Friday, September 07, 2007

Alvin, Heidi, and Mitch help us "get it" about what we've got

Financial Advisor Magazine -- We are now beginning to see the dialogues of the Tofflers--last evidenced in book form in Revolutionary Wealth in 2006--echoed in the holistic planning or life planning field, this time by Mitch Anthony in Financial Advisor Magazine. Here he talks of the concepts of intrinsic value, money, and capital, parsing the differences among them. There's some heavy, pithy stuff here. I haven't seen anybody try to use the word "educed" for years. For instance:

“Money is the great wheel of circulation … the gold and silver which circulates in any country, may very properly be compared to a highway, which while it circulates and carries to market all the grass and corn of the country, produces itself not a single pile of either.” ––Adam Smith

“Capital is now confused with money, which is only one of the many forms [in] which it travels. It is always easier to remember a difficult concept in one of its tangible manifestations than in its essence.”
––Hernando de Soto


There is a transcendent value educed from the measurable resource (material in nature) by the application of the immeasurable resource (invisible to the eye) that is known as thought and vision. It is these immeasurable resources of thought and vision that are the true capital resources in our society and business. . . .

. . . Jean-Baptiste Say, the French economist, once said, “Capital is always immaterial by nature since it is not matter which makes capital but the value of that matter; value has nothing corporeal about it.” This insight tells us that we need to better understand the capital that funds our business, and that capital is immaterial in nature. The real value lies within the thoughts and visions and ideas that live within our clients. . . .

No comments:

Post a Comment