Legitimacy of the Corporation
Unless the power in the corporation can be organized on an accepted principle of legitimacy, it will disappear.
No social can endure unless it is legitimate power. And no society can function unless it integrates the individual member. Unless the members of the industrial system are given the social status and function that key lack today, our society will disintegrate. The masses will not revolt; they will sink into lethargy; they will flee the responsibility of freedom, which without social meaning is nothing but a threat and a burden. We have only two alternatives; either to build a functioning industrial society or to see freedom itself disappear in anarchy and tyranny.
ACTION POINT: Decide whether it is worthwhile to you and your company to operate in parts of the world that are tyrannies or in anarchy, or if it is just too dangerous.
Governance of the Corporation
What does capitalism mean when knowledge governs rather than money?
Within a fairly short period of time, we will face the problem of the governance of corporations again. We will have to redefine the purpose of the employing organization and of its management, to satisfy both the legal owners, such as shareholder, and the owners of the human capital that gives the organization its wealth-producing power, that is, the knowledge workers. For increasingly the ability of organization to survive will come to depend on their “comparative advantages” in making the knowledge worker productive. And the ability to attract and hold the best of the knowledge workers is the first and most fundamental precondition.
What does capitalism mean when knowledge governs rather than money? And what do “free markets” mean when knowledge workers are the true assets? Knowledge workers can be neither bought nor sold. They do not come with a merger or an acquisition. It is certain that the emergence of the knowledge worker will bring about fundamental changes in the very structure and nature of the economies system.
ACTION POINT: What percentage of your workforce consists of people whose work requires advanced schooling? Tell these people you value their contributions and ask them to participate in decisions where their expertise is important. Make them feel like owners.
To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations.
In the real estate business you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.
Real estate sales was perfect training for the experience to go into public life because you learn to accept rejection, learn to meet new people, learn to work with people and find common ground. That’s the way you sell houses… that’s also the way you win over constituency.
Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.
After I dropped out of college at the age of 19, I became a mortgage broker, and when I went back to school I thought about going into real estate law. I probably would have made a lot more money and died of boredom by now.
Five centuries from now – barring unimaginable catastrophe – the moon will be developed real estate. There’s economic incentive to exploit the moon – the helium-3 will be useful in powering fusion reactors, and the rare earth elements could supplant the limited terrestrial supply of these materials.
If you circle above Central Park at night in a helicopter, you’re looking down at the most expensive real estate in the world. It’s the American Monopoly board.
Real estate is the key cost of physical retailers. That’s why there’s the old saw: location, location, location.
Many novice real estate investors soon quit the profession and invest in a well-diversified portfolio of bonds. That’s because, when you invest in real estate, you often see a side of humanity that stocks, bonds, mutual funds, and saving money shelter you from.
You work with people who are obsessive about shopping, obsessive about owning things and buying things, like this purchase is going to make them happy. And you want to say to them, ‘You know, no amount of real estate is gonna fill that void.’
In the old days, you would have one lawyer to handle everything: speeding tickets, buying a house, contracts, litigation, real estate, copyrights, leasing, entertainment, intellectual property, forensic accounting, criminal offenses… the list goes on. Now, you have to have a separate lawyer for each one of those categories!
Real estate is my life. It is my day job, if you will. But it consumes my nights and weekends, too.
Silicon Valley has evolved a critical mass of engineers and venture capitalists and all the support structure – the law firms, the real estate, all that – that are all actually geared toward being accepting of startups.
Patriotism is often an arbitrary veneration of real estate above principles.
George Jean Nathan
If I am going to get in a cab to go home, and I see a sign for an open house, I will go in. I like real estate because I am the boss.
Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk.
At 25, I made many companies. I was thinking more like a businessman or entrepreneur than a CEO. I created many companies, small companies, medium companies. I tried to be involved in many kinds of activities, in finance, in real estate, in mining.
Nobody wants to read about the honest lawyer down the street who does real estate loans and wills. If you want to sell books, you have to write about the interesting lawyers – the guys who steal all the money and take off. That’s the fun stuff.
If you’ve driven over to the gay section of Los Angeles, it’s like a golf course… Real estate values go ‘boom!’
I want to be a successful landlord. I like real estate.
The problem with real estate is that it’s local. You have to understand the local market.
I think if people are passionate about something, it could be real estate or biochemistry, and that spark gets turned on in them, everyone’s beautiful in that zone.