Tuesday, June 16, 2009

A Bullied Child, Abandoned at Birth, Becomes a Global Leader in Dental Innovation and Education

Everyone loves rags-to-riches stories, but few people have lived such lives. In addition to a desire to see others succeed, many people like to complain that they don't get any breaks . . . and use setbacks as an excuse for not having accomplished much. But are breaks really the basis of rags-to-riches success, or is it something else?

The punch line of most rags-to-riches stories is that it's what you do, not where you start out, that makes the difference. Let's look at a modern-day Andrew Carnegie to see what lessons we should draw for accomplishing more.

Dr. David Penn was abandoned in a hospital in Sydney, Australia by his refugee parents. His first fortunate break came when he was adopted as baby by a childless couple. His next set-back came when his adopted parents broke up: Dr. Penn was mostly raised by his determined Mum who struggled to earn enough to support him.

Wanting a better education for him, Dr. Penn was sent to a boarding school at 13 where he suffered from continual bullying and violence while mentally stagnating from the school's weak academic program. This set-back was a low point from which many teens don't recover.

Dr. Penn was adamant that he wanted to come home and finally persuaded his parents to free him after two years of misery and three break outs from the school. Thrown into a new sink-or-swim school, he thrived thanks to a new friendship with a nice teenage girl.

He started university studies at 17 and quickly found that he had entrepreneurial instincts. He earned a good living from providing part-time tutoring to high-school students and sponsoring a lucrative football betting game at the university. Profits were so good that he hired someone to do his laundry for him, much to his Mum's dismay.

Buying a dental practice after graduation, Dr. Penn was soon so successful that he bought a second practice and had both completely booked by the time he was 27. Seeking new challenges, he later started a dental laboratory in Hong Kong to make dental prostheses. That business has grown over the last 25 years into a global industry leader.

Through the dental laboratory, Dr. Penn found ways to improve the practice of dentistry, providing better materials and prostheses while educating dentists on how to be more successful using these improved resources. The business did so well that he characterized its business model as being as near perfect as a business model can be.

But he was restless and wanted to do more: He started and ran three more successful companies. But those accomplishments still weren't enough.

Where does a man who is so successful go to find new challenges? In Dr. Penn's case, his next stop was to study for an online MBA at Rushmore University.

Why? He wanted to examine what he had been doing in business from a new perspective and thought that the individual tutoring by the world-famous professors at Rushmore could help.

Because he had been asked by another university to develop an MBA program for dentists, Dr. Penn made that one of his topics for earning an online MBA; and he created an MBA curriculum and model unit on ethics for dentists. The program was designed to build on the best of what well-known universities were doing and his experiences with individual tutoring at Rushmore.

Dr. Penn found from his studies that experientially directed learning (working on practical problems to learn business principles) energized and informed him in ways that he did not realize could be done through academic studies. He pointed to David Kolb's book, Experiential Learning, to characterize how the experienced person can make large gains in gaining and applying new knowledge:

1. Perceive new information.
2. Reflect on how the new information can impact some area of life.
3. Compare the new information to your experiences.
4. Think about how the new information could provide better ways to act.

After gaining his MBA, what did Dr. Penn have to say about the educational experience in terms of the four-step model?

"Was the course worthwhile and would I do it again? Absolutely! Upon reflection, the most difficult aspect was defining the course and ensuring that the tasks were worthwhile and challenging. I set myself an enormous performance gap to bridge but emerged at the end with an achievement that has altered my thought processes forever."

Since graduating, Dr. Penn expanded his dental laboratory by integrating a new product line from another company. This experience was so exciting and successful that he has been thinking about studying for a DBA (Doctor of Business Administration) degree to consider and expand on his post-MBA work.

What challenges will entice Dr. Penn next? It's hard to tell, but they are bound to be large ones. Now that he appreciates how education can accelerate his success, the sky is clearly the limit for him.

How can you refocus your talents and experience to accomplish more? Perhaps you should start using Dr. Penn's four steps to help you. Rather than thinking it's all about breaks, start looking for ways you can perceive new knowledge. And follow on from there as he did.

About the Author

Donald W. Mitchell is a professor at Rushmore University. For more information about ways to engage in fruitful lifelong learning at Rushmore to increase your success, visit

http://www.rushmore.edu .

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Tuesday, March 3, 2009

Finding an Online Marketing Mentor

With the recent decline in the economy, people are looking for ways to make extra money, or to have a back-up plan just in case they are included in the numerous layoffs taking place throughout the country.With that being said, more people are considering Internet marketing as a way to create income.For those who have the desire but lack the experience, finding an online marketing mentor is strongly advised to help get you started.

What if I Don't Have Money to Hire Someone?

You've probably heard the saying, 'You can't get something for nothing, and as good as the advertisements of fame and fortune appear, they had to put up something, money, time, or often a combination of both.The truth is that if you are inexperienced, Internet marketing can be like learning a new language; it's next to impossible without some type of instruction.Many people waste a significant amount of time and money trying to do it themselves, only to find out that they need the assistance of an experienced person.

Yes, hiring a mentor does cost money, but some things in life you cannot put a price tag on.In other words, you can order as many manuals, e-books, or DVDs as you like, some of which are very informative and legitimate, but you have to realize that many of these tutorials are geared toward people who already have some basic knowledge.If you are starting at the very beginning, with no experience at all, it would be in your best interest to find someone who can not only show you the ropes, but teach you the tools and techniques required to make it in the arena of Internet marketing.

Where Do I Find a Mentor?

Just as you would research products before you make a purchase, you should also research potential mentors.Here are a few tips to help you choose a mentor that will work for you.

Check the background of the potential mentor.Do a quick Google search of his or her name to see what you come up with; you may learn something that isn't listed on their website.

What makes this person capable of teaching others?Inquire about past business experience, educational background, etc.

How will they teach you?You want someone who will allow you to do things hands-on and not just give you links to books to read.You want to make sure that what you are being taught will have proven results and are not techniques that they have created themselves for the purpose of training.

Ask for references of previous people the person has mentored.Not just testimonials on the website; ask for referrals that you may contact on your own.

Are there any guarantees offered if you don't like the program or if it's just not a good fit?Don't lock yourself into a long-term agreement ever!If a potential mentor cannot work with you on a monthly, three-month, or six-month basis, I would suggest this is not the mentor for you.

The Internet marketing business is something that is not learned overnight.It takes time and a lot of effort to learn everything there is to know.In fact, you will always be learning, because tools and techniques are being introduced to the market constantly, but it can be a lucrative business to get into if you have the desire and the mindset to learn the ropes.


About the Author

Turnkey Mentors is an online marketing course taught by proven leaders in the internet marketing and online business community at a fraction of the price of all the other guru courses on the net.

www.turnkeymentors.com


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Saturday, November 22, 2008

Warren Buffetts Investment in Goldman Sachs

Warren Buffett, CEO of Berkshire Hathaway, continues to use his firms enormous cash reserves to make purchases into some of the most valued, but down trodden, American companies.Buffett declared another deal this week, the first week of October, 2008: Hes purchasing 5 billion worth of perpetual preferred stock in Goldman Sachs NYSE:GS, plus an option to buy at a greatly discounted rate for the next 5 years..Buffett will get a 10 dividend and the stock is callable after three years at a 10 premium.

As arguably the worlds greatest living investor, Buffetts investment moves are always watched by the public and news media.When Buffett invests in a firm, like Goldman Sachs, its a very valuable endorsement.This time its an endorsement of not only this company but the free market system.

To determine why Buffett found this a good investment, I looked at many criteria as found in the book Buffettology, written by Buffetts former daughter-in-law, Mary Buffett and the website validea.Given Buffetts new investment in Goldman Sachs, I thought it would be worthwhile to look in detail at the common stock.

GS earns high marks based on my Buffett strategy, earning a score of 79 out of 100.Lets look at what the Buffett strategy likes about Goldman Sachs to shed some insight into one way Buffett may have looked at this investment.First off, Goldman Sachs is a large global bank holding company that engages in investment banking, securities and investment management.Goldman Sachs was founded in 1868, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street.1 Goldman Sachs has offices in most major world financial centers.

The firm acts as a financial advisor and money manager for corporations, governments, and wealthy families around the world.Goldman offers its clients mergers & acquisitions advice, underwriting services, asset management, and engages in proprietary trading, and private equity deals.It is a primary dealer in the U.S.Treasury securities market.In short, it has a "big moat", a Buffett criteria.

Thats the qualitative side of it.Now lets look at the quantitative side, which is where my Buffett model comes into play.GS has the steady, reliable earnings history that Buffett likes to see.Buffett likes companies to have solid, stable earnings that are continually expanding.This allows him to accurately predict future earnings.Annual earnings per share from earliest to most recent were 5.67, 5.57, 6.00, 4.26, 4.03, 5.87, 8.92, 11.21, 19.69, 24.73.Buffett would consider GSs earnings predictable, although earnings have declined 3 times in the past seven years, with the most recent decline 6 years ago.The dips have totaled 36.2.GSs long term historical EPS growth rate is 14.4, based on the 10 year average EPS growth rate.

Consistent profitability is not enough.In addition, Buffett likes to see a high return on equity ROE.Over the past 10 years, GS has an average annual ROE of 19.3.Thats plenty good for meeting this models 15 minimum requirement.The ROE for the last 10 years, from earliest to latest, is 37.7, 24.3, 17.5, 11.1, 10.0, 12.8, 17.1, 17.5, 22.7, 22.6, and the average ROE over the last 3 years is 20.9, thus passing this criterion.GSs management has proved it can earn shareholders 21.4 return on the earnings they kept.This return is more than acceptable to Buffett.Essentially, management is doing a great job putting the retained earnings to work.

Share buybacks are also important and GSs total shares outstanding have fallen over the last five years, although the half-billion share secondary offering on Thursday will no doubt alter that trend.

So, for the most part, the firm gets high scores on a fundamental basis, but there are two measures where it falls short.One is the Capital expenditures and another is return on assets.Both are likely to improve and Buffett has required key management to hold their shares during the time Buffett remains invested.

After the business analysis is done, he then moves onto the question, "Is the price right" Consider this: GSs stock is currently at 128, down from a high of 225 a year ago.We know that Buffett wants to invest when others are most "fearful" and at a price that gives him a reasonably good chance at making a profit over the long run.

Buffett gets a great deal with these preferred shares, but I think long-term investors may be presented with a wonderful buying opportunity here in the common shares as well.While this is a favorable piece on GS, it is more about providing you with insight into how to evaluate stocks for your own investment success.
About the Author

Dr Barry Lycka is founder of

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