Month: March 2024

I Know Why the Caged Birds Sing: Book Review by the Financial Engineer

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Book Summary:

In this powerful autobiography, Maya Angelou takes us on a journey through her early years, marked by trauma, racism, and sexual assault. Despite the hardships, Angelou’s resilience shines through, as she finds solace in literature and discovers her voice, eventually blossoming into a woman who values her independence and intellect. The book serves as a testament to the power of resilience and the human spirit’s ability to rise above adversity.

Discussions Summary:

Our recent discussion on Maya Angelou’s seminal work led to a rich and diverse conversation. Here are the detailed insights:

Maya Angelou’s Life and Work:

We delved deep into Angelou’s life, discussing her traumatic childhood experiences that led to muteness and her eventual love for literature. This sparked a conversation on the themes of prejudice, overcoming challenges, and breaking barriers, much like Angelou did in her lifetime.

Personal Anecdotes and Breaking Societal Norms:

Members shared personal stories of breaking societal norms, drawing parallels with Angelou’s journey of self-discovery and defiance against societal expectations. Stories ranged from challenging generational mindsets to pursuing unconventional career paths.

Themes:

Prejudice and Speaking out :

The discussion extended to the broader societal issues of prejudice, particularly focusing on skin color and the caste system, and how these factors influence common mentality and personal interactions.

Resilience and Dignity:

We defined and explored these two powerful themes present in Angelou’s work. Resilience was seen as the ability to recover and grow from adversity, while dignity involved maintaining self-respect and moral integrity, even in challenging situations.

Integrity and Vision:

The conversation highlighted the importance of maintaining integrity through consistent commitments and having a clear vision, akin to Angelou’s clear narrative voice in her autobiography.

Cultural Perspectives:

We discussed various cultural perspectives, including British colonialism and personal experiences of living and studying in different countries, and how these experiences shape one’s worldview, much like how Angelou’s experiences shaped her writings.

Highlights from personal Experiences:

Challenging Expectations:

  • Our courageous team member “persistence” and “vision” helped her overcome barriers and achieve her goals. She faced questions and prejudice but gained confidence over time, challenging the expectations of the society for women.
  • Similarly, in India and Africa there is a stigma attached to “skin colour”, particularly in rural areas. The caste system also perpetuates discrimination based on skin colour.

We agreed that Colourism is driven by the beauty industry, creating an inferiority complex among different races. It’s important to have a plan and remain consistent while rejecting societal expectations

Similarly when another member echoed the message when she chose to explore the world instead of getting married. Breaking away from generational mindsets can be challenging but necessary for personal growth.

  • On those notes Participants in the conversation discussed the desire for happiness and personal fulfilment, by aligning with the true-self once discovered. Another participant discusses how they followed societal expectations but eventually found the courage to pursue their own path, including going back to school and changing careers.
  • Another story was shared on of breaking societal norms by completing engineering school and joining the circus for 2 years, which ultimately led them back to engineering. The group then reflected on how these unique experiences affected their relationships with their parents. Ultimately, parents’ expectations often come from a place of love and wanting what’s best for their children.

On Doubts and Fears:

The conversation then shifts to discussing doubts and fears that can hold people back from pursuing their goals or speaking out about certain topics, using examples from corporate politics as an illustration. The participants acknowledge the importance of social connections and community in achieving longevity and overall well-being.

We discussed the concept of self-doubt and social acceptance within communities. It highlights that acting outside of societal norms can result in being shunned or seen as an outsider. However, finding a community where one is accepted and appreciated can provide strength and encouragement. The variation across populations, such as ADHD and dyslexia, is also mentioned, with successful entrepreneurs often having these traits. Thinking differently and acting differently can make an outcast in one society, which jeopardize the innate survival mechanism.

The importance of both pushing boundaries for success and maintaining a cohesive society is emphasized. We distinguished between different types of communities like:

“Love Network”: Family

“Support Network”: True Friends

“Career Network”: Corporate and teams

“Professional Networks”: Network that will enable us to grow and unlock our pathways.

The Challenge:

The struggle between fitting in within a corporate environment while remaining aligned with personal values was discussed. Taking a stand for what one believes in is seen as crucial for personal growth and integrity but may come with challenges and stress.

Resilience is defined as the ability to bounce back from adversity with strength and positivity, using experiences as opportunities for growth. Dignity refers to inherent value that warrants respect from others based on self-respect and moral integrity.

The conversation focuses on defining and understanding integrity and dignity.

Integrity is described as consistency in commitments, promises, words, deliverables, identity, image, and relationships.

Dignity involves carrying oneself with grace even in challenging situations and treating others with consideration and esteem. The importance of being true to oneself is emphasized, using personal anecdotes to illustrate the concept.

The cultural relativity of dignity was also discussed, highlighting how different cultures perceive certain professions differently. We agreed that having clarity of vision and articulation skills are essential for aligning with one’s true self.

Challenging situations are seen as opportunities to test resilience and build it over time through bouncing back from setbacks.

One Idea to Take Away:

Angelou’s life story, combined with the discovered personal experiences we learned the power of resilience and the ability to rise above adversity. We stand to carve out our own path, armed with dignity and integrity.

Money GPT – this can change your financials

Mohamad Mrad Leave a comment

The financial theories that have shaped the investment world.” In our recent discussion, we delved deep into the world of finance, market behavior, the power of perception and most importantly the controlled narrative. We have triggered these highlights with the help of a great book that encapsulated these themes and offered valuable frameworks into the financial landscape.

Featured Book of the Week: Title: “The Alchemy of Finance” Author: George Soros Genre: Finance, Economics

George Soros, Reflexivity Theory, British Pound GBP, Investment Theory

Discovered Achievements and Pivot Points in the Life of the Author:

  • Georges Soros, the Alchemist of money is the founder of the “Quantum Fund,” one of the most successful hedge funds in history.
  • He famously shorted the British Pound, earning $1 billion USD in one day, challenging the Bank of England’s monetary policies.”
  • Philanthropist with a focus on promoting democratic governance, education, and public health.

The Main Message of the Book: Understanding and analyzing market behavior is key to making informed decisions. The book delves into the concept of “Reflexivity” in markets and how markets participants’ perceptions and actions can impact “Objective Reality” as they are taking actions in the marketplace, hence the importance keeping a the “Feedback Loops” in check. “Our discussions were so enlightening that we decided to extend our conversation over two sessions.”

“This theory, central to Soros’s investment philosophy, challenges traditional financial theories and provides a fresh perspective on market dynamics.”

What It Means:

Reflexivity, in the context of George Soros’s financial theories, refers to a feedback loop where actors in a market cannot base their decisions purely on an objective reality because they are themselves shaping that reality. In other words, the actions, and thoughts of participants in a market both influence and are influenced by the market’s movements.

Message of “The Alchemy of Finance” a Book and George Soros Investment Philosohpy

Components:

  1. Objective Reality: The fundamental, underlying factors that should theoretically determine market prices (e.g., a company’s earnings, assets, and liabilities).
  2. Subjective Reality: The perceptions, beliefs, and actions of market participants, which can diverge from objective reality.

The Feedback Loop:

  • Market participants’ actions, based on their perceptions (subjective reality), impact the market, changing the objective reality.
  • This new objective reality then influences participants’ perceptions, leading to further actions.
  • This loop can reinforce itself, leading to exponential market movements that diverge significantly from what would be expected based on fundamentals alone.

How to Apply It:

Understanding Market Behavior:

  1. Identify Feedback Loops: Look for situations where market participants’ beliefs and actions are significantly impacting market prices.
  2. Analyze Divergence from Fundamentals: Determine how far market prices have diverged from underlying fundamentals and consider the potential for correction.
  3. Consider Psychological Factors: Consider market sentiment, herd behaviour, and other psychological factors that can exacerbate feedback loops.

Investment Strategy:

  1. Contrarian Investing: Consider going against market sentiment when it appears to be excessively driving prices away from fundamentals.
  2. Risk Management: Be aware of the potential for significant market corrections when feedback loops unwind.
  3. Adaptive Strategy: Continuously reassess the market situation, understanding that feedback loops can change rapidly.

Case Studies:

1. The 2008 Financial Crisis:

  • Feedback Loop: Rising house prices led to increased borrowing and lending, further driving up house prices.
  • Reflexivity Application: Recognizing the feedback loop and the divergence from fundamentals (house prices vs. underlying asset values) could have allowed investors to anticipate the eventual market crash.

2. The Dot-Com Bubble:

  • Feedback Loop: Speculation drove up technology stock prices, leading to more investment and further price increases.
  • Reflexivity Application: Observing the feedback loop and the extreme divergence from fundamentals (stock prices vs. company earnings and assets) could have signalled the impending bubble burst.

3. Soros Breaking the Bank of England:

  • Feedback Loop: Speculation against the British pound and the UK’s economic vulnerabilities led to a devaluation of the pound.
  • Reflexivity Application: Soros observed the feedback loop and the divergence from fundamentals (the pound’s value vs. the UK’s economic situation), successfully betting against the British pound.
“The Alchemy of Finance” and “Intelligent Investor” must be in every financial savvy and Portfolio Manager library

Excerpts from “The Intelligent Investor” Book, Benjamin Graham: To explain the power of “Narrative Control” we used the experience from the “intelligent Investor” how investor buy their stocks like they buy perfumes. “Graham’s philosophy emphasizes the importance of analyzing a company’s intrinsic value and not getting swayed by market sentiment.”

Then we grounded it with common narratives:

Channel perfume’s pricing is influenced by market demand and the story of a client who wanted to invest all their money immediately.

Bitcoin’s Worth: Driven more by narrative and perception than intrinsic value.

Benjamin Graham: The Pioneer of Value Investing

Benjamin Graham, often referred to as the “father of value investing,” was an esteemed economist, professor, and financial analyst. Born in 1894, Graham’s contributions to the world of finance have left an indelible mark, shaping the investment philosophies of countless individuals and institutions. He introduced the world to the concept of value investing, emphasizing the importance of analyzing intrinsic value, understanding financial statements, and maintaining a margin of safety.

As per “Benjamin Graham” – People buy stocks like they are buying perfumes. while they must by them like they do their tomato’s. Value investing is core strategy to acquire good assets in blood markets;

Scientific Principles: The concept of “Reflexivity” and its impact on market behavior. The importance of feedback loops and analyzing divergence from fundamental values. These divergences create the opportunities for great gains.

The Audience’s General Experience and Understanding: The book resonates with both novice and experienced Investors, offering insights into market behavior, investment strategies, and the psychological factors influencing financial decisions. The community agreed on the critical importance of “raising sound financial acumen” to support us filter the noise and build the right habits for our personal financial resilience.

The Benefits: the community gained a deeper understanding of market dynamics, the importance of diversification, and the role of personal finance to secure the resilient future.

Meeting Discussion Summary: The meeting touched upon several topics related to market behavior, personal branding, and the importance of genuine engagement on social media platforms. The discussion also highlighted the significance of understanding market sentiment and herd behavior in making informed investment decisions.

Understanding Market Behavior:

Markets are not always rational; they are influenced by the collective perceptions and actions of participants.

Recognizing feedback loops can provide valuable insights into potential market movements.

Value vs. Perception:

While intrinsic value is fundamental, market perception can drive prices away from this value, creating opportunities for investors.

Importance of Diversification:

Both reflexivity theory and value investing emphasize the need for a diversified portfolio to mitigate risks.

Adaptive Investment Strategy:

There is no one-size-fits-all approach. Investors should be flexible and adapt their strategies based on market conditions and emerging trends.

Power of Narrative:

Narratives and stories can significantly influence investor behavior. Being aware of prevailing market narratives can offer a competitive edge.

Financial markets are characterized by their volatility and unpredictability

Psychological Factors in Investing:

Emotions, biases, and herd behaviour play a crucial role in investment decisions. Self-awareness and emotional intelligence are key to successful investing.

Continuous Learning:

The financial landscape is ever evolving. Continuous learning and staying updated with the latest theories and practices are essential.

Balancing Theories:

While Soros’s reflexivity theory offers insights into market behaviour, Graham’s value investing provides a foundation for analysing individual assets. A balanced approach, drawing from both theories, can lead to more informed investment decisions.

Importance of Risk Management:

Regardless of the investment approach, understanding and managing risks is paramount. Both Soros and Graham emphasize the significance of risk assessment in their strategies.

Community and Collaboration:

Sharing experiences, insights, and knowledge with a community, like the book club, can provide diverse perspectives and enhance individual understanding.

Key Takeaways :

  1. Formulating an Investment Thesis: Emphasis was placed on crafting a lucid hypothesis and setting objectives. This serves as a compass for investment choices, aligning with overarching financial aspirations. The thesis should commence from macroeconomics, narrowing down to micro aspects, and then to the specifics of the targeted asset. This encompasses its fundamentals, price dynamics, and the market disparity between objective and subjective valuations, fortified by the feedback loops from market stakeholders.
  2. Diversification: As a bedrock of risk management, diversification’s role in dispersing risk across diverse assets was underscored. A recommended cap of 33% exposure to any single asset class was suggested.
  3. Continuous Monitoring & Adaptation: The ever-shifting financial terrain mandates periodic oversight and prompt recalibrations to strategies, ensuring the harnessing of opportunities and risk mitigation. For a deeper dive, consider our newsletter, “The Financial Impulse.”
  4. Leveraging Opportunities: While leverage can bolster profits, comprehending its inherent risks and judicious application is pivotal.
  5. Understanding Market Cycles: A steadfast buy-and-hold tactic may not always be the golden rule. Discerning market rhythms and asset flux can pave the way for astute investment choices.
  6. Feedback Loops in Finance: The pivotal concept of feedback loops in financial arenas was broached, drawing analogies with Soros’s legendary stance against the British pound.
  7. Global Perspectives: The discourse spanned a gamut of themes, from the clout of leaders in molding public sentiment to the machinations of propaganda and the ascendancy of nationalist waves globally.
There isn’t a tangible compass to guide your financial choices. Instead, a robust decision-making process serves as the cornerstone of your investment strategy, providing stability amidst turbulent markets.”

Mohamad’s Thoughts: “In the evolving world of finance, staying informed is critical. ‘The Alchemy of Finance’ serves as a guiding light, illuminating the complexities of market behavior and investment strategies”.

The Razor-Edge Approach: Soros vs. Graham

In the realm of finance, two giants stand tall with their distinct philosophies: George Soros with his “Reflexivity Theory” and Benjamin Graham with his “Value Investing” approach. While at first glance, these theories might seem at odds, a razor-edge approach allows for a harmonious blend of both, optimizing investment strategies based on market conditions. We will be delving into the depth even further in the future session.

Quote to Remember: “Market value is not always a reflection of intrinsic value; it’s often driven by narrative control and participate perception” – Mohamad K. Mrad

Mohamad k. Mrad

The Financial Engineer

Golden Leadership

Mohamad Mrad Leave a comment

Much like gold, which is valued for its rarity, Golden Leadership stands out in its uniqueness. It’s not about following a set playbook or mimicking other successful leaders. It’s about forging your own path, guided by authenticity and empathy.

In our latest session, we delved into the profound insights from Brené Brown’s “Dare to Lead.” The discussion revolved around the essence of “vulnerability” in leadership, the significance of “trust” and “communication” in fostering a healthy workplace culture. Drawing from Brown’s research, we uncovered the transformative power of “Curiosity” and that can be developed by our “Own experiences”. The book is rich with tools and techniques that can guide professionals in their “leadership” journey.

Featured Book of the Week:

  • Title: Dare to Lead
  • Author: Brené Brown
  • Genre: Leadership, Personal Development
  • Date: 25/10/23

Brené Brown, Ph.D., LMSW, is a research professor at the University of Houston and a renowned author and speaker. She has spent over two decades studying courage, vulnerability, shame, and empathy. Brown’s groundbreaking work has transformed our understanding of leadership, offering a human-centric approach that emphasizes the importance of emotional intelligence and authenticity. With several best-selling books and a popular TED talk, she has inspired millions to embrace vulnerability and lead with courage, from her portfolio of books we have selected “Dare To Lead”

Key Takeaways and ideas from the Discussion:

1. Vulnerability in Leadership: Being open and honest without masks or pretence is vital. Vulnerability can be a strength, fostering trust and connection.

Vulnerability is not about weakness or exposure; it’s about showing up authentically, without masks or pretence. When leaders embrace their vulnerabilities, they showcase their genuine self, making them more relatable and trustworthy.

While vulnerability can be a powerful tool for connection, it’s essential to ensure it’s not used manipulatively. Genuine vulnerability is spontaneous and sincere, might be a calculated move to gain sympathy or advantage.

Leaders are open to feedback, allowing them to make more informed decisions. They recognize that they don’t have all the answers and value the input and expertise of their team.

Leader’s vulnerability sets the tone for the entire organization. When leaders are open about their challenges and learnings, it creates a safe environment where employees feel encouraged to share, innovate, and take risks.

Open discussions about failures and weaknesses without shaming or blaming can lead to growth and understanding.

Rumbling with Vulnerability, by Brené Brown’s concept, means engaging in open discussions about failures, weaknesses, and uncertainties without resorting to blame or shame. It’s about confronting challenging situations head-on, with honesty and integrity.

2- Permission Slips: Encouraging thoughtful communication in meetings and using them in journaling for self-reflection.

Permission Slips is a tool introduced in the discussion that encourage thoughtful communication in meetings and personal reflections. They serve as reminders to stay open, honest, and vulnerable in conversations, promoting a culture of understanding and empathy.

3- Curiosity: The Heartbeat of Confident Leadership, A tool to build confidence, identify values, and drive innovation. It’s about approaching relationships and challenges with an open mind. In the realm of leadership, curiosity is not just a fleeting interest or a momentary diversion; it’s a profound force that drives growth, innovation, and connection. Brené Brown, in her groundbreaking book “Dare to Lead,” underscores the transformative power of curiosity in shaping effective leaders. Let’s explore this concept:

Curiosity pushes us to ask questions, seek answers, and venture into the unknown. Each time we embrace curiosity, we challenge our comfort zones, leading to personal growth and increased confidence.

The key is to have “Curiosity aligned with one’s values and his objectives”, Curiosity prompts introspection. Leaders who are curious tend to reflect on their actions, decisions, and motivations. This self-reflection helps in identifying core values and ensuring that one’s leadership style is aligned with these values. When actions resonate with personal values, it instils a sense of authenticity and purpose, driving Innovation.

Curious leaders are bored with the status quo. They constantly question existing processes, seeking ways to improve, innovate, and bring about positive change. This mindset fosters a culture of continuous improvement within organizations, leading to breakthroughs and advancements.

We have also applied “Curiosity” on relationships by approaching interactions without judgment or preconceived notions. It’s about genuinely wanting to understand others’ perspectives, feelings, and experiences. This approach fosters deeper connections, mutual respect, and collaboration. In the discussions, the importance of being curious about people, even the ones you love the most, it helps recharging relationships.

In the face of challenges and setbacks in leadership. A curious leader views them as Opportunities instead of obstacles. Opportunities to learn and grow. Hence instead of asking why? He will ask, How can this challenge lead to a better outcome?”

defensively, they ask, “What can I learn from this?”

Communication and Inclusion is key for Team success under the golden leadership

Healing Dysfunctional Workplace Cultures: The backbone of a healthy workplace culture. Trusting oneself and learning from failures is crucial. Trust is the foundation of any strong relationship, and in leadership, it’s paramount. By being vulnerable, leaders allow others to see their human side – their fears, hopes, and challenges. This transparency fosters a deeper connection and trust within teams.

just as gold is malleable and can be molded into various forms without losing its essence, Golden Leadership is adaptable. It allows leaders to navigate the complexities of today’s dynamic world while staying true to their core values.

Recommendations and tools, including those from Brené Brown’s research, were discussed to foster a positive work environment.

a- consistency in Actions and Words

b- Open and Honest Communication

c- Admitting Mistakes

d- Showing Empathy and Understanding

e- Empowering and Delegating

f- Being Accessible and Approachable

g- Recognizing and Appreciating Efforts

h- Setting Clear Expectations

i- Promoting Fairness and Equality

j- Investing in Team Development

k- Walking the Talk

Contradictory Opinions: While many participants resonated with the idea of vulnerability as a strength, there were concerns raised about its potential misuse. Vulnerability, when not genuine, can be wielded as a tool for manipulation, creating a facade of authenticity to gain trust or sympathy. It’s essential to differentiate between authentic vulnerability, which fosters connection and trust, and strategic vulnerability, which can be used to manipulate perceptions and outcomes

Mohamad’s Thoughts: Golden Leadership is the alchemy of blending authenticity with empathy, creating a leadership style that is both impactful and compassionate. In a world filled with transactional interactions, Golden Leadership offers a beacon of hope, shining brightly and guiding the way towards a more inclusive and empathetic future.

Leadership is not just about guiding a team but also about introspection, understanding, and growth. Brené Brown’s insights offer a fresh perspective on leadership, emphasizing vulnerability, trust, and curiosity. In our discussion, the importance of self-awareness and the courage to face one’s weaknesses stood out. As we navigate the challenges of leadership, it’s essential to remember that true strength lies in our ability to be genuine, to learn, and to lead with empathy.

So, you think you need a lot of money to start?

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Genre: Entrepreneurship, Business, Self-help

People always think they need a lot of money to make money, this article review show the exact opposite based on a book the studied over 1500 success cases.

Spotlight from the “The $100 Startup”

the 100$ Startup, a great tool to learn

Background on Chris Guillebeau

In our featured selection, we discovered Chris Guillebeau’s entrepreneurial manifesto, “The $100 Startup.” This book stands as an effective game plan for those acting to turn their passions into profits with minimal capital. Based on the analysis of 1,500 individuals who built businesses earning $50,000 or more from a modest investment (in many cases, $100 or less), and from that, Guillebeau has distilled the crucial insights for starting a small business.

Guillebeau, an advocate for an unconventional life, shares a blueprint for aspiring entrepreneurs to create fulfilling work with the resources they already possess.

Chris Guillebeau, Author, traveller, Entrepreneur

In the background we studied who is Chris Guillebeau, an author, entrepreneur, and speaker. He is best known for his books and his blog, “The Art of Non-Conformity,” where he shares insights about personal development, life planning, and entrepreneurship. His work is centred around the idea of unconventional living, encouraging individuals to craft a life that is aligned with their personal goals and values, rather than following traditional paths.

Guillebeau set a personal goal to visit every country in the world by the age of 35, a feat he accomplished in 2013. This journey exposed him to a myriad of cultures and business ideas, influencing his perspective on entrepreneurship.

His early work involved volunteering and the coordination of logistics for medical charities in West Africa. This experience in the non-profit sector contributed to his understanding of value-driven work.

He began writing and blogging to share his experiences and lessons learned from his travels and work. His blog gained a significant following, leading to the publication of his first book, “The Art of Non-Conformity.”

Guillebeau wrote “The $100 Startup” to inspire and instruct individuals who want to achieve personal freedom through entrepreneurship. The book:

· It breaks down the notion that starting a business requires substantial capital and a business degree. Guillebeau wanted to show that it is possible to start a successful business with a small investment and a lot of passion and determination.

· The Book also includes amazing case studies of individuals who have successfully started businesses with minimal investment, Guillebeau provides real-world examples and actionable insights.

· This book is highly recommended for people who want from the dreaming stage to taking concrete steps toward launching their own ventures. Promoting the idea that work should be fulfilling, and that entrepreneurship can be a path to personal satisfaction and financial independence.

Actually: It is Powerful to Start Small

Key Steps to Remember:

1. Convergence:

· The sweet spot where your interests and skills align with what others are willing to pay for. ( we made an analysis and similarity to the Ikigai circles)

· Identifying this intersection allows for the creation of a business that is both enjoyable and financially sustainable.

Focus on Value creation AKA “Solution”: we argue that the most successful businesses are those that solve problems and fulfil. It is not about inventing the next big thing; it is about making people’s lives better or easier in tangible ways. This focus on value leads to a loyal customer base and word-of-mouth referrals, which are crucial for growth.

Discovering your iKigai is a must

Exercises :highlight you set of “SKILLS” “SET Of PASSION” and “PEOPLE NEED” produce your value proposition

Here is the story of a British man from the book who started a mattress company by capitalizing on his knowledge of the industry and his passion for better sleep. With just a small amount of savings, he creates a high-quality product that challenges the big players in the market.

Another story is a woman with a love for crafting who turns her hobby into a full-time business, selling her creations online and at local markets, starting with just a few dollars for supplies.

2. Repurposing your Skills:

· Leveraging and repurposing existing skills to meet market needs.

· By adapting skills to new markets or problems, entrepreneurs can create unique offerings without starting from scratch.

The book promotes that everyone has something they are good at or knowledgeable about, and that “skill transformation” is about finding new ways to apply these abilities to serve others. Waiting for the perfect idea or opportunity can lead to inaction; instead, start with what you know and grow from there.

learning skills pays the bills

3. Why it is Powerful to Start Small:

· Because small businesses can be both flexible and profitable.

· Entrepreneurs can thrive by focusing on niche markets, providing exceptional value without the complexity of scaling up.

4. The major enemy is the Action Bias:

· People fall for excessive planning where priority must be for action.

· Quick Execution is necessary because it allows for immediate feedback and real-world learning, which is more effective than theoretical planning.

5. Story Telling Is a skill: Effective marketing is crucial for any business, A compelling narrative that connects with the right audience can be more powerful than any advertising campaign. He encourages entrepreneurs to find their unique voice and to share their story authentically. Marketing should be seen as a way to build relationships, not just sell products.

6. Keep it simple: Complex business plans can be overwhelming and often unnecessary. Guillebeau advocates for simplicity, suggesting that a one-page business plan is often all that is needed to get started. This plan should outline the product or service, the target market, the sales mechanism, and the pricing model. Keeping it simple allows for clarity of purpose and ease of adjustment as the business evolves.

7. To the Book we Add, the importance of Network: this is the effect of who you know and what can they do to help . this is one of the most important resources for every successful business. these resources can be part of the launch team , like an operation guy, like a skilled marketer these resources can create the nucleus for a successful launch, and this is a practical example we are doing now with the Cash Cow Academy CCA https://www.cashcow.academy/.

Your Thoughts Matter: We are eager to hear your stories of entrepreneurial endeavours or insights on using social media for business. Share your experiences and join the conversation.

Financial Resilience: Join the in bridging cultural gaps and creating a community that values genuine experiences, peace, and resilience. Together, we can craft a narrative that not only informs but also inspires.

Warm regards,

Mohamad Mrad

Chartered Investment Manager

TFE- The Financial Engineer

Tools business plan tools for you:

https://www.thefinangineer.com/post/effective-business-tool-for-entrepreneurs

Ridiculous Bank Charges – A Story by Mohamad Mrad

Mohamad Mrad

“It’s been half a year since I initiated conversations with FH. After considering various advisory firms and solutions, FH chose to become my client in January 2022. This journey, I must admit, is thrilling.

Our goal is for FH to retire at 45, setting our strategy timeline to seven years. The strategy, crafted by Mohamad Mrad, involves several asset classes and aims to accumulate the necessary working capital by 2029. However, I won’t delve into the strategy specifics here.

One element of our strategy is what we term “sustainable investment plans”. These involve monthly investments to bridge the gap in our total investment pool, which consists of real estate, bonds, private equity, and alternative investments.

As we implement this strategy, we’ve noticed that each card transaction costs us between 2.5 to 3.1% monthly, depending on the bank. This fee, charged by banking solutions like Visa or Mastercard, amounts to a significant $6,000 USD over a decade.

An alternative is a bank standing order. However, each transaction on an elite or premium account incurs an additional $11.4 (equivalent of 42AED) + 72AED, or around $19.5, charged by the corresponding bank. This totals to about $31 USD per transaction, which is nearly 55% of the card cost option.

This is unacceptable. A sustainable investor making monthly transactions to build an investment pool shouldn’t be charged exorbitantly for a standing order. Banks should significantly reduce these charges.

DeFi will soon force a change in this behavior. For now, we’ve found an innovative solution to drastically reduce these costs. Unfortunately, I can’t yet apply this solution to all my clients.

Truth or Dare

Mohamad Mrad Leave a comment

In the aftermath of the pandemic-induced stock market crash in February 2020, savvy investors like Mohamad Mrad were poised to seize the countless opportunities presented by relatively cheap stocks in April 2020.

This led to a swift market recovery and an unprecedented rally, fueled in part by stimulus injections. However, this environment could hardly be labeled as a healthy economy.

Despite the S&P 500 indicating a healthy increase of above 15.2%, the reality of redundancies across various industries, layoffs, and poor earnings reports in sectors such as oil and gas, banking, and hospitality towards the last quarter of 2020, raised questions about the authenticity of this rally. Was this rally real or just a mirage?

As a technical investor, Mohamad Mrad understands the price action and the moves created by the trader’s order flow. The greed of investors is creating a positive stock performance and consequently a positive index performance. Yet, the fundamentals do not reflect the same.

Let’s consider some key indicators: Manufacturing jobs, GDP, Interest Rates, and the Consumer Price Index. All these indicators are signaling an unhealthy economy. Even the $ US dollar index (DIX) started revealing reversal signs from its bearish momentum, signaling an uptrend.

On 28 January, the S&P index dropped below its critical level 3,732.86 signaling an end of the bullish momentum. Yet other major indices like the Nasdaq and Dow Jones didn’t break their respective critical levels. However, bearish signals are starting to appear with a mix of rising investors fear and diminishing buyers’ sentiments.

Mohamad Mrad suggests that the coming trading sessions will be crucial to indicate one of the following scenarios: This could just be a correction in the markets, after a strong sprint, with a sideways period, which in all cases isn’t healthy given all the fundamental indicators are weak and it will increase the sentiment of fear. Or, the market will fall sharply heading toward a recession as a delayed reflection of the weak fundamental indicators.

With this uncertainty in the air, more signals are adding up in the support of bearish markets. The best strategy for intraday selling and buying opportunities when they appear: Keep some liquidity and be ready to have another shot. Focus on long term investments when the markets reach new lows, and the indicators support a healthy growth.

Resolutions or only on new year?

Mohamad Mrad Leave a comment

In the grand scheme of life, the Gregorian calendar is but a man-made construct, a tool to measure the passage of time. Yet, it’s undeniable that the end of one year and the beginning of another holds a certain symbolic significance. As Mohamad Mrad would argue, every day is an opportunity for a fresh start, a chance to set new objectives and work towards them with relentless determination.

While the Gregorian calendar marks the end of a fiscal year and the beginning of another, it’s essential to remember that the true measure of time is not in the ticking of a clock but in the progress we make. This is a concept that Mohamad Mrad emphasizes. He encourages us to view every day as a potential beginning of a ‘new year’ or a ‘new self’.

The celebration of a new year should not be a mere ritual but a celebration of positive change. It could be a new business, a new investment, a new accomplishment, or even a new mindset. Mohamad Mrad suggests that we should use the first of January as a marker to set new goals and work towards achieving them in a realistic rhythm.

In the grand scheme of things, time is a constant that we cannot control. What we can control, however, is what we accomplish within that time. Mohamad Mrad encourages us to make small improvements every second, minute, day, week, month, or year towards our objectives.

To illustrate this point, Mohamad Mrad uses the example of the bamboo tree forest, which takes five human years to form, the birth of an elephant, which takes two human years, and the birth of a new human being, which takes nine months. These examples serve to remind us that we all run on different clocks, and all creation in this universe has its timing.

The key is to set objectives that align with our natural timing. If you want to generate an additional 100,000 USD next year, you have nine months to do so. If you want to publish a new book, you have nine months to do so. This concept of measuring time in ‘birth units’ is an innovative approach proposed by Mohamad Mrad.

In conclusion, every day is an opportunity to declare our intentions and work towards achieving them. Mohamad Mrad encourages us to keep a daily agenda of at least seven targets that help us accomplish our goals. He emphasizes the importance of daily productivity and the need to avoid falling into routines of consumerism and distraction.

Remember, every day is a chance to work towards becoming the best version of yourself. As Mohamad Mrad would say, “Every day shall be a landmark for a new celebration accomplished with every new breath.”

Overcoming Challenges in Investor-Advisor Relationships to Safeguard Generational Wealth

Mohamad Mrad

The Investor Profile:
When it comes to managing serious wealth, not all advisories are created equal—shocking, right? The right investment office isn’t just about balancing your financials; it’s about being a trusted partner that syncs with your legacy, values, and long-term goals. So, let’s break down what makes the ideal investor for family office services—especially for those looking to do more than just preserve wealth, but to seamlessly pass on values and vision across generations.

Challenges Faced:
Our clients, a group of high-net-worth families, encountered several challenges in their relationships with financial advisors. These challenges were putting their financial future at risk and included the following key issues:

  1. Conflicts of Interest:
    The investors faced concerns that their financial advisors may be recommending certain investment products driven by hidden incentives, rather than the investors’ best interests. This led to mistrust and the potential for suboptimal investment performance.
  2. Lack of Communication:
    Clients often felt left in the dark when it came to their portfolio’s performance. Some received only sporadic updates, leaving them uncertain about the direction and status of their investments.
  3. Disagreements Over Investment Strategies:
    There were frequent misalignments between the clients’ investment goals and the strategies recommended by their financial advisors, leading to dissatisfaction and strained relationships

Solution Provided:

Our clients, a collective of high-net-worth families, faced several challenges that were more than just annoying—they were potentially jeopardizing their financial futures. Here are the key issues they were dealing with:

  1. Conflicts of Interest:
    Clients were concerned their advisors were recommending investments not because they were the best option but because they came with hidden incentives. This led to—surprise—mistrust and less-than-ideal investment performance.
  2. Lack of Communication:
    Clients felt like they were left in the dark when it came to their portfolios. Sporadic updates were the norm, leaving them guessing about the direction of their investments. Not exactly a recipe for confidence.
  3. Disagreements Over Investment Strategies:
    There were constant misalignments between what the clients wanted and what the advisors recommended. Naturally, this led to dissatisfaction and strained relationships.

Solution Provided

  1. Addressing Conflicts of Interest:
    We got straight to the point. Transparency first. We disclosed all fees, commissions, and any potential conflicts upfront—no surprises. This established trust and ensured every recommendation was aligned with the families’ long-term goals. We set clear benchmarks, timelines, and discussed expected volatility, tailoring everything to fit the client’s risk appetite. This level of clarity put the client back in control, restoring trust and focusing on wealth preservation and growth.
  2. Enhancing Communication:
    To fix the communication breakdown, we didn’t just send an occasional email. We put in place a structured communication system. Regular performance reviews? Check. Quarterly reports? Done. Real-time updates from a dedicated team? You got it. Now, clients were never left wondering what was happening with their money.
  3. Resolving Disagreements Over Investment Strategies:
    We found the root of the problem: conflicting investment philosophies. So, we took the time to understand each family’s financial persona and objectives. We facilitated collaborative sessions to adjust portfolios as needed and explained why certain strategies made sense. This open dialogue closed the gap between expectations and recommendations—everyone got on the same page.
  4. Comprehensive Education and Trust Building:
    We didn’t stop at managing the portfolio. We educated our clients on the nuances of their investments because informed clients make better decisions. Regular educational sessions? Yes, please. This not only built trust but created a stronger, long-term partnership.

Outcome

By addressing these challenges head-on, we didn’t just restore trust between our investors and the financial industry; we fortified it. Through transparency, better communication, and aligning strategies with clients’ goals, our clients experienced major improvements in their financial planning. The result? A smoother wealth management process and stronger legacy preservation. This case proves that when you communicate openly, stay transparent, and align with a client’s vision, you set the stage for enduring partnerships—and ensure financial futures are secure for generations to come.

The student that changed my life

Mohamad Mrad

The “Monday Effect” is a well-known stock market anomalies that suggest certain cyclical and seasonal patterns in stock prices, potentially challenging the Random Walk Hypothesis, which posits that stock prices move unpredictably and independently of their past movements. Let’s explore this anomaly with some case studies and statistics:

The Monday Effect, was first reported by Frank Cross in 1973, suggesting that stock returns on Mondays are typically lower than other days of the week.

Case Studies and Statistics:

  • Historical Analysis: Studies in the late 20th century often found that stock returns on Mondays were indeed lower on average than on other days. For example, a study might show negative average returns for Mondays over several years, compared to slight positive average returns for other weekdays.
  • Changing Trends: More recent studies, however, have shown that this effect has diminished or disappeared. Advances in market efficiency, the proliferation of algorithmic trading, and global trading practices may have eroded the Monday Effect.
  • Explanations: Various theories have been proposed for the Monday Effect, including the settlement of trades from the previous week and negative news over the weekend affecting investor sentiment.

Implications and Current Perspectives

In the world of trading, I was merely a day trader. My life was a rollercoaster of making money one day and losing it the next. My mood swung wildly, dictated by the financial outcomes of my trades. I was not exchanging value with others, not contributing to a community or an organization. I was just on my PC, isolated and without a clear mission or vision. My focus was solely on producing my monthly income. When I fell short, panic and anxiety would creep in, affecting my personal life, my relationships with my family and friends. I sought solitude, avoiding social gatherings and becoming increasingly withdrawn. My life was devoid of purpose until I began my mentorship journey with Albert.

Albert introduced me to a new identity. I was no longer just a trader; I became a mentor. This transformation gave my life a new meaning and a higher purpose. Two years ago, I was just doing technical charting to produce income. I was plagued by depressive thoughts and low-frequency vibrations. Even ideas like suicide crossed my mind a couple of times. Today, my bank of happiness is abundant. I have never been happier in my life, and I owe a large part of this transformation to my mentorship journey with Albert.

With Albert, I learned to become patient. I learned to accept that every person has a different capacity to learn. I learned that people acquire knowledge in different ways. Some people prefer to read, some prefer to watch videos, and some prefer to listen to podcasts. This experience and new learning made me a better person in my personal life. I became a better father, a better husband, a better friend, and a better communicator. I even became better in trading. I became an investor, a wealth manager, a writer, and most importantly, I became a mentor.

Today, I see myself on a journey to affect the life of one million people. This is the legacy I am building. This became possible because my journey started with Albert the ambitious. Today, I am not just Mohamad Mrad, the day trader. I am Mohamad Mrad, the mentor, the investor, the wealth manager, the writer, and the man on a mission to make a difference.

Maria at age 37 decided to retire mohamad was her second and last choice to engineer the new phase

Mohamad Mrad

Investor Background:

Maria, a retired professional, was growing increasingly concerned about how to maintain her lifestyle without the fear of outliving her savings. Like many retirees, she needed a portfolio that would provide stable income while still allowing for growth. Her previous financial advisor, Stephan, struggled to meet these goals due to limited access to resources, leaving Maria feeling disconnected from her investment strategy. Recognizing the need for a more personalized solution, Stephan recommended Maria to Mohamad Mrad, a financial engineer known for creating customized financial plans tailored to critical situations like hers.

photo from current retirement place in florence

The Challenge:

Maria’s concerns were twofold: she needed a reliable income stream to cover her monthly living expenses while preserving her savings for the long haul. Specifically, Maria’s monthly expenses came to around €3,000, which covered her rental bills in Florence, accommodation, food, utilities, transportation, health bills, and even care for her beloved cat, Mandu. On top of that, Maria had a strong preference for ethical investments, which added another layer of complexity in finding the right balance between returns and values.

Maria’s financial goals weren’t just about covering the basics—she also wanted the flexibility to travel. Every five months or so, she’d fly to Romania to visit her family during the summer or take trips to Dubai to reconnect with old friends. The combination of these goals, along with her preference for ethical investing, meant that Maria was stuck in a generic strategy that didn’t align with her priorities, leaving her without the peace of mind she desperately needed in retirement.

The Solution:

When Mohamad came on board, he took a more personal and hands-on approach. For the past 2.5 years, he’s been meeting with Maria every Thursday, working side by side with her to build both her portfolio and her understanding of how the financial markets tick. They dug deep into research together, finding ethical companies that matched Maria’s values, all while crafting a strategy that blended trend-based moves with contrarian tactics to get the most out of her equity portfolio.

This wasn’t about handing Maria some off-the-shelf plan—this was a real collaboration. They spent months researching and pinpointing companies that met her ethical standards. When big names like Apple, Tesla, or Nvidia didn’t quite fit the bill, they got creative. They invested in structured products so Maria could still take advantage of market shifts without directly buying into those companies.

On top of equities, Mohamad and Maria built a high-dividend-paying portfolio that they constantly fine-tuned to keep the income flowing smoothly each month. With the extra capital, they diversified into investment-grade corporate bonds and even dipped a toe into crypto, with a small allocation in Bitcoin, Ethereum, and Ripple (XRP). It took about 6 to 7 months to fully roll this out, carefully spreading the capital across different asset classes.

Their steady, weekly collaboration consistently delivered results and fostered a strong connection, which eventually grew into a genuine friendship.


In the end, this personalized approach really delivered. Over the 2.5 years, Maria’s portfolio achieved an 18% annualized return, outperforming market benchmarks while sticking to her ethical standards. Her high-dividend strategy now provides a steady 1.5% monthly income, and the bond allocation offers stability with a 11% yield from investment-grade assets. The Crypto allocation has grown over 30%, adding an extra layer of diversification.

More importantly, Maria gained confidence in navigating her investments and staying aligned with her values. What began as a business relationship evolved into a true partnership, empowering her to take control of her financial future. Thanks to Mohamad’s commitment and their weekly collaboration, they’ve built something high-performing, sustainable, and deeply personal. Financial success paired with a meaningful connection—that’s the real outcome here.