1. How did you learn about money and investing; and why should I seek your advice?
I believe this is one of the most important questions to ask an advisor. Let me tell you my story.
Generally we talk about studying in school and getting advanced degrees. Well I have done those, I have studied
economics, finance etc. I have a Master’s degree and I have run a large division of a major corporation. My real
training came from life; I generally think of four events that shaped my business, and investment philosophy.
My first recollection of work, the basis for all investing, happened on my second day of Kindergarten. My first day
at school had been great, it started in the morning with a bus ride, then a whole day with new friends, including a
boy I’m still friends with. When we were let out we decided to walk home. I knew where we were and how to get
home. My new friend and I played and had a great time. However, by the time I got home my mother was mad and
upset; I really didn’t know why. The day before I was thrown out of the house after breakfast, and was on my own.
I had lunch at some friend’s house, and if I didn’t make it home for dinner, there was no dinner. Now it was
different I got spanked and sent to my room, told to wait until Dad got home. Later that night Dad came in and
explained I was expected to be on the bus and not being on the bus was the problem. All I had to do was tell Mom
I wouldn’t be on the bus and everything would be OK. The next day Dad walked me and my new friend half way to
school; he took the train to work, so we went with him to the station. At the station, my Dad gave us a quarter and
sent us to buy a bag of bagels; 5 cents each, 6 for a quarter. We brought the bagels back, and Dad had us sell the
bagels for ten cents each. I thought he was crazy, who would buy a nickel bagel for a dime. Well six people did, we
paid Dad back, and bought more bagels. This was my first job, I’d sell bagels off and on for quite a while, and I’d
also shine shoes, and collect bottles. I learned two important lessons; first people will pay for service, and second,
work is fun. Over the years, I’d deliver papers, caddy, lump trucks, and worked as a soda jerk. Eventually I went to
college, then into the work force. Work for me was fun, and it still is. What I learned additionally was that savings
was just as important as working. I was real tight with my money, I’d buy used before new. Work taught me the
value of money and the need to save.
Now my most memorable investing lessons came at the knee of my grandmother. At the age of 76 my
grandmother, Nonna, was diagnosed with stomach cancer, she was given 3-6 months to live. To make her life
better my father and his brothers sold her house, without telling her, and shipped her to live with my Aunt in
California. They assumed she would love the warmth of California, well she hated it, and she didn’t die. She
returned, and was she upset about her house. I would sit at her knee and monthly she would unfold a yellow
paper, and cross off a number, she would complain that this is what her life had come to. The numbers were the
monthly mortgage payment she received from the man who bought her home. She would tell me that this was all
she had; when the last payment was made she would be poor. “Never be without money, always save!!” Now my
father and his brothers did what they thought was best, Nonna wasn’t going to live long, and a 15 year mortgage
was a good idea. Well Nonna lived to 96 outlived her money by five years. I learned more from Nonna than from
any professor or course I ever took. She would also tell me to invest in what you know, she knew jewelry, and she
would spend her extra money on costume jewelry. She could spot a valuable piece across a room, she would buy
and hold the piece, and when she needed money she would sell. There were other lessons but these were the two
I focus on, plan on not outliving your money, and invest so it grows.
The next lesson I learn at my first job ashore (I’d been sailing as a mate on tankers after college). The manager who
hired me was an older gentleman; in fact he was in his mid eighties. He had run the world’s largest shipping
company and had only taken this position to stay busy. The third day he came to see me and we talked about my
studies, I was going nights for my masters; he frankly thought that that was stupid. His idea was that for two weeks
I’d sit with the man who had a hot dog cart on the corner of 52nd and Avenue of Americas in New York; this was

2. just below my office. Now I knew it was a stupid idea. Since he was the “Boss” I did it. Well two weeks later I
realized that this hot dog vender could run any business. I learned more about business, inventory control,
advertising and cash flow then I ever did in class. I also learned that a hot dog cart in New York made more money
than a vice=president at a Fortune 500, a lot more, but he earned every dime.
The last lesson I’ll talk about was my daughter. When my daughter was seven years old she was diagnosed with
cancer. It was a frightening time, would she be ok, what treatments, how would we handle it. I had saved, as I had
learned, and now came the time to spend. We had good insurance, but even good insurance wouldn’t cover
everything. The savings and the earnings allowed us to whether the storm and pay for the treatment needed. We
spent a remarkable amount of money, but it was well spent. However, even using our savings we were left in a
deep hole. We owed a large sum, and every spare cent we had went to pay off the debt, and rebuild our reserve. I
remember when we finally paid off the last bill the hospital was amazed, it seemed people don’t pay off these bills;
they get written off and paid by donations. To me that would have been an insult; I incurred the debt, and was
able to pay it off. I could not think of walking away from it. Once the debt was paid off we began to save and invest
again, in a few years we would have to pay for college and that would be a strain. Well at 18 our daughter chose to
go to Gonzaga for two years and Seattle U for two years. We made fortuitous investments, and were able to pay all
her tuitions, room and board and she graduated debt free. So what did I learn, simply saving and investing is not an
end in itself, you must be prepared to use your investment to meet your needs. My daughter is now a successful
lawyer and has been cancer free for 30+ years.
I believe that books and schools can teach you a lot, but life will teach you more.