Learn how to manage your money instead of letting it control you

Much has been written on this subject, but I am expressing my opinion.

First, you need to know what a stock is and how many types there are.

Second, you need to have some idea of accounting.

It would be beneficial to have some familiarity with assets and liabilities.

Then think about which business has the future to target that niche. Then review the Global 2000 of the big companies. Then look at the Fortune 500 of the largest firms. Then track which countries have growth potential. Assess which goods and services have giant potential. There is a lot of information on publicly traded companies. Read and read again about the company you are interested in. Get to know it. The better you get to know it, the more information you gather. Nothing is certain in this world. Similar to a hotel chain, the emergence of a new leader has the potential to disrupt the market. You are like a snack chain, but there are issues with menu cleanliness and ingredient quality, which the competition exploits. The most important thing is to like the company and have as much history with it as possible. But don't overlook the upstarts who have a future in time. The risk is sometimes worth it. Companies that manufacture robots or software have promising futures, but which type will ultimately dominate the market? The decision ultimately hinges on the management of the company. That's why people always talk about the CEOs of giant companies. Whoever ran a successful advertising campaign achieved more sales. It wasn't because he had better-quality merchandise. I love dividend stocks. You invest, and you get income. This arrangement is similar to the concept of usury. If a company pays a dividend, it means it makes a profit. But someone may have taken out a loan just to pay a dividend. You have to watch their balance sheet. But one should definitely invest. Money kept in jars does not increase and loses value due to inflation. You have 10,000 dollars in the bank or in your savings. On that date, check the price of a specific item in the store. In two years, please review the price of the commodity and form your conclusion. If the item's price was $1, you could have purchased 10,000 pieces with the money you had. And after two years, the commodity has become $1.20. How much product would you buy? Certainly less. This is why money should be invested or circulated, not hoarded. Learn to manage money effectively, rather than just accumulating it.

 Author Sezgin Ismailov

In actuality, profitable traders typically manage to both increase the product's popularity and make money.

Idealistic notions often obscure a few truths about real life, which ultimately define success. The well-known adage comparing an apple sold by a skillful marketer to one offered by Rockefeller himself rings true in my experience. However, this statement only holds weight if one diligently adheres to the principles outlined in Og Mandino's timeless classic, "The World's Greatest Salesman." After immersing oneself in Mandino's wisdom, a transformative shift in perspective regarding one's own capabilities is almost inevitable. The book serves as a powerful catalyst for unlocking hidden potential and embracing a more proactive approach to personal and professional growth.  After careful consideration and observation, I've concluded that inherent skill or revolutionary innovation alone is insufficient for achieving widespread success. It doesn't matter how great your invention is if it doesn't reach a larger audience that values your skills or the unique value your product offers. History is replete with examples of ingenious creations that languished in obscurity due to inadequate marketing and sales.  Conversely, individuals who have mastered the art of selling—of effectively communicating value and building lasting relationships—often reap disproportionate benefits from a merely well-crafted product and their enhanced skills, leading to significantly greater success in various aspects of life. Consider the universal recognition of Coca-Cola's secret recipe and McDonald's meticulously crafted service system; these represent just two prominent examples of companies that have leveraged exceptional salesmanship and brand building to achieve global dominance. Countless other equally compelling stories remain untold.  Therefore, if you aspire to achieve greater success in the material world, you must prioritize developing your skills either as a proficient salesman yourself, capable of directly influencing customers, or as a highly effective manager who can adeptly oversee and motivate a team of talented individuals to achieve ambitious sales targets.  In the daily realities of life, we frequently encounter products manufactured in identical locations, sometimes even using the same raw materials. Despite these shared origins, striking differences often emerge, not only in the packaging and presentation but, crucially, in the price point. And in the vast majority of cases, the products backed by superior sales and marketing strategies consistently emerge as the winners. Such success isn't about inherent quality or superior technology; it's about effective communication, compelling storytelling, and ultimately, the ability to persuade. This, in essence, is the unvarnished, often uncomfortable, truth of real-world success. 

AUTHOR: SEZGIN ISMAILOV

"Initial Criticism: The Secret Weapon for Eliminating Hidden Project Barriers"

The Power of Early Scrutiny

In the world of project development, design, and even creative endeavors, there is a natural human tendency to seek affirmation. We cherish praise and often dread the sting of criticism. However, for those aiming to build something robust and truly successful, the pursuit of initial, constructive criticism is not an act of vulnerability—it is a strategic necessity. This early scrutiny acts as a potent filter, eliminating potential barriers before they solidify into insurmountable obstacles. A project’s infancy is its most fragile yet flexible stage. A flaw discovered during the initial blueprint phase is merely a line to be erased and redrawn. The same flaw, discovered weeks or months after implementation, can become a financial burden, a logistical nightmare, or a fundamental structural barrier requiring a complete overhaul. Therefore, investing in early criticism yields significant benefits in terms of efficiency and long-term stability.

The Blind Spot Phenomenon

The core value of initial criticism lies in mitigating the “blind spot phenomenon.” When we are deeply invested in an idea, we develop a form of intellectual tunnel vision. Our enthusiasm for the potential outcome can blind us to obvious flaws in the methodology or execution. Bringing in an objective, critical eye—be it from a trusted colleague, a focus group, or a skeptical expert—forces you to confront the reality of your plan. They aren't constrained by your attachment to the idea; they are looking for weaknesses. A critic’s questions about feasibility, market viability, or structural integrity serve as a preventative measure, identifying risks that you were simply too close to see.

From Obstacle to Opportunity

Embracing early criticism transforms it from a personal attack into an opportunity for preemptive refinement. Even though it may be uncomfortable, the feedback you receive guides you to the precise areas where you should focus your efforts. If feedback indicates a confusing user interface, you address it before launching. If it questions the scalability of your architecture, you reinforce it before a crash. Every piece of initial criticism is a potential barrier that you get to dismantle on paper, in code, or in planning, rather than battling it in the real world under pressure. To innovate effectively, we must shift our mindset: don't view a critical review as a roadblock to momentum, but as the fastest, most cost-effective way to remove the hidden roadblocks that lie ahead. Seek out the critics early, and let their scrutiny pave a smoother, more resilient path to success. 

 

https://www.abebooks.com/book-search/author/sezgin-ismailov/

 

The Silent Thief of Purchasing Power

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When prices rise, we can buy less with the same amount of money. This effect is known as a decline in purchasing power.

🧐 What is Inflation?

Inflation is measured by indices, the most commonly used being the Consumer Price Index (CPI). It tracks the change in the price of a "consumer basket" of goods and services that a typical household buys. Often governments will pick certain goods and say that the increase is real inflation. I assure you, this is not the correct diagnosis.

• Main Effect: The money you have today will be worth less tomorrow.

📉 Why is Inflation the "Enemy"?

1. Reduces Savings: If you keep your money in a bank with an interest rate of 1% and inflation is 5%, you are actually losing 4% of the purchasing power of your savings per year. Your money is nominally more, but in reality it can buy less.

2. Fixed Incomes: The impact on individuals with fixed incomes, such as pensions and annuities, is significant because their incomes do not keep pace with inflation.

3. Uncertainty and Instability: High and unpredictable inflation makes planning and investing difficult for both households and businesses.

💡 Examples of Inflation in Action   

Example 1: The Effect on Savings

Situation: You have 10,000 in a savings account with 0.5% annual interest.

Inflation: The annual inflation rate is 6%.

Result: After one year, your money is 10,050  (nominal increase), but to maintain the real purchasing power of the original 10,000, you will need 10,600  (10,000  + 6% inflation). Your real loss is 550  in purchasing power. Your money is nominally more, but in reality it is less.

Example 2: The Price of Coffee ☕

2020: A coffee costs 2.00.

Inflation: The overall inflation rate over the next 3 years is 30% (for example).

2023: The same coffee now costs 2.60.

Result: If your salary has not increased by 30%, you have to work longer to buy the same coffee. With 2.00 as of 2020, you can no longer buy the coffee in 2023. This situation is direct evidence of the reduced purchasing power of your currency.

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🛡️ Inflation Protection

Inflation can be an enemy, but there are ways to minimize its impact:

Investing: Instead of holding cash, invest in assets that have historically outperformed inflation (e.g., stocks, real estate, gold, or other commodities).

Savings Instruments: Using deposits or bonds with interest rates that are higher than inflation (this is difficult during times of high inflation).

Learning and Development: Increasing your skills and income so that your salary can outpace the rate of inflation.

Inflation is a natural part of the economic cycle, but when it is high and uncontrollable, it becomes a serious problem. Although money is not destroyed, it loses value, which reduces the usefulness of savings as a tool for future purchases.

To beat inflation, you need to turn your money from a "liability" (which loses value) into an "asset" (which grows or retains value). Inflation is only an enemy of your money if you keep it uninvested. In reality, everyone has their responsibilities and the freedom to make their own decisions.

8 Powerful AI Quotes on the Future of Business and Work (Must-Read Insights)

We are living through a pivotal moment in history. Artificial Intelligence is no longer a concept confined to science fiction; it is rapidly reshaping every industry. For business leaders, entrepreneurs, and employees, understanding this change is critical for future success. Over the next eight years, AI will redefine human activity—from daily tasks to core business strategies. To analyze this seismic shift, we turn to the most powerful predictions from the very people who are currently driving technological advancement.

1. "The future of AI is not about replacing humans, but about augmenting human capabilities." – Sundar Pichai, CEO of Google 

 This quote is a foundational principle for modern business strategy. It suggests that companies should view AI as a tool for empowerment, not just a cost-cutting measure. The focus shifts from automation of jobs to augmentation of tasks, improving employee productivity, decision-making speed, and creative output. Companies that embrace this collaborative model will gain a significant competitive edge. If we heed his words, we should seek more people-oriented help. Hopefully he is right. The question is what other opportunities we are seeking.

2. "Artificial intelligence is likely to be either the best or the worst thing that happens to humanity." – Elon Musk, CEO of SpaceX and Tesla

Musk’s view highlights the double-edged nature of rapid technological progress, posing a profound question for corporate governance and ethical AI deployment. This means that businesses must take the lead in making sure that ethics are followed. Companies must proceed with caution, establishing robust internal guardrails to ensure AI tools are used for positive impact, mitigating risks associated with bias, security, and unintended negative consequences. Does this mean that we should be careful and proceed more slowly and thoughtfully? The future will reveal this.

3. "The pace of progress in AI is incredibly fast." – Jeff Bezos, Founder of Amazon

Bezos’s statement is a clear call to action for every organization. In business terms, "incredibly fast" translates to accelerated disruption. This pace demands that companies adopt a mindset of constant learning and agility. Strategic plans must be flexible, allowing for quick integration of new AI capabilities, or risk being outpaced by more nimble competitors. The biggest threat is complacency.

4. "The future of AI is in our hands." – Tim Cook, CEO of Apple

Cook offers an optimistic, yet challenging, perspective on corporate responsibility. Human choices determine the direction of AI, despite its immense potential. This emphasizes that there must be thoughtful leadership in the AI space. Businesses must prioritize value-driven AI development, ensuring that their models align with human values and serve beneficial societal or commercial goals, rather than merely maximizing profit at any cost. He may be right. The question remains, in whose hands exactly? Is it the responsibility of well-meaning individuals or evil dictators with malicious intentions? It is a matter of perspective.

5. "AI will be the key to understanding and solving many of the world's most complex problems." – Satya Nadella, CEO of Microsoft

Nadella frames AI as the ultimate problem-solving engine. For forward-thinking businesses, this means deploying AI to tackle grand challenges—from developing new medical treatments and improving climate models to optimizing global supply chains. This vision shifts business focus from incremental improvement to transformational innovation, positioning AI as an indispensable engine for high-impact solutions. Hopefully, it will also help reduce poverty. 

6. "AI is going to change every industry and every job." – Reid Hoffman, Co-founder of LinkedIn

This sentence is the clearest prediction of market transformation and workforce necessity. No sector is immune. Businesses must proactively invest in reskilling and upskilling their current workforce. The jobs of the future will require humans to work with AI, focusing on uniquely human skills like complex communication, creativity, and critical thinking. Ignoring this necessity is a recipe for talent shortage and operational obsolescence.

7. "We’re entering a world where we’ll learn to coexist with AI, not as its masters, but as its collaborators." – Mark Zuckerberg, CEO of Facebook (Meta)

Zuckerberg introduces the concept of symbiotic partnership. This requires a fundamental cultural shift within organizations, moving away from a command-and-control structure toward one of collaboration between human teams and AI systems. Businesses should design workflows where AI handles data processing and prediction, while humans focus on interpretation, strategy, and emotional intelligence.

8. "AI may be powerful, but it will never match the wisdom of human experience." – Jack Ma, Founder of Alibaba

Ma strikes a crucial balance. While AI excels at processing vast amounts of data (power), it lacks context, intuition, and ethical understanding derived from lived human experience. Business leaders need to guarantee that experienced human professionals consistently review and validate AI outputs. Businesses that successfully combine the speed of AI with the wisdom and adaptability of human judgment will emerge as the most successful.

🌐 Conclusion: Control is in Our Hands

As the famous quote says, "Technology is a useful servant but a dangerous master."

The power of AI is vast, but our collective choices determine its trajectory. Every decision we make regarding AI implementation—from prioritizing human values over simple efficiency—is crucial. Machines may lack feelings, but we must train them and govern their use with empathy, ensuring they serve human well-being and protect countless professional and personal lives.

What is the most compelling quote for your business strategy? Share your thoughts below 

Why Politicians Manipulate the Concept of "Middle Class"

 Political rhetoric often exaggerates the share of the middle class for the following key reasons:

1. Political Attracting and Mobilizing

• Ideal Electorate: The middle class is considered the backbone of a stable society and democracy. It is associated with hard work, responsibility, moderation, and law-abidingness.

  Universal Appeal: When a politician says he "works for the middle class," he is aiming to appeal to the widest possible range of voters, because most people identify as part of it, even if their financial situation does not meet strict economic definitions. No one wants to define themselves as "lower class."

  Conveying Stability: A large middle class creates an impression of social stability and economic prosperity, which is the goal of every government.

2. Blurring the Economic Definition

• Lack of Clarity: There is no single, universal definition of the middle class. Economists use criteria based on income relative to the median income (e.g., between 75% and 200% of the median income), but policymakers often use broader and more subjective definitions based on lifestyle (owning a home, a car, and the ability to vacation).

  Focus on Income, Not Net Worth: Policymakers prefer to talk about income (which can be temporarily high) and ignore net worth/wealth (assets minus liabilities, i.e., credit). This allows them to include people with high incomes but high debt (large mortgages, loans) who would otherwise be excluded from the financially stable middle class. 

  
  
  

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🏦 The Relationship Between Credit and the "Middle Class"

Category	Economic Analysis	Political Rhetoric
Financial Stability	Financial stability is contingent upon one's net worth, which is the sum of one's assets, liabilities, and credit. The middle class should have a positive net worth and low reliance on debt for daily needs.	Debt is ignored. The focus is on the ability to obtain credit for housing and education, which is portrayed as a "middle-class achievement."
Effect of Credits	Credit, especially consumer credit, can turn an "average" class into an economically vulnerable class. Debt undermines long-term stability.	Lending is a driver of consumption and economic growth. The ability to borrow is presented as access to a "middle-class" lifestyle.

🎯 The Debate About the "Indebted Middle Class"

• 10% Without Credit: If only 10% of the world's population is without any credit, the data suggests that the majority of the population, including many high-income earners, relies on debt to purchase major assets (home, car) or to cover expenses.

  "External" Possession: A person who owns a large house and an expensive car appears to be part of the middle or even upper class. However, if mortgages and loans finance these assets almost entirely, their true financial freedom remains minimal. One job loss could bankrupt them.

Politicians ignore this fact because:

Recognizing this fact requires uncomfortable decisions to reduce debt and actually raise incomes, rather than simply encouraging consumption through lending.

Bank borrowing is often an indicator of "confidence" in the future economy and is desired by the financial sector, which has influence over policy.

Thus, the political narrative of a large "middle class" is more of an ideological tool, intended to create a sense of a broad base of prosperous, stable citizens, while the financial reality for many of these people is that they are on the verge of high indebtedness.

Why You're (Probably) Losing Money in the Stock Market: Lessons from "The Psychology of Investing"

Have you ever stared at your investment portfolio, feeling a mixture of bewilderment and mild panic, wondering how those carefully chosen stocks could have experienced such a dramatic decline? You're not alone. Many of us approach investing with a logical, detached mindset, believing that a spreadsheet and a few beneficial tips are all it takes. But what if I told you that the biggest saboteur of your financial success isn't market volatility but your brain? That's the core message of "The Psychology of Investing," a book that, while not a single, definitive tome, represents a crucial body of work exploring the human element in financial decision-making. It’s a fascinating dive into why we do what we do with our money, often in ways that are spectacularly counterproductive. For anyone looking to improve their investment game, understanding these ingrained psychological biases is not just important; it's downright essential. Think of it this way: we're wired for survival, not for maximizing long-term returns. Our brains have evolved to react quickly to immediate threats and rewards, a trait that served our ancestors well but can lead us astray in the complex world of investing. "The Psychology of Investing" (in its various forms and interpretations) acts as a mirror, reflecting back the often irrational behaviors that plague even the most well-intentioned investors. So, what profound lessons can we glean from this exploration of our financial psyche? Let's break down some of the key takeaways that are absolutely crucial for your investment journey. The Overconfidence Trap: "I Know Better Than the Market!" One of the most pervasive biases highlighted is overconfidence. We tend to overestimate our knowledge and abilities. In investing, this translates to believing we can pick the winning stocks, time the market perfectly, or outsmart seasoned professionals. Ever heard someone boast about how they "almost sold everything before the big crash" or how they "saw this stock going up from a mile away"? That's the sound of overconfidence at play. The reality is, consistently beating the market is incredibly difficult, even for experts. As numerous behavioral finance researchers have indicated, the typical investor frequently underperforms the market due to this erroneous confidence. A common quote that encapsulates this aspect is "The investor's chief enemy is likely to be himself." This simple yet profound statement, often attributed to Benjamin Graham, the father of value investing, perfectly captures the essence of how our minds can be our worst financial adversaries. When things inevitably go wrong, we become overconfident, take on excessive risk, and find ourselves baffled. What's Important For Us: The antidote to overconfidence is humility and a healthy dose of skepticism about our prognostications. It’s about acknowledging the limits of our knowledge and embracing a more disciplined, diversified approach. Instead of trying to be a genius stock-picker, perhaps focus on understanding broad market movements and choosing investments that align with your long-term goals and risk tolerance. The Herd Mentality: Following the Crowd Off a Cliff

 Humans are social creatures, and we often look to others for cues on how to behave, especially in uncertain situations. This is the herd mentality, or herding behavior. In investing, the term means jumping on bandwagons—buying stocks when everyone else is buying and panic selling when everyone else is selling. Think about the dot-com bubble of the late 1990s. Everyone was investing in internet companies, regardless of their actual business models or profitability, because everyone else was doing it. When the bubble burst, many people lost a significant chunk of their savings. Similarly, during a market downturn, the fear of missing out on further losses can drive investors to sell indiscriminately, locking in their losses. As John Maynard Keynes famously remarked about market speculation, "The markets can remain irrational longer than you can remain solvent." This phenomenon is a concrete indication that following the crowd doesn't guarantee a good outcome, especially if that crowd is being driven by emotion and irrational exuberance or panic. What's Important For Us: To combat the herd mentality, we need to cultivate an independent mindset. This means doing our research, understanding our individual financial goals, and sticking to our investment plan, even when the market is noisy. It’s about asking yourself, "Am I buying this because it’s a worthwhile investment for me, or because everyone else is?"

 Loss Aversion: The Pain of Losing is Much Greater Than the Joy of Winning

 This issue is big. Loss aversion describes our tendency to feel the pain of a loss more intensely than the pleasure of an equivalent gain. For example, losing $100 feels much worse than finding $100, which feels good. In investing, this bias leads to some detrimental behaviors. We might hold onto losing stocks for too long, hoping they'll "come back," because selling them would mean admitting a loss. This feature is often referred to as the disposition effect. Conversely, we might sell winning stocks too early to lock in a profit, fearing that the gains might disappear. This means we're often cutting our winners short and letting our losers run. The psychological impact of a loss is so powerful that it can cloud our judgment and lead us to make decisions that perpetuate further losses. It’s like being gripped by fear, preventing us from making rational choices. What's Important For Us: Understanding loss aversion is key to creating a more disciplined selling strategy. It encourages us to set clear stop-loss points (pre-determined levels at which you automatically sell a stock to limit losses) and take-profit targets. It also helps us accept that losses are an inevitable part of investing and that sometimes, cutting your losses is the smartest move to preserve capital for future opportunities.

 Confirmation Bias: Seeking What We Already Believe

 We all have a tendency to seek, interpret, and remember information that confirms our existing beliefs and hypotheses. This is confirmation bias. In investing, if you buy a stock, you're more likely to look for news and opinions that support your decision while ignoring or downplaying negative information. This creates an echo chamber where your convictions intensify, irrespective of their factual accuracy. You may develop an attachment to a company, disregarding cautionary signals, because you have already convinced yourself that it is a successful venture. The danger here is that you become increasingly detached from the objective reality of the investment. As the adage suggests, we perceive things not as they are, but as we perceive ourselves. This quote, by Anaïs Nin, perfectly illustrates how our internal biases color our perception of external reality. What's Important For Us: To counter confirmation bias, we need to actively seek dissenting opinions and evidence that challenges our assumptions. This means reading analyses from those who are bearish on a stock you like and critically evaluating all information, both positive and negative. It’s about being open to the possibility that you might be wrong, and that’s acceptable.

 Recency Bias: Remembering What Just Happened

 Our memories are not perfect recordings of the past. We tend to give more weight to recent events than to those that happened further in the past. This phenomenon is recency bias. In investing, this means that a recent market crash might make us overly pessimistic about future returns, while a recent bull run might make us excessively optimistic. We might forget the lessons learned from past downturns or periods of low growth because the immediate past is so salient. If the market has been soaring for a while, you might believe it will continue forever. If there’s been a recent dip, you might fear that a full-blown recession is imminent. This short-term focus can lead to poor long-term strategy. What's Important For Us: To overcome recency bias, we need to cultivate a long-term perspective. This involves studying historical market cycles and understanding that both booms and busts are normal parts of investing. It means having a plan that accounts for these fluctuations and resisting the urge to react impulsively to recent events. As Warren Buffett wisely advises, "Be fearful when others are greedy, and be greedy when others are fearful." This requires looking beyond the immediate news cycle.

 The Big Picture: Why This All Matters

 The lessons from "The Psychology of Investing" aren't about making you a perfect stock picker overnight. They are about developing a more rational, disciplined, and self-aware approach to your money. By understanding these common psychological pitfalls, you can begin to identify them in your behavior and take steps to mitigate their impact. Investing isn't just about numbers; it's deeply intertwined with our emotions, fears, and desires. The more we can understand and manage our own psychological responses, the better equipped we will be to navigate the complexities of the financial markets and, ultimately, achieve our long-term financial goals. So, the next time you feel the urge to make a rash decision about your investments, take a pause. Ask yourself: Is my choice a rational decision based on sound analysis, or is it my overconfidence, fear, or desire to fit in talking? You may find that the best investment is in self-awareness.