Population Stats Are Revealing
Books Worth Reading
August / September 2008
Volume 6 Number 4
Investment Megatrends
Should Japan's birthrate influence which stocks you decide to buy? Bob Froehlich, author of Investment Megatrends, seems to think so. He is a firm believer in the financial insight you can glean from demography, the study of population statistics. In fact, demographic trends have created whole new industries, for example, the market for ready-made meals, generated by the rise in households with two working adults. Statistical analysis enables experts to predict the types of products and services a given population will need. Thus, it can provide valuable pointers for investors. Several recent demographic shifts may help you pick your stocks.
Starting in the U.S., consider the impact of the aging yet habitually consumerist "baby boomers"—€”the 76 million Americans born between the end of World War II and the mid-1960s. In the new millennium, they seem likely to focus on leisure, security and health care, so stocks in the travel, financial advisory and pharmaceutical industries could be good investments.
The collapse of the Soviet Union opened an enormous new labor pool for the growing European market. Increasing numbers of companies will move their manufacturing facilities east, and so Froehlich advises investing in the shipping, steel and chemical sectors. Further east, Japan's population is already the oldest in the world, with a fifth of its citizen older than 65. Its birth and immigration rates are low, and so, technology will play a huge part in its future workforce. Look out for technology companies, and also check camera manufacturers, since Japanese senior citizens like to capture their memories.
Investment Megatrends mixes simple information about demographic science with easy-to-grasp references to history and economics, and catchy sound bites and slogans. Although Froehlich's train of thought is not always clear and his recommendations may seem off-base or even a bit risky, the lay person will appreciate the accessibility of his analysis and his application of demographic theory. Examples, specific stock-purchase recommendations and an appendix listing Web sites increase the book's usefulness. If you're new to investing, start your library with this introduction to the fiscal impact of world population trends—€”but supplement it with more well-rounded books for advanced investors.
Bob Froehlich. Investment Megatrends. John Wiley & Sons, 2006. List Price: $24.95. ISBN-13: 978-0471769996.
Purpose
Few of the billions of people who go to work every day have any sense of the ideals that drive their companies. That's no surprise—€”few companies do either. Enter Nikos Mourkogiannis, the author of Purpose, with this inspirational and informative book on one of the business world's biggest problems. Purpose is probably the most important element of business success, but it is difficult to understand or explain. Business schools don't discuss it, even though it is the reason most people go to work.
Purpose leads to success for three reasons: It drives achievement, it brings out an organization's human side and it shapes a leader's behavior. Executives who imbue their businesses with purpose can use it to build a competitive advantage. Purposeful companies accomplish more and have a clear guide for their strategies. Mourkogiannis believes that the power of purpose, over the long term, is actually greater than the power of a charismatic leader. Leaders move on or even die, but the company's purpose survives them.
Determine and implement your company's purpose by following these steps: Discover what made your company great—€” look at your history to see where the company made its greatest strides and achievements. Find out how the company views itself—€”conduct qualitative surveys to discover how employees feel. Compare the results from different levels in the organization. Create a campaign to inject purpose into everything the company does—€”this can involve selling assets, retraining people and implementing new decision-making processes.
Purpose is a difficult concept to explain because it is so abstract, but patient readers will benefit from the author's insights and research. He occasionally gets bogged down in a philosophical discussion that he has trouble connecting to his profiles of purposeful business leaders. Nevertheless, his detours are tolerable, since they ultimately lead you to a new view of leadership.
Nikos Mourkogiannis. Purpose: The Starting Point of Great Companies. Palgrave Macmillan, 2006. List Price: $27.95. ISBN-13: 9781403975812.
U R a Brand
Want to know how to market yourself? Look no further than your nearest branding guidebook, says Catherine Kaputa, author of U R a Brand. For years, celebrities, politicians and athletes have understood the value of promoting themselves like products. Now, business professionals are catching up; just take a look at Donald Trump or Martha Stewart. You, too, can use product branding techniques and principles to evolve from a successful businessperson to a marketable brand.
Kaputa's first tip is to identify your unique selling point. Look for a concept, a vision, an "X-factor" that makes you special. Assess your positive attributes, such as job skills, experience and a successful track record. Target areas for improvement. For example, if you have poor presentation skills, consider taking a public speaking course. Add a "profile paragraph" to your resumé. Use catchy copy to describe your areas of expertise and tell stories about your successes. Observe how self-branded celebrities portray themselves and their ideas.
Develop a comprehensive self-brand strategy, emphasizing the benefits you offer. Kaputa offers several tried-and-true self-brand strategies, including: narrow your focus and become an expert; write a book, article or column; give speeches; become a media contact and make yourself available for interviews; use your special heritage as a point of differentiation; leverage your self-brand by using your family name or job at a well-regarded company. Alternatively, consider adopting an attention-getting nickname, like "Tiger" Woods. Initials can make names distinctive, such as J.K. Rowling. Consider spelling your name an unusual way, like Barbra Streisand. Create a self-branding action plan. Write it as a vibrant, active document you can update whenever necessary. Refer to it often.
Once Kaputa explains her original concept, the rest of her information easily falls into place. If you're seeking new ways to get ahead in a very competitive business world, this book can teach you how to brand yourself as a success.
Catherine Kaputa. U R a Brand!: How Smart People Brand Themselves for Business Success. Davies-Black Publishing, 2006. List Price: $24.95. ISBN-13: 978-0891062134.
Rolf Dobelli is president of getAbstract a leading provider of business book summaries. www.getabstract.com
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