Is It Time To Expand Or Stand Pat?

Interest rates are at the lowest levels in my lifetime. The economy is at the lowest level in my lifetime. So, is this the time to recognize opportunity or just buy my few remaining dollars in the backyard?

This is the question that I get repeatedly. To some extent your decision will depend on your risk tolerance level. We had a client in the office this week that is convinced that we are headed for another Great Depression. They are liquidating and holding the cash. Yesterday, I met with a client whose business is growing so fast that their concern is that it is out of control.

My home is Galveston. The richest family in town is the Moody’s. The original Mr. Moody made a significant amount of money in the cotton business after the Civil War. It was Grandpa Moody, however, that made the fortune. He made that fortune during the Great Depression by buying grossly undervalued businesses and later selling those businesses. At one point, he was the largest landholder in Texas. He bank rolled such notables as Baron Hilton (Paris’ grandfather) and many others. He created a banking and insurance empire by guaranteeing returns. The old bank in Galveston sported a large 1% painted on the front door.

My point is this, protect your assets, but don’t be afraid of the future. Invest your business in tomorrow, but invest wisely. Put your business in a position to be a leader in your industry. The economy runs in cycles. Money is extremely cheap right now. Consider investing in your company’s infrastructure. The Boy Scout motto is “Be Prepared”. Our business motto is “Be Ready”.

Other Tidbits…

Senator John Kerry, Democrat from Massachusetts has agreed to pay the state of Massachusetts $500,000 in state taxes that he attempted to avoid by docking his $7 million yacht in Rhode Island. Come on! Screwing the state that elected you!

Chris Tucker is facing tax liens from the IRS of $11.5 million. Ouch. Who was his CPA?

I know most of my readers are into RAP, so here is the update on Lil Wayne. The IRS slapped a $1.1 million tax lien on our man. Apparently he intends to address this issue as soon as he gets out of jail on the weapon charge.