Montblanc Star Chronograph Automatic WatchWhen I was 22 years old, or thereabouts, I bought a Swiss made Montblanc Star Chronograph Automatic stainless steel watch from Borsheim’s during the Berkshire Hathaway shareholder meeting.  I wanted something that would last, God willing, for the rest of my life and would remind me of when I was young, just starting out, and successfully building my first businesses and got to hear Warren Buffett and Charlie Munger speak to me as an owner of one of the greatest companies in history.  It was an emotional, keepsake purchase.  I’ve never regretted it, despite the fact I could have bought more stock with the money.

Sadly, the alligator strap on the watch is now broken so I have to replace it.  Turns out, they cost roughly $400, which is higher than I expected.  (The watch itself retails for $2,740 so it is proportionate, especially given it is authentic alligator skin.)

Still, I hate paying that much for a strap.  I’d gladly buy another watch but it kind of feels like when you have a tire blow out and you need to purchase a new one.  It’s not nearly as pleasant as buying a new car.  It also doesn’t help I don’t know if I want to go with a burgundy or black watch band … or maybe a dark green for money.

So, you consider that Buffett is 79.  The average American business earns 12% on book value (we earn much more but I’m going to go with average here).  If I were to put the $400 back into the business instead of replacing the watch strap, at 12% compounded, by the time I am Buffett’s age, I’ll have an extra $145,009.  That is the power of compound interest.  So, do I want to spend $500 to buy another watch strap today or do I want an extra $145,009 half a century from now by reinvesting the money?  That is what I need to decide.

What The Rich Really Collect

Rents Royalties Dividends and Dollars

Everyone focuses on the stuff the rich people collect. Yet, the biggest secret is that the rich are really collectors of rents, royalties, dividends, and interest. Whether song rights, hotel ownership, businesses, sales commissions, stocks, timberland, or patents, these are the things they truly amass. Instead, people read or watch television shows about the original works of art and the wine cellars, which are mere side hobbies that occupy very little time. Do not focus on what the rich buy for consumption, but rather, what they buy to generate more earnings streams. You'll often find that for every $25,000 watch they bought, they purchased an $800,000 apartment building and that the watch came long after the assets were in place. This single shift in thinking will greatly enhance the probability of you achieving the same ability to live how you desire.

Triple Burl Wood 9 Pillow Watch Case

Triple Burl Wood 9 Pillow Watch Case

When you own businesses, certain orders just make you happy. Of course, you appreciate every one, no matter how small. From time to time, however, there is something about a particular piece of business that just makes you smile.

We actually do respectable global business through many of our online businesses. Surprisingly, quite a bit comes from The United Arab Emirates, specifically areas such as Abu Dhabi. Apparently, we just sold a $700 watch to a professional soccer star and are shipping the merchandise to his home there.

It’s crazy to think that as I sit here, working on a MacBook Pro, drinking coffee, and reading stock reports, there are people all of the world browsing the pages of companies that I own, buying products that generate cash for me to redeploy into other investments. It was always the goal, but the fact that it’s happening halfway around the globe is just amazing to me, even now.

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