Valuable business and economic insights

by | Feb 27, 2001 | Archives

I just learned something I didn’t even know from my own book and want to share it here with you.

The best way to learn is to teach and I hoped my novel would give readers a fun read with insights about the fundamentals of wealth that I understood. I never imagined would interact with other minds and create new understands I have not even considered. The letter from a reader below who is the author of two highly successful business books shares insights about business and stock markets that can be valuable for you as well.

Dear Gary,

I purchased your book at Unity a week ago, and finished it on my trip last week to San Diego. on Sunday,

It was WONDERFUL. It kept me interested and engaged. I love your writing style — loaned it to friends on the West Coast.

Interestingly, I was flying to San Diego to give a 1/2 day morning workshop on strategic alliances — profession, when I received an urgent call in the Atlanta airport from Frost & Sullivan, the conference sponsors, asking if I could give a 1/2 day workshop on mergers & acquisitions (the speaker had a family emergency). While reading your book on the flight and that night, it all became so suddenly clear the fundamental difference between my work in alliances and my work in acquisitions, and why I like the former and dislike the latter. Alliances are inherently driven by vision and co-creation, while mergers and acquisitions are so dominated by those who are committed to control, fear, and greed. The power of alliances to create more is now borne out by the fact that 25% of the revenues of Fortune 500 companies are derived from alliances, and M&A has produced a net loss of value.

What also became very clear to me was the nature of the problems in the stock market. You would be more attuned to this than I, but it seems to me the nature of the stock market is based on a greed-fear cycle. For the last 10 years we were in a Greed cycle, hence the ratcheting up of the stocks to enormous P/E rations. Last March we began with a Fear cycle, first with NASDAQ Internet stocks, and now spreading throughout the entire market. I watched this very same cycle in New England, first with the boom of 1985-89, then the bust of 1989-1996. Now that I think I can read the greed-fear cycle, I might stand a chance of avoiding the plagues of investing.

On a related matter, I’m back from San Diego this week, settling down to begin writing my third and fourth books: “Breakthroughs in Cooperation — Mastering the Art of Strategic Alliances,” and “The Emerging Battle of Value Chains.”

These are valuable insights which I hope can help you in your good global investing!


The 65th Octave

Read Gary’s latest book, The 65th Octave