Daily Intent

Santa Barbara, CA

Consistent.  Focused.  Methodical.  Analytical.  Alert.

Warm.  Charming.  Gracious.  Patient.

Experienced.  Educated.  Wise.

Solid.  Supportive.

Grandpa.

On a cold Santa Barbara winter Thursday, Michael “Mike” Towbes, nestled into his University Club chair, at the end of a beautifully decorated table, and warmed twelve of our hearts and minds.

He storied us through the “why” and the “how” a man arrives to 80 years old consistently stating, with great confidence, “retirement is not in my agenda.”

He looks to be a prime candidate for the “I’m going to live until I’m 150″ Club.  Most people scoff at this proposal for it doesn’t sound to them at all fun, easy, or entertaining.   But aren’t we ones to claim life is too short?  Isn’t it odd that we wouldn’t want it to be a bit longer?  Might Mike be proving the masses wrong in how amazing life can continue compounding greatness upon itself?

A gentle, often quiet, man that has built living space for over 6,000 families, continues to walk inspired.  A gracious man that manages 1.6 million square feet of commercial space and 2,000 residential units, claims to still have work to do.  An analytical man that is sole-owner of a $950 million bank, enough money to bolster creativity, finds alternatives less desirable.  A solid, supportive man that created the “Community Dividend” program which, each year, looks out for its people, dispersing $1 million over 100 non-profits, strolls on believing now is more important than ever to give back to charities and encourage others to do the same.

He still has work to do.   His time allotment breaks down to “15% at the bank, 50% in construction, and 35% for the non-profits.”  He still has things to learn.  “One thing I’ve learned is you never stop learning.”  He has a beautiful wife in which to live more days.  “I told my wife Ann that I promise to take a month off each year with her if I can keep working.” He has children and grandchildren to see grow.  And he has our very own Santa Barbara, a town he helped build, to look out for.  “I’m worried by what type of people would buy the bank or how a new company would come in and treat my tenants.”

Though I’ve never personally met Warren Buffett, Mr. Towbes and he seem quite similar in their character and path to success.  They both find great joy in methodically building and creating, and all that goes into it. 

There is often the debate over whether it is the man/woman or the moment that makes someone great.  Warren and Mike’s lives seem to support the man/woman, his/her choices, his/her consistency.  There doesn’t seem to be just one moment.  There were many.  We may not all become millionaires or billionaires, with great influence, overnight, but neither did they.

Thus, to the American mindset, this demeanor and progress, this all may appear too slow.  Many entrepreneurs hear the sexy stories of being in the right place at the right time.  The actor/model that was walking down the street.  The business man or woman that stumbled across a great idea and was showered cash upon them instantly.  Santa Barbara teaches us “staying power is important” and “reputation is important”.  “You must do the right thing and lead by example.”   This slow, steady pace has reason, just like a grandfather.  He knows what he is doing.  He is quite conscious of his actions, more than a little kid would understand.

It is also important to note, not all was easy for Mike.  He came to Santa Barbara in the late 1950s.  He had heard of opportunities in Santa Maria, and followed them.  For those not local, Santa Maria is not quite the most glamorous way to start. Then, in 1980, he had difficulty selling initial equity in Montecito Bank and Trust.  $1.25 million and no takers.  He and his partner had to pony up the remaining bill.  And most difficult of all to him, he and his partner, and longtime mentor, had to go separate ways when realized Mike was wanting to work a lot harder than Eli.  Eli was older and in a different place in life.  There he was sitting at a desk alone.  No one was there to bounce ideas off of.  No partner.  It’s lonely at the top.  This is life.

It was quite refreshing to sit back and hear a story that is more practical, more basic, but full of wisdom.

Just as my grandpa shares with me stories of his life, Mike did the same for our room of twelve.  I walked away wanting to call him, not “Mike” as he requested, but Grandpa Towbes of Santa Barbara.  “Grandpa” in the most endearing and respectful way.  For he has consistently looked after Santa Barbara, a town that people from all over the globe choose to call home.

He makes sure we don’t forget the arts and the underprivileged.  He reminds us to stay disciplined and work hard.  He reminds us it is often more important to stay out of trouble, or bad deals, than miss good ones.  He makes sure that we don’t forget to “do the right thing.”  Because isn’t that what a grandpa is suppose to do?
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PLAN  Hanukkah is upon us.  Christmas is 9 days away.  Kwanzaa is 10 days off.  And the New Year is 17 days from now.  Happy Holidays!
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LEARN
Buzzword: January Effect
“A general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off.

The January effect is said to affect small caps more than mid or large caps. This historical trend, however, has been less pronounced in recent years because the markets have adjusted for it. Another reason the January effect is now considered less important is that more people are using tax-sheltered retirement plans and therefore have no reason to sell at the end of the year for a tax loss. “  -Investopedia.com

  Six Points to Ponder:

   1. Healthy Holiday.  The Markets are up this week.   - The Dow is trading  at 10,441, S&P 500 at 1109 and the Nasdaq stands at 2206.  Oil is up slightly to $72/bbl.
   2. Flat Fed.  The Federal Fund Rate was held at its current state of between 0% - .25%.  This marks the 12th consecutive month rates have remained at this base level.  Home Equity Lines of Credit and other personal loans will remain flat.
   3. Greek No Longer Gods.  The Greek economy is on the brink of losing its Euro attachment due to fear of national bankruptcy.  Its rating was lowered to BBB.
   4. Prices and Permits.   Consumer prices were up .4% in November.  New home starts were up slightly from October as well, 2.1%.  But even more encouraging is the 6% increase in permits granted.  All are good short term signs for the US.
   5. Greasy Keyboards. Come January, McDonald’s will be offering free Wi-Fi to customers.  The intent is to challenge Starbuck’s and the coffee market.
   6. Sports Lull.  Aside from the Colts and Saints still undefeated, between now and the first of the year, there are few monumental sports events.  A couple bowl games important to specific regions and baseball trades will make headlines.

Positives:

    * Chairman Bernanke and his team kept to their word today keeping interest rates low.  Despite speculation about hyper-inflation, the Fed continues to show their belief in low interest rates supporting us out of this recession.  Changing this mentality will take a strong consumer confidence level.  They can’t afford to put pressure on the economy’s back before it has  nearly healed.
    * The markets performing well over the last week is a little bit of surprise, as noted in this week’s Buzzword and investors typically taking profits off the table.  It may indicate a couple things.  First, there are no true profits realized.  Or second, people are reluctant to switch any of their current market positions.  There is still great conservatism out there when making stock moves.
    * Consumer prices are up 1.8 percent on the year.  Under 2% is ideal conditions.  The slack in the economy is keeping inflation at bay despite the excess liquidity being pumped in to stabilize things.  This is good news given many speculating about hyper-inflation and great risks to our economic well being.  Builders finding a bit more confidence in the markets also gives hope to our future progress in real estate.

Negatives:

    * I love the spread of free Wi-Fi, but I do have a tough time believing McDonald’s environment will pull people away from Starbuck’s or any of its other competitors.  Coffee shops have a warm environment, welcoming to work.  McDonald’s has cold benches and chairs, bright colors, and greasy fixing.  No thanks.  …unless I’m traveling abroad… (see last week’s MSR if you don’t get this joke).
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GET INVOLVED
Local:

REST
Where: Wherever
When: This Weekend
Cost: $0
Why:   Your families deserve a rested and healthy you.  Despite all the events and holiday shopping needing to take place, make an extra effort to find moments of rest, healthy living, and healthy eating.  Maybe a run or trip to farmer’s market will aid in such efforts.
For other fun ideas, go to www.lovemikana.com

Live and Be Well,

Jeff Bochsler