Monday, June 9, 2008

Actively Manage Your Career to Stay On Top of Your Game

Frightening statistics show how many of us lack active control of our careers. I offer these focal points to actively managing our careers.


I’ve recently made a decision to leave a comfy job I’ve held for 6 years after hitting the glass ceiling in that organization. I’ve thought about it a lot and I’ve decided to follow my aspirations and to make an effort to fulfill what I think is my potential.

It wasn’t an easy decision. I’ve had to accept a 20% pay reduction and a significant drop in rank and authority in my new job (4 months now) all for future prospects.

In a very unblogger like manner I haven’t shared my thoughts, conflicts, decisions and conclusion. In retrospect I believe I wanted some time off the thinking and I chose to write about different topics. I believe some ideas are now coming to fruition and I’ll be writing more about career in the near future.

My recent experience really focused my thinking regarding active career management. Managerial skills are often thought of as bossing people around, leading a team, a department or whatever association jumps to mind. I believe managerial skills are much more. We constantly manage everything around us with the most relevant subjects to this blog being our finances and our careers.

Embracing the thought of managing yourself is crucial, in my opinion, to completely unlocking our potential and understanding our important place in the processes that take places in our lives.

A look on the following statistics gives us a frightening picture of how many people lack active control of their careers:

  • Half of all Americans today say they are satisfied with their jobs, down from nearly 60 percent in 1995. But among the 50 percent who say they are content, only 14 percent say they are ‘very satisfied.’ (The Conference Board. Additional results from the supplemental survey conducted by TNS in August 2004 include:

  • 40% of workers feel disconnected from their employers.

  • Two out of every three workers do not identify with or feel motivated to drive their employer's business goals and objectives.

  • 25% of employees are just “showing up to collect a paycheck.”

  • More than eight in 10 workers plan to look for a new job when the economy heats up, according to a survey by the Society for Human Resource Professionals (CNN Money).

I’ve made an effort to map out the most significant points of active career management. I’ve been deliberately stingy writing on each specific point. Should you be interested I’ll expand on each point in a different post more thoroughly. Here they are:


#1 Be Active


I’ve met many people who happily drift away with the flow going where life takes them. The last thing I’m going to do is criticize this approach to life as it usually leads to healthier more stress and care free living. There is a price of course.

For those of us who aspire to control their careers and lives and have a clear view of where they want to be this approach is guaranteed to lead to frustration. Living passively basically transfers control of your life to your environment. Reacting instead of acting is, by definition, narrowing your options and possibilities. An active approach is the first basic step to career management.


#2 Make decisions


Active management requires decision making. Without developing the ability to make clear cut decisions and following them you probably won’t be able to make progress. Decision making is difficult since taking one course of action renounces the other. There is no forward movement without decisions.


#3 Accept Tradeoffs


Decisions produce tradeoffs. Letting go of possibilities is never easy but is required in order to fully focus on the path you decided on. The inability to accept tradeoffs often leaves us in a place of permanent indecision and consequently inaction and stagnation. Letting go of hypothetical or old options is a crucial step in fully focusing on what you’ve decide upon.


#4 Create a long lasting competitive advantage


What’s right for companies is right for us as well. Companies seek the strategic high-ground in the form of long lasting competitive advantages. Google has technology, Coca-cola has brand and Microsoft has a captive market share for example.

We must develop our own competitive advantages in order to have an offer of added value to any organization. This competitive advantage can come in many forms: exceptionally good people skills, a gift for sales, a sharp mind, advanced education, a synergy of two fields of expertise and much more. The main idea is to create a unique value you can offer to the job market.

Building a competitive advantage is not done in a day. It requires planning and careful construction of complementing schools, fields, traits etc. Your competitive advantage will determine your bargaining power and often times your career.


#5 Build around your advantages


Having a competitive advantage is a great start and a solid foundation to build on. Your career path must be developed accordingly to complement and further enhance your advantage.

Aim for roles which further explore your niche and expertise. Target positions which will enable you to fully utilize your skills and potential. Think of the best way to shine and stand out in the crowds. The synergy between advantage and career path is extremely high.


#6 Constantly review your position


I had to quit a job I actually enjoyed and loved since I hit a “glass ceiling” in that particular organization. Some may say I’ve made a mistake since these kinds of jobs aren’t easy to find but I place self fulfillment higher on the value scale.

The basic principle here is to constantly review your position. Are you headed in the right direction? Will this path lead to where you want to go? Why am I still holding on to this job? These questions will serve as a course correcting method should you stray too far of the path.


#7 Stagnation is your enemy


The older you are the harder it is to make changes and change yourself. It’s a natural phenomenon and it has its logic. However, stagnation is career’s enemy. Through change we evolve and so does our offer of value.

Change is a very important piece in the career puzzle leading to more vast experience, broader horizons and bigger social networks. Development requires change.


#8 Education never stops


Continued education and learning is also crucial to maintaining and building on your advantages. The more advanced the world becomes the more niche knowledge is appreciated, sought out and rewarded.

Participate in relevant conferences, take courses, deepen your knowledge and brand yourself as an expert. Niche knowledge offers significant added value.


#9 More of a field person? Develop in other venues


If you’re not into learning and education or just don’t have the patience use the time to develop in other venues. A great way to develop yourself is to enhance your social networks. There are many ways to enhance your social networks such as volunteer work, blogging, social initiatives and more.

Other options of self development include learning a foreign language or a new set of skills. Everything that has anything to do with your competitive advantages will do. Continued self development is crucial for forward movement.

In the near future I’ll expand on each point more thoroughly in different posts. Please let me know what interests you the most and what would you like me to expand on.

Image by: Andy Burnfield

Sunday, June 8, 2008

Is This a Recession? Leveraged Investing and Day Trading @ The RoundUp

The customary weekly Roundup

I’ve hosted the Festival of Stocks #91 this past week. I hope you enjoyed what fellow finance bloggers had to offer for that edition.

The Carnival of Personal Finance #155 was hosted by Moolanomy. I’ve enjoyed these posts in particular:

The Festival of Frugality #128 was hosted by No Debt Plan. My post on “Psychology tricks and increased spending – The Case of Expensive Wines” made editor’s choice. My favorites from the festival were:

More from fellow personal finance bloggers:

Friday, June 6, 2008

Gas Prices Finally Impact US Car Sales

More on the better side of record gas prices

For some reason pickup trucks and SUVs have rooted themselves in American culture. Apparently they serve as symbols for strength, power, durability and more values that are held dear to many Americans.

I’ve read somewhere the pickup serves as the modern horse, keeping the old west’s heritage alive. With all due respect to culture it seems more and more Americans are finding it hard to continue maintaining these gas eating monsters with gas prices constantly rising.

Americans save on gas by switching to economy cars

According to Reuters US auto sales tumbled in many as consumers spurned pickup trucks and SUVs in the face of record gasoline prices, driving General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler LLC to double-digit declines.

Furthermore, Japan’s Honda Motor outsold Chrysler for the first time to emerge as the new No. 4 U.S auto-maker with Toyota closing the gap on General Motors.

Record gas prices apparently sent Ford’s sales tumbling down by 16% and General Motor’s sales by 28%. Honda, on the other hand, registered a 16% in Civic model sales which are fuel economic. Pickup truck sales were reduced by 30%.

Could it be Americans are realizing how wasteful and costly these vehicles are?

The smell of change is in the air but history teaches us we humans quickly adapt for better or worse. In the 70’s the oil crises caused gas prices to soar forcing Americans to seek cheaper more economic alternatives. This was the growth bed for the Japanese auto industry in the US.

Now, as then, it’s money and economic considerations which make the biggest difference (rather than ideology, environmentalism and more). As long as gas prices remain at all time highs this trend will continue.

However, should prices drop or remain stable I believe the public will quickly get accustomed to paying more on gas slowly turning the trend back around.

Americans driving at historical lows

In the meantime we get to experience the better side of high gas prices. A press release by FHWA reports Americans drove less in March, 2008 continuing the trend from November 2007.

Additionally, the U.S. Department of Transportation estimated that greenhouse gas emissions fell by an estimated 9 million metric tons for the first quarter of 2008.

Record gas prices take their toll on countries and people all around the world

In India three county states went on strike a response for high gas prices. Malaysia suffered mass demonstrations after the government announced a 41% increase in gas price while in France and Spain taxi drivers blocked highways and roads to protest against record prices.

Governments seemingly have their hands tied having little other choice than to constantly adjust prices. But that is only half a truth. These countries can and need to make strategic decisions regarding their dependence on oil as an energy source.

New Zealand recently announced its strategy of becoming the first sustainable nation in the world and will balance its gas emissions. Furthermore, currently 70% of New Zealand’s energy is generated from renewable sources and it has committed to a goal of 95% by the year 2025. That’s strategy and definitely a lesson to be learned by leaders everywhere.

Hopefully the environmentalist trend is here to stay even when gas prices cool down a bit.

Image by: code martial

Related Posts:

Wednesday, June 4, 2008

The Perfect Home is a Financial Nightmare - Don’t Get Caught Up In the Costly Race

It is very easy to get sucked in a terribly expensive effort which never really ends


My wife and I just returned from our 203th visit to IKEA with some interesting insights I’d like to share. Since we’ve bought our apartment and renovated it we’ve been caught up in a continuing effort to furnish and design it into our perfect little home. All this time a very obvious yet elusive insight eluded us: There’s no end to this effort, no finish line to the race.

It starts very early on. You decide to buy a house, maybe even decide on a budget but all the plans and all the decisions soon fade away when you start shopping for a one. It’s understandable. Some locations, architecture and design, extra rooms and more may be well worth the extra money but have you ever heard of anyone buying a cheaper house than they initially planned on?

It continues with massive, endless renovations trying to shape reality to dreams with multi-million homes as our inspiration. Even the world’s best interior designer can’t create that much space in a two bed room apartment.

Naturally, our quest goes on even after we’ve moved in. Furniture, appliances, designs and adjustments all continue to trouble us. I’ve heard the sentence “we’ve got to replace that couch” from everyone of my friends (and they bought the couch just a couple of years ago).

Our house is a major factor in our lives. It’s our home, it’s where we spend most of our lives (after work), it’s where our children grow up and it also reflects on us as people. Aiming for the perfect home is very understandable but is it wise? Is it financially sound? Is it at all possible?

I’ll show you that even billionaires can’t really attain the perfect home and are constantly busy searching, buying, designing and eventually selling their homes.

My case against the race for the perfect home is built on the following:

#1 It’s Endless

Stop and think about it. When will you tell yourself you’ve got it made? Chances are you’re not even living in your perfect home just yet. Most of have dreams, be they a park view apartment in Manhattan, a mansion in the English countryside or whatever else comes to mind. It could also be just two more rooms, or just a pool and that’s it.

Don’t delude yourself. We can’t really be happy and content with what we’ve got. It’s a human curse and a blessing. We adjust too quickly to both good and bad and always fail to appreciate the present and what we’ve got. It’s a sort of hedonistic fallacy. We always want more and better. It’s fantastic because it drives humanity forward (supposedly) but we must understand this basic psychological concept and how it affects us so powerfully.

#2 It’s terribly expensive

When it comes to our homes it’s always expensive. Forget about buying or renovating one. Those costs are astronomical and the point is easily made. Instead think about that $2,000 designer sofa you just saw on “sale”.

Designers of any sort have it made. They can price their products as they like since “inspiration” cannot be measured. The only measure is whether people buy it and surprisingly they do. You don’t need me to tell you there’s no practical difference between a $200 sofa to a $20,000 sofa. It’s whether someone is willing to pay that price (and keep mentioning it in our ears to justify the purchase).

The same goes for tiles, baths, showerheads, dining rooms and everything else you can think of. Nothing is too good for our home, and the retailers know it.

#3 It’s time consuming

I’ve personally spent (or invested some might say) at least 50 hours searching for an apartment, 200 hours renovating one and at least 50 hours shopping for my home. It’s not wasted time but that time has many alternative uses. Every time you go looking for a set of cups think about the alternatives.

As the quest never ends so the shopping, browsing, designing and adjusting never cease.

#4 Fashions change

Fashions change and we have to start everything from scratch. This means yet another trip to the handy store for that oceanic-pearl wall color to replace our previous wall color of tomato-orange mix or whatever name they came up with to justify paying an additional 20% for that color.

We obviously have to re-design everything else to fit that new wall color and so on and so forth.

The National Association of Home Builders (NAHB) cites interesting numbers for first year spending in a new home (the numbers are for 2003 but the ratio’s are ever more relevant):



Another interesting view point is how these expenses divide up the first year. The following pie charts speaks for itself:



Remember I promised you I’d prove how even billionaires take part in the race? Well, Russian billionaire Roman Abramovich just bought a $36M Colorado ranch. The 1,300-square-meter, split-level home is set on a secluded 81 hectares in Snowmass, near Aspen, The Wall Street Journal reported Friday. The house, built by surgical-equipment magnate Leon Hirsch, has 11 bedrooms, 12 bathrooms, a media room, a climate-controlled wine room, a hot tub and a spa, the report said.

I’m sure you don’t find this at all surprising. But did you also know Roman Abramovich intends to create a super mansion in the heart of London which will become the most expensive private residence in England and that it will cost approximately $300M? Apparently Abramovich owns dozens of houses around the world, all unique, beautiful and terribly expensive.

I guess it really never ends.

Image by: Lincolnian

Monday, June 2, 2008

The Festival of Stocks #91 – Israel’s Stock Market Facts Edition

This edition of the festival of stocks will be dedicated to the Israeli stock market


It’s my first time hosting the Festival of Stocks. I believe there are quite a few good posts in this addition and I had a hard time choosing my editor’s picks.

I’ve chosen to dedicate my edition of the Festival of Stocks to the Israeli stock market which has generated excellent returns in the past 5 years and serves as a growth or value investment in a developing economy with the conditions and environment of a developed market.

I’ve also chosen to comment on each post and add my point of view (where I had something of value to say).

My Picks:

Fact #1: Israel’s stock market is called The Tel Aviv stock exchange and features two prominent stock indices called the Tel Aviv 25 and Tel Aviv 100 made of the 25 and 100 companies with the highest market value. The market value of the companies traded in the Tel Aviv stock exchange is approximately $460 billion.

The Digerati Life presents an eloquent and creative post with a different perspective on bad habits and investment mistakes in From Bad Investing Habits To Investing Sins: Many Unhappy Returns.

Money Blue Book
discusses a part of Warren Buffet’s investor ideology in detail in Warren Buffett’s Single Most Important Piece Of Advice For Stock Market Investors. I’d recommend following another of Warren Buffet’s advice – Work Hard. I believe he was once faced with a question regarding his value investing ideology and gave a surprisingly simple and powerful answer. The question referred to his meticulous analysis of companies, financial reports and due diligence. “There are so many companies out there, where should we start?” He was asked, “Begin with the letter A and take it from there” was his answer.

ETFtrends presents 17 Commodity ETFs to Help Hedge Your Portfolio. ETFs and indices are probably the easiest way to invest in commodities and the list provided is quite detailed and thorough. However, keep in mind it’s a risky business. I’d also consider the timing as I personally believe commodity prices are relatively high nowadays (not a professional advice of course

General Investing Ideas

Fact #2: The TA25 and TA100 generated an average yearly return of 12.4% and 12.6% since the early 1990’s with the last 5 years generating over 175% in total.

My Wealth Builder offers insight on How To Profit From Bubbles based on Bernanke’s stock market bubbles research performed in Princeton. Only thing left is to recognize the next bubble and get in and out in time.

StockWeb makes an interesting point in GDP growth vs. P/E for international ETF. However, I believe the system should be adjusted a bit. As it stands now it assumes a perpetual growth rate of a certain percent making developing countries significantly under-priced. I believe it should be adjusted to include a short-term and steady state growth rate. Adjustments to inflation are also required.

Company and Dividend Analysis

Fact #3: The Israeli stock market is always evolving with increased transparency and regulatory requirements and more complex financial products, new ETF’s and mutual funds, derivatives and more.


Old School Value performed a valuation on K-Tron in accordance with the blog’s title. It’s an interesting valuation of an interesting company. I personally enjoy the approach as a whole. Read it in depth to decide for youself.

Saving to Invest presents a way of increasing exposure to agriculture and solar energy through DuPont Stock in Playing the Agriculture & Solar boom in one safe stock. The analysis is pretty detailed and should be a good start for an investor looking to increase his share in these sectors.

Dividends 4 Life provides us with an analysis of PepsiCo Inc., dividend wise, in Stock Analysis: PepsiCo, Inc. (PEP).

Dividend Growth Investor analyzes Consolidated Edison‘s dividend in Consolidated Edison (ED) Dividend Analysis.

Fat Pitch Financials looks back at Jaclyn going private in Jaclyn, A Profitable Going Private Transaction.

Mutual Funds

Fact #4: Israel has the second-largest number of startup companies in the world (after the United States) and the largest number of NASDAQ-listed companies outside North America.


Best No Load Mutual Funds presents a comparison between Vanguard’s passively managed index mutual funds with Vanguard’s actively managed mutual funds in Vanguard Index Mutual Funds Versus Vanguard Managed Funds. This comparison reminds me of an investment competition once held between investment and brokerage firms and a “monkey” that randomly selected assets. Guess who won.

Bull Returns asks whether mutual funds are for you? and discusses the advantages and disadvantages of investing in mutual funds.

Investment Mistakes To Avoid

Fact #5: Foreign investments in Israel’s economy are increasingly growing with prominent investors showing increased interest. Examples include HP purchase of Mercury for 4.5 Billion dollars (cash), Berkshire Hathaway’s first investment out of the US of ISCAR Metalworking for 4 billion dollars, SanDisk’s purchase of M-systems for 1.5 Billion dollars and more.

Free Stock Market Investing Tips lists 13 common Investment Mistakes To Avoid from diversification and following trends to getting attached to a stock. I personally believe the biggest investment mistake people often make is failing to realize how much there’s to learn before jumping in.

Stock Investment Tips Blog discusses the mistake of following trends in particular in Avoid Making This Key Investment Mistake.

Forex Trading

Fact #6: Dominant Israeli companies include: Generic pharmaceuticals giant TEVA, Cutting tools leader ISCAR, software and information security leader Checkpoint, defense industry’s IAI and many more.

Stock Market Investments presents a Complete guide to online Forex trading (part 1). I don’t have a lot to say about FOREX trading. I personally believe it’s very risky and controlled by professional players. I don’t believe households should risk their savings in FOREX trading. If you’re enjoying the thrills go ahead.

Forex Strategy Secrets discusses the skill required to actually earn anything trading FOREX in Which Will Win Greed or Skill?

Other Posts

Fact #7: Israel has decided on a gradual, yet swift, adoption of IFRS accounting principles increasing the uniformity with global accounting standards and the level of transparency of financial reports.

Five Cent Nickel presents The Best Online Discount Brokers (Updated).

Uncommon Cents presents a simplified basic equation to wealth in Basics: The Wealth Equation.

Images by: YehudaCo, nicasaurusrex,