“[…] If somebody with an MBA degree applies for a job, we will certainly not hold it against them, but we are really looking for people with PSD* degrees. They built this firm and there are plenty around because our competition seems to be restricting themselves to MBA’s”
* PSD stands for poor, smart and deep desire to become rich.
This is an excerpt from a memo written by Alan Greenberg to “All General & Limited Partners” on May 5, 1981. It can be found in his book “Memos from the Chairman”, page 19.
We can go beyond the first impression and refine our interpretation of Mr. Greenberg statement.
Poor: Not necessarily a person that is in deep financial trouble, but one that is not OK with the present situation. One that is feeling something’s lacking in life and wants to change.
Smart: Intelligent, keen, alert, acute people. These people are sharp to find opportunities that can change their lives in the blink of an eye.
Deep desire to become rich: This is the drive inside them. This deep desire will make them overcome struggles and obstacles they will certainly encounter along the way. Their drive is not money, but to fulfill their purpose in life.
The PSD statement is like the “Stay hungry, stay foolish” on steroids. It’s the predecessor of Jeff Bezos’ “It’s always day one at Amazon”.
It doesn’t take an MBA to be an expert and it doesn’t take money to be rich. Mindset is the real cornerstone of everything.
Chart of the Day
S&P with and without QE
Speaking of MBAs, we came across an interesting chart the other day, which depicts the S&P 500 Index gains in points with and without the QE program (Quantitative Easing). It doesn’t take an MBA in economics to understand what’s going on here.
(listening to «With or withooooout you» while studying the chart. The source is ZeroHedge)
Video of the day
What is an In The Money Option (ITM)
Coach Noah dynamically explains what is an In The Money Option
Today’s Lineup
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Coaches Show Replay
If you missed last night’s episode where Coach Gino & Coach Noah talked about How to Play a Gap or would like to watch it again, check it out here.
