Solutions Or Answers

We don’t know everything. What is life? Where does consciousness reside? Why are we here? How do bees and ants manage complexity with tiny brains? Are we alone in the universe? Is this the only universe? What is reality? What is art? What is electricity? What’s the next big thing? Who really shot JFK, JR, Mr. Burns? Why don’t my books sell better? What’s happening within the delayed choice double slit experiment? (Okay, that one’s kinda geeky, but very spooky.) Does cold fusion work?

Some truths are lost to history. Subjective questions and mysteries rule the realm of religion and philosophy and may never be answered to everyone’s satisfaction. Sometimes unknowns exist because they truly are mysteries. Sometimes we don’t have answers because we don’t have the right vocabulary for the questions. Objective mysteries are the sort that are answerable and are what keep scientists busy. Even there though, mysteries are created by using the wrong words to ask the right questions. But at least we are trying.

Ideally, objective conundrums are solvable by logic and the scientific method. We have a hope of answering them, yet despite this technological world that we have created, many things we rely on involve mysteries that we ignore as long as solutions exist. The major scientific programs of the mid-twentieth century proceeded amidst great unknowns. The Manhattan Project didn’t know if the first nuclear bomb would fizzle, blow up, or ignite the planet’s atmosphere. The Apollo Program didn’t know if life in far orbit was possible, or if the lunar lander would sink when it finally contacted a sea of dust in a crater. Modern computers operate with such fine wires that quantum mechanics is no longer a philosophical debate, but an operational concern. We didn’t have all of the answers, but we worked from our solutions.

My definition of a scientist is someone who seeks the truth objectively. My definition of an engineer is someone who seeks a solution. (note: No college degrees are required for either of my definitions.) Of course, in modern life the distinctions are blurred. Engineers, scientists and technicians are lumped into the category of geek or nerd. In major corporations, geeks or nerds can be treated like bureaucrats, endlessly filling out forms and trying to justify their existence to non-techie managers who can never truly understand. Less gratifying is a technical job that becomes only hand-holding, walking others through complicated yet important processes. Imagine spending years of your life learning the appropriate math, physics, and pragmatic philosophy, yet being sent to other continents for weeks to make sure that a supplier’s bureaucrats fill out the paperwork correctly. That work doesn’t change truth, so it doesn’t require a scientist. That work doesn’t require a solution, so it doesn’t require an engineer. Lifetimes of education are misused.

Aside from the distractions of large organizations like corporations and federal agencies, there is a need for truths and solutions. If time allows, truth can precede solution. If time is critical, solution may precede truth. Just ask a firefighter. Do you want the truth behind the blaze or do you want the fire put out?

During the Apollo and Manhattan programs there were perceived needs. Solutions were wanted now. Scientists acted more as engineers. Engineers acted as engineers. Technicians that acted and solved problems were re-titled as engineers. We are currently facing situations that are defined by their perceived needs. Pollution, energy consumption, food production, sea life depletion, over-population, etc. The list is familiar and too long and too depressing to complete. We want solutions, but global scrutiny can stall progress by demanding absolute truth, certainty, and guarantees. Companies, especially large ones, are overly cautious because they can’t answer every question asked of them, none of us can, yet they can be taken to court and interrogated mercilessly. Solutions languish.

The press and public opinion enjoy making fun of the flaws of authority figures. Intense enough exposure can kill innovation or drive it far underground. Remember cold fusion? In 1989, two electrochemists, Fleischmann and Pons, discovered that they could initiate a reaction that produced more energy than it consumed. That suggested cheap, renewable, possibly clean energy. They couldn’t explain the process in detail and were laughed out of their careers and the public spotlight because less innovative physicists claimed it was impossible to have fusion occur in such a small vessel with such small energy required with so little radiation and pollution. It would be no surprise that the career aspirations of hot fusion scientists may have affected their perception of events. The debate centered around claims of fusion rather than claims of cheap, renewable, possibly clean energy. Fleischmann and Pons didn’t have the truth behind their discovery, but they had presented us with a solution. We ignored it because they possibly used the wrong working title.

Last month the news from Italy was that a 1MW power plant would begin producing power from cold fusion. The pundits reached back to reuse the old counterarguments. The developers don’t have the truths documented. The arguments may become moot if they have produced a repeatable and dependable and clean power source, a solution. The arguments will also be moot if the system doesn’t work.

In America, it has become fashionable to proudly stop others. The political parties seem to do nothing but try to stop each other. Doing things for us is secondary to doing things against each other. Imagine if in 1989, we hadn’t laughed Fleischmann and Pons out of the country. Imagine if their invention and discovery had succeeded. For the last twenty years we would have been decreasing our oil imports, had less reason to go to war, had cleaner air, less strip mining, and would have led the world towards a more sustainable future. We may have had a solution even though we didn’t have every answer.

These devices tend to be small. The reactor for that 1MW plant is only one liter in volume. Imagine electric cars that never need to be plugged in, or backed up with gasoline engines. Almost every vehicle would be lighter, quieter and cleaner. Decentralized power and energy could allow houses to come with their own power, just like they have their own water heaters. Power lines would come down across the country. Power outages would be household events instead of regional emergencies. Fewer homes would heat with coal, gas, propane, or wood, unless they wanted it. The implications of what we’ve potentially missed are staggering. Without going to war and with fewer ecological catastrophes we probably wouldn’t be a debtor nation and many lives would’ve been saved. The planet would be healthier.

I mention those implications because if their 1MW powerplant operates as claimed, then our lives will change dramatically, and no one blog post is going to capture the consequences; but the vast majority of people will be caught unaware.

I do know that there are preparations that can be made. I certainly won’t invest in coal, gas, or oil stocks. I will watch to see which public company leads the revolution, as an investor if nothing else. And I will prepare myself for the traumas and dramas that will play out in entrenched bureaucracies, industries, corporations, and governments. Middle East policy will probably change unimaginably.

Do I think this will happen? I don’t know if cold fusion, whatever it really is, will succeed; but, I do know that it or something similarly revolutionary will occur. Human history proves that out. Revolutions happen. Maybe the revolution is cheap, portable, clean, renewable energy. Maybe we find a way to cure most ailments and diseases cheaply through mass produced stem cells. Maybe the planet teaches us how to treat it sustainably. Maybe we meet a civilization that isn’t from this planet. I don’t know. But I do know that laughing at every idea is a sure way to end up on the wrong side of the joke in the end.

Cold fusion? Sure, why not? You got any better solutions?

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Let It Out

Okay my friends. Many of you are positivists. You know I am an optimist. But there are days when the only responses are to grimace or scream. Just ask the Egyptians. You can put up with a lot. You can have a cheery attitude and always look on the bright side. But sometimes a day comes along when you have to stand up and make sure they hear what has to be heard. You gotta let it out.

Yesterday I did that in a big way. I probably shocked the neighbors; well, maybe not. They were probably inside with the windows closed. I was doing some gardening. Yes, I know that it’s February and it had been a frosty morning; but it was sunny and an opportunity to transplant an overgrown patch of Pampas grass. If you aren’t familiar with it, Pampas grass grows into thick bundles of slightly saw-edged leaves that reach eight feet tall with flower spikes that rise feet above that. It may actually be listed as a noxious weed. I haven’t checked. Instead I was following the frugal minded logic of using what I have instead of throwing something away and buying something to replace it. Instead of a bundle of grass, I was going to plant a hedge.

No problem. Dig out the old plant. Separate the root ball. Drop the pieces into prepared holes. Refill. Water. Watch them grow.

That actually all happened. Insert one detail. After I’d dug out the two-foot diameter root ball and had partly separated it, I went to roll it over to work on the other side. I have a bad back. I wasn’t going to lift it. I was only going to roll it. It hesitated. Evidently, I put a bit more of me into it by either twisting or lifting. I can’t quite recall because the next thing I remember is a scream of pain and my hands clutching my back. I didn’t care who heard it as I staggered into the street. I wanted to lay down and curl up, but I knew that the best thing to do was move, slowly and steadily to keep the muscles from locking up. I walked into the house, grabbed some Advil (ignoring one doctor’s advice while remembering another’s) and grabbed the phone so I could walk and talk to a friend to calm myself.

The scream and the talking were possibly as therapeutic as the drugs. I know the walking helped a lot.

About twelve days ago I bought a MacBook. My venerable PowerBook fried and died from a power surge (despite protection). Since then, as you can read in a previous post, I’ve had a series of problems with my new machine. Apple, Adobe, HP, and Quicken have all logged errors as I’ve haltingly made this computer operational. There’s plenty to scream about, but each event happens more slowly and subtly than a ill-executed turn, lift and twist of a back.

My back and I have a long relationship, and we’ve been negotiating this issue since 1988. I know what I need to do for recovery and then for maintenance. It may be counter-intuitive, but my back tends to go out when I’ve neglected my karate exercises.

I have a long relationship with computers. My second personal computer was a Macintosh 512k. My first was from Texas Instrument. Unfortunately, computers don’t heal themselves. The computer problems I am experiencing won’t get better with time. There aren’t exercises to strengthen and protect against future failures. I’ve even had a cascade of faults occur from trying to use the automated backup software.

A scream can release hormones that encourage the body to act. If nothing else, the shout moves muscles that might be locked up. In today’s society though, stress can build from accumulated errors, workarounds, and incompatibilities. Online support can be polite and patient, but the result is still useless if the software people think it’s a hardware problem and the hardware people think it’s a software problem. At the end of the call, they’ve moved on to another customer, and we can be left with more unresolved issues and more internalized stresses than we had before we made the call.

We gotta let it out. We shouldn’t carry the stresses that are the consequence of bad design or narrow boundaries of support. I don’t know how anyone else can do that for themself, but I relieve a bit through this blog, social media, and dreams of so much wealth that I can hire someone to fix all of this.

I don’t expect everyone to start a blog, and I don’t expect a behemoth like Apple or HP to change because I said or wrote something, but I hope that enough of us tell the people we’ve sent our money to that their products and services can make life better than they have. A flashier interface or a better search function isn’t as important as compatibility (even amongst competitors) and a recognition of how people live their lives. Our lives involve so many devices that it is unrealistic that they will operate from within the same operating system or set of proprietary cables.

And if they don’t, if the existing companies don’t understand everyday lives, then some day a new company will and that company will tap into a massive, overlooked, underserved and very appreciative populace. That’s the company I looking for, for their products and their stock. Then what we’ll be able to let out will be a global sigh of relief.

PS To continue the irony from the previous post, all of the Microsoft products are working fine; and while WordPress wasn’t able to resolve my iWeb issue by porting over my old blog posts, Andrew, one of their Happiness Engineers, went far beyond the norm in trying to make my life better. Hmm, I wonder if WordPress is going public and if they’d consider making computers. TT

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Not a Pro

I am not a professional. I might have professional ethics and attitudes, but those are from my days as an engineer and from my upbringing. As for investing, I am an amateur, experienced, but an amateur. The only way I get paid for my investing is by selling what I’ve bought. If you define a professional as someone that gets paid, then I might be called a professional writer. Let’s not mistake that with being a profitable writer, though I continue hoping. (Remember Dream. Invest. Live.?) I may not a professional money manager, but I do know a few.

This month I earned my big red star. Before I started blogging I was posting to the discussion boards over on The Motley Fool. That was back in the previous millennium. My how time flies. This month I finally posted my 1,000th post. Yeah. Well, it wasn’t exactly a champagne moment. Some folks post so often that they reach 1,000 in a year. I guess either I don’t have as much to say, or only say something when I think there’s something worth saying. My 1,000th post was part of a discussion started by one of my earlier posts; my year end review of the economy and markets. It’s nice to get something started.

I post, not to pontificate, but to initiate. I have my views. I know they aren’t the ultimate and definitive view on any matter, except for what happens within my life. Discussion boards are great sounding boards, places to introduce a topic, concept, or question and possibly get a variety of responses from disparate points of view. There have been plenty of times when, given the same facts, diametrically opposite conclusions have been drawn. That’s what makes the markets work. If everyone agreed investments would barely budge for years.

My semi-annual post about the economy and markets frequently spawns such a debate, sometimes online, sometimes offline. In general I am a long term optimist and a short term realist. Bumps and dips jostle the market and sometimes puncture one of its tires, but the US Constitution and the American business culture haven’t changed dramatically in decades. I’m talking really big picture stuff like representative government and entrepreneurial spirit here, not quarterly Fed policies or greedy corporate governance. (I am amazed that so few managers looked into the assumptions behind aggressive loan bundling.)

But, like I said above, I am not a professional. I am an amateur, or rather, an independent individual investor who is very aware of how I manage my investments, finances, and expenses. I dig deeply enough to satisfy my curiosity and manage my risk, and then go dancing. For more details it makes sense to go to others who dive deeper. Usually that means they aren’t going dancing or that they are professionals.

A couple of my friends are in that professional camp. They can back up their assertions with more data than I am willing to collect, but that’s partly because they are trained and paid to do so. I listen to them. I can’t claim that they are the predominant experts. They probably won’t make that claim either. Humility does exist. Mike Brady from Generosity Wealth Management even starts off his newsletter with; “I start out by talking about what I got right and wrong from my 2010 preview 12 months ago (you mean I’m accountable?)”

So, it seemed like a good idea to reprise my review and add links to their similar reports. In general, I think we are in agreement, and I am sure that if we were sitting at a bar with beers in hand, that we’d have plenty to argue about. Nodding heads saying, “Yes”, “Yes”, “Yes” don’t make for as engaging a conversation as, “What hole did you pull that out of?”, which is usually phrased more Spock-like as, “Fascinating, but illogical.” I’m pretty sure neither of these guys would buy some of the smaller stocks that I own, but they aren’t burying money in Mason jars either.

Brad Hessel through Intelledgement (an investment advisor service company, and no, I don’t know exactly what that means) produces a newsletter that covers what appears to be every conceivable investment from stocks to coal to currencies and weaves amongst them as the data suggests.

Mike Brady’s newsletter is supplemented by weekly videos, a bold move I can’t see myself doing, with an emphasis on generating wealth that is more than financial. There’s wealth in community and charity too.

Part of Brad’s conclusion is that:
“Conclusion: We are in the eye of the storm, and most everyone is sipping the QE2 (quantitative easing) Kool-Aid and singing Kum-Ba-Ya. Accordingly, it is time to make love, not war…but we remain prepared for both.”,
which doesn’t cover everything he says, but does point out that financial newsletters don’t have to be dull.

I find Mike engaging because, like Brad and I, he is willing to be open about what went right and what went wrong.

A month’s gone by since my end-of-year posts, and while my portfolio seems frozen, which can drag down my emotions, I also know that almost every company in my portfolio had good news. Short term reality = a painful experience selling stocks in good companies to pay bills. Long term optimism = more than enough shares across a diversified portfolio and a frugal enough lifestyle to allow for a generously wealthy future. How will it turn out? I don’t know. Even the pros don’t know the future. But the more we talk about it, the better we are at guessing, or at least having something to talk about over a beer.

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A Mac is Not a Toy

“Have fun with your new toy.” I haven’t heard that at Christmas in a long time. I’ve heard it a lot this last week though because I just bought a new MacBook. A nearby mall on the mainland has a real Apple store, trend setting design, big crowds, lots of light and white. Very impressive. As a purchaser of a Macintosh 512k in the mid-eighties I can tell you that the feeling is going away. This week’s experience has been headaches and frustration, not ease-of-use or evangelical bliss. Sad to see the old feeling fade.

Buy a new computer and have fun filling out computer user surveys; especially for semi-geezer geeks like me.
How long have you used computers? Since 1976.
What types of computers have you used? Am I allowed to fill a few pages? Lets just take it from my first, an IBM mainframe, through the PDP series, PCs, Kaypros, Macs, Vax’s, Newton MessagePads, and do I count the chip in my cell phone that is more powerful than most of the pre-millennium equipment?
What’s your level of proficiency? Well, I was programming in Fortran and Basic before you were probably born, but since then I have happily left the coding to others.
How often do you use computers? Let me see if there’s a minute in this house when there isn’t a computer operating. Oh yeah, during a power failure we’ll take a break.

It was a power failure that precipitated this episode. I took a vacation, and while some will take vacations and leave their computers behind (like I did in the Autumn of 2010 as I walked across Scotland) I usually take my computer to stay in touch with friends, and for entertainment. I was playing a game (Civ) when the power dropped then spiked. The machine seemed fine then, but within a day it degraded to useless, unable to reliably boot to Safe Mode. Bad.

Considering that it was a five year old PowerBook G4, it had served me well; and amortized out over five years, it hadn’t cost much. Fortunately, I do regular backups, so I wasn’t afraid of losing much data or many files.

I had a need, so as soon as my mighty computer expert (Gail LaForest) confirmed that my venerable machine had fried and died, I drove over to the Apple store and bought a brand new MacBook. Their expert wanted to make sure that it would serve all of my home and business needs and that maybe looking at the cheapest one wasn’t the best idea. I pointed out that five years of their progress probably meant that the lowest end machine should have more capacity and capability than the one from 2005. They agreed.

For something over $100 or more, they offered to help migrate all of my files. Their store is on the mainland. I live on an island. The dead machine was back home and every trip costs about $20. I decided to use my local expert. Besides, it’s a Mac. How hard could it be? One of Apple’s major sales pitches began when it became easy to transfer from PC to Mac. Prior to that it was two guarded camps. Then the thaw began.

Somehow we’ve come to the point where transferring from Mac to Mac comes with a price tag. Something was lost along the way.

Hope lived because of my frequent backups, non-pirated software, and reasonable level of experience. I hoped that the new machine would be fully operational within a day or two. Monday, four days into the process, I’d reinstalled MS Office, Firefox, Apple’s iLife, and some Adobe products; but, none of my original files, emails, or photos have made the jump. I won’t worry about printer drivers for days. The installation of everything else was fine, but Adobe and some Apple software have some sort of rights issues, the same sort of thing that may be holding up the file transfers. Apple to Apple transfers shouldn’t take days and expert assistance.

One particular glitch inspired this post. One piece of Adobe software installed properly, so it said, but when I opened it, it said that my personalization information was incorrect. Serial numbers were right, it recognized my Adobe account, but it needed something else, maybe something that was on a dead machine. I couldn’t call the company. They don’t provide a phone number. I couldn’t email the company. They didn’t provide an address. I went to their online chat agents as instructed, who after 45 minutes and some bad directions got me to a screen that told me to contact an Adobe online chat agent; at which point he said something like, “So, I guess that should do it.” He’d led me in a circle. My blood pressure felt like it was rising. My face had reddened. My headache was tremendous. I stood and shouted at the world. Then I pointed typed that the use of their product is not more important than my health. I gave them my phone number and encouraged them to call me if they wanted to resolve the issue. They haven’t called. I’m not surprised.

My experience is common. My frustration is common. But, except for people how like to build their own computers and keep current on innovative operating systems, we accept spending either hundreds of dollars or days of effort to switch from one machine to another. If it doesn’t feel that way, time it. How long does it take from opening the box and firing up the computer for the first time to having everything accessed and running again? What other product that costs as much requires so much effort by the consumer?

My experience is common, but not extreme. Others have had far worse. My situation is exacerbated by some personal health issues. For someone out there, they’ve had poorer health, harder computer problems, and a greater need with less time and money to spend chasing solutions.. Yet, the companies that enable our digital lives do so by selling the potential of marvelous personalization while treating individuals impersonally.

Success breeds hubris. Empires and leaders have experienced that long enough that it was old news when the Greeks began using it in their tragedies. Our country and some of our leaders take success for granted. Organizations and corporations do too. Arrogance or too much familiarity with success can lead to acting as if everything attempted is blessed and no wrong can result. For some, it is an aspect of being human, but it is not a requirement and like any bad habit, it can be countered.

I think Apple, Adobe and others have fallen into that trap. Apple’s onsite expert sold me equipment that couldn’t be used with my new MacBook. Adobe treated me as if my problem wasn’t worth their time, which is a business model that works if you are a semi-monopoly. It is reminiscent of American car makers that tried to sell cars based on emotion and nationalism rather than by giving drivers what they wanted: quality and dependability at a reasonable price. Eventually the companies learned, or at least some of them, but the lessons only came after crisis. Now that Apple is on top in terms of market cap, I wonder if a competitor will unseat them, or if Apple will learn and change. When the customer must accommodate the company, then the balance of goods and services delivered for money received is out of balance. Curiously, Microsoft, the one company that historically made the most noise about product codes and such, is the one provider that successfully re-installed without a glitch.

My first Mac had the feel of a useful machine and the joy of a toy. This impressive MacBook has really only added two features that were lacking in the first: color photo quality graphics and internet capability. Much of the rest is bloatware. With that first one I finished my Masters in Engineering, did word processing, managed home finances, and played games. With this one I get all of that, plus a massive headache. But it looks prettier, and I guess in today’s world, that’s important.

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Coffeehouse Morning

This isn’t my father’s coffeehouse. It isn’t even one of Howard Schultz’s. I sit and type in Island Coffeehouse, ” . . . a non-profit community-driven, youth-powered business and community “living room”. Which happens to be filled with grey haired folk at 9AM on a Saturday morning. I doubt that the “kids” are staying home to watch cartoons. Many things have changed, even if the names stay the same. Stick with an idea long enough and fashion or logic will come around to it, but probably not in the way you expected.

I don’t know if it was my Dad’s favorite coffee spot, but for years we went to The Blue Flame, a diner in the suburbs of Pittsburgh that’s been there longer than I can remember, and I’m over 50. When Howard Schultz decided to reinvent the American coffeehouse by basing it on the Italian version, he was laughed at. Now, Starbucks has over 16,000 shops. I wonder if the Italians are now, even unconsciously, modeling their shops on his model. Ah, but there’s still only one Blue Flame as far as I am concerned, and it’s the sort of place where they’d all call out my Dad’s name when he walked in even though he moved to California years ago.

I am not alone in having memories of, “Hey, you know that thing that is popular? I was doing that years ago.” I was doing dancing, running, and bicycling in the mid-seventies. My photography and writing go back that far too. But even after that I can point to activities, interests, concepts, unpursued innovations that I was introduced to early that are common now. I remember arguing with my boss that it’s more efficient for an engineer to type up his own reports on a word processor instead of writing it all by hand and negotiating the product with the secretary. I enjoyed spending time with the secretary, but I knew that I wasn’t getting as much work done. Another boss didn’t believe me that this newfound parallel processing way of computing will eventually end up on people’s personal computers. I even remember getting to use a $24,000 one mega pixel digital camera and something called Arpanet (the predecessor to this thing called the Internet).

I didn’t invent these things. I was simply willing to listen to new ideas as they came by. Some I acted on. I was an early investor in Starbucks (SBUX), America Online (AOL), Pixar (PIXR, now part of Disney), and several more. Each was laughed at. Starbucks for trying to build a business on coffee. America Online for thinking there was a business in selling access to amateurish stores of information. Pixar for thinking that computer graphics would ever look good enough to make an interesting movie. I also invested in many that didn’t succeed. Not every new idea will be successful.

The world has troubles, some caused by us. Amongst the seven billion of us there are answers. When they’re born, the useful ones are indistinguishable from the tragically flawed. Many are being laughed at. Paint your roof white? Silly idea, except that it is cheap, simple, and saves lots of energy costs by reflecting heat in regions relying on air conditioning. Enforce financial regulations? Silly idea. The baddies have too much power to ever be brought to justice, but if they were reined in then wasted trillions might be available for progress instead of panicked patchwork bandaging. Eat local? Quaint notion, until enough people do it that local farmers become more profitable which makes it easier to buy local which makes it more profitable which makes it self-reinforcing while reducing the need to ship a fifty cent pepper thousands of miles. Hang around me long enough and you’ll hear about other crazy ideas. Cold fusion, graphene, orbital tethers, LED projectors, radical life-extension biotech, digital singularity, ad nauseum are all ideas that are laughed at or dismissed rapidly.

My childhood neighbors back in the suburbs of Pittsburgh would smirk at me as I went for a run and sincerely ask me if I wanted a ride home. When I bicycle commuted to my summer job at the steel mill, my fellow workers seriously thought I was crazy. If I’d taken my running, bicycling, writing, photography, and dancing more seriously back then, imagine how much better each of those talents and skills would be. They would have been given the proper environment to develop and mature.

Schultz, Case, and Jobs maintained that perseverance with Starbucks, America Online, and Pixar and look at the success it produced for each of them. The rest of the world benefited as well. Coffeeshops like this one are far more common. The value of access to information is no longer disputed. Art has added the stylus to the artist’s quiver of brushes.

That’s why I invest in small startups led by passionate people. It’s why I reflect on my current activities and pass times. There’s no way to know where each may lead. It’s also why I’m impressed with anyone that persistently tries. Any of our paths may lead to personal growth, or progress that benefits the planet and everyone on it.

So, do you think the persistent style of shorts, socks and sandals will ever hit the runways of Milan? I think it is quite comfortable. Is there any reason why fashion or any fad can’t be something comfortable?

Can you imagine a solution to global warming and rural poverty that is also easy to live with? Well, let me tell you about tapping into dark energy or the possibilities of quantum entanglement. They only sound silly. Here, have cup of locally grown tea while we talk.

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Maintaining Sustainability

What a boring title, Maintenance. Unless you’re an auto mechanic you probably don’t care about maintenance. Maintenance though is the crucial step that allows sustainability. Lifestyles, innovations, relationships, aren’t sustainable unless they can be maintained. Just ask my car and my computer.

This blog comes to you today from a tired rental PC.

A few days ago I drove up to Silver Star, a ski resort in Canada. It’s a birthday present to myself. In the last 7 days they’ve received 32 inches of fresh snow and more is coming down as I type. (The lifts aren’t open yet and the trails aren’t groomed yet, so why not blog, eh?) Nice present. Knee deep freshies, quiet slopes because there’s no skittering along on ice. Easy snow to ski, and I’ve skied enough that my quads are tired. (Telemark skiing = free the heel, kill your quads.)

Then came the other side of a middle-aged birthday. Lots of the equipment I carry is old. It needs maintenance. Besides my skis, one pair of which is 23 years old, my car is 12 years old and my laptop is more than five. On Wednesday I discovered that the car was dead and the computer wouldn’t boot. Bummer and a bite. Not the sort of news to encourage a happy anything.

The good news has been that the car is working again, probably; and that the laptop booted to safe mode once. (Though it hasn’t done so since. Help! Gail, help!)

Interruptions in service happen, especially with flashy products. Fortunately, my frugal lifestyle encourages me to buy quality when it counts. The car is a Jeep Cherokee Classic with a straight inline six, a very robust car with a very reliable engine. The laptop is a Mac PowerBook that probably just sucked down some bad power during a surge. It’s backed up and it can be repaired I suspect.

My lifestyle is probably sustainable. How many years does it have to be lived to prove that statement? I don’t know. I do know that I’m only comfortable with repairing and would groan at having to replace any of my gear; so maybe my lifestyle is currently sustainable, but not confidently comfortable. The key difference is the need or the ability to maintain the various components of this life.

Living a frugal life is easy to do for a while. The trick is to continue to do so as things break down. With enough money it’s easy enough to replace old with new. The impressive folks are the ones that buy old and maintain it even longer. I’m somewhere in the middle.

I blogged about my portfolio back on New Years. Last night I did my birthday review of more than just my stocks. It’s a yearly maintenance task when I look at where I am, where I was, and where I want to go. Frequently I’m not where I expected to be, but I’m in better shape than I was and heading somewhere very positive. It doesn’t put money in my wallet, but the exercise puts confidence in my attitude.

It isn’t as obviously necessary as an oil change or a computer backup, but it is more valuable. It takes me outside the worries of today’s issues and shows me progress, trends, and confirms the hopes I have for my life.

It is a good thing to do for portfolios. It is a good thing to do for life goals. It would be wonderful to find that governments would do the same, but aside from voting and blogging, I have very little influence on that.

In the meantime, the snow is coming down heavy. The groomers will probably be done by the time I wander back to the room and suit up, and then I’ll take out my aged skis to help maintain my health, my attitude, my love of this life. It’s one fine way to make this all sustainable.

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Moderation in Everything

Moderation in everything, including moderation. There are many folks far more frugal than I. At the other extreme, some investors I know can never have enough. I even know people who embody both. I tend to the middle road, but occasionally go uber-frugal (I tend to repair my typing letter-by-letter rather than deleting misspelled words). Today I have swung to the other side. I’m at a ski resort.

Maybe I should have put “balancing life and money” in my book’s subtitle (Dream. Invest. Live.: Pioneer the Investment Frontier So You Can Live Your Dream.), because that’s one of the important lessons I’ve learned, and continue to learn. Lessons learned later in life, after entering the “world of grownups” can be more revelatory and reach a deeper understanding than lessons ingrained through childhood.

I’ve always known about balancing life and money. Chasing money for the sake of the chase or for some misplaced love of wealth isn’t healthy. That I’ve known seemingly forever. Unfortunately, it wasn’t until my health began to degrade that I learned how far out of balance my life was. I thought I was living in balance. My body disagreed. It has taken years to begin untangling good habits from bad, and begin reweaving a stronger, more flexible cloth.

As I type this, the snowcat drove by the window grooming the ski tracks. I’m on my annual ski vacation. Ski-in/ski-out, quiet, comfortable accommodations, for cross country and telemark skiing. The lifts are full of alpine folks, but I don’t do that. I slowly waltz down the mountain ticking off younger snowboarders. Half the time I am locked into cable bindings linking genuflected turns down a half mile drop of mountain. Half the time I’m on skinny skis, kicking and gliding along. Few would call this a frugal vacation.

Yet, despite my attempt at luxurious living, I realize that I am able to do this because I approach it in a frugal fashion. Check the prices of downhill versus cross country equipment. Cross country is much cheaper. Actually I can’t say that with authority because some of my equipment is old enough to vote. Maybe things have changed. Trail tickets are cheaper than lift tickets, and buying both brings discounts. I stay in a full service condo because that way I can cook for myself. The extra cost for a kitchen is far less than the cost of dining out every meal. I even got a deal by staying longer.

Frugality isn’t about being cheap, at least not within the definition I ascribe to. Frugality is about respecting resources like time and money. Of the two, time is more valuable and can’t be created. Money burns, but it can be regenerated, and is worthless after death. My time here in this life isn’t only to be spent making money. It isn’t only to be spent spending money either. Life is here to celebrate life. Sometimes that means volunteering to help other lives. Sometimes it means me helping me celebrate mine. Snow is falling, covering the freshly groomed tracks.

Time to clean up the kitchen, suit up for the day, and go outside to play – moderately of course. Ha!

My favorite Warren Miller quote:

“If you don’t do it this year, you’ll be one year older when you do.”

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Pundits Got It Wrong

In an uncommon move, I’ll start with a passage from my book, Dream. Invest. Live. This is part of one of the case studies in the book, my experience with America Online, their stock, and what the pundits had to say.

“Over the next few years, I listened as the pundits changed their tune. Their volume and level of confidence remained as high as ever, but instead of saying that the company would never become profitable, they said it would be too long before profitability;
oops, the profitability would happen, but it wouldn’t be worth the investment;
oops, the profit growth wouldn’t justify the stock price;
oops, the market isn’t big enough for growth to continue for very long;
oops, oops, oops.
They said all of that except for the oops. Pundits rarely say oops.”

AOL wasn’t the only time that happened. (And yes, the longer story is more complex, but life is always that way.)

This week Dendreon (DNDN) had a conference call to talk about progress with their first treatment, Provenge, a vaccine for fighting prostate cancer. They met their revenue target for 2010, look to meet their tenfold increase in revenue for 2011, are aiming for expanding into Europe in a year or two, and can now begin working on other cancers like bladder cancer. A tenfold increase in revenue, or expanding into Europe with it’s market that is larger than the US, could produce billions of dollars in revenue shortly. The stock was up about 8%, which is still in the range of where it’s been for over a year. You see, the pundits saw that news and said things like, “Ah, but it will take more testing”, and “EU approval is not certain”, and “We still don’t know if Medicare will pay for it”.

Before that they said, and I am paraphrasing, “It doesn’t cure the disease. It only lets them live longer.” Or step back further. “Surely it doesn’t look like it has bad side effects, but that’s because they haven’t used it on enough people.” Or step back further. “It’s too novel. The FDA won’t approve it.” I could keep going, but who would still be reading?

DNDN has gone from below $5 a share to as high as $55. Some estimates of where it can go are much higher. “Is Dendreon a $360 Stock – Or Is That Too Low?” Not all pundits are negative. Yet throughout the tale, the negative pundits get the best press. It seems to be the way the news is edited, designed to highlight every possible fear while bypassing positive potentials.

If you want my views, see my end-of-year review of DNDN that I posted on the Motley Fool, Silicon Investor, or Investor Village. I’m holding on as long as I can.

DNDN might make the pundits look silly in retrospect and it may not be the only current example.

Microvision (MVIS) showed off some progress this week at the Consumer Electronics Show (CES) in Las Vegas. They have a prototype of a projector that fits in a cell phone, an improved game controller that greatly simplifies navigation and makes the game more real, and demonstrated new equipment for rich displays in cars.

Their detractors point out that the units are too expensive, too dim, are limited by supply, and that the company is always experiencing delays and always on the financial edge. They are right – for now, or about what was true in 2010. They may be right in the long run too; but it is also possible that any one of those devices, or something similar that hasn’t been revealed yet (they have a lot of NDAs), could launch the company into massive profitability. No one knows. Time will answer those questions. For now, MVIS languishes below $5. I’ve seen $360 estimates for it too. I won’t know if they are right, just like I don’t know if DNDN will reach that level.

Waiting that long is why long term investing isn’t emotionally easy for many people. Patience measured in years amidst persistent pessimism is taxing in private and can be grueling in public.

I don’t know how this will play out. Logically, I see a good probability that Dendreon and Microvision will succeed. Their technologies are protected by patents, and their competitive positions are protected by their head starts. Back in 2006, both had lows below $5. DNDN rose. MVIS hasn’t, yet.

If you want my views, see my end-of-year review of MVIS that I posted on the Motley Fool, Silicon Investor, or Investor Village. I’m holding on as long as I can, but alternate between enthused and cautious.

I pick on the pundits, but I remind myself to look in the mirror. I wonder about how my life will progress. Will my portfolio sustain my desired standard of living? Will my books, art, and other businesses sustain themselves and me? Regardless of money, will I be happy and healthy? It is too easy to drop into the litany of aches, pains, complaints, and worries about every aspect of my life. It might have something to do with what I learned as a child. My memories of Catholicism aren’t exactly upbeat.

Yet here I sit, in the nicest home I’ve ever owned, healthier than I’ve been for months, with chores out of the way, a vacation coming up soon, and remembering last night’s party while preparing for this night’s dance with the deepest network of friends that I’ve ever experienced.

Maybe when I was worrying about what I might be doing wrong, I was wasting time, and didn’t recognize that I was actually doing something very right.

I guess I’ll lighten up on the pundits, and I might even listen to what they say, but that doesn’t mean I have to only hear that side of the story. The right thing to do is remember that there’s good news too, and I won’t forget it.

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Pushing Hurts

It’s Wednesday morning and time to blog, but I’m frustrated because two of the topics I had in mind are waiting for links to be posted in places and by people that I can’t control. Staring at the screen and hitting Refresh every five minutes is not going to make anything happen sooner, except for being able to produce a headache. Doctor, doctor, it hurts when I do this. Well then, don’t do that. Duh. It intrigues me to watch that lesson go by again because I know that many of my accomplishments were the result of slow and steady efforts. Persistence and perseverance paid.

Sometime today I’ll go for a run. I’m back up to a couple of miles at a time. Some neighbors think I am too fit. My doctor may not agree. I know that I have been in better shape. I’ve run marathons. A regular training run was nine miles. A two mile run feels good, but it also reminds me that I’ve run farther and faster, and may yet again. (Running in this neighborhood is fairly restrictive though, so I’ll use that as an excuse. No shoulders or sidewalks equals a sub-optimal route.) I learned that I didn’t have to make every run an example of optimal performance. Regular exercise eventually prevailed and I could finish 26.2 miles, not quickly, but more than once. (I’m continually amazed at the ultras that I know, the people that run 100 miles. Oy.)

By now you’ve heard about my bike ride across America (Just Keep Pedaling). There again, I wasn’t fast, but I was persistent. My average speed was only 10 miles an hour. I know runners that move that fast. But I kept at it and made it, well there were a couple of breaks in there, but the memory of them fades with time.

I’ve even started meditating again. “Sit this way. Breathe like this.” It is possible to stress out about how to meditate “right”. I even know someone that was upset because someone else was meditating “better” than they were. They’d turned meditation into a competition, and were mad that they were in second place.

I am not a competitive guy. I love dancing, but am not trying to be the best dancer on the floor. Every day I want to be better than I was yesterday, and that’s good enough for me.

Winning a marathon is possible, but improbable. Crossing a continent in record time gets a bicyclist into the book. Is there even a way to measure whether a person has meditated better than some ultimate figure like than the Dalai Lama? Would it matter?

My investing style works the same way. I am not trying to be the best, have the optimally performing portfolio, or have the highest CAPS rating on The Motley Fool. I aim for enough. And I’ve learned that enough can come from slow and steady progress, and that while frantic activity works for some, I have a different comfort zone. If I day traded I’d probably burn out my circuits within a month, regardless of my results.

Pushing is good. Without some effort nothing happens, unless something like gravity gets a chance to work. Just ask Wile E. Coyote. Eerp. A little constant and gentle effort accomplishes a lot, whether that is in training, endurance events, or reaching some financial goal. It makes sense to check if enough progress is being made, because some goals are tied to schedules. Everyone’s portfolio can become worth a million if it’s generating any positive return long enough, but a 20 year old has a better chance than a 50 year old of seeing it happen within their lifetime instead of just as part of their estate.

I’m breathing easier as I run, and am chafing against my locale’s limits, so I know I am progressing. I’m enjoying dance more, and I usually have a full dance card, so I must be doing something right. Even my meditation sessions are easier to fall into and tend to linger longer. My portfolio isn’t moving as quickly as I’d like, but I also know that the companies are doing better and that eventually the stock prices will follow their finances.

So, I guess I’ll take it easy for a while. I’ll practice a bit of karate today (kata is a good thing), which I’ve been doing now for 26 years. I’ve never been as good at it as I would like, though I am better than I was. And when those links are finally posted I’ll write a bit as a way to pass them along. But there’s no rush. Okay Tom, stop typing. Push yourself away from the computer. Easy now. Don’t hurt yourself.

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Writing Competition

Hey, for once the title isn’t some clever, yet obtuse word play. This post is actually about a writing competition. Details are below, and have been announced in other places too, but I wanted to spread the word farther. Feel free to do so yourself.

(If you just want to check into the competition, skip about halfway down or go directly to financialintegrity.org.)

For the curious, let me tell you a bit of my story.

Being labeled a stock investor means that some people brand me with a stereotype. They imagine that I think money is the most important thing, that I strive for luxury, and that money can make all problems go away.

Money isn’t everything, it is less powerful than people, and sometimes problems will arise that can’t be fixed by either. Money must be balanced with the other elements of life. But, if you don’t have enough, then living in today’s world can be difficult. That’s the way we’ve built our society. I look forward to a more equitable system, but this is the one we have right now.

An old confession for some and a new confession for others, I don’t have enough. Well, maybe I do, but my net worth is not at the comfort level I have calculated and witnessed, so for now I am tighter with my money than I like. From my experience, an awareness of myself, and from a frugal lifestyle, I believe that my net worth will claim to and through the “enough” level soon. That does not mean that my needs or wants will change, or that I will abandon my frugal ways. A lot of things will get fixed and replaced, there’ll be more charitable contributions, and I’ll take more vacations, but I don’t aspire to a mansions, limos, or yachts. A nice cruising sailboat, maybe about a 36 foot Westerly, or a Dragonfly Trimaran 8 meter would be nice, but I am human and I digress.

I learned my frugal ways from my parents, and have a new appreciation for the sustainability of such a lifestyle because of our current crises. My awareness of myself is largely self-taught through lots of reading, introspection, commiseration, and meditation. Knowing what’s “enough” though is something I learned from the 9-step program developed and popularized by Joe Dominguez and the Vicki Robin in seminars and the book, Your Money or Your Life. Those lessons reaffirmed many of my ingrained habits, helped me identify my values, and helped me calculate how much money I need to live that lifestyle.

Life takes interesting twists and a couple of years ago I was asked to join the board of The New Road Map Foundation, aka financialintegrity.org, the non-profit organization that was funded by the original seminars and that continues today to encourage financial literacy, integrity, and independence. I am not their poster-child. Others are more sterling examples. One thing I noticed when I joined was the diversity in people’s experiences as they journeyed towards their individual goals. I wrote about my story in Dream. Invest. Live., not because it was the best approach, it isn’t, but because it was simply another example. The other stories are more engaging and educational, but many of those people didn’t have the time, energy, or incentive to write their story.

Working towards financial goals, or becoming less fearful of money, can benefit from reading lots of stories. Someone has written something you can learn from. I took an entire book to write about mine experience, and continue this blog because I am not done. The stories don’t have to be as long as my book. Last year’s entries in New Road Map’s competition proved that. Birds will two bells and kids with cookie jars weren’t part of my experience, yet I learned from their few hundred words.

There’s room for more, and a demand for more because more people are looking for insight, encouragement, and instruction.

What’s your story? Writing it down probably won’t cost you much, and others may find it invaluable. Besides, you might get a check for your efforts. Ask a writer. Getting a check for writing is a great feeling.

Here are the instructions, slightly paraphrased from the original. The full details are on the site financialintegrity.org.

FinancialIntegrity.org (The New Road Map Foundation) is holding its second annual writing competition.

Around the world people are aligning their spending with their values. They’re trusting their own choices more than what the advertisers put forth. People are emphasizing financial integrity. Stories are being made, as real people make real choices and experience the bumps and bruises and triumphs of transforming their relationship with money. We want to hear those stories, and share them on the FinancialIntegrity.org web site. Whether you’re downsizing, scaling back, making progress through the 9-Step program, or just becoming aware of your financial situation, you have a story to tell, and we’d love to hear it.

Our goal is to make financialintegrity.org home to a vibrant community where members can find – and give – support and encouragement, no matter where they are on their financial journey. We invite you to join in through our writing competition. No submission process: simply upload your story to the website by the end of February 2011. No entry fee. No subject restrictions, other than that the story – or poem – should be about financial integrity. No word limit, though shorter is usually sweeter (under 500 words is best). A few hundred words that others will find entertaining and useful is what we have in mind, but feel free to surprise us, too.

This year, winners will be chosen in four categories, and a member of the FI community is contributing cash prizes for each! It’s also possible to win in multiple categories. So, a poem could sweep the competition if it was the best poem, the most useful, the most engaging, and was about following the 9 steps.

* Most Useful (specific hints or advice) $60
* Most Engaging (inspiring or entertaining) $60
* Best Lesson from the 9-steps (Financial Integrity Program) $60
* Best Poem (any format) $60

Remember that content is more important than style: What will inspire and help others striving for financial integrity?

In addition to the NRM Board members, we are pleased to welcome to the panel of judges last year’s winners ( Colleen, Candice, and Jeff). Winners will be announced the day after US Tax Day 2011 (mid-April.)

All stories will be owned by the author, but by entering the competition, you grant New Road Map Foundation and FinancialIntegrity.org rights for use on the web site, and in any communications, advertisements, and fund raising literature. The use of Creative Commons Copyright is encouraged.

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