See how this wise old owl can help us be better at focus in global investing and business.
Last week’s article Micro Business & Global Investing Success looked at the importance of concentration… of concentration in business…. investing and life.
The article argued that focused experience and information… focused beliefs, focused values and focused determination are threads that weave happiness and success.
Then this article shared how modern media…. especially the internet… might be detracting from concentration and even retraining our thought process to a shallower level.
It asked, “What will be the global consequences be if today’s children globally are being trained to have shallower thought?”
A reader replied to this message and said:
“Wow, Gary, your latest posting about concentration really caught my attention and made me slow down long enough to read (not scan) your entire article. As a teacher, I often plan lessons on my computer. I use the Internet to research information in order to supplement my lessons. My problem has been that I often spend so much time scanning websites and jumping from link to link that I lose my focus and it can take hours to write a simple 30-minute lesson.
“I, too, have worried about becoming addicted to the Internet. I was bragging to my friends that I don’t watch television, when I realized that my addiction to the world wide web could be just as brain numbing, or cause even more withdrawal symptoms than watching television.
“One way I have helped myself is by taking my laptop to a place where I don’t have Internet access. First, I make a mind map of my ideas on paper, and then I start putting my ideas on MS Word, inserting bolded notes in areas that I want to research or confirm later.
“I have had the same intuitive feeling that something was changing in our brains from the effects of reading online ‘where portals lead us on from one text, image, or video to another while we’re being bombarded by messages, alerts, and feeds’. As a reading teacher who works with children struggling to read, I have noticed a profound difference in those students who spend a lot of time surfing the Internet from those who don’t spend much time on the computer. The students who are addicted to surfing the Internet, text messaging, and video gaming, cannot seem to slow down enough to focus and read words on a printed page. It is almost as if it is painful for them to read this way. I have suggested to the school administration that these students seem to have a different way of reading that makes concentration difficult for them. Now a book delves into this theory.
“I will read the book, and I continue to look forward to your intuitive and timely postings.”
Yet concentration needs to be woven with diversification because in this material world, there is always something we do not know… no matter how much we concentrate. The quantum aspects of our existence are so complex that our logic can only see them as chaotic.
This is because of “sensitive dependence on initial conditions.” Take the weather as an example. The outcome of the weather… despite all our advances in understanding is unpredictable because it is so susceptible to the initial circumstances. Investing and business… our lives are the same…. unpredictable.
Who knows exactly where an individual cloud will be in the sky ten years from now? Or where we will be or any particular economy or investment?
We had an example at our farm of the importance of matching concentration with diversification. We always have a lot of excitement at the farm when we are preparing for our courses on international business and investing as many of our speakers come and stay in our cabins. We often have a lot of rushing to get everything in order.
Our helpers were rushing around when they a screech owl in the barn and wanted us to come down and see it.
I took my camera along and these shots perfectly depict in pictures what this message is trying to explain in words.
This is a bird’s eye view. Can you see the owl?
Perhaps and you see the whole picture, the rafters the steps, the walls.
But a bird’s eye view requires a complete picture, many dots we can connect.
See the owl better now?
Our fine feathered friend is easier to see. We know him better now.
Can we creep closer?
Yes. This was one brave owl and now we feel like we really know him.
However I decided to take my chances and walk up the steps. This and a zoom lens let us really see “Mr. Wise One”.
We see the color of his eyes and can literally count his feathers. This is what we try to do with our international investing and our micro business… get into all the details.
This often causes the downfall of a business… having too much concentration on the small stuff.
When we get too close… can we see the walls? Remember those rafters and the steps? Where are they now?
Global investing requires a complete view seeing both the broad horizons as well as the narrow perspective.
If we are too caught up seeing the trees, we miss the forest and having taken a glopbal view, we have expanded our forest… a lot!
So this week we will review several global investment and business thoughts blended with the idea of attaining the correct blend of concentration and diversification.
Today’s review is on Jyske Global Asset management’s Medium Risk Portfolio.
JGAM’s management team use a lot of concentrated research. They collect data from Jyske Bank, Morgan Stanley, Bank Credit Analysts and many other sources. The members of their portfolio management then filter this concentrated data through their knowledge and experience. Then they meet regularly to further concentrate all this data into a group consensus.
Hundreds of years of investing experience concentrated into a decision making process.
Yet that process creates a very diversified portfolio.
Here is JGAM’s current medium risk portfolio for investors with $200,000.
Currency Investment Percent of Portfolio
USD 5.800% E.ON 30.04.18 4.53%
USD 8.000% Mobile Tele 28.01.2012 5.06%
USD 6.000% EIB 14.08.13 5.31%
EUR 7.250% Bombardier 2016 2.20%
EUR 5.030% Gaz Capital 25.02.2014 3.25%
BRL 12.500% Brazil rep. of 05.01.16 4.99%
AUD 5,125% EIB 30.05.17 4.88%
CAD CAD – No.1 Interest Account 5.15%
Fixed income Subtotal 35.36%
CHF Kuehne & Nagel Intl AG 3.19%
CHF Nestle SA 2.99%
CHF Novartis 3.07%
DKK Carlsberg B 5.49%
DKK Neurosearch A/S 0.56%
DKK Novo Nordisk B 4.47%
EUR Adidas AG 1.83%
EUR Bayer AG 1.75%
EUR Siemens AG 1.95%
HKD China Mobile 5.49%
JPY Toshiba Corp 6502 3.14%
SEK ABB Ltd 3.10%
USD Apple Computer Inc. Com 4.07%
USD Cisco Systems Inc 1.97%
USD Gazprom-ADR (E/C) 3.02%
USD Teva Pharmaceutical ADR 3.92%
USD iShares Msci Ac Far East XJP 2.21%
Equities Subtotal 52.22%
USD ETFS Metal Secs Physical Gold 6.71%
Subtotal Alternatives: 6.71%
Cash: USD 5.71%
This is concentration and diversification in global investing action.
Join Merri and me in Copenhagen to learn better ways to concentrate and diversify your global investing.
See details on how to join Merri and me at Jyske’s bi annual Copenhagen seminar here Global Wealth Management Seminar.
We also really enjoy the restaurants and coffee shops along Nyhavn.
We need concentration and diversification for good global investing and business because we live in chaos.
When we combine our logic… intuition and experience we dramatically enhance the chances for success. One way to integrate these three assets of logic… intuition and experience is with music.
This quote is about Chaos Theory
“A Brief Introduction confirms a relation between music and the quantum aspects of our existence.
“Music can be created using fractals as well. Using the Lorenz attractor, Diana S. Dabby, a graduate student in electrical engineering at the Massachusetts Institute of Technology, has created variations of musical themes. (“Bach to Chaos: Chaotic Variations on a Classical Theme”, Science News, Dec. 24, 1994) By associating the musical notes of a piece of music like Bach’s Prelude in C with the x coordinates of the Lorenz attractor, and running a computer program, she has created variations of the theme of the song. Most musicians who hear the new sounds believe that the variations are very musical and creative.
See how music can help you learn to speak Spanish in just four days.
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