Interview With Ev Bogue, Author of "Minimalist Business", Part II

This is part II of an interview I recently conducted with Ev Bogue, who just released a completely rewritten version of his best-selling ebook "Minimalist Business".

You can read part I of the interview here. I would like to again thank Ev for taking the time to answer my questions.

6. What are some common mistakes that new minimalist business owners make with respect to attracting attention / getting permission?

Right now the biggest misstep I see is assuming social media is a list of people who are supporting the work. Social is a great way to get in touch with almost anyone when I need to make a request. However, it’s not a list of clients.

There might be a few clients in the bunch, but most of the people I follow on social fall into three camps.

1. Masters

2. Peers

3. Friends

Customers don’t fall into these three groups.

So where are customers? To find out, I need to gather permission in social spaces. I have to ask ‘would you be willing to hear more about the work I’m doing?’ I ask people to sign up for a list. Then I have an honest list of people who are actually interested in the work I’m doing.

This is hard, because the honest list for someone just starting out might be three people.

7. Can you give a rule of thumb, based on your experience, about how a new minimalist business owner who is struggling to attract attention (i.e. he/she is in "The Dip") can decide whether to keep trying, or should perhaps switch to a new topic?

I’m in a constant process of experimenting, measuring, and untethering when what I’m doing isn’t working. If I stuck with one topic, I’d almost certainly be bored – and the people who read me would be bored too.

Knowing this, I continue to innovate based on what interests me, and how I benefit the people who support my work.

8. Can you briefly describe how your specific attention-gathering process (Google+, EvBogue.com sign-up box, daily letters) works? Why isn't the EvBogue.com page longer (describing your background, your products, etc)? Is the Google+ step suppose to make people comfortable enough that EvBogue.com only needs to present the sign-up box?

I haven’t gathered permission until I have permission to contact you in your inbox. My goal with social is to tell a compelling story about the work I’m doing, to incentivize new readers to sign up to hear more.

I look at the work I’m doing online as a constant experiment. The website I have right now may not be the one I have in one week. My social presence may shift to another service. The reality is, I need to be constantly trying new things to see how they land.

What works for me may not work for you.

9. Given that you switched EvBogue.com from a blog to a sign-up page / daily letter, why did you re-launch the "Minimalist Business" site using a blog format? Was this another experiment?

This is an experiment. Will having a blog associated with Minimalist Business boost sales? The blog is another tool for gathering permission to contact customers in their inboxes.

This being said, all of the information I push to the public web is solid. All of the experimental work I’m doing right now is behind the scenes. If you’d like to hear more, you’ll need to sign up for the list. The public work is just scraping the surface.

10. Finally, could you tell us why you distributed the new edition of "Minimalist Business" as a .mobi (Kindle) file, as opposed to pdf format (like the original)? Was this another experiment, or do you see an advantage to this format? Was this format easy to generate using "Scrivener"?

Exactly. Using the Kindle format allows me to compile quickly. I see Minimalist Business as an evolving book.

As the world changes, Minimalist Business will change with it. As the experiments I do teach me more about how the current world of the web works, I will update the book with what I find.

I’m beginning to see a book less like a brick of information, which can never be changed, and more like a fluid entity. This has been confusing for some, because we’re just at the start of the evolving book era. The trouble with a bricked physical book is it’s two years out of date by the time it’s published. With a digital book, I write, compile, update and distribute in a fraction of the time.

Ultimately, the goal of creating a Minimalist Business is to be flexible. It’s about changing based on the needs of the people who support your work. What works today may not work tomorrow.

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Interview With Ev Bogue, Author of "Minimalist Business", Part I

I recently conducted an interview with Ev Bogue, who has just released a completely rewritten version of his best-selling ebook "Minimalist Business".

Since Ev kindly took the time to provide a lot of information in his answers, I decided to split the interview up into two parts. Today is part I, and here is part II.

1. How do you define a minimalist business?

A Minimalist Business exists in the cloud. It’s as close to zero-overhead as possible. A Minimalist Business delivers products and services digitally.

I built my first Minimalist Business in 2009, after I quit my job, threw out all of my stuff and started moving through the world more than I did before.

I realized if I separated my income from my location, I’d be able to earn a location independent way. If I kept my business (and personal) overhead low, I’d be able live a very flexible life in the world.

Over the past year, it’s become increasingly easier to live and work from anywhere in the world. Minimalist Business takes all of my experiences from the past three years living and working from anywhere and condenses the experiences into one compact package for your benefit.

2. Could you mention one difference between the original edition of "Minimalist Business" and the current edition, specifically concerning attracting attention/gathering permission?

In 2010, I released the original edition of Minimalist Business. I’d been living and working from anywhere for 6 months at the time. I’ve learned a lot since then, so I decided it was a good time to revisit the work.

The technologies we use to communicate online have transformed significantly over the past few years. I’m constantly experimenting to see what works best.

What I do know is this: I can only sell digital products to the people I’ve gathered permission from. There’s an entire section in the new Minimalist Business on gathering permission.

Gathering permission is the act of asking this in public spaces online ‘Would you be willing to hear more from me?’

3. Do you think it is harder to attract attention / permission online today, compared to when you first wrote "Minimalist Business? If so, is it because people are more jaded? Are prospects too busy trying to promote their own offers?

It’s actually easier to get the word out about your work than it was three years ago. The flow of information on the web is almost frictionless. Even a few years ago, information was still being controlled by a few self-appointed very important bloggers. Now, I know if I put something which benefits people into the world, it will reach the people who need it.

The challenge is, in this world of frictionless information – how do we stand out in the noise? The answer, for me, is to continue experimenting, and doing the work, every single day.

I know if I create things which benefit other people, they will find a way to the information.

4. Would it be fair to say that the overall lesson in "Minimalist Business" is about continuously conducting experiments to find an independent path to success - as opposed to giving readers an absolute plan to follow? Is there a concern that readers may want more specific steps?

There’s no certain path to success in the online space. In Minimalist Business I talk about how to keep overhead low, experiment, measure, and untether from what isn’t working.

The only way to find out if my work is going to land in the online space is to push it out into the world and see how it lands.

If there was a surefire path to success, everyone would be doing it, and it wouldn’t be a path anymore – it’d be a really crowded highway.

5. Could you give us a quick experiment that a new minimalist business owner (with no list or followers) could try to attract attention?

I were just starting off I’d try to find one person I really trust to give me honest feedback about how my work is landing for them.

I'd again like to thank Ev for taking the time to answer my questions. Here is part II of Ev's interview.

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Product Creation: Should You Go For A Breakthrough or Improvement?

The entrepreneurial and inventive spirit in you might dream about creating a revolutionary, breakthrough product that changes the world.

However, throughout history, new products or ideas that extend or incrementally improve on current technology have been equally (and perhaps more) important.

I have noticed that there are two types of creative people: Visionaries and Improvers. A Visionary (like Steve Jobs) can create successful products for people that they don't even realize they need. A scientific Visionary like Newton or Einstein can form radically different theories and models of everyday phenomena that are beyond common sense.

Society and, especially creative types, judge innovative success in Visionary terms. We want to change the world with a bang.

However, the Improvers are equally important. They change the world with a whimper. Their creativity lies in a less expansive vision, where they can see one step ahead. To be creative, they need a specific problem or observation that allows them to build on whatever the current state of the art is.

Personally, I'm an Improver. Whenever I focus on improving something that is existing, I am able to harness my creative juices and get absorbed in creating. If I try to create something totally revolutionary or involved, I get bogged down and lose steam - I lose any excitement or creative juice.

The problem is when I get down on myself because I think I need to create something big.

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Do Billionaires Have To Give Charity to Help Mankind?

People who think in terms of scarcity want billionaires to "justify" themselves by donating to traditional causes. With an abundance mentality, you realize that the wealthy help mankind no matter what they do with their money.

1. Let's say they buy luxury goods, like a Rolls Royce. Their money is then supporting jobs. The money is flowing to the dealership, salesman, service techs, etc. They, in turn spend money on themselves and their families, etc. So, if a billionaire doesn't give to charity himself, there is a good chance people downstream of his spending will donate.

2. If, instead, the wealthy save/invest the money, then it is used to invest in companies and businesses, creating jobs.

3. Even if they burned their money in a big bonfire, it would help mankind, because it would raise the value of all remaining dollars relative to goods (less supply of dollars).

The only thing that wealthy people can hurt are certain geographic areas, when they take their money elsewhere. For example, a corrupt African dictator gets his wealth locally, but then doesn't re-spend it locally - instead he sends it abroad. His country will have a net loss.

Even in this example, however, on a global scale, the money is not wasted. The dictator's money will help people somewhere in the world by getting invested or flowing through luxury good purchases. Maybe some of the people benefiting from his spending - such as a Ferrari dealer in France - might even donate money back to the dictator's country (not that this makes up for what he took, of course).

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Does "American Airlines" Need To Terminate Its Pensions in Bankruptcy?

American Airlines' parent company AMR corp, which is currently in bankruptcy, wants to eliminate its four pension plans, which it says is a "multibillion dollar liability on its balance sheet".

The Pension Benefit Guaranty Corp. disagrees, and says that American can emerge from bankruptcy without terminating its pensions.

They say that American still has $3 billion in cash and Delta, which has higher pension costs, is currently profitable. Also, Continental did not have to terminate any of its pensions during its bankruptcy.

The Pension Benefit Guaranty is the federal agency that takes over pensions when the original companies can no longer run them. Instead of tax money, they are funded by premiums paid by companies with pension plans.

However, the premiums that Congress allows them to charge aren't enough, and they are currently running a $26 billion deficit which, according to a "Chicago Tribune" article, would become $35 billion if they took over AMR's pensions.

Because of this deficit, they would only be able to pay each American Airline pensioner up to $54,000/year. This would short change some retirees, such as pilots.

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Aon Insurance's Move to London: An Example of How Shareholder's Votes Aren't Always Simple Decisions

A month or so ago, Aon Corp. (one of the world's largest insurance brokers) announced that they would move their headquarters from Chicago to London. Even though only a few jobs would be affected, it was considered a blow to Chicago's prestige as an international financial capital.

Aon's board said the decision was made to lower their corporate tax rate and allow them to access $300 million of cash they have outside of the U.S. They made it seem like a simple, cut-and-dry issue.

On the eve of the shareholder vote, however, they had to comply with SEC regulations, and disclose the risks of the move:

1. Some shareholders might get taxed during the switch from a U.S. to U.K. company.

2. The IRS might fight the U.S. to U.K. switch. If Aon lost, the projected cost savings may not occur.

3. The litigation might take so long that, if Aon lost and the U.S. to U.K. move was undone, it might be too late for investors to file an amended 2012 tax return to claim a refund of the taxes from risk #1.

4. Shareholders like companies to buy back stock, but English companies face more restrictions than Delaware corporations for stock buy-backs. For example, they may have to get 75% of shareholders to vote in favor of it.

5. They may not be allowed to continue to pay their dividend until they built up "distributable reserves".

6. Finally, there is the risk that Aon may get removed from the S&P 500.

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Why Do I Write About Simplicity, Zen, and Taoism on A Financial Blog?

It might seem strange that someone who likes simplicity and Eastern philosophy would write about them on a business/financial blog.

After all, doesn't business have to do with serious, bottom line math? Isn't Zen and Taoism associated with '60's style hippies and non-capitalist, non profit peace and love?

Actually, Eastern philosophy and thought is rooted in the everyday world - in mundane matters such as commerce. Eastern religions such as Buddhism do not see worship as something you only do once a week in a church or temple. Instead, you "worship" and server the Universe through your daily life and work.

Personally, I feel that any success I have achieved has been because of my passion for simplicity, minimalism, zen, and Taoism. Incorporating elements from each of them into my way of thinking was as valuable (if not more) than any computer, mathematical, or financial training I've ever had.

I've learned the power of "The Middle Way" (rather than sticking to an extreme viewpoint), analog thinking (as opposed to win/lose zero sum games), present moment awareness, the power of concentration, and "resetting" or letting go.

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"Stock Trading Riches" Chapters

Here are some of the chapter titles from my book "Stock Trading Riches":

My Simple Trading System

Optional Ideas for Customizing The System

Zen and the Art of Speculation

The Hidden Dangers of Investing Too Conservatively

7 Stock Market Secrets for New Investors

Divorce of A Trader - The Perils of Leverage

Why Stocks Are Better Than Mutual Funds

Exchange Traded Fund (ETF) Investment Success - Stick to the Basics!

Combining Fundamental and Technical Analysis for Stock Trading

How to Invest in an Era of High-Inflation and a Weak US Dollar

Deflation and Stock Picking

How Markets React to News and Reports

The Problem With Trading From Charts - The Secret Flaw Technical Analysts Never Talk About

Evaluating Trading Systems Critically - Be Wary of the Well-Placed Example

How to Select IPOs That Are Ready To Explode

Stock Market Cap Analysis - Secrets for Building a Diversified Portfolio

6 Unconventional Metrics for Stock Picking

Bonus 2009 Updates

Bonus Awk, Perl, and Excel Scripts

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Learning About Business by Surfing Around

Sometimes it's fun to explore the internet without any plans - just following links and "googling" interesting phrases.

This morning, I started off reading an article about an American sumo wrestler who set a world record for heaviest finisher of a marathon.

One of the comments was a joke that the sumo guy would cause a shortage in Gold Bond medical powder - in other words, a joke about chafing.

I remember hearing commercials for Gold Bond years ago so, feeling nostalgic, I googled it and went to the Wikipedia site.

From there, I learned that a lot of cool products from the past - like Gold Bond, Icy Hot, Selsun Blue, etc. are made in Chattanooga Tennessee by Chattem, a 100 year old company.

The Chattem Wikipedia entry mentioned that they are a subsidiary of French drugmaker Sanofi-Aventis, which sounds very interesting. An old time Chattanooga company owned by a French drugmaker.

It makes me think of the "Beverly Hillbillies"'s Jed Clampett mingling with a French aristocrat. So, I googled the merger.

Turns out that Sanofi bought Chattem in 2009 on December 21 (my brother's birthday). They paid $1.9 billion - offering $93.50/share, which was a 34% premium over the closing price.

From an analysis point of view, it looks like it was a good deal. Chattem is in the top 10 for consumer products in the U.S. (and has a higher profit margin than leaders Johnson & Johnson and Proctor & Gamble), but they don't have much market overseas. Sanofi is losing patent protection from many drugs, and wants the stable earnings from consumer products to make up the lost income. Also, they want a sales network to sell an over-the-counter version of Allegra in the U.S.

So, it was a win-win deal for everyone.

Finally, I saw an interesting article on the Wall Street Journal that 2 French businessmen in Brussels got charged by the SEC for insider trading on the Sanofi-Chattem deal. They found out about the deal before hand, bought options (expiring on Jan 15) on Chattem stock, and sold the options right after the merger was announced for a $4.2 million profit.

So I had a fun and educational "surf session" all because of a Sumo running (actually walking) a marathon :-)

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Clever Examples of Long Term Strategy To Doing Business With China and Asia

I read a recent article in Forbes about Peabody Energy. In 2003, when he became COO, Greg Boyce foresaw that China, with it's incredible growth rate, would switch from being a net exporter to a net importer of coal.

When he became CEO in 2005, he spun off the company's Appalachian mines and invested in Australian coal mines so he could sell to China. Since he has been CEO, the shares are up 10 fold and non-U.S. operations now provide 50% of Peabody's earnings (up from 2%).

The Forbes article mentioned 2 of Boyce's actions that really impressed me as clever, and long term strategic:

1. Before China became a net importer of coal, he laid the groundwork by opening a Beijing office and a trading desk, so he could build trust and relations.

Also, as I previously mentioned, he invested in Australian mines because Australia has more coal than they need domestically, and are close to Asia. He purposely invested in Australian mines that had access to ports, so he could keep logistic costs down.

2. The next big thing is Mongolia. In the Gobi Desert, they have the world's largest untapped deposits of metallurgical coal (better quality then the subbituminous coal found in the U.S.), and are starting to shop around development rights. Besides Peabody, lots of American, Chinese, European, and Russian companies are vying to develop these fields.

To position themselves for this opportunity, Peabody wants to have a local staff of experienced managers. So, today, they are investing in Mongolia by hiring Mongolian engineers to work in their Wyoming coal mines, and are sending Mongolian students to U.S. engineering schools.

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Leave Ronald McDonald Alone!

A lot of healthy eating activists are taking aim at McDonalds and asking them to retire Ronald McDonald. They think he unfairly advertises to children.

The truth is that these activists will always go after McDonalds about something. If Ronald goes away, they will target happy meals next. They just don't like McDonalds.

But McDonalds is a successful business that makes lots of money for its shareholders by giving people what they want. Who are a few activists to tell millions of Americans that you can't be trusted to pick your own restaurant, so we'll go after McDonalds to protect you?

When San Francisco banned Happy Meal toys, my wife thought that's a good thing, because my son always wants Happy Meals, and sometimes I give in. But I told her that is completely wrong. I am the parent - it is my issue if I give in to my son. Parents should not be hiding behind the government because they can't say no to their children.

Having a few "experts" deciding which business are worthy sounds like Communism and central planning. It's doomed to fail (while capitalism is very robust and adaptable) because millions of "average" minds are collectively better at determining markets than a "smart" few.

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Are We Headed For Runaway Inflation? Myths vs. Realities

It's fashionable today to talk about the high prices of gold and oil, and how the Fed is printing so much money that we are going to have hyperinflation.

I'm skeptical, and columnist Steve Chapman, a member of the Tribune's editorial board, agrees with me. He laid out a compelling argument in a recent Chicago Tribune article - which I have paraphrased in the form of Myth vs. Reality:

Myth: The price of gold has doubled since Obama was elected, because investors want to hedge against an increasingly worthless dollar.

Reality: Gold has been in a long-term bull market - during the 8 years of the Bush Administration, the price of gold tripled while the consumer price index rose less than 3% per year.

Myth: The rise in oil and other commodities are caused by the Fed's actions.

Reality: Commodity prices are also affected by events outside the United States - in this case, strong demand from developing countries such as China.

Myth: The government understates inflation because the "core" inflation rate excludes food and energy.

Reality: Food and energy are excluded because they give a distorted picture due to volatility. The core rate is accurate. During the last decade, the core rate was up 21%, vs. 27% for the full inflation rate. General inflation can't exist without the core rate increasing. In the 1970's everything went up - not just food and energy.

The bottom line is that there is no evidence of near-term inflation. The market knows this, as indicated by the popularity of three year treasuries yielding 1%. They would not be in demand if people thought inflation would ravage it.

Finally, high inflation like the 1970's needed a wage-spiral. Higher prices resulted in higher wages, which resulted in higher costs. Today, there is no wage-spiral. Unemployment is high, and wages / salaries are stagnant.

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Skype: Great Trade for Marc Andreesen

This past week, Microsoft bought the internet phone company Skype for $8.5 billion. Did they overpay? Was it a good buy?

That remains to be seen. Skype continually loses money and Ebay gave up on integrating it. But, I think they may have some success if they combine Skype with Xbox and, especially, Communicator.

Many corporations (including the bank I work for) use Microsoft Communicator internally for chats. If Microsoft embeds Skype into Communicator, they could capture a big share of the voice business.

But, one thing for sure is that a big winner is Marc Andreesen (founder of Netscape) and his investment firm, Andreesen Horowitz.

Ebay bought Skype for $3.1 billion in 2005 and sold it to a group of investment firms (headed by Silver Lake and Andreesen Horowitz) for $2.8 billion in 2009.

Now, 18 months later, they sold it to Microsoft for $8.5 billion.

That's a great trade - a 204% return in a year and a half!

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Grant Achatz's Next and Doughnut Vault: How To Succeed In Business By Playing Hard To Get?

I was reading in the Chicago Tribune about two new restaurants that are thriving despite (or maybe because) they make it hard to buy their food:

1. In order to make a reservation at "Next", you have to buy a non-refundable ticket from their website. There are 14,000 names on the email waiting list, so tickets are going for up to $600 on Craigslist. Remember, this is just to get in - the actual dinner cost is separate.

2. Even more intriguing, a small doughnut shop called "Doughnut Vault" (just a order/pickup window in an alley) opened in Chicago's River North area without much publicity, and they sell only coffee, and 5 kinds of expensive ($2 - $3 each) doughnuts.

But the lines are jammed every morning. People start lining up by 7:30 am, but the shop has no set hours. They could open at 8 am or 9 am. They send out a Twitter just before opening time. Once open, they sell out fast, because they only make so many.

The Tribune interviewed one woman who lined up for hours twice, and didn't get any doughnuts.

With "Next", it is a bit understandable, because the chef / owner is Grant Achatz - who is a celebrity chef. His "Alinea" restaurant has three Michelin stars and is considered the best restaurant in the United States. He even gets his $100,000 Viking ovens almost for free, in exchange for them to mention his name in their marketing materials.

"Doughnut Vault" is owned by Brendan Sodikoff, a veteran of famous restaurants like Alan Ducasse, who also owns Gilt Bar and Maude's Liquor Bar. But, this fact isn't advertised. In fact, there wasn't much publicity or advertising.

What are the business lessons in this?

1. People are attracted and interested in the mysterious and exclusive.

2. Being hard to attain is not the same as anti-customer service or substandard products. People rave about the food quality at both places. Sodikoff told the Tribune that he doesn't like making people wait, and he makes up to 600 doughnuts a day.

3. Restaurants and food tend to be fads. Especially with "Doughnut Vault", it is possible that there will be no wait in 6 months, or it might even have closed down.

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Effect of Japanese Earthquake on U.S. stocks

I hesitated to write a post on how the Japanese earthquake / tsunami affected the stock market, because it is so trivial compared to the loss of life and struggle of the survivors.

When I think of the disaster, the first things that pop into my mind are the tragic deaths, admirable way the Japanese people are coping with quiet dignity, and the heroism of the engineers / operators risking radiation exposure to bring the nuclear reactors back under control.

As for stocks: Japanese insurance, finance, and manufacturing companies went down, while American construction companies like Fluor (FLR) went up because they may get a lot of business in rebuilding Japan.

Oil showed its price volatility by defying initial expectations. Oil prices had gone up because of the unrest in Libya and other MidEast nations, and it was expected that oil prices would go up more because Japan would have to buy more oil on the open market - because of damaged refineries and the nuclear plants.

The Japanese crisis may drive up oil prices before its all over but, in the short run, the price of oil actually dropped because speculators figured Japan (the world's third largest economy) would slow down and actually cause less demand for oil.

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Business Lessons From Baskin-Robbins

Here is a reprint of a post I originally did in May 2008 - when Irvine Robbins, co-founder of Baskin-Robbins, died at age 90. It lists business lessons, Baskin-Robbins style:

1. Get publicity by piggybacking on important events.  Baskin-Robbins created short lived flavors like Lunar Cheesecake for the moon landings and Valley Forge Fudge for the 1976 bicentennial.

2. Be ready to improvise. When the Beatles came to the United States in 1964, a reporter called to ask whether Baskin-Robbins was going to commemorate the event with a new flavor.  Robbins didn't have a flavor planned but quickly replied, "Uh, Beatle Nut, of course."  The flavor was created, manufactured and delivered in just five days.

3. Don't let egos get in the way of partnerships.  When he partnered with his brother-in-law, the late Burton Baskin, Robbins recalled they used a flip of the coin to decide which name came first.

4. Don't be afraid to try new concepts.  Baskin-Robbins decided to sell their stores to managers, pioneering the franchise concept for ice cream stores.

5. Treat your employees well.  As corporate policy, employees were allowed to eat all the ice cream they wanted, because, Robbins said, "I don't want my employees stealing."

6. Focus on quality metrics. Robbins was dedicated to upholding the quality of his ice cream regardless of the cost, his daughter said.

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Berkshire's Secret: Lou Simpson, The Only Other Investor Besides Buffett

Warren Buffett is the legendary investor who manages Berkshire Hathaway's portfolio.

But, did you know that there is one other person at the company who is authorized to invest?

That person is Lou Simpson, who will retire at the end of the year. Simpson manages Geico's investment portfolio (Geico is owned by Berkshire), while Buffett invests all the other Berkshire portfolios (after Simpson retires, Buffett will take over Geico also).

Since all Berkshire investments (including Geico's) are reported together, it can be hard to know which picks are Simpson's, and which are Buffett's. According to Buffett in a Chicago Tribune interview back in August, "If you see a purchase on a company in the $300 to $400 million range, odds are very good that's Lou's."

Simpson's and Buffett's investment styles are similar: value based - looking for "obscure companies poised for growth". They do their own research, talk to management / competitors, and read all company documents.

On a couple of occasions, they matched their investments. For example, they bought Tesco at the same time, and sold off Freddie Mac in 2003.

Simpson keeps things simple, and just employees one assistant and one analyst to manage a $4 billion portfolio. From 1980-2004, Simpson has only had 3 losing years, and beat the S&P 500 in 18 of those years.

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Should Borders Buy Barnes and Noble? Ackman Offers Financing For $16 Bid

Today, William Ackman and his Pershing Square Capital Management (which own 37% of Borders) stated in a regulatory filing that they would provide financing to Borders to offer $16 a share for Barnes and Noble.

This is 21% higher than Barnes and Nobles' closing price on Friday.

Would this combination be a good idea? On one hand, it sounds good because there are many people who still love bookstores. Also, they could invest in making the Nook better.

On the other hand, Yahoo quoted an analyst:

Simba Information's senior trade book analyst Michael Norris said the deal would simply be a distraction to the booksellers and "fundamentally weaken not just the combined entity but the consumer book industry in general."

"A proposed combined entity would spend a year thinking about what overlapping stores to close, and at least another year combining systems and operations while trying to hang on to talent with both hands," he said. "While that's going on, rivals like Amazon, Apple and Google will just be steaming ahead unimpeded."

Also, the same Yahoo article had an interesting comment: If you tie two anchors together do they sink faster?

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Interesting Article on Citigroup CEO Vikram Pandit

New York Magazine has an article on Vikram Pandit, and mentions a bit about Citigroup and the financial crisis.

This quote from page 5 of the article (mentioning Citigroup’s Sandy Weill and Clinton’s Treasury Secretary Robert Rubin) is a good example of the marriage of politics and finance that got us into this mess:

Rubin and Weill had been friends since the late nineties, when Rubin served in the Clinton administration. It was Rubin who helped push through the Gramm-Leach-Bliley Act that effectively allowed the merger of Travelers and Citicorp. A year later, Weill made Rubin a board member at the company he helped create, paying him a salary of $17 million a year.

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NBC Interviewed Me Along With Director Oliver Stone For An Article On "Wall Street 2", And Mentioned My Book "Stock Trading Riches"

Here is the interview on MSNBC.com and on NBC Philadelphia.  The interview was syndicated to all the local NBC affiliate websites. The reporter interviewed me last week.  A lot of the interview is with Oliver Stone, but they interviewed me as an expert for background, because I traded stocks and wrote "Stock Trading Riches". They put two paragraphs from my interview into the article. I'm amazed I got this publicity.  But it seems my book developed a following among certain hedge funds, and I'm getting some attention. I knew at least one hedge fund read my book, because they commissioned me to develop some software / spreadsheets on my system.

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