Pacweb.co

One of the most common ways to become wealthy is to come up with an idea that requires capital (such as buying a building or a company) and pitch it to a sophisticated investor. If the investor wants to back the idea, the pitcher may get a piece of the action for coming up with the idea and seeing it through. This is the same as a ‘carried interest’ in the private equity world. I learned this lesson from Fred Wright, a legendary Canadian investment banker, a few years ago when I asked him for advice on creating personal wealth. Fred is a Fellow Chartered Accountant and Chairman of Capital West Partners, Western Canada’s leading independent investment bank. In his past life he was President of Pemberton Securities when it sold to RBC. Fred is a wonderful guy with a sterling reputation. When I sought Fred out for advice few years ago, he told me his secret to institutional sales. His advice was this: “Never presume to know what smart money thinks is a good deal. Just be humble, say why y...

My big bro Adam (pictured) has become a budding businessman after several years of thumbing his nose at commerce. This is a good thing as he’s very talented and competitive. Adam now has to deal with frustrating client emails, the way I used to in spades running Pacweb.co. I made a million mistakes as an entrepreneur in my early 20’s dealing with client emails emotionally. But then a few years ago I met an extremely successful real estate financier who taught me a different approach. “Hi Tommy, Thanks for your email” he started every message he wrote to me. “Wow, that’s nice,” I thought. It didn’t matter what came after those first words, I was completely disarmed by his gentle opening. This man had been around long enough to know that he would catch more flies with honey than he would with vinegar, as the saying goes. And he obviously caught a lot of flies. Here was a billionaire becoming completely humble to a 25-year-old. I have adopted this lesson for my own emails, and I haven’t h...

We had the opportunity to sit down with Frank Giustra last week, the lion behind Lionsgate Films, and an early architect of countless resource companies—most notably Wheaton River Minerals (now known as the $33B Goldcorp, which spun out the $12B Silver Wheaton), Petro Rubiales (now the $7B Pacific Rubiales), and Urasia Energy. By all accounts Giustra is brilliant, connected and wealthy. He made headlines in 2007 by pledging over $100 million and half of his future earnings to establish a charitable foundation with President Clinton. Outside of philanthropy however, Giustra has been reluctant to draw attention to himself, and rarely speaks publicly about investing. In 2002 however, he moved heavily into gold and published,  “A Tarnished Dollar Will Put the Shine on Gold” , when it was trading under $300 an ounce. Ten years later and with gold now priced over $1600/oz., it still occupies the largest percentage of his investment portfolio, and his views remain the same. In discussing ...

Lived November 29, 1956 - August 23, 2002 #2 Man at Polygon Homes, British Columbia’s largest home builder Ten years ago today Polygon Homes Executive Vice President Rick Genest was tragically killed when a boulder fell on his car while driving to his summer home in Bridge Lake, BC. In the 45 years of his life leading up to that point, he rose from humble beginnings and ultimately became, as the Greater Vancouver Home Builders’ Association put it, “One of the development and homebuilding industries’ greatest visionaries and innovators.” Author’s Note: In growing up with his son Joe, I was fortunate enough to get to know Rick during my teenage years. We shared many laughs at each other's, and Joe's expense. In celebrating the anniversary of his passing, here are some moments, words, and images from his life you may find inspiring. Humble Beginnings Rick Genest Letter to Mom 1967 Rick Genest was born on November 29, 1956, to parents Joe and Mary in Victoria, BC. He was the younge...

I had wanted to interview Kevin O’Leary ever since I attended a small presentation on his O’Leary family of mutual funds that he gave to money managers in Vancouver last spring. Before those financial gatekeepers, O’Leary was his usual fast talking self, but more humble and incisive than he appears on TV. When we were able to sit down and talk in Whistler last Friday, I thought Cambridge House investors should see that side of him. Our discussion revealed a quieter, analytical, and generous side that most people never see. O’Leary articulated his investing philosophy, which also guides his fund family. It will surprise you: He’s actually very conservative, and believes “an investment without a dividend is simply speculation.” Hence the mandate for capital preservation and income of O’Leary Funds, which are aimed at retail investors. For an hour, we talked about investing, macroeconomics, geopolitics, life and even wine. So dust off a bottle (1990 Cheval Blanc, Mr. Wonderful’s favorite)...

 FULL INTERVIEW “There are several thousand so called mining stocks traded here in Vancouver. Most of them have nothing but a hope and a dream. Most of them don’t have a prayer of finding anything. So it’s fraught with danger for the average investor. All I can advise is to educate yourself. You’ve got to start reading books about geology and studying the markets, and then interviewing the guys that run these companies until you get a sense of who is real and who is a flake. That’s what you’ve got to do. Most people don’t do it, they just buy a stock because it’s touted to them by anybody from a friend who knows less than they do to a taxi driver, so of course they lose money.” “It’s good to remember that the junior mining sector is the most volatile sector on the planet, by far, more volatile than the internet stocks ever where during in the nineties. Volatility is your friend, actually, it gives you the opportunity to sell and buy at radical extremes. Through the 70′s and 80′s th...

Photo: http://www.jimpattison.com/ By Tommy Humphreys, Nov 2, 2010 ( Source ) When I was 18, the executive who oversaw the mailroom I worked in told me to scrap the name “Tommy” for “Tom” or “Thomas.” Tom, he insisted, sounded more professional, more appropriate to the business world. Although I had always been called Tommy, his comment made me wonder if a change was needed. After all, he was older, and an executive. I was still confused about it a week later when my family and I were discussing it over a meal at Carmelo’s, in West Vancouver. My mom thought I should stick with Tommy. Of course, having named me, she was biased. She cited some prominent businessmen who’d kept their nicknames. I wasn't convinced until she said, "What about Jimmy Pattison?" At that moment, I happened to look to my right. The 75-year-old billionaire was having dinner just a few feet away. "Shush, Mom, he's right there!" I said, incredulous. I'd admired Pattison most of my you...