50-YEAR OLD ENTREPRENEURS ROCK!

     We all enjoy the stories of students dropping out of Stanford and creating the latest billion-dollar startup. The media promotes these rare stories which cause the endorphins and serotonin to flow through us capitalists, just as American Idol makes every former glee club member dream of the recording contract. To make these stories even more fantastic, we have labeled the billion-dollar startups as "unicorns!"
     Yet, the truth is that the great percentage of dropouts remain just that, dropouts, while the successful entrepreneurs are more often the seasoned worker in their 40's, 50's, and even 60's and beyond. So, what's stopping you? This week I want you to dust off that great idea, stop moaning about what could have been, and seriously consider chasing your unicorn, or leprechaun, or that creepy gnome that runs around your backyard.
     Only 4% of U.S. workers start their own company, so your field is wide open. The Bureau of Labor Statistics claims that Americans who are 35 or older are 50% more likely than their younger counterparts to start a business this year. The Kauffman Foundation released a study in 2009 which showed that the average entrepreneur was 39.
     Carl Shramm, a professor at Syracuse University, recently released a new book, "Burn the Business Plan," in which he tells the stories of seasoned entrepreneurs. For example, Gary Burrell and Min Kao worked together on satellite geo-positioning at Allied Signal before taking the leap to found Garmin (Gary & Min) at ages 52 and 40. Seasoned entrepreneurs will more likely have a little savings cushion, be free from student debt, and have a working spouse with health insurance. Mr. Schramm says that "local business incubators should be restyled from hip communal working spaces for young people to office arrangements more suited to midcareer entrepreneurs."
     This week I need to motivate our "midcareer readers" to take a chance. We all have heard that on our death bed we only regret the things we DID NOT do. C'mon man, everyone knows that 50 is the new 30! Medical researchers continue to produce study after study which prove that we can proactively control our physical and mental "ages" by 10 and even up to 20 years, depending on our behavior and our viewpoint. George and Amal Clooney are right now running after those small twins while you read this!
     Before starting our own investment company, I sat out on the porch many a night with a Glenlivet and the golden retriever contemplating the opportunity. I was scared to death of messing up what was an already fortunate financial situation, and I had compiled a long list of reasons not to make the leap (fear excuses). Yet, even with our recent tremendous challenges, I still believe it was the best career decision I ever made. Normally the scariest ones are the right ones.
     Our investment firm helped over 3,000 clients, created 100 high-paying jobs, and served an innumerable number of charities and communities. We then funded my lifelong friend, Dave's, startup company which allowed him to serve more clients, create more jobs, and serve his own community, along with providing a strong rate of return back to our clients. But, I had to take that scary first step, and soon I will hopefully take an even scarier second step to restore our stakeholders. We must lean into our fears. I love the U.S. Marines commercial, "Which way would you run?"
The columnist Amanda Foreman recently turned 50 and reminded us that so many great leaders got a later start on realizing their dreams. She refers to the power of reinvention and tells the story of the disabled Roman Emperor Claudius who spent most of his life victimized by his awful family, but when Caligula was done in by the Praetorian Guards he grabbed his chance at age 50 and converted his bumbling persona into one of Rome's most forceful and innovative rulers. We all know the story of Winston Churchill's failed political life until, in his mid-60's, he seized the opportunity to save the world for democracy and freedom!
     The Harvard Business Review (HBR) 20-Minute Manager Series stresses that investors want more mature and experienced leaders for business startups, especially entrepreneurs with a few failures and mishaps in their history. These Harvard advisors claim that "investors and other backers want to see a team that has a history of overcoming conflicts and external problems." HBR states that the seasoned entrepreneurs "are capable of recognizing risks and responding to problems that arise." When evaluating business plans and management teams, they ask "How much experience do they have?...Who are their contacts in their target or related industries? (and)...What have they accomplished?"
     Dropping out of Stanford stories sound cool, but remember that Elizabeth Holmes and Theranos also started with that story, before recently erasing a $9 Billion unicorn. The smart money continues to bet on the midcareer entrepreneur. The time is now. Take the step. Regardless of the outcome, you won't regret your decision.

"I am the master of my fate / I am the captain of my soul." - William Ernest Henley.

** For more information on Jeff's Books, Blog, and Legal Challenge, please visit www.jeffmartinovich.com.

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BUSINESS ENTERTAINING 

Business and life are all about connecting with humans, and since the beginning of time "parties" have been the world's greatest connectors. Throw great parties, and your opportunities in the world will expand exponentially. This is a universal truism. 
A party may be a dinner party, a cocktail party, a wine tasting, a charity benefit, a golf tournament, a corporate celebration, a cookout, a 5k after-party, or the annual holiday bash. Everyone, even the most boring people, love a good party, and your job is to be known as "the one who throws the great parties." 
Throwing great parties helps connect you to the rest of world in a hundred ways you can't even imagine before you begin your adventure. Being the perfect party host simultaneously enhances your standing in your company, in your community, in your industry, with your friends, with your spouse's friends, and with all of the prospects, recruits, and acquisitions you wish to attract. 
But, unfortunately, most people have never been taught how to throw a great party. They fail miserably simply because no one ever gave them the rules. I only now know the rules because I have learned by trial and many, many errors. A few years ago I sat down with a group of friends and business partners, and together we created a David Letterman spoof "Top 10 Rules for Throwing a Great Party." Since then, this valuable summary has been passed among many companies and even made it around the internet, hopefully enhancing many fun events. I have included a detailed explanation of the 10 Rules in my upcoming book, "Just One More," but here I wanted to review just a few of the items in case you are planning a fun Fall party or a big holiday season event. 
First, we must have good music. Music is the most powerful variable for setting the correct mood or vibe, but most hosts normally consider this most-critical item only as an after-thought. To have everyone fondly remember your event, employ live music whenever possible. Whether a pianist for the dinner party, the guitar singer for the summer cookout, or the incredible band for the holiday blow out, this enhancement sets your events apart. People will always rave about the live entertainment as they tell everyone they know about your fabulous event. 
Second, pay attention to exclusivity. People always want most the things they cannot have. After noticing many "party crashers" at our corporate and community events, we decided to have a little fun by raising the bar of exclusivity. We installed guest lists, sent ticket invites, and even employed very large gentleman as "faux" front doormen. People then sent in their RSVP's quickly, sent requests to ask for an invitation, and even bought us drinks at the Bistro in attempts to get on the list. When you restrict who may attend, "everyone who's anyone" wants to ensure they get an invite! 
Third, ensure the proper quality beverages are served. The rule is: Never serve guests liquor of a lower quality than they would drink in their own home. How many thousands of charity events have you attended where they want you to write a large check, but you are standing in line for 20 minutes to order an Aristocrat Vodka? If serving wine, have someone who knows make the proper selections. For the cookout, spend the extra $5 on the premium beer. Always have a nice non-alcoholic selection for the amazing designated drivers. For the nice events, serve top-shelf liquor, or don't serve any at all. Always have a fun specialty drink like cosmopolitans, apple martinis, or mohitos prepared for the "less-regular consumers." Also, if more than a few couples are in attendance, never perform the bartender duties yourself. Your job is to focus on your guests. 
Fourth, be a fabulous host. Ann Landers once wrote that the #1 job of the host was to have a fabulous time at their own party. I believed that she was speaking directly to me! Most hosts spend the evening refilling the cheese tray, cleaning the red wine stain, and worrying that no one is having a good time. But, the perfect host understands that the entire party takes their cue from them. If the host is laughing, dancing, and socializing, then everyone else feels they also have permission to have a great time. People want to be around happy, energetic, fun people. Be that host! 
Fifth, always have a staff. For large events this will be covered by caterers and event managers, but for small events still ensure that you have assistance in place, because, again, your job is to have fun with the guests. The two neighborhood babysitters are amazing coat check girls, and they really appreciate the tips. The guests enjoy not worrying about their purse all evening or rummaging through the guest bedroom to find their coats at the end of the night. The two college boys next door can make a small fortune as parking valets. I have them wear white shirts, and I give them a 10-minute etiquette lesson. The guests love not worrying about parking or walking in those heels. 
For larger events always notify the local taxi or car services ahead of time, so they are aware of the business available from your event and will remain close. Have cards at the front for people to call for a car, or have the coat check girls arrange this for them. Above all else, ensure everyone arrives home safely from your fabulous event.. 
Sixth, Dress up. Have fun setting the tone that your events are special, and people should expect to dress up a little more than usual. Include "Cocktail Casual" on the invitation, or if a holiday party even make it "Black-tie Optional." Give your friends an excuse to dress up and enjoy a fancy night out. Set the expectation that your events are always first class, and people will follow suit. 
Business and life entertaining is not rocket science, and it doesn't have to be expensive. But, it does require planning and attention to detail. With proper execution, you will soon begin building an enviable rolodex of new business contacts and neighborhood friends. People will remember that they met their new CPA, real estate agent, or husband-to-be at your party. You will build a tremendous network of people who know that you were the one who made the connection. They will know that your parties are the must-attend events, and they will also ensure to invite you to every party and function they host. Your calendar will be quickly filled with more and more opportunities. 
Life is short, so have fun. Invite a few people over, have a great time, and grow it from there. Get off Facebook and Instagram, and actually invite everyone over to your place. This is where real life is experienced. You will be rewarded in ways you never imagined. 

-- Fuller Warren, the 30th Governor of Florida, was asked for his thoughts on whiskey. He replied, "If you mean the demon drink that pollutes the body, desecrates family life, and inflames sinners, then I'm against it. But, if you mean the elixir of Christmas cheer, the shield against a cold winter chill, or the taxable potion that puts needed funds into public coffers to comfort little crippled children, then I'm for it." 

* The above Post contains excerpts from Jeff's upcoming book, "Just One More: The Wisdom of Bob Vukovich," Ash Press, Spring 2019 release. 

*For more information on Jeff's Books, Blog, and Legal Challenge, please visit www.jeffmartinovich.com

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DAVID GANEK AND LEVEL GLOBAL 

It is important for you to know the story of David Ganek and his hedge fund firm, Level Global. David was the co-founder and principal partner for Level Global, a successful hedge fund in New York with 60 employees and $4 billion in client investments. Following the 2008 Financial Crisis, Bernie Madoff, and the deserved backlash against many investment companies, the Government approached a disgruntled Level Global ex-employee in Central Park. FBI Agents Hinkle and Makol confronted Sam Adondakis with information possibly implicating him for insider trading, but they let Sam know that they would rather implicate David Ganek and others up the food chain. The District Court for the Southern District of New York states that "Adondakis agreed to cooperate with the FBI." 
Even though Adondakis was unable to come up with any actual evidence against David Ganek, and even explicitly denied that Ganek was ever informed that information came from corporate insiders, United States Attorney Preet Bharara decided they would raid Ganek's office in a strong show of force. Bharara knew that in this post-crisis environment that even a whisper of Government trouble would be fatal for an investment company and would erase any ability for them to defend against Government allegations. 
The agents presented an Affidavit to the Magistrate Judge which falsely stated, "ADONDAKIS informed GANEK...regarding the sources of the Inside Information," in order to obtain a warrant to strike the knockout first blow against Level Global. [S. Dist.]. 
To ensure the destruction, USA Bharara alerted the press three days before the raid. "On November 19, 2010...the Wall Street Journal reported that federal insider-trading charges against financial professionals were imminent." [S. Dist.]. Then on November 22, 2010, "Prior to executing the warrant, the Government alerted the 'Wall Street Journal' that it would be raiding Level Global's offices. Because the 'Wall Street Journal' was 'tipped off,' it was able to publish photographs of FBI agents carrying boxes of documents from Level Global's office...two dozen agents searched Level Global's offices." [S. Dist.]. A month later when Level Global representatives met with Zabel, the Chief of the Criminal Division, and Asst. US Attorney Leibowitz to try and save the company, the employees' jobs, the shareholders equity, and the client's assets, "Zabel and Leibowitz informed Level Global that the likely commercial consequences of the raid 'had been carefully considered at the highest levels' before it was initiated." [S. Dist.]. Level Global was shut down on February 11, 2011. 
Following all of this destruction, David Ganek was not only not convicted, but was not even indicted. Only one portfolio manager in the firm, Chiasson, was indicted. He chose to defend himself at trial, was convicted, and then after multiple efforts the courts finally declared that he was actually innocent and overturned his conviction. 
Eventually, Ganek filed suit against the Government to clear his name, even though everything was already destroyed. He claimed that the Fourth Amendment of the United States Constitution demanded "reasonableness in the manner and scope of searches and seizures" [Lauro v. Charles], and that it was unreasonable to use a "raid rather than subpoenas" and "for the Government to tip off the Wall street Journal in advance of the raid." Also, "the Fourth Amendment forbids the police from making a suspect perform a staged 'perp walk' for the press if the walk serves no other law enforcement purposes." [Lauro]. 
The New York District Court granted his lawsuit to proceed against these agents and attorneys, and ordered the Discovery Process to begin in order to shine a light of transparency on the Government actions. But then Second Circuit Judge Raggi intervened to claim that all of these agents and attorneys were protected under Government immunity. The Court stopped the Discovery Process which would have shined the light on how USA Bharara's office knowingly and willingly destroyed Mr. Ganek's company, shareholder's equity, bond and lender value, and any proprietary investments. 
In an interesting collateral issue, the indemnification funds claimed that, based on the Government's possible charges against Ganek and others in Level Global, these monies were not to be spent on their individual defenses. [XL v. Level Global]. Ganek had lost his company income, and now they tried to claim that even the indemnification policies put in place for this very issue were not allowed to pay for legal counsel or experts. Fortunately for these defendants, the Courts followed the contract law stating, "[the funds] are required to make contemporaneous interim advances of defense expenses...and be obligated to fund the criminal defense. XL was ordered to resume the advancement of defense costs." [XL]. Without this ruling, the defendants would have been forced to face the unlimited resources of the U.S. Government with their own income extinguished, their assets likely frozen, and without the very insurance contracts put in place before they had agreed to assume this vulnerable management position. 
In another interesting turn of events, the "Wall Street Journal", the accomplice to Level Global's destruction in 2011, eventually became one of Ganek's greatest defenders. In subsequent articles the Journal stated, "Federal appeals Judge Alex Kozinski has noted that abusive behavior by prosecutors is reaching 'epidemic proportions.' That epidemic will get worse after Tuesday's ruling by the Second Circuit Court of Appeals absolving prosecutors for using false information to put David Ganek's hedge fund out of business...Judge Raggi's ruling means in practice that there is no mechanism for an innocent person like Mr. Ganek to seek redress if a claim is a lie, and no legal remedy." The Journal continued, "Long after her office had decided not to charge Mr. Ganek...the smearing continued even during the oral arguments at the Second Circuit. Sarah Normand, an assistant U.S. Attorney, accused Mr. Ganek of participating in 'a scheme with regard to many, many, pieces of inside information from many public companies." The Wall Street Journal concluded with, "(I)mmunity should not be impunity...but Justice is an insider's club." 

"Best not to render ultimate judgment on a man's story until you have seen the end of it." 
- Solon to Croesus, King of Lydia, 600 BC 

*For more information on Jeff's Books, Blog, and Legal Challenge, please visit www.jeffmartinovich.com

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WE ARE WINNING! 

National Public Radio (NPR) made another unsupported, dramatic claim last night that "bullying has increased to epidemic levels in our children's schools!" While appreciating the seriousness of bullying, I was also reminded that, factually, violence, abuse, hate crimes, racism, bigotry, and bullying have decreased significantly the last thirty years, have been radically reduced in the last one hundred years, and are almost statistically non-existent compared to two hundred years ago. Things are shockingly, almost miraculously, better! But, human nature does not allow us to see this. 
We believe the past was better than it was, and we always believe the future is in jeopardy. We believe in scarcity instead of abundance. JAM Views, as is its mission, today attempts to forcibly change the lens on your camera using logic and knowledge. First, I must ask you to turn off the television. 
I have borrowed many statistics for this argument from four fantastic books which I recommend you enjoy: "It's Better Than It Looks" by Gregg Easterbrook, "Enlightenment Now: The Case for Reason, Science, Humanism and Progress" by Steven Pinker, "Abundance" by Peter Diamandes and Steven Kotler, and "The Undoing Project" by Michael Lewis which studies the work of Israeli psychologists Amos Tversky and Daniel Kahneman. 
Recently in our politics, Hillary and Bernie told us that the U.S. has been "destroyed" by the wealthy and "poisoned" by greedy corporations, and before taking office President Trump yelled that our economy "is always bad, down, down, down." Every self-help book in the world starts off chapter one telling us never to watch local news in order to stop corrupting our brains with daily doses of violence, drugs, murder, lying, cheating, stealing, and Lotto. 
The truth is that 137,000 people were lifted out of poverty today, and have been everyday for the last 25 years. The world is 100 times wealthier than 200 years ago, and the wealth is by far more evenly distributed. In the last 100 years, Americans became 96% less likely to die in a car crash, 92% less likely to perish in a fire, and 95% less likely to die on the job. Today's poor have electricity, air-conditioning, and color television, all unavailable to the Vanderbilts 150 years ago. 200 years ago, 1% of people lived in democracies, and now nearly 70% of the people on Earth participate in a form of democracy. The number of nuclear weapons in the world has fallen 85% since its peak. 
In the 1960s the educated predicted that billions would die of starvation, but instead in 2015 the United Nations reported that global malnutrition had declined to its lowest level in history, with the real problem now being global obesity. In the 1970s the educated told us we would run out of oil and gas by 2000, but instead the supplies are overflowing despite the incredible proliferation of people, vehicles, aircraft, and construction. Unstoppable outbreaks of super-viruses and mutations were said to soon menace a growing world, but instead nearly all disease rates are in decline, including most cancers. Smog in major cities is in free fall with sulphur dioxide (acid rain) down by 81% in the U.S. since 1990, and the forests in Appalachia "are in the best condition they have been in since the eighteenth century." Belief in equality for ethnic minorities and gay people has statistically gone through the roof, while homicide rates have dropped through the floor. Can this all be true? Wow, it sure doesn't FEEL like it!
Not only are the politicians, media, and Loser Bob at the office forcing us to believe everything is a disaster, but our own human software and hardware causes us to focus on the bad instead of the good. In the "Undoing Project," Amos and Daniel help us with this psychology. "People could be systematically wrong, and so markets could be systematically wrong, too. The rational behavior of the few would not be offset by the irrational behavior of the many." "A false view of what has happened in the past makes it harder to see what might occur in the future." "The mind arranges historical facts in ways that make past events feel a lot less uncertain, and a lot more predictable, than they actually were." "Once we have adopted a particular hypothesis (worldview) or interpretation, we grossly exaggerate the likelihood of that hypothesis, and find it very difficult to see things any other way." 
A few more from Amos and Daniel to drive home our understanding. "It is amazing how dull history books are, given how much of what's in them must be invented." "We often decide that an outcome is extremely unlikely or impossible, because we are unable to imagine any chain of events that could cause it to occur. The defect, often, is in our imagination." "When people become attached to a theory, they fit the evidence to the theory rather than the theory to evidence. They cease to see what's right under their nose." 
Siddha Yoga gurus teach us that our external perceptions and experiences are simply our own internal projections onto the screens of the world. We must understand that recency bias, hindsight bias, vividness bias, confirmation bias, and all those other biases give us a very distorted view of reality, or better stated, give us our own reality. 
Our reality, even when we may be battling terrible challenges, is that abundance always wins out over scarcity. It is not a zero sum game. If we give others a slice of our pie, we are not left with less. The pie is infinite. Technology, productivity, and the onward march of mankind will replace our slice quicker than we may consume it. Democracies and capitalism will always develop technologies which shift our paradigm in ways previously unimaginable (Israel exports fresh drinking water from their tiny desert country). We do not yet know even a fraction of the knowledge we will soon know. It is illogical and irresponsible to be pessimistic and fearful. We know that it is intelligent and educated to be wildly optimistic. For some reason, others interpret unfounded pessimism as critical thinking. This is incorrect. We all need to make wildly optimistic cool, because history and the facts are on our side! 

"Amos willed himself to be optimistic, because he had decided pessimism was stupid. When you are a pessimist and bad things happen, you live it twice." - Michael Lewis 

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For more information on Jeff's Books, Blog, and Legal Challenge, please visit www.jeffmartinovich.com

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