The story, not just fleeting fame.
Each stock’s a life with pulse and thread,
A business breathing, earning bread.

If you don’t grasp the work they do,
How profits flow, how losses stew,
Then you’re the gambler, not the guide—
A passenger, not one who drives.

For wisdom’s found in steady sight,
In learning slow, in reading right.
Understand, before you own—
And you’ll stand tall when winds have blown.

From the Foolish Notions archives:

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Minoo Jha
 · 6y
What's something about the stock market you wished you knew earlier in life?
Hi Francisco, You asked, What's something about the stock market you wished you knew earlier in life? Here are some that blew my mind in the early days (the surprises were all related to some foolish notions I had): 4 Foolish Notions I Had About Stocks And How You Can Avoid Them Foolish Notion #1: Great products equal great stocks I used to think if a company made a great product, it would ring up huge sales and net huge profits. What a quaint idea. For a classic example (where experience put paid to that idea) consider Tivo. Tivo invented the DVR. Tivo’s DVR is the #1 DVR in the market. But has Tivo’s stock gone anywhere as a result of it? Type the ticker into the search box at Yahoo Finance and see for yourself. Profits and consequently, stock price appreciation, have continuously eluded Tivo. Lesson to be learned: Don’t equate a great product with a great stock buy. Whether the company is Tivo. Or Vonage (whose product I love and have enthused about in the post 4 decisions I wish I had made earlier). Or Krispy Kreme. Even if you find their donuts irresistible, you may want to read my cautionary post How I Lost A Thousand Dollars on Donuts. Where I confess to foolishly trying to ape Warren Buffett and to one of my most painful and humiliating investing blunders. You don’t want to lose money that way. And you don’t want to lose money by making the mistake of investing in wonderful products that do not have wonderful companies attached to them. Foolish Notion #2: Conglomerates make good investments I used to think if a company had its fingers in many pies – meaning it was a group of companies rather than a single company (usually referred to a conglomerate) – it was a superior investment to a company with just one line of business. Bone-headed thinking! Not only are companies with widely different businesses daunting to manage (think of the Lilliputians trying to deal with Gulliver which explains Jack Black's appearance in this post), shady and shadow accounting is also a much higher risk with them. So if you are invested in one these conglomerate companies, I suggest you keep a close eye on them. And if they decide to break themselves up into different businesses each focused on its own area of strength, say a hallelujah! It’s what shareholders of Fortune Brands are probably saying, now that FortuneBrands has decided to sell its Titliest golf balls business, its Moen faucets business, its Master Lock business, in fact all of its non-core businesses. Once the sales are complete, Fortune Brands (which will be renamed Beam) will be able to concentrate on just one business, its core business: wine and spirits. Lesson to be learned: If you are tempted to invest in a conglomerate, whether United Technologies or GE or Fortune Brands, you should do so in the knowledge that you are being self-indulgent and that a company with a single line of business will usually fare better as an investment. And don’t be surprised to find that sooner or later, the conglomerate itself will come to the same conclusion and move to sell or spin-off non-core businesses. Foolish Notion #3: The Daughter Ship is Not As Good as The Mother Ship Sometimes when a company owns more than one line of business, it will decide to spin off a secondary line of business to shareholders. The spin off might be an automatic spin off. Or it can be one in which you as a shareholder, are asked to choose whether you want to continue to hold all your shares in the holding company, or to exchange some of them for shares in the company being spun off. What should you do? My advice (and I learned this through non-buyers remorse) would be to exercise the exchange option, even if you are nervous that the daughter ship may not do as well as the mother ship. A classic example is when McDonalds spun off Chipotle. Had you declined the offer to exchange some of your McDonalds shares for Chipotle shares, it would have been a serious mistake. Because Chipotle has increased 12 fold since it was spun off from McDonalds. Whereas McDonalds, while being on a tear itself, has only doubled in price. Lesson to be learned: If you are given the option to exchange some of your shares for shares in a company being spun off, always always exercise the option, even if you are a Nervous Nellie about it. You should exchange a small percentage of the mother ship's shares if that's all the courage you can muster. Foolish Notion #4: An Investment is Happily Ever After My post Yoga for Investors aptly sums up my philosophy about investments. I have developed a gritty Till Death Do Us Part determination when it comes to investing. However, I've learned that plans to stick with a stock for better or for worse, for richer or poorer, in sickness and in health don't always pan out. Just as bonds sometimes get called away, I have discovered cherished stocks can also get snatched away from one's portfolio in the blink of an eye. How? How is when a company you are invested in gets taken private. This is what happened to the shareholders of Neiman Marcus (Needless Markup, as my boss Judy used to wryly call it) - when it got taken private in 2005. And this is also what happened to the shareholders of Allied Domecq. Shareholders in Allied Domecq, the company that owned Baskin Robbins, Togos and Dunkin Donuts, were denied the privilege of baskin' in the sunshine of lifelong ownership. Because Allied Domecq sold itself. The Baskin Robbins (reason you might have bought Allied Domecq in the first place if you are like me) and Dunkin Donuts part of the business went to a clutch of private equity firms. The rest of the business (the bread and butter alcohol and spirits business) was sold to Pernod Ricard. And that’s how there was no Happily Ever After for Allied Domecq shareholders. Lesson to be learned: Don’t get too attached to the shares you buy. Private equity and other companies can snatch them away from you at a moment’s notice. Of course M&A doesn’t always result in a Where Did My Shares Go experience. Sometimes there’s the head-spinning (think Linda Blair in Exorcist head-spinning) Whip Lash experience, in which the original shares you bought are subjected to relentless M&A, so much so you get whip lash from keeping pace. For instance, you may start out by owning SBC shares, only to find out your SBCshares have become Comcast shares, only to find out your Comcast shares have become Cingular shares, only to find out your Cingular shares have been rechristened AT&T. This is the Whip Lash experience. The Allied Domecqexperience is different. In the Allied Domecq scenario, you have to bid your shares goodbye as they vanish into some private equity portfolio or get swallowed up by a larger company in an all cash deal (as Skype was swallowed up by Microsoft recently). Since both these scenarios happen quite frequently, my advice to you is to practice detachment from your shares from the get-go. It will save you from heartbreak and acute SWS - Share Withdrawal Syndrome.
More Foolishness:

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Minoo Jha
 · 6y
What are some stories about failure that can teach us some valuable life lessons?
Hi, You asked, What failure was actually a great life lesson? Losing money by investing in Krispy Kreme Donuts. Here’s the story from my blog: How I Lost A Thousand Dollars On Donuts There comes a time in every novice investor's life when he or she thinks they've found the Holy Grail. The Holy Grail is an investment theory or investment method that seems devilishly clever and original to the novice investor. One which gets them as excited as an archaeologist unearthing the tomb of Tut-Ankh-Amen. And which they just can't wait to hang their hat on. This investment 'find' could be any of a number of ideas. From the Dogs of the Dow Theory authored by Michael O'Higgins. To the Elliott Wave Theory popularized by Robert Prechter. From Joel Blatt's Magic Formula. To the Price to Sales Ratio which made Ken Fisher's 1984 book Super Stocks a best-seller. The novice investor will suddenly come upon one of these ideas and allow it to agitate the gray cells for a while. Then there's Warren Buffett. For the novice investor, discovering Warren Buffett is something else altogether. After all, he is one of the richest men in America. And he is also recognized as one of the greatest investors of all time. So no surprise that investors, novice and professional alike, become instant Warren Buffett groupies - hanging on to his every word, worshiping at the Berkshire Hathaway Annual General Meeting in Omaha, and dreaming of being a future Buffett. This is where my sorry tale begins. The Buffett Make-over I was just as susceptible to the Buffett investing charisma as anyone else. And after finding Buffett, I set out to remake myself in his image. This meant reading books such as The New Buffettology. And The Warren Buffett Way. And then getting down to business by applying essential Buffett principles. Bottom-fishing was particularly appealing. It allowed me to consider dog-house stocks such as Revlon, Rite Aid and Six Flags, which were all under $2 a share, maybe even under $1. But not content with that, I searched for what I thought would be the quintessential Buffett pick - an out-of-favor and under-valued stock, the one that Mr. Market was idiotically shunning. Enter Krispy Kreme Donuts. I have never been much of a donuts fan. But at the time, I discovered Krispy Kreme, I had become a heat-seeking Buffett missile in search of a target. And Krispy Kreme Donuts (Ticker KKD) appeared to be the answer to my prayers. Firstly, their cream and jelly filled donuts had become the new "delish" in donuts. People were shunning their corner donut stores and trekking to Krispy Kreme stores instead. Just Like Starbucks In fact, they were even willing to stand in long lines to get their Krispy Kreme donuts. Much as they do for Starbucks Frappuchinos and Lattes today. And just like Starbucks, Krispy Kreme donuts were pricey. All this had a distinctly Buffetesque aroma to me. Reading Motley Fool articles like this one sealed the deal for me. So when Krispy Kreme stock, which had stratospherically climbed to $40 a share, dropped overnight by 50% to $20 a share on a car-wreck of a quarter, I decided to lock in. And bought 100 shares. There - I had bottom-fished. Just like my hero Warren Buffett. I couldn't have been more pleased with myself. Or so I thought. Fasten Your Seat-Belts I was to find out (the painful way) that Krispy Kreme's 50% decline was just the beginning of its Drop-Zone like descent. By the same time the next year, the stock had declined to $10 a share. Giving my investment a 50% haircut. $1,000 gone. Just like that. Chastened and humbled, I took the loss and got out. The Flight of The Bumblebee I read somewhere that according to the Laws of Aerodynamics, a bumblebee should not be able to fly. The bumblebee of course does not know this, so it flies anyway. In much the same way, novice stock-pickers do not know that they don't know how to pick stocks. So they pick stocks anyway. Sometimes the picks pan out, sometimes they fall with a thud. When that happens, some investors will never be able to psychologically recover from their mistakes and losses. Others, phoenix-like, will rise from the ashes. I am of the second kind. I was able to take my medicine and move on. Are there rewards for naivety in investing? Actually I was able to make lemonade out of this investing lemon. I took my Krispy Kreme misadventure and turned it into a speech. Which I used to compete in a Toastmasters International Speech contest at Adlibmasters Club in San Jose. I won first place. And took home a trophy. Yes the mysterious Oscar looking thing you see above is my Toastmasters International Speech trophy. Now if only there had been some bling to go with that thing. You know - Like maybe a 1000 dollars? Oh Well... If You Are Ever Stuck With a Lemon, See If You Can Make Some Lemonade Out of It :) May You Invest Well in 2019 and Thrive!
Wisdom at last:

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Minoo Jha
 · 6y
What important financial rule do most people break?
Hi, You asked, What important financial rule do most people break? They think they have to act on every piece of news. I used to do that too. Until I realized I was losing more than I was gaining. Since then I have followed an investing philosophy I call Yoga for Investing. Want to know more? Read on… Yoga For Investing What if I told you there was an asana ( which is another name for a Yoga Pose) that would make you a better investor? There really is. If you practice this asana day in and day out, year in and year out, your investments will bring you more fruitful results. Don't believe me? When I found out about this asana, I was skeptical. I didn't think it would work. But I decided to give it a shot, anyway. After faithfully practicing it for a few years now, I am convinced it works. Ready to be let in on this secret asana? It's called "Sitting on Your Hands Asana". You will require the following to practice this asana. First, you must be invested in a diversified basket of stocks, bonds and money market instruments. You can throw in a small portion of precious metals as well. Then you need a comfortable chair. Note: This asana requires your hands to be immobilized for a lengthy period of time, so if you have carpal tunnel syndrome or arthritis, you should practice this asana after consulting with your physician. Ready? Ok, here we go... Stand up in front of your comfortable chair. Putting your hands behind you, lower yourself on to the chair so that you are seated on your hands when you sit on the chair. You are now in the "Sitting on Your Hands" Asana. This is the most effective asana for investors, once they have got their diversification and asset allocation right. You should practice this asana daily. You can add a chant "I Will Sit On My Hands", "I Will Sit On My Hands" for more impact. But you MUST practice the asana every day. When you see the market go up and down wildly...Sit On Your Hands. When Nouriel Roubini and Meredith Whitney strike terror in your heart on the CNBC airwaves ...Sit On Your Hands. When a friend gives you a hot stock tip ...Sit On Your Hands. When you see some ads for some tempting High-Yield opportunities ...Sit On Your Hands. When a dear relative tells you about her day-trading success ...Sit On Your Hands. When an Options Trader tells you about the easy money he makes through trading options ...Sit On Your Hands. When the stock of a well-run and established company in your portfolio takes a dive because of a less than stellar quarter ...Sit On Your Hands. When you are tempted to cash in on your winners and hold on to your losers ...Sit On Your Hands. When the Republicans scare you about tax increases on capital gains, dividends and income and the Democrats scare you with more government spending ...Sit On Your Hands. Unless you really believe you know something others don't (and if you do either you are a genius, or it's illegal) ...Sit On Your Hands. The "Sitting On Your Hands" Yoga Pose will protect you from your own worst enemy ...YOURSELF! Note: You should repeat the "Sitting On Your Hands" asana until you have internalized it. Once you have, you can put your Lululemon Gear and Yoga Chair away. But I will leave you with one final thought. John Bogle of Vanguard says "Investments do better than Investors" Wonder Why? Simple. Because few investors have mastered the art of "SITTING ON THEIR HANDS!"

Sunday, October 12, 2025

What are some of the money strategies that have worked for you? Here are mine...

 Minimalism:

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Minoo Jha
 · 6y
Could minimalism be the key to financial freedom?
Hi, You asked, Could minimalism be the key to financial freedom? Yes, short of living in a tent, I am comfortably off because of living a minimalist life. Here’s how I did it… I internalized Suze Orman. I started meditating. (The book “How God Changes Your Brain” gave me both my motivation and my technique). I stopped being a nervous Nellie about my future, accepting that the future was hamarey bas ki baat nahi (Hindi for “beyond my control/capacity/competence”). I channeled stories such as the Farid ud-Din Attar story about King Mahmud and the Beans. I started tracking my expenses. I found that knowing my average monthly expenditure was within a certain range made me oodles less anxious. I searched for and read books on downshifting like Your Money or Your Life. I found out how simply some folks were living (friends and relatives in India) and how happy and content they were. It helped me develop perspective. I realized that things are not always what they seem. That people who looked better off than me with expensive cars, nice houses, the latest gadgets and who went on fabulous holidays might actually be reeling in debt and have negative net worth. I also observed how many people who are better off than me fret more than me. This is because though they are rich in externals (the visible accoutrements of a successful life), they are poor in internals (their internal life is messy). Peace and contentment can’t be bought. It is a gift you give yourself. You can be at peace even living in a crowded noisy apartment complex, whereas you can be in a state of turmoil even in the quietest most luxurious and secluded waterfront mansion. I know this sounds like a “sour grapes” rationalization, but I really do fret less than many people who are materially far better off than me. I discovered “Asteya” and made it one of my goals. Asteya is the discipline of taking from the world only what you need – without greed, excess, or wastage. I realized that producing something (expression) was more satisfying than owning anything (consumption). I observed that more stuff made me less happy rather than more happy – giving me more house cleaning, maintenance and security to worry about. And finally, I observed what made me happy. They were not things, but experiences. A good conversation. A good read. A walk or talk with a friend. A simple hearty meal. A guest post (hint,hint). A satisfying workout at the gym. Giving and receiving appreciation. Learning something new. My meditations. A fear or weakness conquered. An intellectual puzzle solved. A physical challenge met. And realizing this, I was able to cheerfully and contentedly declare “I’m good!”
Passive Income:

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Minoo Jha
 · 6y
What are some of the books that are really worth reading that you can recommend?
You asked, What are some of the books that are really worth reading that you can recommend? Rich Dad Poor Dad by Robert Kiyosaki is one of them. So is Your Money Or Your Life by Vicki Robbins. I will tell you why. I lent Rich Dad Poor Dad to a friend who was originally from Russia. She told me it was the best financial book she had read since Das Kapital. She took Kiyosaki’s passive income message to heart, and started buying rental properties with OTM - Other People’s Money. She even relocated to a small city in another state, so that she could achieve the passive income dream that Kiyosaki’s book had planted in her head. Today she owns multiple small property rentals. My own experience After reading Rich Dar Poor Dad, I went from “giving no thought to money matters” to giving thought to all money matters - from taxes to interest rates to asset price fluctuations. Kiyosaki planted the seed in my head that you can be income rich and asset poor. I did not want to be income rich and asset poor. I did not earn a lot of money. But Rich Dad Poor Dad had planted the desire in my heart to become financially free through owning assets. I started tracking my expenses. I got back into the stock market. I had been out of it, since the Harshad Mehta crash in India. Kiyosaki’s book dismissed stocks as “paper assets”. I decided to ignore what he thought about stocks. I decided stocks were the way to go for me. I read a lot of financial books after reading Rich Dad Poor Dad - Suze Orman’s books, David Bach’s books, Charles Schwab’s books. In fact, I read all the books I could find in the library. Your Money or Your Life was one of them. It is another mind blowing book. You can live an abundant life with little money. That is its message. Thanks to these 2 books, I was able to confidently give up a regular paycheck for consulting work, starting 2010. By taking the message of these 2 books to heart, you can put yourself in a very different place - financially, physically, emotionally. I did. This is me saying thank you to these 2 books (and all the other financial books I have read) in this Quora answer.
Long-term focus:

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Minoo Jha
 · 6y
I'm 35. How much money should I have saved for retirement?
Hi, You asked, I'm 35. How much money should I have saved for retirement? For every 10,000 of retirement expenses, you should have $250,000. So if you expect your expenses in retirement to be $20,000 per year, you should save $500,000. If you expect your expenses to be $30,000 per year, you should save $750,000. If you expect your expenses to be $40,000 per year, you should save $1M. And so on. You should subtract the annual amount you expect to get from Social Security before you do the calculation, if you expect to meet your retirement expenses from a combination of Social Security income and your savings. If your annual retirement expenses are $50,000, and you expect to get $18,000 in Social Security benefits annually, subtract $18K from $50K. $32K is what is left, which you will need to meet from your retirement savings. Divide 32K by 4% = $800,000. $You will need $800,000 to meet $32K of annual retirement expenses. Here are some tips to get you there: 1. Avoid buying more house than you need 2. Don’t take out a second mortgage for a non-essential expense 3. Don’t pay the minimum on your credit cards 4. Don’t let revolving debt grow - have none of it if carried over if possible 5. Build up an emergency cushion 6. Budget so you have money left over every month 7. Avoid buying new cars 8. Avoid expensive haircuts, expensive meals, expensive clothes, expensive vacations, expensive private schools, expensive hobbies 9. Save for retirement through 401Ks or IRAs 10. If you are married, live on one income. It’s not impossible One last tip… Steep yourself in the advice and inspiration of leading lights of the FIRE (Financial Independence Retire Early) movement such as Mr. Money Mustache and Financial Mentor. And if there is a debt problem involved, sign up for Dave Ramsey’s Financial Peace University. Do this and maybe you won’t have to worry about Social Security. You can retire even ahead of the Social Security age because of being so smart with managing your money and your savings. Even if you have nothing saved at age 35, using the strategies above, you can get to the goal of covering your expenses with your assets, and even retire early. Just depends on how much of your paycheck you are willing to save - see Mr. Money Mustache’s calculator.
Avoidance of debt:

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Minoo Jha
 · 6y
In opposition to what Dave Ramsey says, can taking on debt ever be a good thing if used for smart investments?
Hi, You asked, In opposition to what Dave Ramsey says, can taking on debt ever be a good thing if used for smart investments? Most entrepreneurs (including future landlords) will have to access sources of debt in order to acquire assets and grow. Outside of business, you should take on debt very selectively - for a car, for your house, for student loans (this last, only if you can’t avoid it). And you should pay off these debts - for a car, for a house, for student loans - as soon as you can, so your net worth is all assets and no liabilities. Loan sharks will try to seduce you into taking second mortgages, and what not, and spin a “you’ll lose the tax benefit” story. Credit card companies and banks will try to seduce you into carrying your credit card debt over from month to month, and paying just the minimum, because they earn huge interest on the money you owe them. Debt, whether on cars, houses, student loans, or credit cards are like a ball and chain. Why get tied to a ball and chain, and paying creditors forever? DTD, as Dave Ramsey says. Ditch the debt.
Learning from mistakes:

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Minoo Jha
 · 6y
What's something about the stock market you wished you knew earlier in life?
Hi Francisco, You asked, What's something about the stock market you wished you knew earlier in life? Here are some that blew my mind in the early days (the surprises were all related to some foolish notions I had): 4 Foolish Notions I Had About Stocks And How You Can Avoid Them Foolish Notion #1: Great products equal great stocks I used to think if a company made a great product, it would ring up huge sales and net huge profits. What a quaint idea. For a classic example (where experience put paid to that idea) consider Tivo. Tivo invented the DVR. Tivo’s DVR is the #1 DVR in the market. But has Tivo’s stock gone anywhere as a result of it? Type the ticker into the search box at Yahoo Finance and see for yourself. Profits and consequently, stock price appreciation, have continuously eluded Tivo. Lesson to be learned: Don’t equate a great product with a great stock buy. Whether the company is Tivo. Or Vonage (whose product I love and have enthused about in the post 4 decisions I wish I had made earlier). Or Krispy Kreme. Even if you find their donuts irresistible, you may want to read my cautionary post How I Lost A Thousand Dollars on Donuts. Where I confess to foolishly trying to ape Warren Buffett and to one of my most painful and humiliating investing blunders. You don’t want to lose money that way. And you don’t want to lose money by making the mistake of investing in wonderful products that do not have wonderful companies attached to them. Foolish Notion #2: Conglomerates make good investments I used to think if a company had its fingers in many pies – meaning it was a group of companies rather than a single company (usually referred to a conglomerate) – it was a superior investment to a company with just one line of business. Bone-headed thinking! Not only are companies with widely different businesses daunting to manage (think of the Lilliputians trying to deal with Gulliver which explains Jack Black's appearance in this post), shady and shadow accounting is also a much higher risk with them. So if you are invested in one these conglomerate companies, I suggest you keep a close eye on them. And if they decide to break themselves up into different businesses each focused on its own area of strength, say a hallelujah! It’s what shareholders of Fortune Brands are probably saying, now that FortuneBrands has decided to sell its Titliest golf balls business, its Moen faucets business, its Master Lock business, in fact all of its non-core businesses. Once the sales are complete, Fortune Brands (which will be renamed Beam) will be able to concentrate on just one business, its core business: wine and spirits. Lesson to be learned: If you are tempted to invest in a conglomerate, whether United Technologies or GE or Fortune Brands, you should do so in the knowledge that you are being self-indulgent and that a company with a single line of business will usually fare better as an investment. And don’t be surprised to find that sooner or later, the conglomerate itself will come to the same conclusion and move to sell or spin-off non-core businesses. Foolish Notion #3: The Daughter Ship is Not As Good as The Mother Ship Sometimes when a company owns more than one line of business, it will decide to spin off a secondary line of business to shareholders. The spin off might be an automatic spin off. Or it can be one in which you as a shareholder, are asked to choose whether you want to continue to hold all your shares in the holding company, or to exchange some of them for shares in the company being spun off. What should you do? My advice (and I learned this through non-buyers remorse) would be to exercise the exchange option, even if you are nervous that the daughter ship may not do as well as the mother ship. A classic example is when McDonalds spun off Chipotle. Had you declined the offer to exchange some of your McDonalds shares for Chipotle shares, it would have been a serious mistake. Because Chipotle has increased 12 fold since it was spun off from McDonalds. Whereas McDonalds, while being on a tear itself, has only doubled in price. Lesson to be learned: If you are given the option to exchange some of your shares for shares in a company being spun off, always always exercise the option, even if you are a Nervous Nellie about it. You should exchange a small percentage of the mother ship's shares if that's all the courage you can muster. Foolish Notion #4: An Investment is Happily Ever After My post Yoga for Investors aptly sums up my philosophy about investments. I have developed a gritty Till Death Do Us Part determination when it comes to investing. However, I've learned that plans to stick with a stock for better or for worse, for richer or poorer, in sickness and in health don't always pan out. Just as bonds sometimes get called away, I have discovered cherished stocks can also get snatched away from one's portfolio in the blink of an eye. How? How is when a company you are invested in gets taken private. This is what happened to the shareholders of Neiman Marcus (Needless Markup, as my boss Judy used to wryly call it) - when it got taken private in 2005. And this is also what happened to the shareholders of Allied Domecq. Shareholders in Allied Domecq, the company that owned Baskin Robbins, Togos and Dunkin Donuts, were denied the privilege of baskin' in the sunshine of lifelong ownership. Because Allied Domecq sold itself. The Baskin Robbins (reason you might have bought Allied Domecq in the first place if you are like me) and Dunkin Donuts part of the business went to a clutch of private equity firms. The rest of the business (the bread and butter alcohol and spirits business) was sold to Pernod Ricard. And that’s how there was no Happily Ever After for Allied Domecq shareholders. Lesson to be learned: Don’t get too attached to the shares you buy. Private equity and other companies can snatch them away from you at a moment’s notice. Of course M&A doesn’t always result in a Where Did My Shares Go experience. Sometimes there’s the head-spinning (think Linda Blair in Exorcist head-spinning) Whip Lash experience, in which the original shares you bought are subjected to relentless M&A, so much so you get whip lash from keeping pace. For instance, you may start out by owning SBC shares, only to find out your SBCshares have become Comcast shares, only to find out your Comcast shares have become Cingular shares, only to find out your Cingular shares have been rechristened AT&T. This is the Whip Lash experience. The Allied Domecqexperience is different. In the Allied Domecq scenario, you have to bid your shares goodbye as they vanish into some private equity portfolio or get swallowed up by a larger company in an all cash deal (as Skype was swallowed up by Microsoft recently). Since both these scenarios happen quite frequently, my advice to you is to practice detachment from your shares from the get-go. It will save you from heartbreak and acute SWS - Share Withdrawal Syndrome.
Avoiding some of the 7 deadly sins:

Sunday, October 5, 2025

Beyond the initial devastation, how does "humiliation" shape our resilience, and personal growth?

Humiliation is a great teacher.

It makes us aware of how thin-skinned, egotistic, and egoistic we are.
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Minoo Jha
 · 6y
What are some of the best life tips?
Hi, You asked, What are some of the best life tips? Rethink every encounter and interaction. View every person you meet and every encounter you have as a learning opportunity. Ask yourself, is there something to learn from this person or this event? It does not matter whether the interaction is positive Like the fun interaction in the picture above. Or whether the interaction is negative. You can learn from a positive encounter. You can learn from a negative encounter. My story: I was shopping for groceries at Grocery Outlet, which is a discount store. Absorbed with my shopping, I crossed from one side of one of the shopping aisles to the other side, without looking where I was going. As a result, I almost bumped into a man and a woman (possibly husband and wife) with my shopping cart. The man shook his head, looked at his wife and said "bozo". Perhaps he thought I didn’t know English and wouldn’t understand what “bozo” meant. On the other hand, it was possible he didn't care if I was offended by his name calling. What did I learn from this negative incident? I learned a few different things. I learned even a small annoyance can prompt a stinging insult from someone. I learned how fragile my ego was – because though I maintained a straight face - as if nothing had happened, I was deeply stung by the remark. Most importantly, the incident was a reminder to me that every territory comes with certain things, and if you are in that territory, you just have to accept those things. If you drive on 101 at peak hour, you will be in bumper to bumper traffic. If you live beside a busy road, you will hear a lot of street noise from your house. If you live in an apartment, it will be noisier, and your rent will go up every year. And if you shop at Grocery Outlet (and the wine bargains alone might draw you there) – you can expect to run into all kinds of people, some who may not be so polite. It is simply not possible to go through life without someone saying something condescending and offensive to you sometime. Just look at what presidential candidates and presidents have to go through. Better to toughen up and develop a thick skin. After all, when you think about it, an insult reflects more on the person who delivers the insult rather than the person who receives it. The School of Life (which you can also call The School of Interaction and Experience) has the best curriculum in the world. By going through experiences good and bad, and having different kinds of interactions with people, we add to our knowledge, our skills, and our toolkit to deal with life. Whether you experience the hard knocks of life early or late in life, you should use your struggles as an opportunity to understand, to learn, and to grow. What happens when you find out you have been living in a Fool’s Paradise? Knowledge is power. I have been in a Fool’s Paradise many times in my life. As a result of being in a Fool’s Paradise, some good things have happened to me, some not so good things. But here’s what I can say about all the things that have happened to me so far in my life... They were my teachers. Make every person you meet, and every lesson you learn, and every experience you have, good or bad count.

It makes us aware of the need to develop our ability to handle humiliating experiences with grace.

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Minoo Jha
 · 3y
Can you share a negative experience that turned into a positive learning experience?
I can think of at least 10 negative situations which I turned into growth opportunities… 1. Not getting a badge, a computer, or systems access for 17 days, after I started one of my assignments... I took it on as a meditation challenge to be cheerful and go with the flow…and succeeded. 2. Being excluded from a lunch invitation one day at work As quick as I could, I got over any bad feelings about it. Plus I even had a cheerful response prepared, if anyone were to say, “Hey Minoo, sorry we didn’t think of asking you whether you wanted to go with us”. I had planned to say, “Don’t worry, I will join you the next time.” . 3. Or the time someone played a prank on me, by using my computer and email account to send an email from me to a group of 40 people with the message “They call me Moo Moo” I got over the initial surprise and indignation as quick as I could, and decided to let it go. I later discovered the prankster had done the same thing to multiple people. It was a genial prank, aimed at laughs, and not to victimize. I am happy I did not make an issue out of it, and in fact, I was able to react with equanimity, when I ran into the prankster, who emboldened, took to calling me Moo Moo. 4. Like when my daughter wanted to take my car to a different shop from the one I was used to Initially wanting to resist the idea, I then quickly realized I should not be stuck on anything, and willing to give alternatives a try. So I gave her the green light. 5. Like when some of my carpool drivers showed up 30 minutes late Instead of being upset, which would have made the ride to work unpleasant, I very deliberately said to myself, “Minoo, you are going to put the fact they are late out of your head and make this a pleasant ride for both you and the driver” And I succeeded, even when there were repeat offenses from the same drivers. Big victory in not prolonging suffering! 6. Like when I went to see the movie Winchester, and the person next to me kept disturbing me as soon as the movie started, by speaking in another language to someone on the other side of her. My initial thought was to tell her “could you please stop talking”, or to move seats in a big huff. But I knew the situation called for something a bit more relational – I turned to her and gently said, “I am not able to follow the movie.” She said, ‘Oh, I am sorry, I am translating for the person next to me, I will stop.” This was when I turned the moment into a real growth opportunity. Moved by her predicament, I turned to her again, gave her a comforting pat on the arm, and said, “It’s okay, go ahead and translate, I think I can manage”. And I really meant it. She did not take me up on it. But if she had, I had made up my mind to put her needs ahead of mine. Another big victory for me. 7. Like when my former boss (from my previous assignment) called me at 10 p.m. one night, to discuss a technical problem she was facing, and to find out my availability to come in to help her with it. I woke up in the middle of that same night with the perfect solution for solving the problem – an absolutely sure shot. My initial thought was I should not give it away for free; I should get some paid hours out of it. But once again, I sensed I should turn this into a growth opportunity. So I did. The next morning, I texted her the solution. I gave it away for free. She was very touched and grateful, because it was the perfect solution, and she told me “Minoo, I will give you full credit for it when I share it with the team.” And that was enough for me. 8. Like when I overcame my shyness to invite my daughter and her boyfriend to have lunch with me and my coworkers, even though I was brand new on my assignments and didn’t know my coworkers very well I overcame whatever shyness and awkwardness I felt, and just made it happen. And I am glad I did. 9. When my daughter called me a drama queen She was taking my car to go somewhere, and I said, “Watch the gas gauge – the car is low on gas and I don’t want you to run out” When she came back, she said “Mom, you are such a drama queen. There was more than a quarter tank in the car.” I bit my tongue and did not say anything, even though I did not like her calling me that. I waited for another completely suitable and delinked occasion to advise her on avoiding using labels. 10. One last example – saying yes to something I had never tried before When I am asked to something on an assignment I have never done before , and sometimes even if I just I find out there is something on their wish list, I give it a try, even if it means I may get egg on my face at the end. I have developed several spreadsheets and documents in this way, and even a Team Sharepoint Site at one assignment. I am so happy I was able to squash those fears of getting egg on my face (occasionally, I do, but still it’s worth it) for the lessons learned. There – those are 10 negative situations I turned into growth opportunities.

And, hopefully, it will help us examine areas of our life, in which we have yet to learn to handle things with grace.

We have to learn to carry things lightly, in order not to cause havoc in the lives of people around us.

And more importantly, in order not to cause havoc in our own lives, by sabotaging relationships (which are always hard to build, and even harder to keep), or self-sabotaging ourselves.

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Minoo Jha
 · 3y
What actions do you do to prevent self-sabotage in your lifestyle?
I have learned to carry things lightly. We tend to sabotage ourselves when we don’t carry things lightly. Here’s a piece I wrote about carrying things lightly: The Art of Carrying Things Lightly We have so much to worry about in life. Our possessions, our finances, our jobs, our health, our children, our parents, our spouses, our siblings, our investments, the economy– things big and small – keep us constantly worried. A mine can be waiting for us anywhere…in the next relationship, in the next spate of inclement weather, or on the next newscast. Our world can change in a moment. And sometimes it does. But when you think about it, our responses to events and triggers are just habits. We have not been pre-programmed from birth to respond the way we currently do. When we were babies, we yelled at the top of our lungs and till we were blue in the face, if we were in discomfort, or if we needed something. But we grew out of that pretty quickly, didn't we? If we could do it as a child, what is to stop us now, when we are grown people, and have the capacity to reason? If we respond in set ways to triggers and events, it’s because we have made it a habit to respond in set ways to triggers and events. We just have to make up our minds to quit responding in those set ways. We can re-program our responses at any age, and in any circumstances, and in any area. Once upon a time, I used to be a rageaholic, getting crazily angry when my buttons were pushed. But I successfully re-programmed myself. I discovered rage was a habit and I quit it. Once upon a time, I used to be hyper hyper-sensitive. But I successfully re-programmed myself. I discovered being hyper-sensitive was a habit. And I quit it. Once upon a time, I was a slave to some foods (such as rice) and I had to eat them every day. But I discovered specific foods were just a habit. And I quit them. I successfully reprogrammed myself. Once upon a time, I was unable to be anything but a helicopter mom or a tiger mom. But I discovered being a helicopter mom and a tiger mom were a habit. And I quit being either of them. I successfully re-programmed myself. Part of successfully re-programming ourselves is learning to carry things lightly. When you learn to carry things lightly, your responses automatically change. You stop freaking out. You stop having over-the-top responses to things. After all, few things call for a strong response. An emergency may require a strong response. An injustice may require a strong response. It's hard to think of anything else. Reprogram yourself to carry everything in your life lightly. Reprogram yourself to carry your success lightly. You should be able to fly coach, and to stand at a bus stop waiting for a bus. You should be able to wipe down your car, or even your child’s car. Reprogram yourself to carry your professional status lightly. You should be able to roll up your sleeves and do anything. Help your admin assistant clean up after an office lunch, for instance. Reprogram yourself to carry your job security and job satisfaction lightly. Conditions can change even in the most attractive of jobs or businesses. Your status and responsibilities can get reduced. A new manager might start cracking down. Because of the economy or competitive forces, a job or business, which once seemed secure, can become shaky; a layoff or unexpected circumstances can leave you adrift. Everyone should read the book, The Alliance, by Reid Hoffman to toughen up. It will help you carry your job security and job satisfaction lightly. The book was written to help you understand that even if your job came with an offer letter and benefits, it really is only a contract without an end-date. Anytime, this contract can end. Reprogram yourself to carry your relatively lower professional or economic status lightly. If you have not done as well as others and watched people go ahead of you, even though you started out with a clear advantage, be the big person. You should be able to support the success of those more successful than you. The true test of you being able to carry the situation lightly is doing so, without expecting anything in return. With luck, you could get to be the Roy Disney to Walt Disney, the Charlie Munger to Warren Buffett. It's possible. Reprogram yourself to carry your abilities lightly. An ability can lose its value. It can lose its relevance or charm. It can get upstaged. It can be lost as a result of a mishap, or as a result of getting older. If your carry your abilities lightly, you will be able to adapt to any new reality, even one that comes at the cost of your professional and financial status. Carrying your abilities lightly means you will be able to be productive, no matter what. Likewise, reprogram yourself to carry your disabilities lightly. Some of us are born with a disability; some of us will experience a disability as a result of a mishap, or a series of mishaps. For some of us, a habit can turn into a problem, eventually wreaking havoc with our ability. And growing older by itself, can strip us of the ability to do certain things. Whatever the case, we have to learn to carry our disabilities lightly. Which means we have to live life without becoming bitter, grumpy, irritable and cantankerous. Reprogram yourself to carry your knowledge and education lightly. Just because you are smart and capable doesn't mean you will be given the best opportunities. 'Taken opportunities' are sometimes "taken opportunities"; no point hankering for a seat at that table. You may be relegated to work that is below your knowledge and skill level. The only ‘sure’ way out of this is to keep changing jobs until you find your sweet spot. Or else, become an entrepreneur and call the shots. Otherwise, it’s best to carry your knowledge and skills lightly. As a consultant, I strive to be maximally useful to my managers, and sometimes it means doing what no one else on the team wants to do. If the greatest need on a particular day is for a gopher, I volunteer myself. But Minoo, how will I keep up with my skills and knowledge, if I get stuck doing the low-value stuff. Yes, if you are stuck doing low value stuff, and you feel you are ready for something more challenging, by all means look for a better opportunity and move on. In my case, all my assignments are temporary, so I have the confidence that if I don’t get to use my higher level skills at one assignment, I will definitely get to use them at another. So I never worry about what's happening in the present moment. It's one of the advantages of being a consultant. If a work situation has you frustrated, I recommend you take a step back and reflect. If you don't see any value, or future, in what you are doing, bow out and find something more suited to your knowledge and skill level. Reprogram yourself to carry your ideas and opinions lightly. Remember everyone has ideas and opinions, not just you. And their ideas and opinions are just as legitimate to them, as your opinions and ideas are to you. You shouldn't forever be trying to make a point, or to win converts to your way of thinking. You should try to see the other side. You should try to look at the big picture. For instance, I have observed we are unable to appreciate any social or political changes which benefit the marginalized; except of course, when we are the marginalized ones. To me the mark of civilization is how a country or society treats its most marginalized citizens. This is what I mean by seeing the bigger picture. Reprogram yourself to carry your crises lightly. You should not go “oh my god, oh my god, what am I going to do?” in response to every crisis. Crises have a way of sorting themselves out. A year or two later, the memory of the crisis might serve as a lesson, if that. Recently my car got towed, and I said to my daughter, "Oh my god, I made the worst mistake of my life. I parked in the visitor parking in front of the apartments and I got towed”. My daughter answered "Mom, don't be so dramatic. How could that be the worst mistake of your life?" It brought me down to earth. Reprogram yourself to carry your losses lightly. I know this is a tough one. You could lose everything because of an unfortunate event, or sequence of events. Still you can choose how to respond to that. You could either wallow in self-pity, inaction, or self-destruction. Or you could make a pact with yourself to put the past behind you, and build your life on what you have left. It comes down to a choice. Reprogram yourself to carry your possessions lightly, even if they are expensive possessions such as your house, your valuables, or your car, all of which can be lost or damaged. When people get into accidents, they get into a rage. Don’t let this be you. Carry the fact of owning a car lightly. You should understand that being out on the road and driven, your car is ever at risk. If driving stresses you out, find solutions. Also even though you have a car, you should be able to walk, sometimes; you should be able to walk like a mother walks her baby. Just because you have a car, doesn't mean you have to drive everywhere, and all the time; you can walk, you can take public transport. A baby or child is going to enjoy a walk with their parents, much more than being strapped in a car seat, and they are also ill-equipped to deal with their parents' driving stress. When my daughter was a baby, and I was still a new driver in the US, I once drove from Oakland to San Jose in a car I was test-driving. During the 50 mile journey, my daughter’s blanky fell, and she started yelling for her blanky. My response was to yell back, because I was stressed. Several miles passed with both her and me yelling. Had we been walking and she been in her stroller, I would have just picked up her blanky and said "here you go". We should carry things lightly because we were meant to “thrive”, not just to survive. We eat to survive. We eat right to thrive. We wear clothes to survive. We look after our bodies and dress right to thrive. We go to bed at night to survive. We relax to thrive. It is important to recognize whether we are doing things just to survive, or doing things to thrive. Try to introduce more of the “thrive” activities in your life. It is a sure way to carry things lightly. Meditation, exercise, involving yourself in a worthwhile cause, and lightening up your schedule are all ways to reprogram yourself in the art of carrying things lightly. Get busy thriving, rather than just surviving. I sincerely hope you will take the message of this piece - which is to carry things lightly - to heart. I believe if each of us does that, we can make life better, not just for ourselves, but for everyone around us.
There are valuable lessons to be learned from rejection and humiliation.

Each time we suffer a rejection, we should reflect on the circumstances that led to it, and write down the lessons learned.

We only lose by over-reacting to humiliation. We only gain by taking humiliating experiences in our stride.

Of all the virtues, humility is the hardest to achieve.  Every achievement made in the area of humility is a big step forward for us, in personal growth and maturity.