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A MAGAZINE FOR EMERGING LEADAPRENEURS FEB 2020 HOW TO TURN YOUR GOALS INTO SUCCESS GGEOTATLERSWITH MANYOZO

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CONTENTS 06COVER STORYChimwemwe John-Paul Manyozo GOAL-GETTERS on turning goals into success. 06 HOW TO TURN YOUR GOALS INTO SUCCESS BUSINESS SUCCESS 08 TRIBUTE TO KOBE BRYANT (BUSINESS LESSONS) THE MAVERICKS 10 THE BOSS LADY WHO WAS INSPIRED BY Q. MALEWEZI 14 YOU DON’T NEED A COLLEGE DEGREE TO BE SUCCESSFUL BOLD STORIES 16 UKANI MALAWI: THE DYNAMIC DUO BOOKS + BRAINS 19 BOOK OF THE MONTH 20 BOOK SUMMARY: (THE SNOWBALL: WARREN BUFFETT AND THE BUSINESS OF LIFE) - PRACTICAL LESSONS 10 16 08 04 matelar February 2020

FROM THE EDITOR'S DESK DESIGN & LAYOUT FROM THE PUBLISHER Matelar Creative Hub Welcome to the exciting world Phone: 0995199600 Have you ever been challenged of Matelar magazine! Web: www.matelar.com and inspired to step out of This is a totally new and different Email: [email protected] your comfort zone? Well, kind of magazine. It will surely thrill, www.fb.com/matelarise definitely not the Matelar way! excite and challenge you, and lead you to UNDERSTAND life better than before. CREATIVE DIRECTOR Here we are driven by belief, a Natasha Lwesya bold belief, that everyone was born Have you ever wondered how and with unique greatness. But then we live why some people succeed? Where do WRITERS in a world where the status quo won’t these successful people get ideas from? Harris Chimatiro allow us to manifest that greatness. What makes them plod on, despite Chisomo Nyirenda setbacks? In the spirit of inspiration and CONTRIBUTORS transforming knowledge, the Matelar In college classrooms, these are (1) CHIMWEMWE JP MANYOZO magazine encourages you to believe in taught as theories - often leaving students Chimwemwe is a change-maker and a writer the ability within you to live a life of bewildered, with very little understanding who specializes in international development, significance. of what they are supposed to do. media, and communications. Chimwemwe has established two youth We give you maverick experiences, This magazine is entirely different. It movements, Maphunziro265 and Youth to liberating insights and market value is all together UNIQUE! A trail blazer! Youth Empowerment as Co-Founder and tools and skills. The informative, eye-opening articles CEO, and Founding National Coordinator, make plain the real meaning behind respectively. Maphunziro265 has reached The Matelar magazine is a today’s entrepreneurship and leadership. over 10,000 young people and Youth to Youth cheerleader to emerging leaders and The articles answer the “unanswerable” Empowerment has reached over 20,000 entrepreneurs, just like you, who are on challenges many people, especially the youth through motivational talks, the dancefloor, leading and youth, face today. scholarships, book donations, and skills enterprising, for the greater good. This training. magazine is a platform for you to And, guess what! I am just as excited motivate and to be motivated. as you are to be part of this journey. In 2016, Chimwemwe was granted the distinction of Associate Fellow of the Royal In this month’s edition, we focus By the way, don’t hesitate to let me Commonwealth Society for commitment to on setting personal goals and how to know how we can improve the magazine promoting the values of the Commonwealth actually achieve them. further. and working to improve the lives and prospects of commonwealth citizens. In 2017, We cover bold stories of young Cheers. he was appointed Zathu Influencer. leaders and entrepreneurs who are Winston Mwale In 2018 he was appointed a Queen Young challenging the status quo to manifest Editor Leaders Advisory Mentor. Chimwemwe their own greatness. received a 2015/2016 Chevening Award to pursue a Master's Degree in Development In addition, you will read a tribute Studies at the University of Sussex. He did to Kobe Bryant, which is packed with his Bachelor’s Degree in Media for great business lessons for you. Development at Chancellor College. And so much more. (2) KAYAKANGU JULIUS MALANGE Enjoy Kayakangu is budding entrepreneur. Currently he is the Managing Director of Tionge Matela Msiska Finance and Investments Consulting Limited Publisher (an Exclusive Training Partner of Johannesburg School of Finance, February 2020 matelar 05 Investment Training Courses for Analysts, Asset Managers and Investment Professionals, including CFA® Preparation Workshops, Trustee training for Trustees of Pension and Provident Funds, SMEs in Governance, and Financial Literacy for Entrepreneurs), and FinVen Equity(Company that Investments in small & medium businesses). He believes that entrepreneurs (shareholders) should acquire and deepen knowledge in Corporate Governance, and Management for the businesses to grow. His website is www.kayma.me OTHER CONTRIBUTORS (1) Rose Milanzi (2) Temwa Chirembo (3) Winnie Tione BECOME A CONTRIBUTOR Register at www.matelar.com/register or send your story to [email protected], or through WhatsApp to 0882102439 / 0995199600.

COVER GOALGETTERS TURN YOUR GOALS INTO SUCCESS WITH CHIMWEMWE JOHN-PAUL MANYOZO We are at the relationship needs but does 4. Which hobbies or close of the first not automatically address playtime do you quarter of your health and wellbeing want to explore in 2020 already. Are you on needs. Addressing your 2020? track with your goals and wealth needs does not resolutions? address your spiritual needs. 5. What do you want in The needs are different and your other I would like to say that even the feeling you get relationships 2020 is like any other year. when you achieve any of (business and What will make 2020 to be these needs is different. platonic) in extraordinary is going to Therefore, I find it funny your depend on you; the new you when people say one goal is that will do things more important than the differently. Albert Einstein other. The truth is that all said, “Insanity is doing the goals are important because same thing over and over they address the again and expecting multisensory and multiple different results.” needs that a human being has. Making resolutions is a very good start. Resolutions Set goals for all areas demonstrate that you have of your life taken time to reflect on your life. You have reflected on I will then challenge who you are and what you you to look at your want in all areas of your life. desires in the multiple You have reflected on what aspects of your life. These you want to become. questions guided me in Therefore, I am happy when 2019, and I believe they people have mentioned New might also guide you in Year's resolutions. It is the 2020: first step. 1. What do you want But it is important to understand that, as humans, in your health in we are multisensory beings and have multiple needs. 2020? Achieving your career goals will provide you with a sense 2. What do you of fulfillment in your career lane, but it might not address want in your your needs for relationships or health. Having the God- wealth in given spouse fulfills your 2020? 3. What do you want in your relationship with family and friends in 2020? 06 matelar February 2020

life in 2020? C. Maxwell wrote, \"We do not stop because well. it is painful, but we stop because the work Every time you achieve a milestone, 6. What do you want in your career, is done (paraphrased).” find a way to celebrate your achievement. job or business in 2020? You and I are going to stop when the Why do you need to celebrate your goal is achieved and not when the pain has 7. What mindset and emotions do come. achievements? Because it keeps you going. Also, most of the achievements might not you want to have and The actions will have to be broken be noticed by anyone, except you. down further into daily actions. What you Therefore, it is you who is supposed to experience in 2020? do daily is what defines the achievement of celebrate you and not wait for people to your goals. Robin Sharma said, “If you can notice your changes. You know how far 8. What contribution do you want consistently build better morning, you are you have come, therefore, celebrate the going to have consistently better days, progress. What do I do to celebrate? I don’t to make to the world in 2020? weeks, months, quarters and years.” know, what do you do to celebrate? For those who are making a huge change in 9.What do you want to do That’s where most of us miss it. their life, they might have to think of new Several people have said, “All I have to do ways to celebrate. spiritually in 2020? is just monitor your routine for a week, and I can predict your future.” For example, “I want to stop taking The next step is to turn your wishes alcohol in 2020” is a resolution that and resolutions into goals. If you are to For professionals, pushing for someone has made. If taking alcohol was follow this format, it means you will professional goals is very easy. Why? something that you used to do to celebrate have about nine goals. We all know that Because we spend the entire day working a milestone, then you will need to think of goals must be SMART. Thereafter, you on those goals. So, working on will have to develop action steps that professional something new that you will have to do to you will take. You will have to write goals is not celebrate your achievements. specific action steps that you will take difficult. We, on each goal. therefore, must As you conclude your planning for work on the 2020, you might want to think about one Take your time and commit to a other goals, and word that will guide you in 2020. I learned productive daily routine you will have to this from Melinda Gates. Melinda Gates take advantage picks a word each year that more or less For example, for your wealth goals, of two provides a guide for that year. For some of the steps might be: 1) save 20% important example, “consistency.” of your income every month; 2) times: morning develop multiple income streams; 3) and night. Your If you pick “consistency” as your word budget every month. These are specific early morning for 2020, it means you want to achieve actions that you can take. And you will hours and your night hours are times you consistency in every aspect of your life. have to do the same for all the other 8 can maximize to elevate your game. And when you are not being consistent, goals. this word will remind you. And in a way, it Let me give an example. You wake up also helps you push for your goals. By the It is also important that you must at 4 A.M. From 4:00 to 4:30 A.M you pray, way, consistency was my word for 2019 highlight some of the potential reading the word of God and meditating. and it has been a good guide. It might just challenges (personal or external From 4:30 to 5:00 AM. You do physical be my word for 2020 as well. constraints or both) you are likely going and mental fitness for health and to encounter. So you should have plans wellbeing. From 5:00-5:30 A.M. you read Remember 2020 is like any other to deal with those challenges. What an inspiration book or you listen to an year. What will make 2020 extraordinary resources do you need? What things inspirational podcast. From 5:30 to 6:00 for you, is you. I wish you all the best in are going to help you know that you A.M. you plan for the day and get set. 2020. Happy hustling.n have achieved that goal? Between 6:00-6:30 P.M. you put all your gadgets to sleep. Then 6:30 to 8:00 P.M. February 2020 matelar 07 These are just broad questions that you spend time with family to catch up on introduce you to multiple aspects of the day and have dinner. your life. And a guide to help you win in all aspects of your life. If you are to do this consistently for one full year, imagine what your life would But, before I continue, I would like be like. Do you think this impossible? you to understand that you can ask Henry Ford said, “Whether you think you these questions when you understand can, or you think you can’t - you are right.” that you are in control of your life. In short, things are impossible for those When you understand that you are who believe that those things are responsible for your growth in all impossible, and the opposite is true as aspects of your life. When you understand that you must do the work. When you understand that the hustle is neither delegated nor outsourced. When you understand that nobody will do the work but you. Most importantly, when you embrace the growing pain. You see, pushing comes with pain. But, like John

BKroybaentA Tribute to By Kayakangu Julius Malange In my introductory piece from the BUSINESS LESSONS FROM MR. FUNDAMENTALS previous issue, we touched on why FOR YOUNG ENTREPRENEURS IN MALAWI partnerships don’t work in Malawi.I  gnorance, greed, and lack of had a life outside the basketball to co-found Bryant Stibel? open-mindedness are some of the key court.A  ccording to authors Clare and Kobe was a renowned basketball factors contributing to this reality. Alexis, Bryant diversified his career by breaking into the investing world even player who came into the league when he Growing up, I played basketball in before leaving the NBA. In2  013, he co- was 17 years old. He didn’t have any Malawi and became the Best Basketball founded a venture capital firm, Bryant experience of money management or Player of the Year in 2  003. Honestly, it Stibel, along with W  eb.comf  ounder, Jeff investment but had a gift that generated was such an honor. But I always Stibel. millions and, even now in his death, his wondered what would have happened to gifting is still generating millions. my career as an employee, and later on as So how did a person who has never an entrepreneur (I always wanted to end run a company, deficient in reading the They put about $100m  illion into this in this space). Would I be able to replicate Balance Sheet, Income Statement and partnership. But he wasn’t the front face some of the successes God blessed me Cash Flows, start one VC Partnership of the company. His partner, Jeff and the with in basketball?  Firm? hired team, are the faces of the company. Kobe knew that Jeff was experienced in In this short article, I would like to The answer lies in his starting companies and leveraged on him draw on lessons from mavericks, those and his skills. This is fascinating because who have done it on a higher level and humility to partner with you would have thought he would want to continue to grow today. be the focus of attention, because of his others and his commitment to off-court endeavors. No, not for people On 26th January  2020, I slept to the who know who they are and what they tragic news about one of the people I continually learn. In his own want to get out of partnerships. looked up to in the world of sports. As I words, he said they agreed on the core woke up the next day, I opened up my and immediately differed on the process. Although the company has been phone and an article flashed in my face But he was getting better with financials around for eight years, Kobe’s name has and it read, “Kobe Bryant leaves behind a every day. After the formation, Kobe’s for a good number of years been out of business empire that stretched beyond focus switched into branding, the picture. These partners just laid out the basketball court.” T  his was a well- storytelling (what he was strong and the groundwork, found a very good team written piece by Clare Duffy and Alexis comfortable with) and let his partner lead to hit the ground, and went operational. Benveniste (CNN Business Updated in operational issues. In his own words on CNBC, he said that it 0  2:54  GMT, January 27,  2020). was done so that they could build Who is Jeff, (Kobe’s partner)? What credibility in the industry, showing that One of the reasons I followed Kobe skills and value did he bring to the table to was because of his high IQ. Kobe knew he strike the partnership? And finally, what value did Kobe Bryant bring to the table 08 matelar February 2020

he knew his role and limits but was firm household products firm, The Honest LATE KOBE BRYANT in establishing themselves in a new area. Company. PHOTO: WIKIPEDIA Some of the reasons that The question is: what would have February 2020 matelar 09 partnerships fail are ignorance, greed, happened with the Bryant Stibel and ego in shareholders forming the partnership if he had insisted that he company or partnership, and dishonesty becomes the lead just to satisfy his ego? in the management team appointed to Would they have invested their funds run the business. with other good entrepreneurs and trust great CEO’s to deliver on common goals? Ignorance of the corporate Unfortunately, in Malawi, most legal instruments available to people do not realize that one of the great qualities of leadership is knowing your cover anxieties can be limits (but this doesn’t stop you from learning the subject matter deeply). paralyzing or make someone Kobe Bryant days are done on earth, obnoxious or cynical. For but I think he leaves behind a legacy that example, in the case of death, what we all can learn from. Most importantly, happens to the stake? Will the partners one of the major lessons is that one’s be faithful enough to honor their part? perspective towards shareholding, Who gets to inherit the proceeds of the directorship, and management is crucial estate upon death? How can the wife or in wealth creation. If you are ignorant of children lay claim on assets? How do I as the industry or lack relevant skills to run an entrepreneur hold the management the business, drop your ego, stay out of it team accountable? Are they just cheating and learn from the gifted colleagues me? Coupled with real-world experience around you. from our family, we reinforce our deadly fears of getting duped. Lastly, humility to team up Secondly, failure to agree and identify talent to run the beforehand because of greed, business has been critical to lack of vision and Bryant Stibel’s success. There are these two words that silently run in foreknowledge. Companies start the background of every successful slow but they eventually grow. As human business: honesty and integrity. Yes, beings, greed is inherent in our being or without these two amongst the investors nature, and if left unchecked, it blurs our (Bryant Stibel), Entrepreneurs and Chief perspective and causes differences in Executive Officers in the portfolio, there vision, competing for business interests would be no success. or direction, and therefore create challenges. As young leaders and entrepreneurs, I know we have made a fair share of For example, other people would not mistakes. However, I believe we can be want to be transparent and accountable self-critical, hope and aspire to be better as operations grow. Others would like to each day as we grow. After all, Africa has cash in because of short-terminism in the now first, second, third or fourth growth process. What will be the sale generational wealth. value on exit (historical or market value)? If some of these items are not addressed These people with vast capital, where clearly during pre-shareholders do they invest? Entrepreneurs are discussions, and in actual shareholders springing up from every corner of agreement, they can cause myriad Africa and intelligent minds are now challenges, and give commerce a bad getting relevant education to run name because of the bitter experiences companies. If you are reading this, you faced. fall into one of these categories. Are you ready to take on the challenge? Bryant’s firm now has more than $2 billion in assets, with investments in I will miss you Mr. Kobe Bean Bryant dozens of technology, media and data KB24/8,1  978-2020, Mamba Out, Mic companies. Bryant Stibel claims at least Drop. My respect to all the victims and 10 successful exits, including Dell and condolences goes to all remaining family, Alibaba. It also has investments in friends, organizations, and fans. n Fortnite creator, Epic Games, digital payment company, Klarna, and

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The Boss Lady Who Was Inspired by Q. Malewezi Winnie Adorha Tione, a young female Malawian, based in Lilongwe She is everything a modern young From there, W.A.T Events Planning speeches during the following forums: lady aspires to be: an Company was born, getting officially Take Lead Conference – International entrepreneur, international launched on the 26th of October, 2018. Christian Assembly (2019), together with events planner, and public speaker. To date, the company has organized F a i t h M u s s a , C h a r l e s L i p e n g a , Armed with a degree in Agricultural the following types of events, among Chimwemwe John Paul Manyozo and Business Management obtained from others: corporate events, public events i.e many others; UNDP Career Guidance, Luanar-Bunda Campus, Winnie is the wedding, concepts, festivals; and private together with Theresa Ndanga, Esther founder and CEO of W.A.T Events events: anniversaries, birthday parties, Longwe, Sukez, Suffix, and many others, Planning Company, Glorious Temple which deals with Ministries, Area Events Planning, 23 Baptists Events Church, and Legacy Christian Coordination, Events Budgeting, Academy, on the topics of Events entrepreneurship Implementation, and career and Events guidance. Consultancy. Winnie is an Winnie has award-winning always had the passion and drive to female plan events from a entrepreneur of young age. Back in the year 2019, secondary school, Winnie posing with some of W.A.T Events colleagues a.k.a Boss Lady, under the she was not given International the role of an Christian Assembly Church (ICA), Youth Entertainment Prefect, but she would and proposals. and Young Adults Ministries. always find herself helping out in W.A.T Company has also planned and coordinating and outsourcing materials She is passionate about events, whenever there was an event. worked with UNDP Malawi, MISA focused, hardworking, goal-oriented and Malawi, Concept Creative, Nthanda determined. Her goal is to impact the Gradually, the passion kept growing Artworks, Skyline International, Mr. and youth through different platforms and stronger and wide. Through exposure Mrs. Kachaje’s Wedding, Mr and Mrs. also be a change agent to the Arts and and networking, she got inspired by Mr. Mwale’s Wedding, Miss Deliwe Makata Entertainment sector in Malawi through Q. Malewezi who has been in the events and many other events. proper and well-organized events. n industry for some time. As a public speaker, Winnie has made 12 matelar February 2020

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WHO SAID YOU NEED ONLY A COLLEGE EDUCATION TO SUCCEED IN LIFE? by Rose Milanzi My child, wake up and go to think that when they have an MSCE important in any business, a lot of school: work hard so you can they are down and out, believing that people tend to use a lack thereof as an be somebody in future. Be without a university education they can excuse. your own boss.\" never make it in life,” he says. “Many youths do not like to start These are the words that most “But, while I was in South Africa, I small. They fantasize starting big. But I Malawian children are often told as discovered that one just has to believe in started small with my business,” he says. they are growing up, whether from himself and be knowledgeable enough.” urban or rural areas. \"At the moment I work with Ted says he had to use the internet, students from technical colleges who Ted Kwelepeta grew up as one of especially Google and YouTube videos, are studying welding and fabrication in the few children who tried hard to heed to learn different things. their second and third years, this call to work hard and excel at respectively. It’s interesting for me school. Taking his parents to He says in 2010, whilst still in heart, he worked hard, but he just because many businesses fail didn’t excel at school for he was Ted (standing in the middle) with his team because they don't feel not the brightest in class. comfortable to work with their South Africa, he read many books on fellow Malawians.” His father expected a lot different achievers in the world like from Ted, and he would help the Barack Obama and Donald Trump. He says some people fail to young man with his school work. embrace new concepts and stick A whip would sometimes land on Then he decided to venture into to outdated methods or Ted's body whenever he would business. information. fail a question. \"At first I wanted to do a business Ted says, “As Malawi, we Ted grew up with the in property management, but then after are lucky because our country is impression that he had to only selling about three houses, I peaceful and beautiful, but we impress his father though he discovered that I was a creative person I have become so relaxed that we wished his father was not so could do more,” Ted says. can’t even see opportunities in harsh whenever he was helping our own country, yet foreigners his children with school work. As he tells his story, while capital is see them. We have a dependency syndrome on the government to After repeating his primary do more for us than us depending education, Ted finally made it to on ourselves.” secondary school in 1998, but unfortunately he did not pass The youthful businessman with flying colours as he wanted. He, says the country’s youth should therefore, decided to look for greener start thinking outside the box. pastures in South Africa, were he “As long as you have a dream, worked for a year, then came back to believe in it, implement it, and you can Malawi. succeed,” he says. From being a not-so-bright Later, Ted went back to South student and black sheep of the family to Africa where, this time around, he being the CEO of Gizmo Machines stayed for 17 years. (Pamudzi Property) situated in area 25 C, Ted now inspires many with his He says he came back to Malawi as business acumen. n a fully-equipped person. \"I discovered that most Malawians 14 matelar February 2020

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THE DYNAMIC DUO by Temwa Chirembo (Ukani Malawi)  existed.  It did not take me too long to realize From our findings, it was evident there was a need for a holistic solution, that there were few women in that we had few women in positions of that would look at the overall politics, and as I began to look closer, development of women and girls and this problem span across all sectors, power and influence due to the many support their education, health, from entrepreneurship, education to barriers that women in Malawi were sanitation, enterprising, coupled up with health.  facing in education, health, safety, and mentorship and leadership training. That’s how Ukani was born. I took the time to research with the sanitation.  It was not enough to only provide Ukani Malawi, founded in 2016, is a Co-Founder of Ukani, Modester Mangilani, to find out why this problem mentorship and leadership training, but youth-led NGO that deals with girl 16 matelar February 2020

empowerment and gender equality. We hygiene management, distributing take a holistic approach, looking at reusable pads and providing skills on removing health, sanitation, education how to make them. Recently, we and to groom future leaders and entrepreneurs. We address SDG 1, 3, 4 Our programs are and 5.  tailor-made to remove barriers that girls and women in Malawi Our programs are tailor-made to face in health, education, safety, remove barriers that girls and women in sanitation and enterprising, to Malawi face in health, education, safety, ensure that they can reach their sanitation and enterprising, to ensure highest potential and take up that they can reach their highest space in leadership and potential and take up space in leadership entrepreneurship. and entrepreneurship.  completed a project in Mgona, Lilongwe, We take a holistic approach that funded by USAID through World integrates leadership and Connect.  entrepreneurship training into all of our programs. Since 2016, we have been Ukani has managed to reach over running the following programs: the 2,500 girls and women, and works with seed grant initiative which provides 200 volunteers nationwide, who acquire young women with start-up capital and skills in leadership and project entrepreneurship classes. To date, we management, and has 10 employees. have 20 women running their small scale businesses.  Our hope for the future is that all little girls in Malawi have the opportunity We have an after-school leadership to fulfill their dreams and reach their program that helps girls in rural areas highest potential and that they manage to grow in their leadership and public soar without any barriers and have a say speaking skills. In addition, we have the on issues that affect them.  cervical cancer prevention program that provides awareness for cervical cancer Women empowerment is critical to and prevention methods available.  achieving sustainable development goals, and for Malawi to move forward, We also run The Young Mothers we must invest in our women. n Project, aiming at integrating teen mothers who have dropped out, back into the school system through financial support and mentorship. We are currently working with 20 girls.  As an extension of the young mother’s project, we have opened a Young Mum’s Center in Ndirande, which provides young mothers aged 18-22 with vocational skills training in tailoring, design and entrepreneurship classes. We want to break the poverty cycle and provide young mothers with skills they can use to generate income and provide for themselves.  We also runT  he Breaking Red Projectt  hat aims to keep girls in school by training them in menstrual health February 2020 matelar 17

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BOOK IMPACT The Snowball Warren Buffett and the Business of Life A book written by Alice Schroeder Reviewed by Kayakangu Julius Malange Alice Schroeder takes us into year his grades dropped to Cs, Ds, even and a business man with over $2,000 personal and up close life of the D minuses in English, History, Free savings accumulated. He invested in a genius of Warren Buffett. A Hand Drawing, and Cs in Maths. He hardware store and bought a 40 acre former analyst herself and business excelled in one class only: typing. farm at $1,200, 70 miles away from writer, she did a great job of weaving Washington was fighting war using Washington DC, near waybill, in through complex business philosophy, paper words and typing was considered Thurnston county, Nebraska. Tenants transactions and personal impact critical skill and it paid well. worked on farm but he shared the profits. seamlessly. 4I must confess the book has His early victory and brush In 1946 in USA, an adult felt contented with $3,000 per year salary. Buffett’s peaks and valleys, showing you with the law That makes it $250 per month. Warren the high and low moments of his life. It’s was making $175 per month (425 vs a book of a highly successful man, and At the end of 1944 (age 14), Warren 250) more money than his teachers. his humility and how he handled filed his first income tax return. He paid Warren was 16 at that time. embarrassment into the respected man $7 in taxes. However, he evaded tax by he is. deducting his wrist watch and bicycle as He operated a car buffing business, business expenses. He knew it was but abandoned it because it involved too This book is monumental because questionable, but at that stage in life he much manual labour, and turned to be at the time of reading it, several issues had not grown above cutting a few damn too much work. sprang out just to encourage my entrepreneurial journey. I always 4corners to get where he wanted to go. HIS INVESTMENT AND wondered what billionaires know that I didn’t know. Sometimes they seem so He has been known for strong business perfect and you end up saying to ethics since then. Integrity and honesty EDUCATION PHILOSOPHY yourself, “Just drop it”. So here we go. are synonyms with Buffett in business An idea with exponential quality; A son of a senator, born in a great world. His story on how he cleaned up country of USA who became like his Salomon an Investment Bank is one of that is what he looks for. In 1946 at the mentors. The book reveals Warren’s age of 16, his savings totaled $5,000. All relationship with other mentors like key highlights of the book. Russian immigrant, Rose Blumkin; a Warren refused to show up for this from savings and investments in lady who worked until she was 103. She graduation in suit, and they would not newspaper, pinball business, golf ball overcame hardship to build the largest let him graduate with class because he sales businesses. furniture store in North America. He was meant to head to University was so disruptive and inappropriately The most intriguing parts of the clothed. Some teachers predicted he of Pennsylvania's Wharton Business book were his personal struggles and College but asked himself “What was unique insights as Alice takes us would be a disastrous failure through: He had a poor record with girls. He the point? I know what I want to do. I developed a crash on Dorothy Hume, make much money already to live on. then Clo-Ann Kaul: both weren’t College was only going to slow me interested in him. To divert himself down.” Throughout his entire educational 4PERSONAL FLAWS THAT from the disappointment, he engaged in history, although intelligent, he had money making. shown little interest in formal RELATE TO A BILLIONAIRE 4CHILDHOOD VICTORIES schooling, as opposed to learning, and For example, sometime in 1940’s, considered himself largely self-taught. after running away from home to At age 14 his savings totaled around He however fixed ambitions to attend Hershey Pennsylvania to get caddying a $1,000. As a teenager, at 15 he was a Harvard Business School. (You would jobs at well known golf course. In that student at Woodrow Wilson high school have to get the book to find out why.) 20 matelar February 2020

4UNIVERSITY LIFE, PEAKS AND 4Although he was very kind, during CRITICS, NAYSAYERS AND VALLEYS dinner parties he would get away in the THE RISE middle of meals to work on At 19 (looking like a sixteen year old mathematical formulas, read Proust in By 1960 Warren commanded trapped emotionally in a 9 year old), he French and listen to opera, rather than authority. He had assets under went to attend interviews at Harvard. suffer dull company of fellow man. management that exceeded $1m, but he His grades were good not stellar. He was also had skeptics. His secretiveness put gently rejected and told he would have a There is a striking or people off. They thought that he would better chance in few years. He would uncomfortable truth about our society. not amount to anything, and that the later on come to consider this as pivotal Sometimes we over indulge in our social authority he earned was unearned episode of his life. activities and lose our thinking arrogance. capabilities. We end becoming dull He searched for other graduate company. Life is about being a lifelong Raise more money to make more schools. He came across two big names learner, be a person of value. Your money. When he started out, only few to him: Benjamin Graham and David network capital is important (does it people trusted him. As he surged Dodd. He had just read his book, but had have defined genuine relationships?). forward making remarkable returns no idea he was teaching at Columbia. What do you talk about? Buy the book to from investments, his name was passed The book explained in a way that find out his name. on like a secret: “Invest with Warren 4ordinary people could understand that PROFESSIONAL LIFE and you will get rich.” He no longer went out for business sales or development to the stock market does not operate through black magic. raise enough funds. Funds came to him In Omaha, they didn't take him at $8,000 a piece if you wanted to invest While at Columbia, as a bold young man, he wrote to Geyer & Company and s e r i o u s l y w h i l e w o r k i n g a s a with him. Instead of asking a favour, he Blythe & Company, prominent firm stockbroker in a company owned by his was granting one. People felt indebted brokers, that used agents specializing in Father, Buffet-Falk. He struggled to to him for taking their money. insurance stocks, asking for their make sales. Very encouraging indeed, Like Qaba, the Poet says, people, research. He then visited them to talk Warren struggled in making sales. people, people. Other People were still F u r t h e r m o r e , I u s e d t o b e laughing at Warren's ambitions in 1959, about GEICO (Government Employees Insurance Company, a company with e m b a r r a s s e d b y m y t e a c h i n g e v e n t h o u g h h i s i n v e s t m e n t s low price and low costs by using mail). background and profession. But I got outperformed the market by 6%. In Upon hearing their views, he explained comfortable after reading this book. 1960, they leaped to nearly $1.9 million You see, Buffet wanted to be more than in assets by beating the market by 29%. his theory. Experts told him GEICO could not investor, sales man. He wanted to be a If you invested $1000 with Warren, s u c c e e d o v e r t h e l a r g e r, m o r e teacher. He taught a night course at you would earn $2,407, while if you established companies that used agents. University of Omaha. invested with Dow Jones Industrial He c h a n g e d t h e c l a s s f r o m Average, you would have $1,426. He It was a tiny company with less than one percent market share. Huge companies profitable investments in stocks, to accomplished this higher return while reigned; it would never occur. Once sound investments in stocks. He never taking less risk than the market as a again, experts were right about the promised his class that they would get a whole. present but wrong about the future. particular result, nor did he brag about On 1st January 1962, he dissolved GEICO grew right before their eyes. In his own success at investing. Talk about all partnerships into one Buffet the book, Alice carefully narrates how it the importance of financial literacy! His Partnerships Limited. In 1961, it earned students were professors, housewives, 46% above DOW’s 22%. With new happened. doctors and retirees. There is a parallel set of education out there. investments, it started with $7.2 million 4HIS MENTORS UNUSUAL PATH in net assets. In six years, partnership He didn’t have a break at the high grew bigger than Graham & Newman. table seat. There were no opportunities At 35, he and wife’s stake stood at $6.8m One was a college drop out who to manage other people’s money. In in a $37m BPL partnership. worked as door bell assembler and 1952 he wrote an article about GEICO, recited the Aeneid and Rubaiyat as he 4“The Security I Like Best” ad for his SKILLS IN ACCOUNTANCY worked. He reapplied to Columbia and got admitted through clerical error. He favourite stock, but also an explanation became an academic star. of his ideas about investing. Peat Marwick auditor, Verne They had something in common. At age 26, he had $174,000. He was Mackenzie, pored over BPL files not in a His mentor dabbled in arts and sciences conference room on Wall Street, but in in quest for knowledge, writing poetry, about to retire to live on $12,000 a year, the alcove of Warren bedroom upstairs, flaunting at Broadway playwright paying $175 monthly rentals; and his where the two of them worked side by writing, and puttering in invention capital would still grow. He would retire side. What was breathtaking is that he and still be a millionaire at 35. books. did all the books and records himself. February 2020 matelar 21

4TURNAROUND SKILLS, 4 4WHAT I WILL DO WHEN MY BUSINESS AND INVESTMENT RESILIENCE AND EMPATHY NETWORTH GREW BIG PHILOSOPHY LESSONS Warren to Walter: How do u justify One of the most quotable words in Through his private work at buying a private jet? the book are: Dempster, Alice gave us a glimpse of Walter: You don't justify it, you “An ideal business is one that Warren in VC. He fired Lee Dimon, rationalize it! earns very high returns on capital and slashed inventory, sold off equipment, Warren bought off a used Falcon keeps using lots of capital at those high closed five branches, raised prices for 20. This conflicted with one thing he returns. That becomes a compounding repair parts and shut down unprofitable cared about! Not wasting money! He machine.” product lines. He, further on, laid off went justifying twenty five cents for a By 2005, through Berkshire stock hundred people. People of Beatrice call, to rationalizing two pilots and owned and price, his personal net worth looked at him as a ruthless liquidator. entire airplane. was $36bn. The business was back in course, the Between 1978 and 1983, Buffet’s banks were happy, but the residents 4wealth increased from $89m to $680m. PHILANTHROPY were angry. He never understood it. He He became a Billionaire at age 55. saved Dempester from going under. So Berkshire was bought at $7.50 per share Who should handle my money? why the hate? He got an offer, got the and now traded at $2,000 per share, but Turn over money to certain people with cash, paid off $2m to shareholders and he never had personal bodyguard until a certain expertise. Search for talent in someone wanted to abduct him and philanthropy harder than investments. got hate from whole town. claim $100,000 ransom. Philanthropy is harder than business. 4INVESTMENT PROFESSION There you go, new level has its own He admired Bill and Melinda gates UPSET AND COMMUNITY demands. However, you decide your for a rational and best executed ENGAGEMENT standard of living according to your foundation policy. He liked the fact that purpose. Warren shared his fascinating they didn't like publicity for In 1974, stocks, which he had paid story. philanthropy and did not want their name on any buildings. 4$50m, lost a quarter of their value. WARREN’S GREATEST TEST On June 26, 2006 he announced he Berkshire too fell to $64 per share. He would give away 85% of his Berkshire had used $16m of cash he got out of his partnership to buy stock in Berkshire After a huge Salomon press Harhaway stock worth $37bn to a group and Blue Chip. One day he woke up and conference, following press release of foundations over a number of years. issued by Treasury on illegal bid by he had no cash. He was earning $50k per year being salary from Berkshire 4Mozer and Management failure to CONCLUSION Hathaway and some fees from FMC. He report, Deryck Maughan, a new CEO was very rich but cash-poo. But who was appointed just hours before, Going through the crispy pages companies he controlled had cash to buy a s k e d W a r r e n B u f f e t , “ W h a t ' s with deep insights in Buffets life was a happening Warren?” he asked. blessing. Born in Malawi and where I stocks. The book conveys how he walked He had never attended a Salomon had never lived nor interacted with a out of this quagmire. It opened up my billionaire in £ or € or $, I always perspective. Board Meeting; the train was crashing. Susie's friend, Rodney Wead and He continued asking, “Do you have any wondered how and why they invest, live other black community leaders, got an v i e w s o n w h o s h o u l d f o r m t h e and decide issues the way the do. idea to start a bank, which would management? Is there any direction you What are my odds that I would meet enhance economic development on the want to give me as strategy?” Warren Buffett? North Side. They wanted Warren to lax Warren responded, “If you have to I am not cutting out God’s grace the lending rules. His final thoughts just ask me questions like that, I picked the that could make possible anytime. I touched the raw nerve. wrong guy.” Warren had invested $700 really thank Alice Schroeder for her million, and his good reputation over writing and business skills. However, in Warren's mind, he years, in a man he had just met hours Seven hundred plus pages were knew the bank would not help anyone by before as he interviewed him for CEO relaxing it's lending standards and sweet to the brain, and soothing to the making uncollectible loans, which role. spirit. Furthermore, my deepest How do you remain calm and gratitude go to Warren Buffett for would only teach the wrong financial peaceful in deep crisis and walk out like giving out the rights and sharing his life. lesson. So the bank struggled for years this? Alice’s writing skills took me This book has been more than a without growing. through Warren’s convictions and University. n 4IS A JET AND BODYGUARDS psyche. NECESSARY? I WONDERED Bibliography Alice Schroeder, Warren Buffet, The Snowball, 22 matelar February 2020 Warren Buffet and the Business Life, Published by Bantam Books, New York, 2009

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