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A Little Insurance: Wealth, War and Wisdom
Issue #488, September 18, 2017

Some Observations
Issue #487, September 11, 2017

How to be Successful in Your Career
Issue #486A, September 07, 2017

How NOT to Buy a Home
Issue #486, September 04, 2017

This Week in the Market
Issue #485, August 28, 2017

Is the “Trump Bump” Running Out of Gas?
Issue #484, August 21, 2017

Gold is on the Move
Issue #483, August 14, 2017

The Importance of Estimation
Issue #482, August 07, 2017

Buying Art and Collecting: Part II of II
Issue #481, July 31, 2017

Buying Art and Collecting in General, Part I of II
Issue #480, July 24, 2017

Physicians need to be More Forceful: Follow-up
Issue #479, July 17, 2017

Physicians need to be More Forceful
Issue #478, July 10, 2017

Your First “Real” Investment
Issue #477, July 03, 2017

Leasing a Watch: Don’t
Issue #476, June 26, 2017

The Importance of Your Children having a Job
Issue #475, June 16, 2017

The Problem with Medical Student Debt is—the Med Schools
Issue #474, June 12, 2017

Critters and Varmints in your Home and Yard
Issue #473A, June 07, 2017

Leveraged ETFs
Issue #472, May 29, 2017

Leasing a Vehicle: Don’t!
Issue #471, May 22, 2017

Issue #470, May 15, 2017

More on Buying Jewelry
Issue #469, May 08, 2017

Buying Jewelry: Gold, Diamonds and Pearls
Issue #468, April 30, 2017

Thomas Sowell: Part III of III
Issue #467, April 24, 2017

Thomas Sowell: Pat II of III
Issue #466, April 17, 2017

Live Close to Where You Work
Issue #465, April 10, 2017

Medtronic in Hospital Management
Issue #Interim Bulletin #464A, April 07, 2017

Thomas Sowell: Part I of II
Issue #464, April 03, 2017

A Political Contribution a an Investment: Part II of II
Issue #463, March 27, 2017

A Political Contribution as an Investment: Part I of II
Issue #462, March 20, 2017

Buffett Selling Vacation Home
Issue #461, March 13, 2017

Advanced Placement (AP) ourses
Issue #460, March 06, 2017

The Importance of a Credit History
Issue #459A, March 02, 2017

A Credit Card Scam
Issue #459, February 27, 2017

The Electronic Health Reord
Issue #458, February 20, 2017

Issue #457, February 13, 2017

Platinum and Palladium
Issue #456, February 06, 2017

Economic Outlook for 2017: Part II of II
Issue #455A, February 02, 2017

Economic Outlook for 2017: Part I of II
Issue #455, January 30, 2017

A Story From Vegas
Issue #454A, January 25, 2017

Land Donation Deals and the IRS
Issue #454, January 23, 2017

The Theory of Gambler’s Ruin
Issue #453, January 16, 2017

Student Loans: But Wait, There’s More!
Issue #452, January 13, 2017

A Second Home
Issue #Interim Bulletin #451A, January 04, 2017

The Consumer Confidence Index
Issue #451, January 02, 2017

Social Security
Issue #450, December 26, 2016

My Outlook for 2017: Part II of II
Issue #449, December 19, 2016

My Outlook for 2017: The Market
Issue #448, December 12, 2016

Medicine in 20 Years
Issue #447, December 05, 2016

Higher Interest Rates
Issue #446, November 28, 2016

Trump and the Markets: The Bad and Ugly
Issue #445A, November 23, 2016

Trump and the Markets: The Good
Issue #445, November 21, 2016

Negative Trends: The Suits aren’t Makin’ Steel
Issue #444, November 16, 2016

The New DOJ Fiduciary Rule
Issue #443, November 07, 2016

Barron’s Conference, Part IV of IV
Issue #442, October 31, 2016

Barron’s Conference, Part III of IV
Issue #Interim Bulletin #441A, October 26, 2016

Barron’s Conference, Part II of IV
Issue #441, October 24, 2016

Barron’s Conference, Part I of IV
Issue #440, October 20, 2016

This Newsletter
Issue #439A, October 12, 2016

Memoirs of US Grant: Vol II
Issue #439, October 10, 2016

More Points on Collecting, Investing and the Economy
Issue #Interim Bulletin #438A, October 05, 2016

Personal Memoirs of US Grant
Issue #438, October 03, 2016

Ideas for a High School Part-Time Job
Issue #Interim Bulletin #437A, September 29, 2016

Collecting, Investing, and the Economy
Issue #437, September 26, 2016

Free College
Issue #436A, September 22, 2016

A Military Commitment to Pay for Med School
Issue #436, September 19, 2016

When a CD isn’t a CD
Issue #435, September 12, 2016

I Made a Mistake
Issue #Interim Bulletin #434A, September 07, 2016

What is Your Spare Time Worth?
Issue #434, September 05, 2016

Credit Cards and Bonus/Loyalty Points
Issue #433, August 29, 2016

The Write-off of Student Loans
Issue #Interim Bulletin #432A, August 25, 2016

412 Retirement Plans
Issue #432, August 22, 2016

Join the Club
Issue #Interim Bulletin #431A, August 18, 2016

The Case for Precious Metals and Hard Assets
Issue #431, August 15, 2016

When the US went off the Silver Standard
Issue #430, August 08, 2016

Why NOT to Open a Restaurant
Issue #429, August 01, 2016

Some Tips on Life Insurance
Issue #428, July 25, 2016

More Observations on Negative Interest Rates
Issue #427, July 18, 2016

Issue #426, July 11, 2016

Is a PhD Worth It? Part II of II
Issue #425, July 04, 2016

Is a PhD Worth It? Part I of II
Issue #424, June 27, 2016

Avoid Part-time real Estate Agents
Issue #423, June 20, 2016

Issue #422, June 13, 2016

The Problem with Auction Reserves
Issue #421, June 06, 2016

Make Full Use of Your Capital Investments
Issue #420, May 30, 2016

The Fed’s Announcement
Issue #419, May 23, 2016

Quit While You’re Ahead: A True Story
Issue #418, May 16, 2016

The Precious Metals
Issue #417, May 09, 2016

Negative Secular Trends: Part Ii of II
Issue #416, May 02, 2016

Negative Secular Trends: Part I of II
Issue #415, April 25, 2016

Not Winning is not the same as not Losing
Issue #414, April 19, 2016

Behavioral Economics: Part II: Weaknesses
Issue #413, April 11, 2016

Behavioral Economics: Part I: Valid Points
Issue #412, April 04, 2016

The Most Important Books I’ve Read
Issue #411, March 28, 2016

Secret to Success: Take Risks and do Things Differently
Issue #410, March 21, 2016

The Over-Priced Food Presentation Hustle
Issue #409, March 14, 2016

The War on Cash
Issue #408, March 07, 2016

Precious Metals: Don’t Jump in Yet
Issue #407, February 29, 2016

The Bear is Growling
Issue #406, February 22, 2016

The Importance of Showing Respect
Issue #405, February 15, 2016

The 80-20 Rule of Thumb Pareto Principle
Issue #404, February 08, 2016


By Robert M. Doroghazi, M.D., F.A.C.C.

The Importance of Your Children having a Job

Issue #475, June 16, 2017

    I do the programs for our Rotary. Once a quarter, we have classification talks, where new members introduce themselves to the Club. We also have reclassification talks, where senior members reintroduce themselves to the younger Club members. A very successful Columbia businessman in his early 70s from the Boot Heel area of Missouri (often referred to as “Swamp East”. I’ve never heard of Swamp West, or North, or South) said that when they turned 10, everyone joined the Boy Scouts (he is an Eagle Scout) and everyone got a job. He would wake up at 5 AM to clean the offices of the local newspaper before going to school. It made me think: a 10 year old getting a job!? I’m impressed. When’s the last time you heard that?
    Dr. Joseph Alpert, Editor-in-Chief of The American Journal of Medicine, and I had a full-page editorial in the September 24, 2014 issue of Barron’s entitled “Come Down from the Ivory Tower”. We noted that Universities, especially the elite schools, try to line up academic activities for every summer while a student is in college, and that some people now graduate from medical school never having held a job in the real world. We thought that getting a little dirt underneath your fingernails, having to work at a boring job for a boss you might not like, and seeing what the other half must do to make a living for the rest of their life, provided perspective. We further thought that never holding a job in the real world encouraged elitism.
    I am ending a many-year stint on the Board (including past-President) of the Alumni Association of the University of Chicago, Pritzker School of Medicine and Division of the Biological Sciences, and the University Alumni Board of Governors. Five or 6 years ago, Dr. Holly Humphrey, the long-time Dean of Students at Pritzker, a person for whom I have the utmost respect, gave a talk on the entering class: their Board scores, achievements, and extra-curricular activities, including music, sports, volunteering, etc. I talked to Holly afterwards and said “I’m not sure I could get into the U. of C. now. I started to mow lawns when I was 11 or 12. When I turned 16 I dropped out of everything. From then until I got into med school, all I did was work and study”. She held up her thumb and said “Bob, your application would stand out like this. We’re looking for people like you”.
    RMD comment: I was reassured.
    Last month over Alumni Weekend we received a presentation from a University admissions officer. I made the exact same comments about myself that I made to Dean Humphrey. He said “You’re a socio-economic hardship case. A diamond in the rough”, and went on to crow how they accepted two kids who had worked high school jobs at McDonalds.
    RMD comment: I’m still not quite sure how to take his comments. It used to be the norm to work your way through college. Now it appears that holding a high school and college and summer job and trying to work your own way through school is so out of the ordinary, at least at the elite schools, that you are considered an “economic hardship case” (This is not the case at many state schools and community colleges). Just think of that: U. of C. takes hundreds of freshman per year, and holding a high school job is so out of the ordinary that the admissions officer knows the cases of the kids who have done it.
    My concern is that work will not receive as much consideration as it should. The jobs I worked presumably helped, but I got into the U. of Chicago because of my academic performance. My grades were spectacular, I graduated college in 3 ½ years, and I scored a 99% on the MCATs (I bought the study guide, which I thought was a rip-off. The only thing I remember is the vocabulary word “cabal”). But what about the guy or gal who is just as smart—or smarter—than the dilettante, but who has no extra-curricular activities, who’s grades are a little lower because they work 25 hours a week, pay their own car insurance, and buys all their own clothes?
    All this being said, I encourage your children to have jobs. It will teach them respect for hard work, respect for money, respect for the kind of regular guy that makes this world go around, a better boss because they understand what can be expected of the regular guy, and if they are smart enough, they’ll get into the best schools.
    When I started at the U. of Illinois in September, 1969, I had $12,800 in the bank, all of which I earned and saved myself. That would be about $100K today. Several of my friends received scholarships. When I asked why I didn’t, it was because I had too much assets to qualify. It made no difference that I had earned it all. This still upsets me.
    I was talking to a loyal subscriber who is the President of a publically-traded bank. He said an associate asked him about leasing a car. He tried to talk him out of it. The next newsletter was why not to lease a car, which he sent to him. No luck: he leased a car.
    RMD comment: 1) a car is a depreciating asset. The vehicle you drive to work every day will eventually be worth zero, nothing, zilch, nada. You don’t accumulate wealth buying depreciating assets. 2) What’s obvious to some people is not obvious to most. 3) Don’t lease a car. 

    A subscriber mentioned Annaly Capital (NLY). They are +23% this year, and pay a 9.7% dividend.
    This is from the wife of a man I trained with at the MGH about the last Interim Bulletin “Critters and Varmints in your Home and Yard”.
    “After having our chimney cleaned I awoke to a strange sound. We turned on the light. A bat was flapping its wings on the night stand. It absolutely freaked me out. Called pest control, who told me a bat was a mammal and cannot be killed (RMD comment: they sell hamburg and bacon at the store, don’t they?). Must be captured and released. Called the number suggested and for $2,300 got hustled big-time for “bat-proofing” the house. One year guarantee. One month later, another bat. Guarantee ignored. Feel like a “battered” woman”.
    RMD comment: As I have said since the beginning, if you read this newsletter, it will save or make you many times the cost. Half of $2,300 would pay for the newsletter for the rest of your (our) lives, the other half could be invested in your grandchildren’s college account: In 15 years, it would pay for a semester. 
    I very highly recommend Last Hope Island: Britain, Occupied Europe, and the Brotherhood that helped turn the Tide of War (Olson, Random House). It is about the emigres from the countries conquered by Hitler who went to Great Briton and fought against the Nazis.
    RMD comment: it provides a different perspective: What it’s like to be conquered and then subject to a brutal occupier. A few people are overt collaborators, and a few are active saboteurs. Most of the people are just guys, whose only goal is to survive, but many provide food, clothing and a safe place to sleep for the resistance fighters. These people exposed themselves, and their family, to the same risk as the resistance, which in Nazi-controlled Europe was either a quick death by execution or a slow death in the concentration camp.
    A sabot is a wooden shoe. As an act of defiance, people would throw their wooden shoes into the machinery to gum it up, Thus a saboteur.
    Next week’s newsletter will be “Are Physicians Docile”? Also in the near future I’ll talk about Private Equity in Medicine, but I need to do much more research. 

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