Wells Fargo inspiration

Yesterday morning I attended the Birmingham Business Journal 2012 Economic Forecast event where I picked up a copy of a Forbes article featuring Wells Fargo and her President/CEO Mr. John G. Stumpf.  Several financial indicators including revenue and profitability make Wells a fine company to study the nature of success.  The inspiration of my writing this blog is the age old Vision and Value of Wells Fargo booklet that is written by their CEO in everyday language and distributed to each employee.

I believe this simple 40 page outline of their values, strategy, and future outlook helps all of their associates (to the extent of the ability) embody spirit of Wells Fargo.  The following points are the key attributes that have made an impression upon me:

- simple growth strategy broken into a three tiered plan.  First cross sell existing customers, second to gain customers from the competitors, and lastly through customer acquisition

- history and purpose a rich knowledge of their history extends a deep sense of their purpose.  The President himself leads his company to future success after being raised in the history of the company

- know thy self and they customer Wells Fargo knows how many products they have to offer each customer and conversely how many products their average customers is actually consuming.  From their they make goals to incrementally increase the average unit per consumer

- investment vs. expense Wells does not see their associates as liabilities but as assets that are truly the center of their success

- cross selling The bank invest its energy into the higher return engagement of selling more products to a single customer rather attempting to grow by adding more customers to few services.  The quality of their work with existing customers attracts new consumers over time

My favorite quote of the book is "A good strategy perfectly executed will beat a great strategy poorly executed every time"

Their are many other points listed in the Vision and Values manuscript, however the points discussed are the ones that have shaped my view of management at present.


written by:
Martin A. Briggs
- KMBriggs, LLC

Basic study of gold investments

Genesis 2:11-12 New International Version (NIV)
11 The name of the first is the Pishon; it winds through the entire land of Havilah, where there is gold. 12 (The gold of that land is good; aromatic resin and onyx are also there.)

From our understanding of Havilah the Lord instructed me to study gold and it lead me to a book named "The ABCs of Gold Investing: How to Protect and Build Wealth With Gold" by Mr. Michael J. Kosares copyright 2005.  These excerpts are the summary of my understanding from the book:

"What should I buy?"  The short answer is gold bullion coins like the U.S. Eagle, the Austrian Philharmonic, the South African Krugerrand, and the Canadian Maple Leaf in some combination with pre-1933 small-sized European gold coins and U.S. $20 gold pieces. "  

"They can be bought and sold almost anywhere in the world.  They are easily recognizable, of standard weight and purity, and can be readily priced based on their gold content." 

"WIth some exceptions, these coins generally trade among most retail firms at 5 to 8 percent over the gold price." 

"... using the COMEX in New York as a price basis.  COMEX is the leading exchange for gold futures and options in the United States"  

"Deal only with firms that have been in operation for a number of years.  Five years is good; ten years or more is even better." 

 "Check Credentials... Better Business Bureaus"   

"Most of the top gold dealers below to the Industry Council for Tangible Assets (ICTA).  Although ICTA does not rate gold firms or in any way regulate them, it is good for you as a consumer to know how long the firm has been a member."

"Make sure that your metal is sent either registered and insured by the U.S Postal Service, or fully insured by private carrier.  In both cases, you want to be sure it is being sent "signature required".   

"Traditionally Swiss money managers, renowned for their ability to handle money and who manage investments for some of the world's wealthiest people, traditionally recommend a diversification into gold of 10 to 20 percent for good reason."   

"Gold in the modern era, although  it is described , classified, and utilized in many different ways, is still first and foremost portfolio insurance and should be viewed as such." 

"I recommend a fold diversification of 10 - 30 percent of your total assets, not including your residence."  

"Diversify to hedge the ultimate disaster.  Diversify with gold." 

"...some excellent sites are devoted completely to gold, like USAGOLD.com (the author's Web site), Gold Eagle.com, and Kitco.com."  

"To plan your portfolio properly, consult with a professional in the gold business."  

"For an extra layer of protection against government intervention, you will want to include the historically significant pre-1933 United States $20 gold coins.  

"...in the United States, gold ownership is a privilege, not a right..."

"Investors whose primary interest is profit should also evaluate the potential in the higher-grade U.S gold coins, particular mint state 63, 64, and 65 $20 gold pieces, graded by the independent services."  

"You will need some combination of pre-1933 gold coins, gold bullion coins, and/or silver, platinum, and palladium bullion bars to achieve this objective."  

"When it comes to currency value, gold is the master of all and the slave of none."  

"Indeed, the fact that certain citizens have the wisdom to accumulate gold may someday be this country's saving grace.  If the dollar were to fail, the gold accumulated in the United States by American citizens would become the capital base required for this nation to recover..."  

"Investors looking to protect themselves against economic disasters should first build a foundation or gold bullion coins and/or pre-1933 European and U.S gold coins."  

"Historic pre-1933 gold coins... were minted by various European governments, as well as the United States, during the ninetheenth and early twentieth centuries for commercial circulation within those countries."  

"All U.S. $20 gold pieces were minted with a pure gold weight of 0.9675 ounces.  It is because of that standardized weight and purity that theses items traded readily back then and continue to trade readily even today."  

"In most nations of the world, including the United States, gold ownership is considered a privilege, not a right.  Historically, nation-states have moved against gold ownership whenever economic conditions are such that public flight from the currency or banking system become a tangible threat.  The most conspicuous and often-cited example of such a flight occurred in 1933 when the threat of bank failures in the United States caused millions of Americans to withdraw their funds in the form of gold coins.  The newly elected president, Franklin Delano Roosevelt, reacted to the panic by issuing executive orders that closed the banks and confiscated the gold."  

"...history, even twentieth-century U.S. history, shows us that confiscation has all too often been the option taken by governments threatened with an economic breakdown."  

"...in 1933, when President Roosevelt issued a series of Executive Orders closing the banks, confiscating private gold, and instituting a long list of other economic controls.  All safety deposit boxes were sealed and could not be opened except in the presence of an IRS agent.  Penalty for noncompliance was 10 years in prison and a $10,000 fine, which is today's dollars would be closer to $200,000.  
 Another Execute Order issued eight months later exempted "gold coins having a recognized special value to collectors of rare and unusual coins, from the confiscation.  That classification as collectors' items reinforced in Treasure regulations issued in 1954 stating that all pre-1933 gold coins would be classified as collectors' items, and again in 1962 allowing the importation of all pre-1933 gold coins as collectors' items."  

"In 1954, the Treasury Department recognized... gold coins minted prior to 1933 would subsequently be presumed to be rare and of recognized special value to collectors, without the necessity of further specific determinations by the Treasury."  

"Few people are aware that, although gold was illegal in the United States, these items traded freely during the period the confiscation was implemented in 1933, and up until gold's re-legalization in 1975."  

"Today, there are some 49 countries that forbid ownership of gold by their citizens, but do allow holding gold coins for numismatic purposes."  

"Historic European gold coins offer great, largely untouched, and potentially lucrative opportunities in the field of gold investing today."  

"...the United States $20 gold pieces in low-grade uncirculated condition.  If gold is the immovable North Star of investments--the center around which the universe of financial assets rotates--then pre-1933 $20 gold pieces are the solid foundation upon which the modern gold portfolio is constructed.  Pre-1933 $20 gold pieces, which contain nearly an ounce of gold (0.9675 ounce) loosely track the gold price.  These, too, are considered collectors' items by the government in many of the laws and regulations concerning gold promulgated since the early 1930s.  The Liberty, minted from 1840 to 1907, and St. Gaudens, minted from 1907 to 1933, have become the most frequently traded because their prices are usually close to the bullion value, et they are viewed as collectors' items.  In the seminumismatic grades, their value is greatly influenced by the gold price.  The premium expands or contracts due to strengthening or diminishing demand."  

"Grade refers to the state of preservation, or quality, of a coin."  

"... nationally accepting grading services: Numismatic Guaranty Corporation (NGC) or the Professional Coin Grading Service (PCGS)."

"It is a matter of common sense, given the limited supple and burgeoning demand... that the supply will run out some day".  

"Owing gold is important.  Owning the right king of gold is crucial"  

"Gold is a treasure, and he who possess it it does all he wishes to in this world, and succeeds in helping souls into paradise."  
- Christopher Columbus (1451-1506) 

"Gains or profits made upon liquidation of an investment must be reported to the Internal Revenue Services (IRS) in the year in which they occur."  


"Gold can be stored in a safety deposit box at your bank.  This is the option most gold investors exercise.  The downside of safety deposit boxes is that items are not insured against theft, fire, flood, or similar disasters."  

"The solution to this problem is to keep some at home and the bulk in the bank safety deposit box... I believe this one to be the safest and most practical for the majority of gold owners."  

"Since ancient times, gold has served humanity reliably as both a store of value and a medium of exchange."  

"The small gold bullion coins (1/2, 1/4, and 1/10 ounce) best serve these purposes.  Of that group, the 1/4-ounce coin is the most useful".   

"Having money to barter could be crucial during an economic breakdown.  It makes sense to have some gold and silver put away for this purpose.  This is not a complicated problem.  This advice should suffice in the event of a breakdown."  

"... I now believe that gold should no longer be viewed just as a portfolio hedge - although it hasn't lost any of the qualities that make it such--but also as a vehicle for portfolio gains."  

"I believe that insurance offers extraordinary investments potential based on the possible rapid depreciation of the dollar and its loss of status as the world's only and primary reserve unit."  

"Statistics show that 85 percent of all investors in futures and options lose money.  That percentage is probability higher with leveraged gold investments."  

"Instead, the best way to take advantage of gold's price behavior is through a long-term accumulation program of the physical metal itself."  


"With gold, the best advice, as I have proffered more than once in this book, is to buy and accumulate over the medium- to long-term.  Buy what you feel you need, and then sit back and watch the show".  

"The economic house of cards built with paper dollars has begun to wobble.  Its fall will once again teach the world why gold--not paper--has been the preferred store of value for thousands of years."  

"For those who understand those two economic eras, the idea of gold ownership in the present era becomes a completely rational decision based on the lessons of history.  From time to time, financial historians and gold market analysts talk about the ongoing ware against gold waged by the central banks of the world, particularly by the United States, as part and parcel of this era... gold is winning and the dollar is loosing."  

"Now, more than 70 percent of the gold is in the hands of private individuals worldwide."  

"The dollar, in the bigger picture, is slowly fading, and gold is once again in ascendancy... it does not bode well for the United States and the dollar.  This nation must get its financial house in order."   

"As a financial antidote, a diversification into gold by American investors makes a great deal of sense... it is a matter of common sense to prepare for the worst and hope for the best."  

enclosure  

- Martin A. Briggs
KMBriggs, LLC