{"id":4011,"date":"2011-04-12T05:10:27","date_gmt":"2011-04-12T11:10:27","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=4011"},"modified":"2018-09-21T02:07:41","modified_gmt":"2018-09-21T06:07:41","slug":"investing-lessons-from-da-vinci-and-edison-part-two","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2011\/04\/12\/investing-lessons-from-da-vinci-and-edison-part-two\/","title":{"rendered":"Investing Lessons From Da Vinci and Edison, part two"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">Here is part two of my interview with Michael J. Gelb, expert about both Leonardo Da Vinci and Thomas A. Edison&#8230;<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Although Leonardo\u2019s principles are profoundly relevant for the development of human potential and organizational creativity the Maestro was concerned with pure truth, beauty and goodness, whereas Edison was more focused on applying creativity to generate wealth.\u00a0 Edison noted, \u201c Anything that won\u2019t sell I don\u2019t want to invent.\u00a0 Sales are proof of utility and utility is success.\u201d<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: What are the Edison principles and which ones are most relevant to investors?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: In the case of Edison we (Gelb\u2019s co-author is Sarah Miller Caldicott, the great grand-niece of Thomas Edison) refer to \u201cCompetencies\u201d rather than principles, and they are all important.\u00a0 Each one sets the stage for the one that follows and together they form a system for innovating like Edison.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Edison\u2019s Five Competencies of Innovation\u2122 are:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">Solution-Centered Mindset.\u00a0 Investors must maintain a primary focus on solving problems rather than being dragged down by them<strong>.<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\">JAV: Can you give an example of a problem Edison encountered where he applied this competency?\u00a0 Then, can you describe a common investor problem where this competency would help a solution to form?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Edison\u2019s investors approached him to question why he hadn\u2019t yet generated any results in his quest to invent an effective electric storage battery.\u00a0 Edison replied, \u201cResults.\u00a0 I\u2019ve gotten lots of results.\u00a0 I know thousands of things that don\u2019t work.\u201d\u00a0 This response demonstrates Edison\u2019s continual focus on finding solutions and learning from things that didn\u2019t work.\u00a0 (His optimism in the face of this challenge was so compelling that his investors gave him more money and, eventually, he succeeded, generating huge profits for all involved.)\u00a0 The lesson for individual investors is simple: Avoid getting bogged down by dwelling on your past mistakes, and focus instead on applying the lessons learned.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">Kaleidoscopic Thinking<strong>. <\/strong>Edison\u2019s strategies for generating new ideas and finding powerful business opportunities are especially relevant for investors<strong>.<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\">JAV: As an investor I think that the hardest thing is to generate good investment ideas, that is, things worth investigating further in the first place.\u00a0 How did Edison come up with new ideas?\u00a0 Is there any way to utilize these same techniques as an individual trying to improve investment returns to apply these methods?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Edison said: \u201cIf you want to get a good idea, get a lot of ideas!\u201d\u00a0 Open your mind to consider a broad and expansive range of possibilities, then focus in on the most compelling ideas.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV:\u00a0 I like that; very simple.\u00a0 Best of all, I think it takes advantage of the right brain\u2019s ability to make interconnections, or Connessione in Da Vinci speak.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">Full-Spectrum Engagement<strong>. <\/strong>This competency focuses on the ability to manage complexity.\u00a0 A skill that is even more important now than it was in Edison\u2019s time.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 16px;\">JAV: Because understanding information, especially complex information, is one of the most difficult things for investors, could you please give us a tip on how Edison managed complexity?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Edison always sought to find simplicity in the midst of complexity.\u00a0 He believed in Occam\u2019s Razor, also known as the \u201claw of economy.\u201d\u00a0 This is the principle that guides us to seek the simplest plausible explanation, the one that makes the fewest assumptions.\u00a0 Einstein said \u201c Things should be made as simple as possible, not simpler.\u201d\u00a0 Edison honed his instinct for optimal simplicity.\u00a0 In the complicated world of investing this is a valuable instinct to cultivate.\u00a0 For example, if you can\u2019t understand what a company does or why it\u2019s valuable, don\u2019t buy it!<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">Master Mind Collaboration<strong>. <\/strong>Strategies for leveraging diverse viewpoints<strong>.<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 16px;\">JAV:\u00a0 You said that each of Edison\u2019s competencies are important for investors to apply, but I am unclear how to apply this competency to improve my investment returns.\u00a0 Could you please expound a bit more on this point?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Edison assembled a team of brilliant people from diverse and complementary backgrounds in order to create his amazing innovations.\u00a0 As an individual investor one of the best things you can do is to create your own Mastermind group of advisors from diverse backgrounds.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV:\u00a0 Or perhaps you just confer with your friends or join an investment club.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 16px;\">Super-Value Creation<strong>. <\/strong>The holy grail of investing: how to discern opportunities for value that are outstanding in a competitive marketplace.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 16px;\">JAV: Undoubtedly.\u00a0 The term \u201csuper-value\u201d implies a way of measuring value, how did Edison measure value creation?\u00a0 How as investors can we do the same?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG:\u00a0 Edison measured value creation through a combination of customer satisfaction and profit.\u00a0 As investors we need reliable formulae for determining when an investment is cheap.\u00a0 A company can be very well run and have a great market position but if it\u2019s over-priced then it\u2019s not a good value.\u00a0 This assessment must blend quantitative analysis with intuitive awareness.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV:\u00a0 You, like me, consider yourself to be a conscious capitalist; something that is both a mindset and a movement.\u00a0 Talk to us about what being a conscious capitalist means to you?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Corporations are the most powerful force in the world today.\u00a0 If we want a better world, we need better companies.\u00a0 In the course of my career I\u2019ve aimed to help my clients think positively and creatively about all stakeholders, not just shareholders.\u00a0 Recently, my friend Professor Raj Sisodia released a benchmark book entitled <em>Firms of Endearment. <\/em>Raj, a professor at Bentley Business School, makes a compelling case that organizations that focus on the welfare of their employees, customers, vendors and communities, as well as their shareholders, outperform those who focus exclusively on financial return.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: For me, social consciousness does lead to good long-term investment results.\u00a0 Would you agree?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: \u00a0Yes.\u00a0 And, it\u2019s good to have the research that supports this more altruistic ideal.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><a href=\"http:\/\/www.consciouscapitalism.org\/cci-team.html\" target=\"_blank\" rel=\"noopener\">I serve as director of Creativity and Innovation Leadership for the Conscious Capitalism Institute.<\/a><\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: How important do you feel reflection, contemplation and meditation were to Da Vinci\u2019s and Edison\u2019s successes? Did they have an intentional practice of such things? How important do you feel these modes of consciousness are to ultimate investment success?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Da Vinci and Edison both took their inspiration from Nature.\u00a0 Leonardo writes poetically about the Earth as a living being and Edison wrote that his purpose was to \u201cbring out the secrets of nature for the happiness of humanity.\u201d They didn\u2019t sit in the Lotus position and repeat mantras but they were both deeply contemplative.\u00a0 Leonardo stated that \u201cMen of genius sometimes work best when they work least!\u201d\u00a0 Here he is expressing the importance of receptivity and deep relaxation in the process of creation.\u00a0 Edison would go fishing in the middle of a workday at a nearby pond, and he would fish with a baitless hook.\u00a0 Why? Because he was really \u201cfishing\u201d for breakthrough ideas and he knew that relaxation made him more receptive to intuitive insight.\u00a0 These modes of consciousness are critically important to investment success (and success of any kind).\u00a0 The key is to find your own natural rhythm-balancing intense focus and concentrated work with reflection and receptivity.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: What a great answer; I completely agree.\u00a0 Do you feel that Da Vinci and Edison would be investors in financial markets if they were alive today? If not, why not? If so, how do you think that they would go about investing? That is, what would their process look like?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Leonardo wouldn\u2019t bother with investing.\u00a0 He would outsource his portfolio to a good Intuitive Investment Manager.\u00a0 Edison would plow all of his capital into his next business scheme and we\u2019d be scrambling to buy shares!<\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: How can people learn more about your work?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: <a href=\"http:\/\/www.michaelgelb.com\/\">www.michaelgelb.com<\/a><\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: I know you do most of your work for Fortune 500 companies.\u00a0 Besides reading your books and listening to your audio programs is there a way that individuals can learn from you directly?<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: I will be speaking at a few public events in 2011 including:<\/span><\/p>\n<p><span style=\"font-size: 16px;\">5\/16-19 Boston:\u00a0 A <a href=\"http:\/\/conscious-capitalism.bentley.edu\/speakers\" target=\"_blank\" rel=\"noopener\">Keynote at the Conscious Capitalism Institute Conference at Bentley U<\/a><\/span><\/p>\n<p><span style=\"font-size: 16px;\">6\/13-17 Brisbane, Australia : A <a href=\"http:\/\/www.happinessanditscauses.com.au\/conference-day-two-friday-17-june-2011.stm\" target=\"_blank\" rel=\"noopener\">Keynote and Workshop at Happiness and It\u2019s Causes<\/a><\/span><\/p>\n<p><span style=\"font-size: 16px;\">9\/23-5\u00a0 Las Vegas: A <a href=\"http:\/\/coachfederation.org\/conference\/index.cfm\/confmicro\/keynote-speakers\" target=\"_blank\" rel=\"noopener\">Keynote and Workshop at The\u00a0 International Coach Federation Global Conference<\/a><\/span><\/p>\n<p><span style=\"font-size: 16px;\">JAV: Thanks Michael, this has been very valuable.\u00a0 Best of success to you!<\/span><\/p>\n<p><span style=\"font-size: 16px;\">MJG: Thank you!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is part two of my interview with Michael J. Gelb, expert about both Leonardo Da Vinci and Thomas A. Edison&#8230; Although Leonardo\u2019s principles are profoundly relevant for the development of human potential and organizational creativity the Maestro was concerned with pure truth, beauty and goodness, whereas Edison was more focused on applying creativity to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-4011","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/4011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=4011"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/4011\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=4011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=4011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=4011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}