Worldly Philosophers Club

The Worldly Philosophers, Vol.1, Number 2	April 15, 2007
THE Worldly Philosophers Club For Individualists Who Seek Worldly Wisdom

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AMERICA'S FIRST BILLIONAIRE
REVEALS HIS FIVE SECRETS
By Mark Skousen

“Almost any person of reasonable intelligence has the potential capacity to master the fine art of living.”
--J. Paul Getty

One of my favorite worldly philosophers is America’s first billionaire, oil tycoon J. Paul Getty. His classic book, How to BE Rich, is far different from Donald Trump’s ramshackle alternative, How to GET Rich. In J. Paul Getty’s refined world, there’s a big difference between “being” rich and “getting" rich.

The Age of Busy-ness (Business?)

For Getty, life is much more than simply working for a living. Far too many Americans are too busy and don't take the time to enjoy all that life has to offer. As the wise old Chinese philosopher Lin Yutang says,

"Those who are wise won't be busy, and those who are too busy can't be wise."

I made the mistake of writing this statement on the blackboard on the first day of class as a professor at Columbia Business School. A third of the students left and dropped the class immediately. (Fortunately, the majority had an open mind about pursuing other interests than a 24/7 lifestyle, and rated my class in the top 12% of MBA classes at Columbia.)

Yet there is wisdom in Lin’s statement. If you too busy in your work, you don’t have time to learn new ideas, to discover new truths, to enjoy life’s little pleasures, or perhaps to pick a winning stock! Beating the market requires you to look in untroddened paths, and you need the free time to do it.

J. Paul Getty wrote a whole book, The Golden Age, on the need for workaholic Americans to diversify into other gainful pursuits. He states, “I began developing other, non-business interests and engaging in a reasonably broad range of ‘extracurricular’ activities early in my career. These have all had a profound salutary effect, for each helped generate enthusiasm for the next, and all added zest to life and, what is more, helped me be a better, more energetic and efficient businessman and a much more content and happy person.” (emphasis added).

Fortunately, Getty isn’t the only one…..There are other dreamers out there. And a group of worldly philosophers are coming together July 5-7 at Bally’s/Paris Resort in Las Vegas for the most exciting, rewarding, intellectual, create-your-own 3-day conference ever devised: FreedomFest! (Won’t you join us? See the end of this essay.)

Five Ways to Succeed in Life

J. Paul Getty (1872-1976) was a 20^th century icon. Here are five characteristics of his life that we can learn from:

1. Getty was a risk taker. He started out as a wildcatter in Oklahoma in 1915. He was never interested in joining the big oil companies. He was an independent operator in a high-risk business. “Fortunes were being made -- and lost -- daily,” he wrote. “It was not unusual for a penniless wildcatter, down to his last bit and without cash or credit with which to buy more, to drill another hundred feet and bring in a well that made him a rich man….On the other hand, there were men who invested all they owned in leases and drilling operations only to find that they had nothing to show for their money and efforts but a few dismally dry holes. Leases purchased at peak prices one day proved to be utterly valueless the next.”

Fortunately, Getty’s lease proved lucky, and he was on the road to prosperity. But it wasn’t just luck that made him successful. Unlike the other wildcatters, he relied on geologists to find oil, an uncommon approach in those days.

Getty also bought oil stocks in the depths of the 1930s, another unpopular but shrewd move. Finally, in the 1940s, Getty bought oil concessions in the Middle East: “Instinct, hunch, luck -- call it what you will,” he said. “The Middle East was the most promising locale, the best bet, for oil exploration.”

“Make your money first -- then think about spending it.”

2. Through the principles of thrift and hard work, Getty stayed ahead of the pack. Getty’s father didn’t give money to his children until after they were old enough to earn a living. “A sense of thrift is essential to success in business. The businessman must discipline himself to practice economy whenever possible, in his personal life as well as his business affairs.” Getty was famous for installing a pay telephone in his Sutton Place manor in England.

Regarding work, Getty admitted, “I still find it’s often necessary to work 16 to 18 hours a day, and sometimes around the clock.” Yet, as we shall see, his workaholic schedule lead to serious personal problems.

3. Invest in industries that burgeon over time. “Get-rich-quick schemes just don’t work,” advised Getty. “Making money in the stock market can’t be done overnight or by haphazard buying and selling. The big profits go to the intelligent, careful and patient investor, not to the reckless and over-eager speculator.” He recommended buying relatively low-priced stocks in “industries that cannot help but burgeon as time goes buy.”

Getty’s chapter on the stock market in How to Be Rich is the best 12 pages you will ever read. I made it required reading in my investment class at Rollins College.

4. Support free enterprise. Getty didn’t pull any punches about his views on government. “Taxes are too high -- and far too numerous….A logical, equitable tax program will have to be devised to replace the insane hodgepodge of federal, state, county and city levies that make life a fiscal nightmare for everyone.” He would not be a fan of Sarbanes-Oxley!

He also favored greater freedom in international trade. “The long-term solution to our country’s economic problems lies in more, not less, foreign trade.” Lou Dobbs, Bill O’Reilly, and Pat Buchanan, are you listening?

5. Live abroad! Getty moved to England, in part to manage and get a better view of his international financial affairs. He knew the value of diversifying abroad. His interests included oil, real estate, fine art and worldwide stocks.

I can second that. In the early 1980s, my family and I moved to the Bahamas to get away from the rat race, and our two years in the Bahamas, and later London, were life changing. It was life in living color! (to read my account, see “Easy Living: My Two Years in the Bahamas”)

Getty’s One Failure

Despite tremendous monetary success, J. Paul Getty had one failure -- actually four. “I deeply regret these marital failures,” he said, “but a woman doesn’t feel secure, contended or happy when she finds that her husband is thinking of his business interest first and foremost, and that she comes next -- almost as an afterthought.”

Sounds like Getty needed to read his own book, The Golden Age, about the need to spend more time outside of business!

Fortunately, he finally did, and became a happier man because of it.

Where Will You Be on 7-7-7?

Certainly John Mackey, CEO of Whole Foods Market (worth $7 billion), is a busy executive. Over the past few years, we’ve become friends. He takes off six weeks (!) each year to go hiking somewhere in the world -- to get away, think and take a break from work. He is a better entrepreneur because of it.

He feels the same way about FreedomFest, my private conference for worldly philosophers. He told me, “Mark, I turn down hundreds of invitations to speak each year, but FreedomFest is one I’d pay to attend. I wouldn’t miss it!” John will speak on “My Personal Philosophy of Self-Actualization: Leadership Through Personal Growth.”

John told me he is bring three friends with him. If John Mackey and his worldly wise friends can take 3 days out of their schedule to come to FreedomFest, how about you?

There's never a dull moment at FreedomFest, with seven sessions going on simultaneously, including discussions and debates about investing, philosophy, history, science & technology, geo-politics, health, and the arts. We offer an exhibit hall, a bookstore, several cocktail parties, lunches, and to top it all off, an incredible never-to-be-forgotten 7-7-7 Gala Banquet on Saturday night. All in one of the world’s most exciting cities.

In addition to John Mackey, we have 77 other speakers, including: Muhammad Yunus, this year’s Nobel Peace Prize winner; Art Laffer, the father of supply-side economics; Nassim Taleb, author of “Fooled by Randomness”; Michael Shermer, columnist for Scientific American; Nathaniel Branden, author of “The Psychology of Self Esteem.” Marketing guru Ted Nicholas on “17 Life Changing Success Secrets.” James O’Toole of the Aspen Institute; and Charles Murray, author of “Human Accomplishment” and “The Bell Curve.” Culminating in a Big Debate on U. S. foreign policy between Dinesh D’Souza and Congressman Ron Paul. Plus a 3-day investment conference with top experts from around the world.

Where will you be on 7-7-7? Make it Unforgettable!

Call Tami Holland, Conference Coordinator at 1.866.266.5101 or visit www.freedomfest.com.
You'll be glad you did.