Part 1
The IBM vs. Fujitsu legal dispute in the 1980s centered on accusations that Fujitsu had illegally copied IBM’s operating system software for mainframe computers. IBM saw this as theft of its intellectual property, while Fujitsu believed it had followed the terms of a previous settlement. The conflict escalated to arbitration, where mediators Jack Jones and Robert Mnookin were tasked with finding a resolution.
On September 15, 1987, a press conference was held in New York, marking a turning point in the dispute. Mnookin and Jones announced a framework to resolve the conflict, which included Fujitsu paying IBM a lump sum for past software use and setting future guidelines for software interactions between the two companies. This solution, aimed at avoiding legal battles, created a private set of rules specifically for IBM and Fujitsu, departing from traditional intellectual property law. The framework was designed to keep disputes out of court and ensure both companies could continue their business without disruption.
Despite ongoing animosity between the companies, the arbitrators crafted a solution that balanced the interests of both parties, ensuring competition occurred in the marketplace rather than the courtroom. The complex arbitration process, which involved international legal principles and high-stakes negotiations, was a groundbreaking example of dispute resolution.
Part 2
IBM engaged in a 13-year legal battle, led by Tom Barr, against competitors Fujitsu and Hitachi over software copying, particularly concerning operating system and middleware programs. Barr's legal strategy was likened to military combat, requiring intense commitment from his team. The conflict stemmed from the Japanese government's efforts in the 1970s to foster a domestic computer industry capable of challenging IBM's dominance, with Fujitsu and Hitachi developing IBM-compatible computers.
Fujitsu’s decision to create its own IBM-compatible operating system, instead of licensing IBM's, led to significant issues. In 1982, IBM discovered that both Fujitsu and Hitachi had copied its technology. Hitachi was caught in a sting operation, and IBM later confirmed extensive copying in Fujitsu’s software, prompting legal action.
A 1983 settlement attempted to resolve the conflict but was flawed and vague. The deal required Fujitsu to pay IBM and avoid further copying, but ambiguity led to further disputes. Fujitsu felt the agreement was about mending relations, while IBM viewed it as legally binding. The cultural differences between Japanese and American perspectives on contracts exacerbated tensions, leading to a new confrontation in 1985 when IBM accused Fujitsu of further violations. Both companies prepared for arbitration, with the first hearing taking place in 1986.
The case underscored differences in contractual interpretation and expectations, as well as the intense rivalry between the U.S. and Japan during that period.
Part 3
The passage recounts a complex legal arbitration between IBM and Fujitsu over alleged software copying, filled with challenges in communication, legal issues, and cultural differences. The arbitration, initially led by lawyer Tom Barr, involved prolonged questioning, translation difficulties, and disagreements over how to handle the dispute.
The core issue centered on whether Fujitsu had copied IBM’s software, particularly regarding copyright law’s protection of “structure, sequence, and organization” in programs, not just direct copying of code. The case involved the analysis of millions of lines of code, which made resolving each claim time-consuming and difficult. Fujitsu argued they had rights to IBM’s information under prior agreements, while IBM sought broad protection for its intellectual property.
The arbitration stretched on for months, with disputes over educating the panel on software technology and disagreements on which programs to compare first. IBM sought to resolve the case quickly through a summary judgment, but it was denied. The parties eventually opted for mediation after Barr suggested an alternative approach. Mediators Robert and Jack worked to foster a deal between the companies through "shuttle diplomacy," where they negotiated separately with each party.
Cultural differences were a major factor, especially with Fujitsu’s reluctance to negotiate directly with IBM and their slower, consensus-driven decision-making process. Eventually, a deal was reached on a part of the dispute, where Fujitsu agreed to add programs to a list and pay IBM $30 million. Despite this small victory, both sides still faced significant legal and technical challenges.
Ultimately, mediators pushed for a forward-looking solution that would establish clear rules on Fujitsu's use of IBM’s material, aiming for certainty and long-term resolution. This required tearing up previous agreements and starting fresh, recognizing that the older contracts had been flawed from the outset.
Part 4
The 1983 agreement between IBM and Fujitsu had a critical flaw regarding "external information"—there were no clear guidelines on what information IBM was required to provide to Fujitsu, how Fujitsu could access it, or at what cost. IBM proposed selling Fujitsu a license for the information, but Fujitsu rejected this, fearing IBM would withhold essential details. Fujitsu instead wanted direct access to IBM’s source code, which IBM found unacceptable.
To resolve this, a “Secured Facility Regime” was established. A secure site was created where a small group of Fujitsu programmers, isolated from their colleagues, could access IBM materials under strict supervision. The external information was documented, vetted by IBM, and then passed to Fujitsu engineers developing software. This agreement was formalized in the 1987 “Washington Agreement.” Although negotiation details were left to IBM and Fujitsu, they ultimately failed to reach an agreement, requiring further intervention by an independent panel.
The process involved extensive rule-making, and IBM and Fujitsu assembled technical teams to define the external information and set pricing for Fujitsu’s license and access fees. IBM eventually built its own secured facility to verify Fujitsu’s compliance, but no disputes arose. While arbitration wasn’t perfect, it led to a workable solution that enabled both companies to compete without further conflict. The process demonstrated that, in some cases, external intervention is necessary to break deadlocks, especially in high-stakes, competitive disputes.
Part 5
The text discusses the complexities of a lawsuit involving Fujitsu and IBM, highlighting the advantages of arbitration over conventional litigation, particularly given the technical and copyright issues involved. The parties avoided a jury trial, which would have struggled with these complexities, and instead opted for a hybrid arbitration process that allowed flexibility in decision-making.
The arbitrators adopted a facilitative approach, encouraging the parties to negotiate while also having the authority to impose outcomes when necessary. This "med-arb" process enabled the parties to navigate their disputes more effectively, with intermediaries providing a safer environment for negotiations, especially for Fujitsu, which initially refused direct negotiations with IBM.
The text emphasizes the importance of the lawyers in designing the dispute resolution system, ultimately leading to a successful settlement. By 1997, five years before the scheduled end of the arbitration, Fujitsu had shifted focus away from IBM compatibility, leading to the dissolution of the special regime and a return to an ordinary business relationship. The outcome is likened to a significant diplomatic breakthrough, underscoring the potential impact of effective mediation and arbitration in resolving complex disputes.
Part 6: Conculsion
The conclusion of the Fujitsu vs. IBM case was the successful resolution of their long-standing disputes regarding technology and copyright issues through a unique hybrid arbitration process.
Key points of the conclusion include:
Resolution of Conflict: The arbitration allowed the parties to reach an agreement without the need for a protracted court battle, which would have been complicated by technical and legal issues.
Return to Ordinary Business Relations: By 1997, both companies decided that the special arbitration regime was no longer necessary, as Fujitsu had shifted its business focus away from IBM-compatible products. They officially announced a return to a standard business relationship governed by ordinary law.
Effective Dispute Resolution: The hybrid process facilitated negotiations between the two companies, even when direct discussions were initially avoided, demonstrating the effectiveness of alternative dispute resolution mechanisms.
Impact on Business Models: The resolution provided Fujitsu the time to transition to a new business model, reflecting changes in the tech landscape away from mainframe systems.
In essence, the case concluded with a mutually beneficial resolution that allowed both companies to move forward without the burden of ongoing litigation.
Reference
This is taken from the chapter (7) of the book:
Bargaining with the devil - When to negotiate, when to fight
By: Mnookin, Robert
Publisher: Simon & Schuster
Amazon may eliminate approximately 14,000 manager positions by early 2025, potentially saving up to $3 billion per year, according to a recent Morgan Stanley analysis. This move aligns with CEO Andy Jassy's goal to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. Jassy aims to increase the ratio of individual contributors to managers by at least 15% by the end of Q1 2025. These changes are part of Amazon's broader effort to "operate like the world's largest startup," with Jassy emphasising the need for "strong urgency, high ownership, fast decision-making, scrappiness and frugality, deeply-connected collaboration."
The estimate, according to Morgan Stanley, suggests that Amazon could reduce its management workforce from about 105,770 to 91,936 globally. This reduction would result in annual cost savings between $2.1 billion and $3.6 billion, representing 3% to 5% of Amazon's projected 2025 operating profit.
Amazon confirmed to Business Insider that it has "added a lot of managers" recently and believes "now is the right time" to make this change. The company stated that every team will review their structure, and it's "possible" that some roles may be eliminated.
The restructuring aims to remove unnecessary organisational layers and improve Amazon's agility by reducing bureaucratic hurdles. However, the company has not committed to specific job cuts, suggesting that the ratio change could potentially be achieved through other methods, such as reassigning managers to new roles.
Morgan Stanley's analysis assumes that 7% of Amazon's workforce holds management positions, with an estimated annual cost per manager between $200,000 and $350,000. The investment bank views this potential move as a significant opportunity for Amazon to enhance its operational efficiency.
It’s also noteworthy to mention that India’s capital city, New Delhi, ranks 13th with a projected Gross State
Domestic Product (GSDP) of INR 11.07 lakh crore for FY 2024-25, contributing approximately 3.6% to the national
economy.Tags: Investment,Indian Politics,
The chapter describes the author’s experience with Elon Musk during a dinner and subsequent interactions. Musk initially declined to cooperate with the author for a biography, but later changed his mind, provided he could add footnotes to correct inaccuracies. The author refused Musk's conditions but persuaded him to grant access after a lengthy discussion during dinner. Musk is portrayed as intense, broad-shouldered, and sometimes awkward, but also as deeply concerned about humanity's future, particularly regarding artificial intelligence and space colonization.
Musk’s passion for space exploration is evident at the SpaceX headquarters, where posters depict Mars as it is and as it could be if terraformed. Musk’s ambition to transform humanity into a multiplanetary species is central to his vision. The author describes Musk Land, including SpaceX's rocket factory and Tesla’s design studio, as symbols of Musk’s unprecedented accomplishments in the space, automotive, and energy industries. Despite his eccentricities, Musk commands respect for his relentless pursuit of impossible goals, positioning himself as a unique and polarizing figure—admired by many but also viewed skeptically by some for his grand visions.
During the dot-com boom, companies hosted lavish parties, with excessive consumption of drugs and alcohol. However, the subsequent crash left Silicon Valley in a depression, marked by a lack of innovation. Big ideas were replaced by cautious ventures, as companies prioritized easy profits over groundbreaking technology. Physicist Jonathan Huebner argued that innovation was declining, a sentiment echoed by Peter Thiel, who criticized the tech industry's shift from meaningful advances to trivial apps. Elon Musk, however, defied this trend by investing heavily in risky ventures like SpaceX, Tesla, and SolarCity. His commitment to big goals, such as Mars colonization, reinvigorated the industry, leading to disruptive advancements in space exploration, electric vehicles, and clean energy. Musk's demanding schedule, unconventional parties, and intense drive reflect his commitment to changing the world, combining elements of both an inspiring visionary and a controversial leader.
CHAPTER 2: AFRICA
Elon Musk first gained public attention in 1984 at age 12, when he created a space-themed video game, Blastar. Musk's early fascination with space and technology hinted at his ambitious vision for the future. Growing up in South Africa, he faced a challenging environment marked by apartheid and an Afrikaner culture that didn’t suit his geeky personality. Influenced by his adventurous family and inspired by The Hitchhiker’s Guide to the Galaxy, Musk embraced the idea of striving for "collective enlightenment." His determination to make the world a better place and advance human progress set him on a path to becoming an influential industrialist.
Elon Musk struggled with social interactions as a child, often alienating peers with his blunt honesty. He had a challenging relationship with his father, Errol, whose demanding personality created a harsh home environment. Despite the difficulties, Elon was curious and driven, quickly mastering programming at a young age. His fascination with technology led him to lead entrepreneurial pursuits with his cousins. Bullied at school, Elon found solace in computers and science fiction. At 17, he moved to Canada to avoid South Africa's military service and to pursue his dreams in North America, eventually focusing on Silicon Valley's opportunities.
CHAPTER 3: CANADA
In June 1988, Elon Musk moved to Canada, initially struggling to find family support. He worked odd jobs, including cleaning a hazardous boiler room. He later attended Queen's University, befriending influential figures and meeting Justine Wilson, whom he persistently courted. Musk transferred to the University of Pennsylvania, where he excelled in studies and co-hosted large parties. His university years reflected growing ambition, a deep interest in renewable energy, and strategic thinking about future ventures. Musk developed early ideas about the Internet, space, and renewable energy, laying the foundation for his later successes in technology and entrepreneurship.
CHAPTER 4: ELON’S FIRST START-UP
In the summer of 1994, Elon Musk and his brother Kimbal embarked on a transformative road trip across America, using funds from Kimbal’s painting franchise to buy a used BMW. Inspired by their experiences and the burgeoning Internet, they aimed to create an online network for doctors, which ultimately did not take off. Musk, fresh from internships in Silicon Valley, recognized the potential for helping small businesses establish an online presence. This led to the founding of Zip2 in 1995, offering a searchable business directory with maps. After initial struggles, Zip2 pivoted to providing software for newspapers, securing venture capital and propelling Musk into a key technology role.
Elon Musk's time at Zip2 was marked by his growing ambition and desire for control, which clashed with investor influences. Despite lacking operational responsibilities, Musk aspired to be CEO, leading to tensions with executives like CEO Sorkin. As talented engineers joined, they revamped Musk's coding style, creating friction. His management style was confrontational, often disregarding others' input, and he struggled to adapt to team dynamics. Ultimately, Zip2 merged with CitySearch, but Musk opposed it, leading to his demotion. The company later sold to Compaq for $307 million, giving Musk valuable experience and a resolve to maintain control in future ventures.
CHAPTER 5: PAYPAL MAFIA BOSS
After selling Zip2, Elon Musk gained confidence and sought a lucrative industry with inefficiencies to exploit. He recalled his internship at the Bank of Nova Scotia, where he identified a massive arbitrage opportunity in third-world debt that the bank ignored. Undeterred, Musk envisioned starting an online bank, X.com, and invested $12 million of his earnings into it. Despite initial setbacks, including a coup from a co-founder, Musk secured funding and built a revolutionary online banking service. X.com quickly attracted users but faced competition from Confinity, which led to a heated rivalry in the nascent Internet finance sector.
In the race to dominate internet payments, Elon Musk showcased his relentless work ethic and competitive nature at X.com. Despite devising strategies to compete with PayPal, X.com merged with Confinity in 2000, leaving Musk as the largest shareholder. Tensions arose over technology choices, leading to a coup against Musk, who was ousted while on a honeymoon trip. Although he briefly fought back, Musk ultimately accepted his fate and remained a supportive advisor. Despite early criticism and challenges, Musk's influence helped shape PayPal into a tech giant, and he emerged with significant financial success after its sale to eBay.
CHAPTER 6: MICE IN SPACE
In June 2001, turning thirty, Elon Musk felt the weight of his past failures, especially after PayPal’s rebranding. Seeking new opportunities, he moved to Los Angeles, inspired by dreams of space exploration. Engaging with the Mars Society, Musk aimed to reignite public interest in interplanetary travel, despite financial and engineering challenges.
Elon Musk went to Russia for his latest pursuit and returned disappointed after realizing the challenges of space exploration. However, he became determined to create a low-cost rocket, inspired by extensive research and the insights of Tom Mueller. In June 2002, Musk founded SpaceX, aiming to revolutionize space travel with innovative, affordable solutions.
During this time, Justine Musk experienced profound grief when her ten-week-old son, Nevada, died from SIDS shortly after the eBay deal announcement. While Justine openly mourned, Elon Musk distanced himself emotionally, focusing instead on expanding SpaceX. The early days of the company saw him recruit a talented team, including engineers and key assistants like Mary Beth Brown, who shaped its culture and supported Musk’s relentless work ethic.
In late 2002, SpaceX transformed from an empty warehouse to a functional rocket factory within a year. As the team prepared for their first launch in early 2004, they faced immense pressure, working long hours. Elon Musk's ambitious marketing strategies clashed with engineering challenges, but ultimately led to a successful public unveiling and plans for a second rocket, Falcon 5.
On March 24, 2006, Falcon 1 launched but crashed due to a faulty fuel pipe fitting. Despite setbacks, SpaceX engineers vowed to improve, leading to successful launches a year later.
CHAPTER 7: ALL ELECTRIC
J.B. Straubel, a tinkerer from Wisconsin, earned a scar from a chemistry experiment gone wrong. His childhood experiments led him to create an electric Porsche and later connect with Elon Musk to found Tesla Motors, focusing on lithium-ion batteries to revolutionize electric vehicles. Together, they aimed to change energy consumption.
Musk's $6.5 million investment made him Tesla's largest shareholder and chairman. He influenced early hires, including Straubel and Berdichevsky, who built prototypes in unconventional settings. Despite limited expertise, Tesla innovated with lithium-ion batteries and streamlined operations, challenging traditional automakers while capturing significant investor interest.
In Tesla's early years, CEO Martin Eberhard made swift decisions, but Musk's design demands delayed the Roadster. Transmission issues and supply chain failures emerged, leading to escalating costs. Eberhard's leadership was challenged, culminating in his demotion in 2007. Musk sought to refocus on innovation rather than a sale, reinforcing his vision.
Initial setbacks leading to some negative press, Musk made public statements assuring customers about Tesla's plans, including the Roadster's launch. He engaged with customers and tackled production issues directly, pushing for cost reductions and demanding accountability. Despite internal challenges and financial difficulties, Musk remained driven, seeking additional funding amid the 2008 financial crisis.
CHAPTER 8: PAIN, SUFFERING, AND SURVIVAL
As filming for Iron Man began in 2007, Robert Downey Jr. drew inspiration from a former Hughes Aircraft facility. His visit to SpaceX, led by Elon Musk, solidified parallels between Musk and his character, Tony Stark. However, Musk's rising public persona and business struggles strained his marriage to Justine, culminating in a highly publicized divorce.
Elon Musk’s visit to Aston Martin was disappointing, with the CEO dismissing him. Later, a potential appendicitis scare led Musk to a medical clinic. Afterward, Musk met actress Talulah Riley at a club, sparking a romance that progressed quickly. Amid financial struggles, SpaceX's fourth launch succeeded, marking a significant milestone.
After a significant SpaceX victory, Musk faced severe financial challenges, needing to fund both SpaceX and Tesla amid growing media scrutiny. In late 2008, he maneuvered to secure funding for Tesla, risking personal finances to avoid bankruptcy. Ultimately, Musk’s resilience and focus helped him secure crucial contracts and investments, showcasing his determination.
CHAPTER 9: LIFTOFF
The Falcon 9, SpaceX's flagship rocket, is a 224.4-foot tall, 1.1 million-pound launch vehicle designed for reusability. It revolutionizes the aerospace industry by significantly reducing launch costs and fostering innovation. Under Elon Musk's demanding leadership, SpaceX attracts top talent, aiming to make space travel economical and feasible for colonization.
Visitors to SpaceX encounter a sleek, white lobby leading to Musk’s large cubicle filled with personal mementos. The factory features a chaotic mix of engineers and machines, emphasizing in-house manufacturing. Musk’s demanding nature drives aggressive timelines, fostering a culture where individual accountability and relentless work ethic dominate.
Musk identified and hired aerospace engineering master's candidate Davis for SpaceX, where he became a key engineer. Davis contributed to the rapid development of the Dragon capsule, optimizing costs significantly. SpaceX's culture emphasizes quick decision-making, innovation, and efficient communication, often challenging traditional aerospace norms, leading to friction with regulatory bodies.
Gwynne Shotwell earned degrees in mechanical engineering and applied mathematics, joining Chrysler's management training program. After frustrations with the rigid environment, she moved to Aerospace Corporation, then Microcosm. In 2002, she joined SpaceX, where she successfully secured contracts and became president, driving innovation and efficiency in space travel.
On May 22, SpaceX’s Falcon 9 launched Dragon to the ISS, relying on Draco thrusters after separation. Engineers faced challenges due to unexpected light interference but successfully docked Dragon using a robotic arm. Following this, Musk unveiled the spacious, efficient Dragon V2, designed for autonomous landings, enhancing SpaceX's innovative approach to aerospace.
CHAPTER 10: THE REVENGE OF THE ELECTRIC CAR
Initially dismissed by traditional automakers, the Tesla Model S's acclaim surged after winning Motor Trend's Car of the Year in 2012. Celebrated for its performance and efficiency, it transformed public perception of electric vehicles. Musk's vision led to Tesla's profitability and innovation, marking a significant shift in the automotive industry.
In August 2008, von Holzhausen joined Tesla, unaware of its financial struggles. Enthralled by the startup's innovative atmosphere, he collaborated with Musk to redesign the Model S, transforming early prototypes into a groundbreaking vehicle. As challenges arose, they secured partnerships and government funding, ultimately paving the way for Tesla's success.
In 2010, after a successful factory deal, Tesla aimed to raise $200 million through an IPO to fund the Model S. Musk grappled with public market pressures, yet the IPO raised $226 million, marking Tesla’s emergence as a serious player. Despite skepticism, Musk's relentless drive led to significant advancements and innovations in Tesla's design and production.
Despite skepticism surrounding Tesla's future, Elon Musk's vision began to materialize with the unveiling of a charging network for the Model S, allowing free long-distance travel. Amid production struggles, Musk's aggressive sales strategies turned reservations into profits, culminating in Tesla's first profitable quarter in 2013 and solidifying Musk's status as an industry leader.
Musk transformed Tesla into a lifestyle brand, similar to Apple’s approach with its products. Tesla emphasizes continuous innovation without model years, offering software updates and simplifying maintenance. This contrasts with traditional automakers, who profit from service visits. Tesla's in-house design enables rapid changes, ultimately leading to the downfall of rivals like Fisker and Better Place.
CHAPTER 11: THE UNIFIED FIELD THEORY OF ELON MUSK
In the late 1990s, the Rive brothers transitioned from door-to-door tech support in Santa Cruz to founding Everdream, automating client systems. Influenced by Elon Musk, they launched SolarCity in 2006, simplifying solar panel acquisition. The company grew rapidly, eventually becoming the largest U.S. solar installer, driven by Musk's interconnected vision.
Musk plans to enhance Tesla's Palo Alto headquarters and even considered adding a roller coaster to the Fremont factory. He emphasizes the urgency of constructing Gigafactories to meet battery demands for the Model 3. His vision extends to establishing a self-sustaining colony on Mars, prioritizing space exploration and technology advancements.
Musk's employees have mixed feelings about him, admiring his drive but fearing his unpredictable nature. His leadership style is often seen as callous, exemplified by his dismissal of loyal staff. While some criticize him as a publicity-seeking dreamer, others believe his ventures could drive technological advancements and economic growth.
Tony Fadell views smartphones as a breakthrough in technology, merging mature hardware and software to create innovative products like self-driving cars and advanced medical devices. Elon Musk exemplifies this trend, combining consumer tech with ambitious goals. His vision includes a multiplanetary society, while his intense work ethic drives his companies towards unprecedented success.
By the time our last dinner had come around, I had decided that this propensity for risk had little to do with Musk being insane, as he had wondered aloud several months earlier. No, Musk just seems to possess a level of conviction that is so intense and exceptional as to be off-putting to some. As we shared some chips and guacamole and cocktails, I asked Musk directly just how much he was willing to put on the line. His response? Everything that other people hold dear. “I would like to die on Mars,” he said. “Just not on impact. Ideally I’d like to go for a visit, come back for a while, and then go there when I’m like seventy or something and then just stay there. If things turn out well, that would be the case. If my wife and I have a bunch of kids, she would probably stay with them on Earth.”
EPILOGUE
Elon Musk is constantly evolving, launching ambitious projects like a space-based Internet with thousands of satellites and expanding Tesla and SolarCity initiatives. While facing challenges like disappointing sales and personal struggles, Musk remains driven by grand visions, blending emotional intensity with a relentless pursuit of transformative technology for humanity.
Now a super short summary:
LESSON 1: THE RICH DON'T WORK FOR MONEY
The poor and the middle class work for money. The rich have money work for them.
LESSON 2: WHY TEACH FINANCIAL LITERACY?
It's not how much money you make. It's how much money you keep.
Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
Difference in perception between my rich dad and my poor dad when it came to their homes:
Rich dad thinks his house is a liability. While the poor dad thinks the house is an asset.
LESSON 3: MIND YOUR OWN BUSINESS
The rich focus on their asset columns while everyone else focuses on their income statements.
LESSON 4: THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS
My rich dad just played the game smart, and he did it through corporations- the biggest secret of the rich.
LESSON 5: THE RICH INVENT MONEY
Often in the real world, it's not the smart who get ahead, but the bold.
LESSON 6: WORK TO LEARN - DON'T WORK FOR MONEY
Job security meant everything to my educated dad. Learning meant everything to my rich dad.
The main management skills needed for success are:
1. Management of cash flow
2. Management of systems
3. Management of people
Chapter Seven: OVERCOMING OBSTACLES
The primary difference between a rich person and a poor person is how they manage fear.
Once people have studied and become financially literate, they may still face roadblocks to becoming financially independent. There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are:
1. Fear
2. Cynicism
3. Laziness
4. Bad habits
5. Arrogance
For most people, the reason they don't win financially is because the pain of losing money is far greater than the joy of being rich.
Failure inspires winners. Failure defeats losers.
Rich dad believed that the words "I can't afford it" shut down your brain. "How can I afford it?" opens up possibilities, excitement, and dreams.
...
Chapter Eight GETTING STARTED
There is gold everywhere. Most people are not trained to see it.
The three most important management skills necessary to start your own business are management of:
1. Cash flow
2. People
3. Personal time
