Articles by mgedwards

Featured Blog: Global Incident Map

This month’s featured blog isn’t really a blog at all, but it functions like a blog in that it is a news aggregator.  Someone sent me a link to a web site called Global Incident Map (http://www.globalincidentmap.com/), a "global display of terrorism and other suspicious events" as described by the web site.  The site graphically and interactively depicts incidents occurring around the globe as reported by news outlets worldwide.  If nothing else, it is visually stimulating and could leave you feeling a bit uneasy about the state of the world today.
 
Three thoughts came to mind when I checked out this site.  One, most of the incidents reported on the site occurred between the Tropic of Cancer and Capricorn, the world’s climactic hot zone.  This may be because tempers flare in the heat, but with a noticeable dearth of incidents in places such as Russia, China, South America, and Africa, it’s also likely that the site isn’t aggregating incident reports in those regions of the world.  Two, the site still reminds me that the world is a dangerous place even when crime that doesn’t rise to the level of a "suspicious event" occurs. 
 
Finally, the number of incidents occurring in the United States reminds me that America is also a dangerous place.  9/11 and other tragedies aside, the average American often feels safest at home.  That isn’t always the case.  We will be heading to Paraguay soon.  We have heard that crime is high in Paraguay and on the rise, especially petty theft and the occasional carjacking and larceny.  We’ve been advised on some precautions we should take to avoid being victims of crime or terrorism, including running red lights at night, avoiding taxis, and driving indescript vehicles.  While these may be necessary when we’re in Paraguay, we have to remember that we are potential victims wherever we are, even in the United States.  I feel fortunate that the worst incident to have happened to us was finding our car stereo stolen one morning about 10 years ago.  I can only hope and pray that that’s the worst that will happen to us.
 
Check out the site and read some of the related articles.  It’s quite sobering.

We’re, Incorporated

I did something yesterday I’ve been thinking about doing for about three years.  I filed to incorporate our investment portfolio into a limited-liability company (LLC).  Brilliance Equity, LLC (BE) will serve as our primary investment vehicle in real estate, private equity (startups), equities, and bonds.  I will gradually roll most of our personal investments into this LLC.  It is currently a sole proprietorship, but in the future it could expand to become a full-fledged private equity firm.  I’m currently working on a business plan to turn it into a multi-partner firm.  I consider this my hobby now, but I also want to make sure that if or when we jump off this international merry-go-round I’ll be able to do something I enjoy doing.  I dread having to jump back into the private sector working for a company doing a job I don’t really like.  There’s no better job for me than the one I’m doing now.
 
I waited to pursue incorporation because I thought it would be difficult to incorporate, but it’s surprisingly easy to do.  The firm’s address in Houston, Texas offers us a virtual presence in the United States.  The LLC will actually be incorporated in the State of Delaware, where more businesses incorporate than any other.  Why incorporate?  There are actually many reasons, but here are a few:  http://www.corporate.com/should-i-incorporate.htm.  I used another company to incorporate, so that’s not a sales pitch for corporate.com.  Research your options if you decide to incorporate.  Some are cheaper than others.  You can do it for a few hundred dollars.  Make sure though that you have a reason to incorporate–that you have enough assets to justify incorporation.
 
I was inspired to incorporate by Steve Feinberg, who founded Cerberus Capital Management.  Founded in 1992 with $10 million, Cerberus’ holdings in 2006 were approximately $24 billion.  If it were a public company, it now would be one of the largest companies in the U.S.  Is incorporating about getting rich?  Of course, building wealth is a factor, but more than that, it’s about finding fulfillment in doing the best job you can at something you love.  Incorporating provides you more benefits than being unincorporated if you have a sizeable portfolio.  I already have another full-time job, and I will do the best job that I can at that job, but I also enjoy investing and am intent on maximizing my investments’ potential returns.  It’s wholly possible to succeed at private equity and keep your day job.  You just have to be smart about your investment choices.

The terrible tearer

My son went to the trash area to throw away some garbage and a box.  I had to flatten the box, and my son said, "Dad, please let me help!" 
 
I asked him, "Oh, are you a tearer?"
 
"Yes!" He responded enthusiastically.
 
He helped me tear up the box and dispose of it.
 
I told him, "That was absolutely tearable."
 
"Yeah, terrible!" He replied.
 
"So are you a tearable terror or a terrible tearer?"
 
"Both!" He answered happily, smiling. 
 
He might have actually understood me.  Not bad for a young kid!