Observations

Deep inside me I am a gambler. I played roulette in Europe regularly. I used to play at least eight hours each time I went to the casino. I stopped after several months, and I was still ahead.

Entrepreneurs are professional gamblers. They find an opportunity, they evaluate the odds of making a fair return, and then they play the game. It is a difficult, highly intellectual and complex game. They are wealthy because the game requires many skills.

I watched with intense interest the latest “deal” of my friend SNS. He recognized an opportunity and moved quickly to take advantage of it, with all its complexities. He knew the steps. He honed them in a special program at Harvard. This is what he did.

His gut feelings told him he had to buy a small plaza, totally ignored by the owners. Buying was not simple. Lawyers, negotiations, city regulations, accountants, architects, financing – many activities to coordinate. Just to get started. Then decide: go or not go.

Initially he thought to lease the stores. The business concept, however, changed. The plaza had to become a “happening.” The marketing aspect of the deal evolved.
The plaza appeal had to be food stores. Barbecue ribs, an upscale wine bar, a café, a regular bar. Things became much more complicated. It had to be a cultural happening. New businesses will come later.

Sculptures adorn the sidewalk. A gigantic yellow sunflower dominates the entrance. A real touch of class.

The storeowners had to be enticed to rent. SNS went on a selling spree to sell the concept. New deals, new opportunities, new people. The plaza, meanwhile, was slowly being renovated.

SNS continued to perform a balancing act: attract the appropriate businesses, provide an artistic décor, go to trade shows to understand the businesses he invested in, financial objectives. Stress and mental power.

His vision will produce unique returns. Only a real entrepreneur could have achieved this exclusive feat.

(This Observations appeared on the 1/23/06 issue of The Peter Dag Portfolio).

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked best market timer in the 12 and 6 months ending 8/20/10 by Timer Digest

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