Donald Trump book should have been titled, "How I turned around a failing company". Trump made his wealth in real estate and the location of choice was Manhattan where prices were soaring to 1,000 dollars a square foot. Trump hedged on the belief that real estate prices would go up, rather, than down, and leveraged properties values to acquire more investment money. If values were going up - leveraging only increased profits without risking extreme losses, a win-win situation. Why would this fact be important? The negative risk factor suggested extreme exposure for Trump because the investment was an asset intensive liability and in a negative financial economy, fatal. What would be the odds that Manhattan Real Estate would drop in value? If Real Estate prices dropped caused by economic downturns or market reversal trends and would lead too massive debt, on the books; creditors would be forced to liquidate the property, but, as long as, the creditors did not call this debts in, survival was possible. An another risk that Real Estate presented was Trumps money was not liquid. Money lossing would increase and Real Estates would be difficult to onload and time would be the enemy.
Trump may have realized this fact and moved into Casinos because this form of Real Estate was more stable and the cash flow not so cyclic. Trump continued to market Manhattan Real Estate because the strategy of promotion made him money. Manhattan Real Estate to become the standard for the wealth and Trump Towers the brand for the Real Estate. The rich seemed to sponser him and this was the right customer for him. Thinking like a billionare mindset has nothing to do with the middle class or lower class. I am sure Trump distains the incompetence and lifestyles of the middle class and would find it inconceivable to understand the lifestyle of the poor.
The Trump Towers are the classic design and branding too attract potential buyers seeking an upperclass lifestyle: tourist centered landscapes, beautiful interior designs, and prestige of the community. The price seemed to suggest quality for the real-estate investment. The rich seem happy with Trump's lifestyle because it matched their own.
At one point, Trump acknowledged, he had billions of dollars in debt. Trump says, his father told him that he had perfect confidence in Trump too pull through the crisis. However, Fred Trump had a different style than Donald Trump. Perhaps, the real meaning behind Fred's statement was that Fred really was saying, he knew Donald had 100 percent confidence in his ability to make money and Donald should not doubt this ability because doubt could kill the future.
Trump gives a small excerpt about his turn-around which occurred during a dinner appointment with one of the bankers. Supposedly, the banker helped Trump realize a problem, understand a new solution, and see a new vision for the future direction of the company. Why didn't Trump talk about the advice that changed his life and saved his company? This amazes me that Trump would mention such an important event only to skim the details.
What type of person is Trump? If Trump represents the bulk of all Billionares then assume Billionares don't think much different than normal people: 1. they look for value 2. they don't like to waste opportunities 3. they believe in helping people 4. they trust the people around them 5. and they believe in honesty, hard work, and integrity 6. they seek happiness and personal fulfillment.
Trump would argue that he is a pragmatic, hedonistic epicurian with a zest for life. Interestingly, Trump attempts to give Buffettology advice on investing.
Trump claims to trust his instincts, trust his lawyers, trust his brokers, trust his interior designer, and trust his board members. Trump says, he pays them a significant amount of money to give him good advice. Trump does not think reliance on technology is necessary. I think Trump is making a big mistake with this belief. Digital business design is the wave of the future and he is missing it. A Digital Business Design could allow Trump to leverage the Trump brand without owning assets, something Trump is already doing.
Trump encourages attention to detail. Trump advises the reader to watch every detail because money is in the detail. Trump claims money is lost in every deal that lack negotiating power. Trump brags not so much about his empires wealth as much as about his own financial genius. This was a strange remark. What is to say that Trump acheived financial dominance because of family money. Old money is the single greatest reason for extreme wealth accumulation. Innovation is the greatest reason for an increase in the wealth. I really didn' hear Trump talk about any innovations in real-estate. This leads me to believe his wealth was old money.
However, Trump claims to only have met 47 of the 587 billionares in the world suggesting his wealth was individually earned, a personal war - a single soldier. What do I believe about Trump's mindset? It is ordinary. Perhaps, that is his point that he is an ordinary person with an exordinary amount of money.
The real issue Trump should have brought up is how he turned his debt ridden company into profit oriented company. Perhaps, the verdict was not out. Perhaps Trump could not claim victory cause the future for him was so unstable.
Trump would agree every dollar matters in business. Trump worship of beauty caused him to waste millions of dollars on projects that cost rather than profit. Beauty without profit is contradictory. How can one trade a family for a more beautiful celebrity and call that profitable? Trump belief is too reducing pain and increase pleasure by getting along, molding morality to fit the circumstance, and keeping everyone who effects him satisfied and free of pain.
The media strategy is designed to get Trump, out in front by showing how great a life a billionare lifestyle can be, and at the same ignore the pain of the bottom line facts. The bottom line facts could save Trump one day. The bottom line fact I would want to know is how Trump reversed a losing business model and turned into a profit oriented model. Did Trump reduce asset intensive investments and move to Mortgage financing? Did Trump discover a tax scheme that would give him an financial advantage by selling his name rather than owning assets? Did Trump sell of Casinos, buildings, and properities that were an operational cash drain? Why doesn't Trump talk about the real issues? Has Trump moved from being a hard as nails business man to a celebrity? Trump would argue it is all about marketing.