E-Myth and how it Relates to the B & S quadrants

I can’t help but think that those business owners that are stuck in the small business frame of mind or the S quadrant in Rich Dad’s four quadrants are so because they haven’t implemented the principles of the E-Myth and aren’t taking advantages of taxes, or as my oldest brother once told me, massaging the numbers, i.e. taking deductions whenever possible. I didn’t know this, but there are allowances for deductions (payouts to employees) being at the company the longest and for safety. As long as you don’t electrocute yourself turning on and off your computer this could qualify you for that deduction.


My main take away from that book is that you’ve got to flatten out your business as much as possible. That means making every process as simple as possible. You want to make things as simple to do as possible so that you can hire the people that work your business as cheaply as possible, just like McDonalds does.

You also do that by creating systems. With a system people know exactly what to do, just like you know how to solve an algebra problem, i.e. input the variables into your system and solve the problem.

If you haven’t read the E-Myth, do so immediately. One of the best books I ever read on business and taught me more than most of what I learned throughout my schooling years.

5 Favorite Currencies for Next Five Years with Peter Schiff and Axel Merk

Anglo sphere is where they speak English, but aren’t US and Great Britain. Namely this consists of Canada, Australia, and New Zealand. Peter likes Australia due to it having more exposure to commodities and is a little more stable politically then New Zealand. Canada is heavily tied to the US, but will start to export elsewhere once the downturn happens and so they’re still a possibility as a place to invest in before, during, and after the economic collapse of the U.S.


Nordic Bloc allows exposure to Europe without being in the Euro zone. Countries included are Scandinavia, Iceland, Greenland, and Estonia (northern region). Both like Sweden because they really embrace free markets and no bailouts, i.e. not bailing out Saab, which recently declared bankruptcy. Specifically peter likes the Norwegian Krone due to its exposure to oil, on which he’s very bullish. They’ve also got a better balance of trade, higher interest rates, and fishing.

Continental Europe. Japan has a strong currency despite a down economy over the last 20 years. Why? The more ineffective the Japanese government is, the stronger the currency appears to become; and the reason is that they have a current account surplus. Having a current account surplus means that the economy slows down, consumers save more, and the currency gets stronger. Peter likes the Swiss Fran due to it being strong. It’s strong because of high export growth, and hardly any budget deficit, but with sound fiscal policy. With them pegging their currency to the Euro, they’ll reduce the cost of employees and paying them, but they simultaneously expose themselves to the bankrupt/eventual bailout of PIIGS countries. Euro will gain ground against the Franc in the short term with the recent peg, but the Franc will long term win because it will eventually sever its peg and appreciate accordingly.

East Asia. Peter likes the Singapore dollar most due to minimal government interference, low taxes, and low regulation. They don’t have a minimum wage. It and the Chinese Renminbi are set to rise significantly as soon as they stop pegging their currency to the dollar. Overall the Renminbi will grow like crazy once they let their currency appreciate relative to the US dollar, but until then the Singapore dollar is the way to go, but even then and WITH the peg of the Franc to the Euro, the Franc is still stronger in Axel’s opinion as a safe haven currency. Peter likes the Hong Kong dollar and sees its potential as THE currency of choice for global investors in the next five years.

These currencies would be based on a buy-and-hold portfolio for retail investors building stocks and bonds portfolios. Axel also tells his investors in his newsletter that adjusting your position on a daily basis isn’t the dumbest thing to do as sometime huge macroeconomic changes occur that have big consequences for the involved currencies.

Online Trading Webinar

These are the notes that I took from a trading webinar I ‘attended’ online.


Number one rule of trading is risk management.

Avg. S&P growth is around 7-8%. Take a 20 year old. Invests 1000 into S&P. After 65 years, 40 to retire and 25 to die, that 1000 will turn into 140k. However with brokerage fees the return is more like 5-5 ½%. That reduces the 140k down to 32k…BEFORE TAXES!!!

Write down a goal to make passively.

Fundamentals are hard for people to understand because there is so much going on they don’t know where to start.

Brokerage account can be as little as 300-2500 or a free account with a ‘virtual account’

MACD = Moving Average Convergence Divergence (measures a change in direction)

Indicators tell you when to buy/sell a stock.

Mutual Funds/managers ONLY do long of stocks.

Don’t waste time learning tricks of the trade.