Financial Discipline Quotes

Let me list for you some of the many ways in which you might be afraid to live a more creative life: You’re afraid you have no talent. You’re afraid you’ll be rejected or criticized or ridiculed or misunderstood or—worst of all—ignored. You’re afraid there’s no market for your creativity, and therefore no point in pursuing it. You’re afraid somebody else already did it better. You’re afraid everybody else already did it better. You’re afraid somebody will steal your ideas, so it’s safer to keep them hidden forever in the dark. You’re afraid you won’t be taken seriously. You’re afraid your work isn’t politically, emotionally, or artistically important enough to change anyone’s life. You’re afraid your dreams are embarrassing. You’re afraid that someday you’ll look back on your creative endeavors as having been a giant waste of time, effort, and money. You’re afraid you don’t have the right kind of discipline. You’re afraid you don’t have the right kind of work space, or financial freedom, or empty hours in which to focus on invention or exploration. You’re afraid you don’t have the right kind of training or degree. You’re afraid you’re too fat. (I don’t know what this has to do with creativity, exactly, but experience has taught me that most of us are afraid we’re too fat, so let’s just put that on the anxiety list, for good measure.) You’re afraid of being exposed as a hack, or a fool, or a dilettante, or a narcissist. You’re afraid of upsetting your family with what you may reveal. You’re afraid of what your peers and coworkers will say if you express your personal truth aloud. You’re afraid of unleashing your innermost demons, and you really don’t want to encounter your innermost demons. You’re afraid your best work is behind you. You’re afraid you never had any best work to begin with. You’re afraid you neglected your creativity for so long that now you can never get it back. You’re afraid you’re too old to start. You’re afraid you’re too young to start. You’re afraid because something went well in your life once, so obviously nothing can ever go well again. You’re afraid because nothing has ever gone well in your life, so why bother trying? You’re afraid of being a one-hit wonder. You’re afraid of being a no-hit wonder

The practice of thrift is not outdated. We must discipline ourselves to live within our incomes even if it means going without or making do. The wise person can distinguish...between basic needs and extravagant wants. Some find budgeting extremely painful, but I promise you, it is never fatal.

To be truly challenging, a voyage, like a life, must rest on a firm foundation of financial unrest. Otherwise, you are doomed to a routine traverse, the kind known to yachtsmen who play with their boats at sea... "cruising" it is called. Voyaging belongs to seamen, and to the wanderers of the world who cannot, or will not, fit in. If you are contemplating a voyage and you have the means, abandon the venture until your fortunes change. Only then will you know what the sea is all about. "I've always wanted to sail to the south seas, but I can't afford it." What these men can't afford is not to go. They are enmeshed in the cancerous discipline of "security." And in the worship of security we fling our lives beneath the wheels of routine - and before we know it our lives are gone. What does a man need - really need? A few pounds of food each day, heat and shelter, six feet to lie down in - and some form of working activity that will yield a sense of accomplishment. That's all - in the material sense, and we know it. But we are brainwashed by our economic system until we end up in a tomb beneath a pyramid of time payments, mortgages, preposterous gadgetry, playthings that divert our attention for the sheer idiocy of the charade. The years thunder by, The dreams of youth grow dim where they lie caked in dust on the shelves of patience. Before we know it, the tomb is sealed. Where, then, lies the answer? In choice. Which shall it be: bankruptcy of purse or bankruptcy of life?

A person either disciplines his finances or his finances disciplines him.

It seems wrong and unfair that Christmas, with its stressful and unmanageable financial and emotional challenges, should first be forced upon one wholly against one's will, then rudely snatched away just when one is starting to get into it. Was really beginning to enjoy the feeling that normal service was suspended and it was OK to lie in bed as long as you want, put anything you fancy into your mouth, and drink alcohol whenever it should chance to pass your way, even in the mornings. Now suddenly we are all supposed to snap into self-discipline like lean teenage greyhounds.

A disciple does not ask, "How much can I keep?" but, "How much more can I give?" Whenever we start to get comfortable with our level of giving, it's time to raise it again.

I believe that through knowledge and discipline, financial peace is possible for all of us.

Human beings thrive when they are growing and developing and this requires discipline. Discipline and accountability keep us alive.

The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go. In the end, what matters isn’t crossing the finish line before anybody else but just making sure that you do cross it.8

Financial discipline demands that you have a budget. Control your money. Do not let money control you. Discipline yourself to make sure that the flow of your money is gong in the right direction at all times.

Financial planning and discipline is key to one's financial freedom.

Money is a powerful force. don't use it against you. If your self-discipline and financial intelligence are low, money will run over you. It will be smarter than you to take over your life.

One thing I am sure of in my Total Money Makeover: I had to quit telling myself that I had innate discipline and fabulous natural self-control. That is a lie. I have to put systems and programs in place that make me do smart things. Saying, “Cross my fingers and hope to die, I promise, promise, promise I will pay extra on my mortgage because I am the one human on the planet who has that kind of discipline,” is kidding yourself. A big part of being strong financially is that you know where you are weak and take action to make sure you don’t fall prey to the weakness. And we ALL are weak. Sick

Well, I divide the father question into three separate categories. First, there's the sire. He makes a baby, that's it. Doesn't necessarily have anything to do with the lamb once it's' planted, though he might. Anyone with a set of gonads can be a sire. Then there's the father. He also does the fertilization, but he sticks around provides support, both financial and emotional. Then in our little corner of the world we have daddies. A daddy is the more mature man in a sexual relationship, one who provides direction, discipline...and love for his brat.

Any good business person applies financial discipline to everything they do. The movie business is and should be no different; I don't believe you have to sacrifice creativity to have business success. To the contrary, great art requires discipline.

A 10% loss in any investment can be recovered, not by 10%, but only by 11% gain. A 50% loss in any investment can be recovered only by 100% gain. And a 90% loss in any investment can be recovered only by a whopping 1,000% gain. Yes, all the above statements are true. Numbers can confuse the best of financial wizards. It needs a rare trait of common sense to unravel the mysteries of finance. For your investments: - Keep them Simple. - Avoid Jargons. - Exhibit Discipline. - Be Consistent. - Apply Common Sense

There are two types of pain you will go through in life, the pain of discipline and the pain of regret. Discipline weighs ounces while regret weighs tons.

To procrastinate obedience is to disobey God.

We are being taught by everything around us to have dessert before dinner.” Now we are paying for our lack of knowledge and discipline.

There is one great advantage to being an academic economist in France: here, economists are not highly respected in the academic and intellectual world or by political and financial elites. Hence they must set aside their contempt for other disciplines and their absurd claim to greater scientific legitimacy, despite the fact that they know almost nothing about anything.

Knowing what we want to learn, along with the learning plan we created, will be crucial to how we filter our resources. Doing so will also help you financially, since you won’t need to purchase ten

This book is an essay in what is derogatorily called "literary economics," as opposed to mathematical economics, econometrics, or (embracing them both) the "new economic history." A man does what he can, and in the more elegant - one is tempted to say "fancier" - techniques I am, as one who received his formation in the 1930s, untutored. A colleague has offered to provide a mathematical model to decorate the work. It might be useful to some readers, but not to me. Catastrophe mathematics, dealing with such events as falling off a height, is a new branch of the discipline, I am told, which has yet to demonstrate its rigor or usefulness. I had better wait. Econometricians among my friends tell me that rare events such as panics cannot be dealt with by the normal techniques of regression, but have to be introduced exogenously as "dummy variables." The real choice open to me was whether to follow relatively simple statistical procedures, with an abundance of charts and tables, or not. In the event, I decided against it. For those who yearn for numbers, standard series on bank reserves, foreign trade, commodity prices, money supply, security prices, rate of interest, and the like are fairly readily available in the historical statistics.

The foundation stones of financial success are: Integrity—being honest with all people Discipline—applying self control Social skills—getting along with people A supportive spouse Hard work—more than most people

We can apply these five questions to our own attempts at building buffers. Think of the most important project you are trying to get done at work or at home. Then ask the following five questions: (1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience? Your

If you follow these simple truths, you will gain control over your financial future, and probably be able to accumulate millions and millions of dollars. These truths are not just about money, but about self discipline and the proof of love between yourself and your family. While I have gleaned these truths from the wisdom of the Jewish people, they will work for anyone in any setting regardless of religious background or income level. This is the oldest financial system in history and the only one that has survived the test of time.

The day you realise what small, incremental progress can achieve over a period of time, you would agree that SMALL is actually BIG, very BIG !! If you increase your daily productivity by just 1%, you end up doing 37.7 times more work by the end of the year - yes 37.7 times. 1 x 1 x 1.....365 times = 1 1.01 x 1.01 x 1.01 ...... 365 times = 37.7 Same way, Financial Freedom Planning is just the beginning. But only those who continue to go through the grind, track their financial freedom journey month on month - for years together, manifest the true power of SMALL !

While making money was good, having meaningful work and meaningful relationships was far better. To me, meaningful work is being on a mission I become engrossed in, and meaningful relationships are those I have with people I care deeply about and who care deeply about me. Think about it: It’s senseless to have making money as your goal as money has no intrinsic value—its value comes from what it can buy, and it can’t buy everything. It’s smarter to start with what you really want, which are your real goals, and then work back to what you need to attain them. Money will be one of the things you need, but it’s not the only one and certainly not the most important one once you get past having the amount you need to get what you really want. When thinking about the things you really want, it pays to think of their relative values so you weigh them properly. In my case, I wanted meaningful work and meaningful relationships equally, and I valued money less—as long as I had enough to take care of my basic needs. In thinking about the relative importance of great relationships and money, it was clear that relationships were more important because there is no amount of money I would take in exchange for a meaningful relationship, because there is nothing I could buy with that money that would be more valuable. So, for me, meaningful work and meaningful relationships were and still are my primary goals and everything I did was for them. Making money was an incidental consequence of that. In the late 1970s, I began sending my observations about the markets to clients via telex. The genesis of these Daily Observations (“ Grains and Oilseeds,” “Livestock and Meats,” “Economy and Financial Markets”) was pretty simple: While our primary business was in managing risk exposures, our clients also called to pick my brain about the markets. Taking those calls became time-consuming, so I decided it would be more efficient to write down my thoughts every day so others could understand my logic and help improve it. It was a good discipline since it forced me to research and reflect every day. It also became a key channel of communication for our business. Today, almost forty years and ten thousand publications later, our Daily Observations are read, reflected on, and argued about by clients and policymakers around the world. I’m still writing them, along with others at Bridgewater, and expect to continue to write them until people don’t care to read them or I die.

If you could have a gigantic billboard anywhere with anything on it, what would it say and why? “Discipline equals freedom.” Everyone wants freedom. We want to be physically free and mentally free. We want to be financially free and we want more free time. But where does that freedom come from? How do we get it? The answer is the opposite of freedom. The answer is discipline. You want more free time? Follow a more disciplined time-management system. You want financial freedom? Implement long-term financial discipline in your life. Do you want to be physically free to move how you want, and to be free from many health issues caused by poor lifestyle choices? Then you have to have the discipline to eat healthy food and consistently work out. We all want freedom. Discipline is the only way to get it. What is one of the best or most worthwhile investments you’ve ever made? Ever since I have had a home with a garage, I have had a gym in my garage. It is one of the most important factors in allowing me to work out every day regardless of the chaos and mayhem life delivers. The convenience of being able to work out any time, without packing a gym bag, driving, parking, changing, then waiting for equipment . . . The home gym is there for you. No driving. No parking. No little locker to cram your gear into. In your home gym, you never wait for equipment. It is waiting for you. Always. And, perhaps most important: You can listen to whatever music you want, as loud as you want. GET SOME.

Detroit is an extreme example of the fact that public-sector employment has become in effect a supplementary welfare state, with salaries and benefits – and, above all, pensions – entirely disconnected from legitimate municipal purposes. Unionized public-sector employees with a high degree of political discipline fortified by narrow financial self-interest become an unstoppable constituency, and the government becomes its own special-interest group.

Here are my simple rules for identifying market tops and bottoms: 1. Market tops are relatively easy to recognize. Buyers generally become overconfident and almost always believe “this time is different.” It’s usually not. 2. There’s always a surplus of relatively cheap debt capital to finance acquisitions and investments in a hot market. In some cases, lenders won’t even charge cash interest, and they often relax or suspend typical loan restrictions as well. Leverage levels escalate compared to historical averages, with borrowing sometimes reaching as high as ten times or more compared to equity. Buyers will start accepting overoptimistic accounting adjustments and financial forecasts to justify taking on high levels of debt. Unfortunately most of these forecasts tend not to materialize once the economy starts decelerating or declining. 3. Another indicator that a market is peaking is the number of people you know who start getting rich. The number of investors claiming outperformance grows with the market. Loose credit conditions and a rising tide can make it easy for individuals without any particular strategy or process to make money “accidentally.” But making money in strong markets can be short-lived. Smart investors perform well through a combination of self-discipline and sound risk assessment, even when market conditions reverse.

Washington is a city of spectacles. Every four years, imposing Presidential inaugurations attract the great and the mighty. Kings, prime ministers, heroes and celebrities of every description have been feted there for more than 150 years. But in its entire glittering history, Washington had never seen a spectacle of the size and grandeur that assembled there on August 28, 1963. Among the nearly 250,000 people who journeyed that day to the capital, there were many dignitaries and many celebrities, but the stirring emotion came from the mass of ordinary people who stood in majestic dignity as witnesses to their single-minded determination to achieve democracy in their time. They came from almost every state in the union; they came in every form of transportation; they gave up from one to three days' pay plus the cost of transportation, which for many was a heavy financial sacrifice. They were good-humored and relaxed, yet disciplined and thoughtful. They applauded their leaders generously, but the leaders, in their own hearts, applauded their audience. Many a Negro speaker that day had his respect for his own people deepened as he felt the strength of their dedication. The enormous multitude was the living, beating heart of an infinitely noble movement. It was an army without guns, but not without strength. It was an army into which no one had to be drafted. It was white and Negro, and of all ages. It had adherents of every faith, members of every class, every profession, every political party, united by a single ideal. It was a fighting army, but no one could mistake that its most powerful weapon was love.

From the moneyless economics of the classical school there evolved modern, orthodox macroeconomics: the science of monetary society taught in universities and deployed by central banks. From the practitioners’ economics of Bagehot, meanwhile, there evolved the academic discipline of finance—the tools of the trade taught in business schools, used by bankers and bond traders. One was an intellectual framework for understanding the economy without money, banks, and finance. The other was a framework for understanding money, banks, and finance, without the rest of the economy. The result of this intellectual apartheid was that when in 2008 a crisis in the financial sector caused the biggest macroeconomic crash in history, and when the economy failed to recover afterwards because the banking sector was broken, neither modern macroeconomics nor modern finance could make head nor tail of it.

The harsh truth is that the most important driver in the growth of your assets is how much you save, and saving requires discipline. Without a regular savings program, it doesn’t matter if you make 5 percent, 10 percent, or even 15 percent on your investment funds. The single most important thing you can do to achieve financial security is to begin a regular savings program and to start it as early as possible. The only reliable route to a comfortable retirement is to build up a nest egg slowly and steadily. Yet few people follow this basic rule, and the savings of the typical American family are woefully inadequate. It is critically important to start saving now. Every year you put off investing makes your ultimate retirement goals more difficult to achieve. Trust in time rather than in timing. As a sign in the window of a bank put it, little by little you can safely stock up a strong reserve here, but not until you start.

The strongest evidence yet was published in 2010. In a painstaking long-term study, much larger and more thorough than anything done previously, an international team of researchers tracked one thousand children in New Zealand from birth until the age of thirty-two. Each child’s self-control was rated in a variety of ways (through observations by researchers as well as in reports of problems from parents, teachers, and the children themselves). This produced an especially reliable measure of children’s self-control, and the researchers were able to check it against an extraordinarily wide array of outcomes through adolescence and into adulthood. The children with high self-control grew up into adults who had better physical health, including lower rates of obesity, fewer sexually transmitted diseases, and even healthier teeth. (Apparently, good self-control includes brushing and flossing.) Self-control was irrelevant to adult depression, but its lack made people more prone to alcohol and drug problems. The children with poor self-control tended to wind up poorer financially. They worked in relatively low-paying jobs, had little money in the bank, and were less likely to own a home or have money set aside for retirement. They also grew up to have more children being raised in single-parent households, presumably because they had a harder time adapting to the discipline required for a long-term relationship. The children with good self-control were much more likely to wind up in a stable marriage and raise children in a two-parent home. Last, but certainly not least, the children with poor self-control were more likely to end up in prison. Among those with the lowest levels of self-control, more than 40 percent had a criminal conviction by the age of thirty-two, compared with just 12 percent of the people who had been toward the high end of the self-control distribution in their youth.

As we’ve seen, one of the most frequently pursued paths for achievement-minded college seniors is to spend several years advancing professionally and getting trained and paid by an investment bank, consulting firm, or law firm. Then, the thought process goes, they can set out to do something else with some exposure and experience under their belts. People are generally not making lifelong commitments to the field in their own minds. They’re “getting some skills” and making some connections before figuring out what they really want to do. I subscribed to a version of this mind-set when I graduated from Brown. In my case, I went to law school thinking I’d practice for a few years (and pay down my law school debt) before lining up another opportunity. It’s clear why this is such an attractive approach. There are some immensely constructive things about spending several years in professional services after graduating from college. Professional service firms are designed to train large groups of recruits annually, and they do so very successfully. After even just a year or two in a high-level bank or consulting firm, you emerge with a set of skills that can be applied in other contexts (financial modeling in Excel if you’re a financial analyst, PowerPoint and data organization and presentation if you’re a consultant, and editing and issue spotting if you’re a lawyer). This is very appealing to most any recent graduate who may not yet feel equipped with practical skills coming right out of college. Even more than the professional skill you gain, if you spend time at a bank, consultancy, or law firm, you will become excellent at producing world-class work. Every model, report, presentation, or contract needs to be sophisticated, well done, and error free, in large part because that’s one of the core value propositions of your organization. The people above you will push you to become more rigorous and disciplined, and your work product will improve across the board as a result. You’ll get used to dressing professionally, preparing for meetings, speaking appropriately, showing up on time, writing official correspondence, and so forth. You will be able to speak the corporate language. You’ll become accustomed to working very long hours doing detail-intensive work. These attributes are transferable to and helpful in many other contexts.

Delaying gratification is a process of scheduling the pain and pleasure of life in such a way as to enhance the pleasure by meeting and experiencing the pain first and getting it over with.” He adds, “It is the only decent way to live.” I completely agree, but there’s more. In addition to delaying gratification, discipline demands that you also make key decisions in advance—relationally, physically, financially and spiritually. Let’s keep going. Relationally. Delayed gratification is important first and foremost in training children. A lot of parents are unwilling to make the sacrifices that are necessary in order to meet their children’s deepest needs. A promotion at work, a TV show or a nap on the sofa may all seem much more enticing than playing Candy Land with a three-year-old. There’s no question about it: it is hard to devote yourself wholeheartedly and regularly to bringing up your children properly. But hard work during the children’s early, impressionable years usually forms strong character in them. Parents who discipline themselves to do this, trusting God for the strength to keep going, are likely to enjoy the payoff of a lifetime of solid relationships with their children.

Know What You Believe What are your values today with regard to your work and your career? Do you believe in the values of integrity, hard work, dependability, creativity, cooperation, initiative, ambition, and getting along well with people? People who live these values in their work are vastly more successful and more highly esteemed than people who do not. What are your values with regard to your family? Do you believe in the importance of unconditional love, continuous encouragement and reinforcement, patience, forgiveness, generosity, warmth, and attentiveness? People who practice these values consistently with the important people in their lives are much happier than people who do not. What are your values with regard to money and financial success? Do you believe in the importance of honesty, industry, thrift, frugality, education, excellent performance, quality, and persistence? People who practice these values are far more successful in their financial lives than those who do not, and they achieve their financial goals far faster as well. What about your health? Do you believe in the importance of self-discipline, self-mastery, and self-control with regard to diet, exercise, and rest? Do you set high standards for health and fitness and then work every day to live up to those standards? People who practice these values live longer, healthier lives than people who do not.

Man is an irrational creature...for he seeks pleasure instead of abstinence, lies and deceit, instead of counsel and advice, violence and war, instead of withhold and peace, and easy wanton ignorance and gluttony, instead of hard sought after wisdom and moderation...man has grown indifferent to the sufferings of his fellow man and neighbor, for he only cares as to whether there is any monetary gain or financial reward, for his immediate and erstwhile assistance...man, in this current age, has completely lost the ability to engage in disciplined learning and fair and honest debate, for instead he would rather believe in lies and falsehoods, for it only confirms his prejudicial beliefs and irrational fears, all fed to him by the so-called, "fair and balanced" news media...he is a patriot for all the wrong reasons, for his patriotism is one of selfish jingoism, instead of an objective and unadulterated, "universal brotherhood", that seeks to find common ground and common solutions across the diplomatic table, instead of blind "sabre rattling" and childish and superficial flag waving...man's blind and puerile barbarism is what will ultimately do him in, in the very end, for the prophets of the present who tried to warn him as he stood at the edge of a moral and spiritual precipice, will be the ones who will wear a quiet and confirming smile, as man and his erstwhile shadow of ignorance, will be cast into the bottomless pit, of eternal damnation and doom...

You’re afraid you have no talent. You’re afraid you’ll be rejected or criticized or ridiculed or misunderstood or—worst of all—ignored. You’re afraid there’s no market for your creativity, and therefore no point in pursuing it. You’re afraid somebody else already did it better. You’re afraid everybody else already did it better. You’re afraid somebody will steal your ideas, so it’s safer to keep them hidden forever in the dark. You’re afraid you won’t be taken seriously. You’re afraid your work isn’t politically, emotionally, or artistically important enough to change anyone’s life. You’re afraid your dreams are embarrassing. You’re afraid that someday you’ll look back on your creative endeavors as having been a giant waste of time, effort, and money. You’re afraid you don’t have the right kind of discipline. You’re afraid you don’t have the right kind of work space, or financial freedom, or empty hours in which to focus on invention or exploration. You’re afraid you don’t have the right kind of training or degree. You’re afraid you’re too fat. (I don’t know what this has to do with creativity, exactly, but experience has taught me that most of us are afraid we’re too fat, so let’s just put that on the anxiety list, for good measure.) You’re afraid of being exposed as a hack, or a fool, or a dilettante, or a narcissist. You’re afraid of upsetting your family with what you may reveal. You’re afraid of what your peers and coworkers will say if you express your personal truth aloud. You’re afraid of unleashing your innermost demons, and you really don’t want to encounter your innermost demons. You’re afraid your best work is behind you. You’re afraid you never had any best work to begin with. You’re afraid you neglected your creativity for so long that now you can never get it back. You’re afraid you’re too old to start. You’re afraid you’re too young to start. You’re afraid because something went well in your life once, so obviously nothing can ever go well again. You’re afraid because nothing has ever gone well in your life, so why bother trying? You’re afraid of being a one-hit wonder. You’re afraid of being a no-hit wonder . . . Listen, I don’t have all day here, so I’m not going to keep listing fears. It’s a bottomless list, anyhow, and a depressing one. I’ll just wrap up my summary this way: SCARY, SCARY, SCARY. Everything is so goddamn scary. Defending Your Weakness Please understand that the only reason I can speak so authoritatively about fear is that I know it so intimately.

The enemy won some points at the very beginning. On both of the two days preceding his remarks about Worth, Hitchcock notes that American deserters had been shot while crossing the Rio Grande. Probably they were just bored with army rations but there was some thought that they might be responding to a proclamation of General Ampudia’s which spies had been able to circulate in camp. Noting the number of Irish, French, and Polish immigrants in the American force, Ampudia had summoned them to assert a common Catholicism, come across the river, cease “to defend a robbery and usurpation which, be assured, the civilized nations of Europe look upon with the utmost indignation,” and settle down on a generous land bounty. Some of them did so, and the St. Patrick Battalion of American deserters was eventually formed, fought splendidly throughout the war, and was decimated in the campaign for Mexico City — after which its survivors were executed in daily batches.… This earliest shooting of deserters as they swam the Rio Grande, an unwelcome reminder that war has ugly aspects, at once produced an agitation. As soon as word of it reached Washington, the National Intelligencer led the Whig press into a sustained howl about tyranny. In the House J. Q. Adams rose to resolve the court-martial of every officer or soldier who should order the killing of a soldier without trial and an inquiry into the reasons for desertion. He was voted down but thereafter there were deserters in every Whig speech on the conduct of the war, and Calm Observer wrote to all party papers that such brutality would make discipline impossible. But a struggling magazine which had been founded the previous September in the interest of sports got on a sound financial footing at last. The National Police Gazette began to publish lists of deserters from the army, and the War Department bought up big editions to distribute among the troops. Taylor sat in his field works writing prose. Ampudia’s patrols reconnoitered the camp and occasionally perpetrated an annoyance. Taylor badly needed the Texas Rangers, a mobile force formed for frontier service in the Texas War of Independence and celebrated ever since. It was not yet available to him, however, and he was content to send out a few scouts now and then. So Colonel Truman Cross, the assistant quartermaster general, did not return from one of his daily rides. He was still absent twelve days later, and Lieutenant Porter, who went looking for him with ten men, ran into some Mexican foragers and got killed.

let’s frame our definition of success as: life (health), liberty (financial freedom), and the realization of happiness.

Learned Optimism: Expecting a Positive Outcome In Learned Optimism, Martin Seligman provides information that has tremendous implications for teams that want to develop the persistence to achieve their business goals. Optimistic team members believe they will be successful and believe they are responsible for their success. Pessimistic team members do not believe they will be successful and believe that nothing they do will improve their results. For these reasons, optimistic team members are resilient and will persist when things get tough, while pessimistic team members give up. Seligman led a research team that demonstrated that optimism and helplessness are learned. His work suggests that when team members decide that nothing they do matters, they feel helpless and will do little to improve their situation. The good news that came from discovering that helplessness can be learned is the revelation that optimism can also be learned. Of particular importance is how team members explain setbacks to themselves. Optimistic team members explain setbacks as temporary, specific, and, where appropriate, externally caused. They do not view the event as long-lasting or permanent. They believe that the event is a temporary setback that can be corrected and refuse to consider it a catastrophe. For them, it is a single event with a specific negative impact. Finally, they only own the result if they should. Optimistic team members don't own the negative returns if the market goes down. Pessimistic team members are on the other end of the continuum. They explain setbacks as permanent, pervasive, and personal. They believe the negative setback is long-lasting. They globalize the setback and believe “all hell is breaking loose.” Pessimistic team members also believe that they are responsible for the setback even when they are not. To make matters worse, pessimistic team members tend to play the setback over and over again in their minds. Because we tend to move toward those things we think about, this ruminating can lead to a self-fulfilling prophecy. Teams reflect the attitudes of the individual team members. If team members explain setbacks as temporary, specific, and (where appropriate) externally caused, the team will be optimistic about their future success and will continue to persist. However, if as a group a team tends to explain setbacks as permanent, pervasive, and caused by the team members, the team will develop a pessimistic explanatory style and will quit, giving up on their goals. What seems to be of lesser importance in developing team persistence is how teams and their members explain successes to themselves. It is interesting that explanatory styles are completely turned around when they experience success. Optimistic teams explain the success as permanent, pervasive, and personally caused. Pessimistic teams explain successes as temporary, specific, and externally caused.

Today’s boards don’t need chief marketing officers who have creative flair but no financial discipline.

In many Western countries, the 1970s were the peak of both the average standard of living and income equality. Today we face a crisis of capitalism on the scale of the Great Depression — and that crisis only ended with the Second World War’s bonfire of value. Such crises are for some reason taken as an opportunity for the left, as if the backdrop of immiseration provides an impetus for action, rather than a millstone around the necks of those it intends to emancipate. It is no coincidence that labour militancy tends to correlate with economic security and a lack of indebtedness. As it is, we are stretched out upon the rack of financial discipline.

An orderly deleveraging of an overheated market can be a good thing, even if some big companies fail. That’s how capitalism is supposed to work: weak, bloated, and mismanaged firms make way for more dynamic competitors. Creative destruction instills discipline in the survivors.

Many of the Abbott disciplines trace back to 1968, when it hired a remarkable financial officer named Bernard H. Semler. Semler did not see his job as a traditional financial controller or accountant. Rather, he set out to invent mechanisms that would drive cultural change. He created a whole new framework of accounting that he called Responsibility Accounting, wherein every item of cost, income, and investment would be clearly identified with a single individual responsible for that item.4 The idea, radical for the 1960s, was to create a system wherein every Abbott manager in every type of job was responsible for his or her return on investment, with the same rigor that an investor holds an entrepreneur responsible. There would be no hiding behind traditional accounting allocations, no slopping funds about to cover up ineffective management, no opportunities for finger-pointing.

It is imperative, too, that every strategy takes into account an analysis and understanding of the global financial and economic environment marked by slower growth, increased competition, altered consumer behavior, and more government intervention.

The opponents’ most substantive argument was that, whatever the short-run benefits of bailouts, protecting firms from the consequences of their own risky behavior would lead to riskier behavior in the longer run. I certainly agreed that, in a capitalist system, the market must be allowed to discipline individuals or firms that make bad decisions. Frank Borman, the former astronaut who became CEO of Eastern Airlines (which went bankrupt), put it nicely a quarter-century earlier: “Capitalism without bankruptcy is like Christianity without hell.” But in September 2008 I was absolutely convinced that invoking moral hazard in the middle of a major financial crisis was misguided and dangerous. I am sure that Paulson and Geithner agreed. “You have a neighbor, who smokes in bed. . . . Suppose he sets fire to his house,” I would say later in an interview. “You might say to yourself . . . ‘I’m not gonna call the fire department. Let his house burn down. It’s fine with me.’ But then, of course, what if your house is made of wood? And it’s right next door to his house? What if the whole town is made of wood?” The editorial writers of the Financial Times and the Wall Street Journal in September 2008 would, presumably, have argued for letting the fire burn. Saving the sleepy smoker would only encourage others to smoke in bed. But a much better course is to put out the fire, then punish the smoker, and, if necessary, make and enforce new rules to promote fire safety.

If we feel ourselves valuable, then we will feel our time to be valuable, and if we feel our time to be valuable, then we will want to use it well. The financial analyst who procrastinated did not value her time. If she had, she would not have allowed herself to spend most of her day so unhappily and unproductively. It was not without consequence for her that throughout her childhood she was “farmed out” during all school vacations to live with paid foster parents although her parents could have taken care of her perfectly well had they wanted to. They did not value her. They did not want to care for her. So she grew up feeling herself to be of little value, not worth caring for; therefore she did not care for herself. She did not feel she was worth disciplining herself. Despite the fact that she was an intelligent and competent woman she required the most elementary instruction in self-discipline because she lacked a realistic assessment of her own worth and the value of her own time. Once she was able to perceive her time as being valuable, it naturally followed that she wanted to organize it and protect it and make maximum use

To sum it up: Discipline + Self-denial = Cents for the Kingdom!

They let disappointments destroy them. Disappointment is inevitable when you are attempting to do anything of great scale. Instead, let your disappointments drive you to find new answers; discipline your disappointments

When Landgren concocted false figures to explain some of the numbers in the financial statements, the auditors quickly found the fabrication and negotiations fell apart. W. E. Seatree, a lawyer and an accountant with Price Water-house, dashed off an angry letter directly to Ivar, in the formal style of someone who had proudly mastered the disciplines of both law and accounting during the early twentieth century: You will note that we did not certify the balance sheet. Mr Landgren’s letter is obviously an attempt to make it appear to you that he had accomplished something; but the fact that he had to resort to forgery to accomplish his purpose is the best proof of his failure. The euphemism, that he was going to issue a so-called copy of our balance sheet leaving out parts which were of material importance, does not disguise the true nature of his action.37 When Price Waterhouse lost confidence in Ivar, so did Fairburn and Diamond Match. Ivar tried to repair the damage by asking Jordahl to retain an independent outside accountant to vouch for their new US business. Ernst & Ernst, a reliable audit firm, completed a review of American Kreuger & Toll’s financial statements in June, but by then it was too late.38 The damage was done, and so were the negotiations.

I tried to be disciplined about focusing on the problems in front of us, thinking about ways we could help make things better, trying to anticipate where the fire would spread next.

Now in his forties, Ivar had become a creature of habit and discipline. He was anxious not to become fat, so he ate little throughout the day. Ivar preferred vegetarian dishes, especially fruit. He rarely drank alcohol, and never at lunch, though he was capable of consuming large amounts of vodka, usually without the slightest sign of being drunk. Ivar didn’t smoke in the apartment either. He was a highly disciplined man, his one weakness being a fondness for sweet things, especially jams, marmalades, and all kinds of desserts, which he rarely kept at home.

Researchers and research organizations who aim to 'change the way people think or do' must have the freedom, not only to be contrarian, bot also the be wrong. Contrariness sometimes leads to failure, but from failure comes learning, and from learning very often comes implausible utility, the useful and surprising. Contrariness is not the only thing required of researchers to achieve implausible utility, however. The second thing that is required is informedness. Conventional wisdom and existing paradigms 'work' - that is why we adopt them in the first place and that is why we resist so strongly their overthrow. If a researcher is going to take seriously observations and ideas that go against conventional wisdom, the researcher had better have good reasons for doing so - and the discipline to develop those good reasons. These reasons we call informedness - 'inside' knowledge or capabilities the researcher possess that the researcher's peers don't yet have. This inside knowledge makes the researcher think the researcher is right and conventional wisdom is wrong. The researcher is an 'informed contrarian,' going against conventional wisdom but in an informed way to reduce the tremendous risk associated with going against that very wisdom. Like a financial arbitrageur who uses greater informedness about the true value of an asset to buy those assets currently undervalued by conventional wisdom, informed contrarian researchers are research arbitrageurs who use their greater informedness about the value of a research observation or idea to take seriously those ideas currently undervalued by conventional wisdom.

(1) What risks do we face and where? (2) What assets and populations are exposed and to what degree? (3) How vulnerable are they? (4) What financial burden do these risks place on individuals, businesses, and the government budget? and (5) How best can we invest to reduce risks and strengthen economic and social resilience?

(1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience?

Don’t start a business if your reason is simply to get rich quick. Greed is not becoming and does not have lasting results. No matter when you are presented with barrels full of money, you DO pay for them. Even if you collect your money prior to any effort, like a lottery winner, for example, nature still has an uncanny way of making you earn it. If you’re lucky, your windfall may be earned through the rapid mastery of a new financial discipline. But all too often the earning comes in the form of despair, disaster, and bankruptcy.

Personally, I like to buy shares on a modest valuation - ideally, say, a dividend yield of 5-6% - and on a single-figure PER. Apart from the obvious attractions of receiving the dividend, the payment of a dividend acts as a significant discipline on the Board of a PLC in that it has to find the cash, each year, to pay those dividends.

Just like dollar-cost averaging, the discipline once again makes you invest in underperforming assets when their prices are low, so that you own lots of them when their prices go up.

Discipline equals freedom.” Everyone wants freedom. We want to be physically free and mentally free. We want to be financially free and we want more free time. But where does that freedom come from? How do we get it? The answer is the opposite of freedom. The answer is discipline. You want more free time? Follow a more disciplined time-management system. You want financial freedom? Implement long-term financial discipline in your life. Do you want to be physically free to move how you want, and to be free from many health issues caused by poor lifestyle choices? Then you have to have the discipline to eat healthy food and consistently work out. We all want freedom. Discipline is the only way to get it.

Financial discipline is blind to income.

the financial statements, rather than being a driver or goal of the business creation process, become simply the by-product of clear and disciplined strategic thinking. Analogs, antilogs, the leaps of faith that follow from them, and the well thought out dashboards that measure the outcomes of the hypothesis tests are what make this process happen. And the business model that results—a revenue model, gross margin model, and all the rest—is the output of the process.

You’re afraid you have no talent. You’re afraid you’ll be rejected or criticized or ridiculed or misunderstood or—worst of all—ignored. You’re afraid there’s no market for your creativity, and therefore no point in pursuing it. You’re afraid somebody else already did it better. You’re afraid everybody else already did it better. You’re afraid somebody will steal your ideas, so it’s safer to keep them hidden forever in the dark. You’re afraid you won’t be taken seriously. You’re afraid your work isn’t politically, emotionally, or artistically important enough to change anyone’s life. You’re afraid your dreams are embarrassing. You’re afraid that someday you’ll look back on your creative endeavors as having been a giant waste of time, effort, and money. You’re afraid you don’t have the right kind of discipline. You’re afraid you don’t have the right kind of work space, or financial freedom, or empty hours in which to focus on invention or exploration. You’re afraid you don’t have the right kind of training or degree. You’re afraid you’re too fat. (I don’t know what this has to do with creativity, exactly, but experience has taught me that most of us are afraid we’re too fat, so let’s just put that on the anxiety list, for good measure.) You’re afraid of being exposed as a hack, or a fool, or a dilettante, or a narcissist. You’re afraid of upsetting your family with what you may reveal. You’re afraid of what your peers and coworkers will say if you express your personal truth aloud. You’re afraid of unleashing your innermost demons, and you really don’t want to encounter your innermost demons. You’re afraid your best work is behind you. You’re afraid you never had any best work to begin with. You’re afraid you neglected your creativity for so long that now you can never get it back. You’re afraid you’re too old to start. You’re afraid you’re too young to start. You’re afraid because something went well in your life once, so obviously nothing can ever go well again. You’re afraid because nothing has ever gone well in your life, so why bother trying? You’re afraid of being a one-hit wonder. You’re afraid of being a no-hit wonder

A call to detach ourselves from the myth that the only and best way to raise a child depends on the presence of a man we call a father. It’s also a call to reexamine what we expect from fathers, present or not. What’s imagined is Cliff Huxtable trading wit and canned wisdom with his children before traipsing off to a job that enables to provide financially and then coming home to hand out a healthy dose of necessary discipline to keep the children well-behaved. What’s real is that having a father in the home increases the likelihood for abuse for both the spouse and children. What’s real are fathers who are broken and showing up to fill a role that they themselves are struggling to understand. We have spent so much time valorizing the mere existence of fathers we haven’t discussed what type of fathers they will be. We haven’t shown any concern for whether or not these fathers show up as full, healthy human beings.

pressures and intense learning curve It takes time to get up to speed on the content of your new position, and yet business and markets cannot slow down and wait for you to catch up. Decisions still need to be taken and, consequently, the pressure can build up and will need to be managed in order to stay operating effectively. Being overwhelmed with immediate fire-fighting and task-driven priorities It would be tempting to get busy and dive into the immediate business tasks and issues. But you need to have the strength of character to step back and take time out to look at the big picture: what tasks should you continue, what should you stop, and what should you start? Need to invest energy in building new networks and forging new stakeholder relationships There is no point in having the right vision and strategy in isolation of bringing people with you. The culture may be dense and slow-moving – people may be resistant to the changes you bring. Invest early in the influencer and stakeholder network. Dealing with legacy issues from the predecessor Depending on the quality of your predecessor, your unit may or may not have a good reputation, and your team may have developed poor habits, behaviours and disciplines that will take time to address. Or you may have to endure the scenario of filling the shoes of a much-loved predecessor, and being initially resented as the new guy whose mandate is to change how things have always been done before. Challenges on inheriting or building a team and having to make tough personnel decisions Don’t expect underperformers to have been weeded out prior to your arrival. A key task in your first 100 days will be to assess the quality of your team: who stays, who goes and what fresh talent is needed on board. Unfortunately, your best talent is possibly now de-motivated and resentful – and consequently underperforming – because they applied unsuccessfully for your job. For external appointments, a lack of experience of the new company culture may lead to inadvertent gaffes and early political blunders – all of which can take time to recover From the innocuous to the significant, everything you do is being judged as indicative of your character. Checking your smart device during a meeting may deeply offend your new role stakeholders who may judge that action as an indication that you are brash, uninterested and arrogant. You will need to be on ‘hyper alert’ to consciously pick up clues on the acceptable norms and behaviours in your new culture. Getting the balance right between moving too fast and moving too slowly Newly appointed people sometimes panic and this can result in either doing too much (scattergun approach, but not tackling the core issues) or doing too little (‘I’ll just listen and learn for the first three months, and then decide what to do’). Neither extreme cuts it. Find the right balance.

The biomedical world that I thought I was living in has been revealed to be a sham. The legitimacy of the industry and discipline that I have committed my entire professional life to is in shambles. I am now embarrassed to call myself a vaccines and biodefense expert, because the fundamental corruption inherent in those domains has been so clearly revealed. I cannot unsee what I have seen. I cannot recapture all of those years spent in a profoundly corrupt academic system, spent supporting a deeply compromised discipline that appears primarily driven by financial interests rather than by what I had naively believed was a commitment to saving lives. I chose to not pursue the careers of my father and father-in-law, which were spent building weapons of war. Only to find that I had inadvertently played a significant role in enabling one of the most tragic medical follies in the history of man.

Think of the most important project you are trying to get done at work or at home. Then ask the following five questions: (1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience?

In contrast, something as simple as pre-scheduled workouts acts as scaffolding around which you can more effectively plan and execute your day. This gives you a greater sense of agency and feeling of freedom. Jocko adds, “It also means that if you want freedom in life—be that financial freedom, more free time, or even freedom from sickness and poor health—you can only achieve these things through discipline.

Financial Issues People with self-control issues will either not have a budget or have pretty hard time sticking to one. They’re easily swayed by their impulses and sweet discounts on stuff they don’t even need.

This book celebrates the idea that the answers to many of these questions will emerge only by thinking across disciplines.

The starting point of achieving financial independence is to discipline yourself to rewire your attitude toward money. You need to reach into your subconscious mind and disconnect the wire linking “spending” and “happiness.” You need to then reconnect that “happiness” wire to the “saving and investing” wire.

One of your chief responsibilities to yourself is to work toward financial independence and financial freedom throughout your life. The happiest of all people are those who have reached the point at which they no longer worry about money.

Felipe Hernandez, a proficient accountant from Lufkin, Texas brings a unique blend of professionalism and passion to his work. While he excels in his financial career, Felipe also possesses a deep love for sports. As a skilled tennis player and Pickleball enthusiast, he understands the importance of discipline and perseverance. Furthermore, Felipe finds solace in reading scripture and relishes the harmonious melodies of the music. Above all, his dedication to his clients and commitment to delivering transparent financial reporting drives his professional endeavors.

Doubt will creep in. Life will interfere at times, whether that means distractions, financial obligations, or health detours. Yet, in each of these situations you can learn skills and disciplines that can serve as steppingstones. They might not make sense now, but each one can offer something valuable for the next season.

people to get drunk. So he banned alcohol completely from the events, and, of course, they were never quite the same after that.” They did get a little wild for me, I guess. But if nothing else, our meetings generated a lot of talk about us back on Wall Street—not all of it good, I’m sure—but the ones who paid attention understood that we were serious operators who were in it for the long haul, that we had a disciplined financial philosophy, and that we had growth on our minds.

A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists. The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the “margin of safety”—never overpaying, no matter how exciting an investment seems to be—can you minimize your odds of error. The secret to your financial success is inside yourself. If you become a critical thinker who takes no Wall Street “fact” on faith, and you invest with patient confidence, you can take steady advantage of even the worst bear markets. By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.

Whether through the secretive system of international courts, international institutions that exploit crises to force neoliberal policies on poor states, or a financial system designed to discipline disobedient governments into submission, the international rules-based system restricts and undermines development. This is not a problem for the businesses that profit from the exploitation of poor countries and their people. In fact, were it not for these inequalities between the rich and the poor worlds, global capitalism could not exist. Empire is, in this sense, about more than formal colonization -it refers to all the ways in which the world's most powerful countries and the international institutions they dominate plan economic activity at the level of the global economy. The international financial system was constructed and designed quite self-consciously by neoliberals who, while claiming to abhor planning of any kind, were quite happy to support planning that protected the interests of capitalists in the rich world. But maybe the neoliberals were not being completely cynical when they claimed to champion the ideals of freedom and democracy. Maybe they just thought these things should only even be available to people like them.

Graham developed his core principles, which are at least as valid today as they were during his lifetime: A stock is not just a ticker symbol or an electronic blip; it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists. The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. No matter how careful you are, the one risk no investor can ever eliminate is the risk of being wrong. Only by insisting on what Graham called the “margin of safety”—never overpaying, no matter how exciting an investment seems to be—can you minimize your odds of error. The secret to your financial success is inside yourself. If you become a critical thinker who takes no Wall Street “fact” on faith, and you invest with patient confidence, you can take steady advantage of even the worst bear markets. By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.

Dimon is known for bringing his brand of discipline and accountability to JPMorgan Chase,

the first thing is that a leader needs to be able to assemble and have a disciplined team. That discipline supports the whole team. It’s the work ethic; it’s the constant facts and analysis, constantly delving into it.

what to do about it. Let me list for you some of the many ways in which you might be afraid to live a more creative life: You’re afraid you have no talent. You’re afraid you’ll be rejected or criticized or ridiculed or misunderstood or—worst of all—ignored. You’re afraid there’s no market for your creativity, and therefore no point in pursuing it. You’re afraid somebody else already did it better. You’re afraid everybody else already did it better. You’re afraid somebody will steal your ideas, so it’s safer to keep them hidden forever in the dark. You’re afraid you won’t be taken seriously. You’re afraid your work isn’t politically, emotionally, or artistically important enough to change anyone’s life. You’re afraid your dreams are embarrassing. You’re afraid that someday you’ll look back on your creative endeavors as having been a giant waste of time, effort, and money. You’re afraid you don’t have the right kind of discipline. You’re afraid you don’t have the right kind of work space, or financial freedom, or empty hours in which to focus on invention or exploration. You’re afraid you don’t have the right kind of training or degree. You’re afraid you’re too fat. (I don’t know what this has to do with creativity, exactly, but experience has taught me that most of us are afraid we’re too fat, so let’s just put that on the anxiety list, for good measure.) You’re afraid of being exposed as a hack, or a fool, or a dilettante, or a narcissist. You’re afraid of upsetting your family with what you may reveal. You’re afraid of what your peers and coworkers will say if you express your personal truth aloud. You’re afraid of unleashing your innermost demons, and you really don’t want to encounter your innermost demons. You’re afraid your best work is behind you. You’re afraid you never had any best work to begin with. You’re afraid you neglected your creativity for so long that now you can never get it back. You’re afraid you’re too old to start. You’re afraid you’re too young to start. You’re afraid because something went well in your life once, so obviously nothing can ever go well again. You’re afraid because nothing has ever gone well in your life, so why bother trying? You’re afraid of being a one-hit wonder. You’re afraid of being a no-hit wonder . . . Listen, I don’t have all day here, so I’m not going to keep listing fears.

Někdo kdysi řekl, že pokud hledáme zaměstnance, měli bychom se zaměřit na tři vlastnosti: poctivost, inteligenci a energii. Pokud ale daní lidé postrádají první z nich, zbývající dvě nás mohou zničit. Pokud totiž zaměstná nepoctivce, pak je nepochybně lepší, aby byl onen jedinec hloupý a líný.

Manažery jen žádáme, aby své společnosti řídili, jako by šlo o to jediné, co jejich rodiny vlastní a co také budou vlastnit v následujícím století.

Success is processional. It’s the result of a series of small disciplines that lead us into habitual patterns of success that no longer require consistent will or effort.

La monnaie est souvent mythifiée, conçue comme magique et obscure. Son ambivalence fondamentale favorise l'émergence dans les esprits du sentiment d'un mystère : le dieu monnaie est, par ses modes de création et de gestion, à la fois public et privé. Banques commerciales et banques centrales contribuent à son apparition, à son mouvement, à sa destruction. Face à cette ambivalence qui ne peut être éliminée, parce qu'elle exprime dans ce domaine technique la nécessaire dualité individu-collectivité, la théorie politique classique, libérale ou autoritaire, ne peut proposer que des représentations partielles. Le libéralisme anglo-saxon n'arrivera jamais à masquer complètement l'action de l'État, définisseur et garant des règles, acteur majeur de la gestion monétaire au jour le jour. Il ne peut que tenter d'oublier l'expérience innommable d'un dollar échappant entre 1980 et 1985 à toute pesanteur économique par la grâce de l'État. Il est frappé de cécité devant une évidence majeure : les marchés financiers, lieu d'agitation des libres individus, n'en finissent pas de spéculer sur les obligations d'État, dont la rentabilité est assurée par l'existence de l'impôt, c'est-à-dire la capacité d'un État à extraire de sa société la richesse par un mécanisme non marchand de contrainte. La théorie allemande de la monnaie ne pourra quant à elle jamais imposer la réalité d'une monnaie fixant a priori un ordre social et échappant complètement aux acteurs décentralisés de la vie économique. Les banques créent de la monnaie par le crédit. Reste qu'au-delà de cette ambivalence, indépassable, chacune des deux traditions idéologiques, libérale ou autoritaire, adore l'un des deux visages du Janus monétaire. Au moment même où les États-Unis définissaient une conception pragmatique monétaire, selon laquelle un équilibre des pouvoirs doit assurer l'émergence d'une monnaie accompagnant les évolutions et rythmes naturels de la société, l'Europe occidentale accouchait, par étapes, d'une conception radicalement opposée, dominatrice, castratrice, de plus en plus souvent désignée dans le monde anglo-saxon, par l'expression sado-monétarisme. L'euro doit réformer la société, mieux, créer un nouveau monde européen. Chacune des sociétés réellement existantes, chaque nation, doit s'adapter, transfomer ses structures et ses rythmes naturels en fonction d'impératifs monétaires décidées d'en-haut, a priori. Tel est le sens idéologique des critères rigides de Maastricht et des punitions de Dublin qui fixent des règles monétaires et budgétaires auxquelles les individus devront se soumettre dans l'éternité. Cette monnaie autoritaire est le reflet d'un autre système de culture, fondé par d'autres structures anthropologiques. La conception anglo-saxonne de la monnaie reflète les valeurs libérales de la famille nucléaire absolue ; la conception autoritaire du continent européen les valeurs autoritaires de la famille souche. Face à la monnaie, l'individu est comme face à toute institution, libre ou soumis. L'émergence de conceptions opposées de la monnaie n'est que le dernier avatar d'une opposition pluriséculaire entre libéralisme anglo-saxon et autoritarisme continental. Mais comment la France, lieu de naissance de l'une des deux grandes traditions libérales, décontractée dans sa gestion monétaire jusqu'au début des années 80, a-t-elle bien pu changer de camp, abandonner l'individualisme du monde atlantique pour suivre les disciplines de l'Europe centrale ?

Boger knew that stories have to be accessible and that what investors want most from them is affirmation, so he molded Vertex’s slide show not as a disquisition on science or business strategy, but as a quest. The grail—the object of the quest—was structure-based design and its transcendent prize of safer, smarter, more profitable drugs. The impetus, as always in such stories, was a combination of righteousness and greed; Vertex had a better way to discover drugs than screening and biotechnology (both of which, Boger would say, were terminally limited) and was intent on capturing the spoils of its victory whole. The rationale for the quest was the company’s unique melding of disciplines and technologies, which he represented as a kind of circular flying wedge, and its scientists, who, he noted, all came from the world’s most powerful research institutions. Harvard, naturally, was a key supporting element, as was Merck, and on the financial side, Benno Schmidt. FK-506 and immunosuppression were the story’s set pieces, meant to illustrate its correctness.

4 Personal Year Number Effort, Building, Planning This year is all about building a solid foundation for your future by putting systems in place that will help you improve your quality of life. For example, if you’re thinking of selling your home, this is the year to make property improvements and repairs in preparation for the sale. Or, if you’d like to start a business, this is a year to search for a location, build your client base, and develop your website. Think of this year as laying the groundwork to set yourself up for life. This can be a year of hard work, as 4 indicates that extra physical, mental, and emotional effort is required to obtain your desired results. So prioritize your time and face your challenges head-on. Now, it may take longer than usual for things to come to fruition and to reap the rewards of your efforts; however, the lesson of the 4 is to be patient and persevere through obstacles and delays. No matter hard it gets, never, ever give up! Think of this year as a test of your dedication and commitment to yourself, where your attitude is the key to your success. Physical, mental, emotional, and financial stability are essential this year, so focus on your health, be optimistic, deal with issues from the past, avoid unnecessary drama and confrontation with others, and plan your finances carefully. With dedication, determination, and discipline, you’ll be rewarded for your efforts.

and intellectual world or by political and financial elites. Hence they must set aside their contempt for other disciplines and their absurd claim to greater scientific legitimacy, despite the fact that they know almost nothing about anything. This, in any case, is the charm of the discipline and of the social sciences in general: one starts from square one, so that there is some hope of making major progress. In France, I believe, economists are slightly more interested in persuading historians and sociologists, as well as people outside the academic world, that what they are doing is interesting (although they are not always successful

Patience and discipline are the secrets to the compounding effect that yields the greatest successes in life.

The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go. In the end, what matters isn’t crossing the finish line before anybody else but just making sure that you do cross it.

Economics also has to become a fundamentally monetary discipline—from the consideration of how individuals make market decisions through to our understanding of macroeconomics. The myth of "the money illusion" (which can only be true in a world without debt) has to be immediately dispelled, while our macroeconomics have to reflect a monetary economy in which nominal magnitudes matter, precisely because they are the link between the value of current output and the financing of accumulated debt. The dangers of excessive debt and deflation simply cannot be comprehended from a neoclassical perspective. The discipline must also become fundamentally empirical, in contrast to the faux empiricism of econometrics. By this I mean basing itself on the economic and financial data first and foremost—the collection and interpretation of which has been the hallmark of contributions by econophysicists—and by respecting economic history, a topic which has been systematically expunged from economics departments around the world.

Halo Effect Cisco, the Silicon Valley firm, was once a darling of the new economy. Business journalists gushed about its success in every discipline: its wonderful customer service, perfect strategy, skilful acquisitions, unique corporate culture and charismatic CEO. In March 2000, it was the most valuable company in the world. When Cisco’s stock plummeted 80% the following year, the journalists changed their tune. Suddenly the company’s competitive advantages were reframed as destructive shortcomings: poor customer service, a woolly strategy, clumsy acquisitions, a lame corporate culture and an insipid CEO. All this – and yet neither the strategy nor the CEO had changed. What had changed, in the wake of the dot-com crash, was demand for Cisco’s product – and that was through no fault of the firm. The halo effect occurs when a single aspect dazzles us and affects how we see the full picture. In the case of Cisco, its halo shone particularly bright. Journalists were astounded by its stock prices and assumed the entire business was just as brilliant – without making closer investigation. The halo effect always works the same way: we take a simple-to-obtain or remarkable fact or detail, such as a company’s financial situation, and extrapolate conclusions from there that are harder to nail down, such as the merit of its management or the feasibility of its strategy. We often ascribe success and superiority where little is due, such as when we favour products from a manufacturer simply because of its good reputation. Another example of the halo effect: we believe that CEOs who are successful in one industry will thrive in any sector – and furthermore that they are heroes in their private lives, too.

managing a company by looking at financial data (lag measures) is the equivalent of “driving a car by looking in the rearview mirror.

superior results over the long term, including: unorthodox and rational asset class allocations; pioneering and logical strategies within each asset class; unconventional and timely commitments to out-of-favor asset classes; original and disciplined selection of little known asset managers; training and empowerment of relatively young professionals; sensible and innovative structures of investment manager relationships; and disciplined leadership in the integration of endowment management with the overall financial management of the university.

I once interviewed a group of retirees in Boca Raton, one of Florida’s wealthiest retirement communities. I asked these people—mostly in their seventies—if they had beaten the market over their investing lifetimes. Some said yes, some said no; most weren’t sure. Then one man said, “Who cares? All I know is, my investments earned enough for me to end up in Boca.” Could there be a more perfect answer? After all, the whole point of investing is not to earn more money than average, but to earn enough money to meet your own needs. The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go. In the end, what matters isn’t crossing the finish line before anybody else but just making sure that you do cross it.

(1) What risks do you face on this project? (2) What is the worst-case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience?

We can apply these five questions to our own attempts at building buffers. Think of the most important project you are trying to get done at work or at home. Then ask the following five questions: (1) What risks do you face on this project? (2) What is the worst- case scenario? (3) What would the social effects of this be? (4) What would the financial impact of this be? and (5) How can you invest to reduce risks or strengthen financial or social resilience?

Professor Rajan describes the results as follows: ‘So long as large countries like Germany and Japan are structurally inclined – indeed required – to export, global supply washes around the world looking for countries that have the weakest policies or the least discipline, tempting them to spend until they simply cannot afford it and succumb to crisis.’26 Why these countries have ended up with structural savings surpluses and a concomitant tendency towards running substantial current-account surpluses is unclear. It may be that they put greater weight on production than on consumption. It may be that they see a need to reduce risks by becoming net creditors, as has also been true of China. It may be that they see success in export markets as a triumph in a form of peaceful economic warfare. It may be that the export-driven growth after the Second World War shaped their subsequent economic structures. In the German case, it may be because of a resolute rejection of demand management and so a need to rely on changes in net exports as a way to balance demand and supply (as explained in Chapter Two). In fact, the outcome has probably been shaped by all these things. It is no doubt also because of the ageing of societies. But that is not a sufficient explanation. Note that many ageing societies do not run large current-account surpluses (consider Italy, for example) and that Germany ran sizeable current-account surpluses before ageing had really set in (prior to German unification).

For people crippled by debt but earning more than enough to cover monthly costs, the financial stress is similarly self-imposed. It’s fuelled by a desire to fit in, to feel value in the present from a purchase whose charm quickly fades and is replaced by need of yet another ostentatious purchase.