THE STRATEGIC THINKER®
Information and Resources for Those Who Want to Keep Their Insights Fresh and Thinking Skills Sharp

EXPAND YOUR THINKING,
BROADEN YOUR PERSPECTIVE,
and DEVELOP YOUR INSIGHT!

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 Wealth Mentality Insights®

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Strategic Problem Solving
Developing Your Insight

Insight is the understanding, wisdom and intuition you bring to a situation. It is the result of your experience, your ability and willingness to consider alternative ways of viewing the world, and exploring the deepest, enlightened levels of your thoughts.

Sherrin Ross Ingram
Excerpt from Wealth Mentality

Your insight allows you to see opportunities where others do not. That’s why it’s important to continually work on keeping your insights fresh. To help you, "Developing Your Insight" presents two actual news items or situations each month. Your task is to think about how you can use the news or respond to the situation. Below are questions taken from Step Eight in Wealth Mentality to help you start the process. There are no right or wrong answers to the questions. There are only choices and consequences. The goal is to regularly exercise your thinking skills to keep them sharp and ready to take action and improve your ability to uncover and recognize potential wealth building opportunities. For more information on how to further develop your investing insight, read Step Eight "Recognizing Potential Opportunities" in Wealth Mentality.

CURRENT ITEMS
FOR CONSIDERATION

ITEM #1

According to an article in the November 6th edition of the New York Times, Walmart is poised for a blockbuster Christmas despite the current financial turmoil. According to the article:

"... Now, as Americans cope with the worst economy in a generation, heading to Wal-Mart is an automatic reflex for many of them, and it is showing up in the company’s numbers.

Stephen Quinn, Wal-Mart’s chief marketing officer, said the brand had resonated with consumers this year. “We know that Mom’s not going to cancel Christmas,” he said. “We’re committed to cutting the cost of Christmas. It’s what we do.”

Wal-Mart is expected on Thursday to report a sales increase for October. Gains are likely to be modest by the company’s standards — but in an economy slowing fast, with many other retailers reporting double-digit sales declines, any gain is an achievement.

In September, sales at Wal-Mart and the company’s Sam’s Club stores open at least a year, known as same-store sales and a measure of retail health, increased 2.4 percent, not including fuel sales, compared with 1.4 percent for the same period last year. The majority of other retailers had abysmal sales. ..."

More at: 
http://www.nytimes.com/2008/11/06/business/06shopping.html
?_r=1&hp&oref=slogin

ITEM #2

According to Barron's Online, Pulte Homes, the No. 2 home builder has enough cash to make it worth a look right now for a rebound later.  According to the article:

"INTREPID INVESTORS CAN FIND values in the beaten-down housing market other than boarded-up foreclosures.

Pulte Homes (ticker: PHM), the second-largest U.S. builder of homes behind Toll Brothers (TOL), could be a way to participate in an eventual turnaround in the housing market, which admittedly is a ways off. But what makes Pulte a real bargain is that it has the financial strength to see it through these tough times. ..."

More at:
http://online.barrons.com/article/SB122584233748999017.
html?mod=b_hpp_9_0002_b_online_exclusives_top 

 

   
QUESTIONS TO ANSWER FOR EACH ITEM:

1. How can someone make money now with this information?
2. Who (a type of existing company or a type of person) can make money now with this information?
3. Who (a type of existing company or a type of person) will be hurt by not having this information?
4. How can someone position himself or herself to make money in the future with this information?
5. What assumptions are you making?
6. What would be a better solution/product for the identified market/person?
7. What would be necessary to bring about the better solution/product for the potential market/person?
8. How can you take advantage of this information and the insights you’ve developed about it?
9. Is there a "lesson" or "model" that can be applied to another type of business or situation?

WANT MORE PRACTICE? You can do the type of exercise above by reading a news item or situation in any financial newspaper and brainstorming about how you can use the news or respond to the situation.

SHARE YOUR RESPONSES
   





I'm sharing my response to

1. How can someone make money now with this information?

2. Who (a type of existing company or a type of person) can make money now with this information?

3. Who (a type of existing company or a type of person) will be hurt by not having this information?

4. How can someone position himself or herself to make money in the future with this information?

5. What assumptions are you making?

6. What would be a better solution/product for the identified market/person?

7. What would be necessary to bring about the better solution/product for the potential market/person?

8. How can you take advantage of this information and the insights you’ve developed about it?

9. Is there a "lesson" or "model" that can be applied to another type of business or situation?

OTHER OBSERVATIONS OR COMMENTS:

By submitting your response, you are giving permission for your response to be reprinted online or in any publication produced or edited by S. Ross Ingram.

 
 

 

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