FWM: If we were to do a worldwide exploration of “How COVID-19 has changed humanity.” What would we find?
There are two things that come to mind when I think of COVID-19. Like many people, I was surprised just how quickly the pandemic spread from a regional crisis in China to engulf the world in only a few short weeks. I was horrified by how quickly the virus attacked the most vulnerable, especially the aged or those with compromised immune systems. I worry about friends who are healthcare professionals. I worry about friends who have lost their jobs. I worry about many of my older friends who might find themselves in the path of the virus. It makes me think about the fragility of life. You want to reach out and hug those you love dearly but you also worry about contracting or spreading the virus.
COVID-19 does not discriminate when it comes to national borders or political persuasions. It reminds us that we live in a globalized world. This is a globalized problem and it needs a globalized solution. Second, these terrible moments bring out the best in people and we are seeing that now. Universities, scientists, and health care companies from around the world are attacking the problem together. Data is being shared and solutions will emerge. Let’s not forget that there was a time when such terrible diseases as polio or HIV-AIDS had no cure and contracting them was a death sentence. However, people worked together and found solutions. I think humanity is resilient and we will solve this.
FWM: Share your philosophy of women’s self-empowerment through financial investment.
It’s simple: A man is not a plan. Every woman (and every person) needs to build out a financial plan and stick to it for the long term. Women need to own our financial futures so we can live “happily ever after” because placing all of our hopes in some guy is not the answer. Let’s not forget that 50% of all marriages end up in divorce. During our lives, we will experience several economic cycles and COVID-19 only underscores this. What’s more is that there are so many future challenges around the corner that we cannot see, like medical emergencies, financial setbacks, and the reality of taking care of our elderly parents. They will take time and money. We read about the “feminization of poverty” that follows a divorce or the death of a spouse and that is something we all want to avoid. When women build financial independence, it allows us to weather the storms and better enjoy the sunnier days. The good news is that the ingredients for the right investment portfolio are everywhere; however, we have to do the hard work to make it happen for ourselves.
FWM: What do you give someone who has everything?
Ah, this is a wonderful question. For somebody who appears to have everything, the best gifts are often priceless. It could be a gift of spending time with somebody who might appear to “have it all” but is deeply lonely inside. It could be the simple gift of listening to somebody who may have all the outward signs of success but feels deeply unheard. It could be the simple gift of offering support when somebody is experiencing a terrible challenge that only a few can actually see. Being somebody’s anchor or rock during a difficult moment is often the most priceless gift you can give.
FWM: As an international speaker, what are your favorite topics? How have you impacted the world?
One of my favorite topics to discuss is for those young women who are just starting out. Perhaps they are in their first job or else they have limited financial means, but they want to build a portfolio. I tell these people—most of whom are women—that you must start somewhere. Even Warren Buffett started somewhere. Start with maxing out your contributions to your 401K. Your investment portfolio might seem small at first, but it will grow with your contributions, plus the compounding of interest. My point is that everybody has got to start somewhere and waiting until tomorrow does not get to you to the promised land.
FWM: Tell us about your role in the award-winning documentary Femme. Why was this project so important to you?
I was proud to be involved with that wonderful film because it highlighted what women are doing to heal our fractured world. Everybody who was involved in that film went through their challenges and emerged stronger, more empowered and ready to make our world a better place. It touched on so many topics and every woman should take the time to watch it. I was honored to be a part of the project.
FWM: What was the most important thing you learned from Warren Buffett?
There are so many wonderful lessons I’ve learned from Warren and I have shared in the books I’ve written with David Clark and others. The most important personal traits are honesty, integrity, and patience, behaviors that are the bedrock of Warren’s success. I look back at the annual letter that Warren writes for the shareholders of Berkshire-Hathaway and they are direct, honest, and breathtakingly candid. He will openly acknowledge his mistakes and give credit to others when successful. However, it has been Warren’s ability to look long term which has defined his success. Warren has always looked for a specific type of company and will patiently wait until the right opportunity becomes available. Over the years, I have seen that scenario replay itself time and time again. Other people will invest at the top of the market, but Warren has the patience to wait until the timing is right.
FWM: How important is charity to you?
I like to use the word philanthropy because it reflects the difference between a “hand up” verses a “hand out.” I want to be able to help people rise to achieve their goals. Regardless of the times, we remain “our brother’s keeper.” I look at how the Bill and Melinda Gates Foundation has reinvented how philanthropic efforts have transformed world. They have taken two big issues (health care and the reduction of grinding poverty) and their organization is taking some new an innovative approaches to addressing these chronic problems. However, you do not have to be a tech giant to be a part of any solution. Donating your money and more importantly—your time—can be a life-changing experience for somebody in need.
FWM: With the global environment changing, what advice would you give Investors in 2020?
There is a natural reflex to make rash financial decisions during rough times. This is where a solid investment discipline should govern our choices. When I give talks about value investing, it’s all about planning for the long term. Since the Great Depression, there have been 13 recessions in the United States and the global downturn as a result of the COVID-19 virus could be the 14th. In each situation, the economy was able to eventually rebalance itself and emerge and build another sustainable period of solid growth. In each case, those who had the patience to wait out the storm benefited financially. It also reminds us to be as liquid as possible for those tougher periods. Having a 4-6 month emergency fund in case of a job loss will allow you to keep your financial portfolio free of any unplanned withdrawals. It will also allow you to invest in those underpriced financial bargains that will build wealth once the economy returns to growth.
Facebook:
Tumblr
YouTube
