HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
In the 1970s, the Potterfield family started Midway USA (formerly Midway Arms) here in Columbia. Last year Midway won the Malcolm Baldridge Award. Son Russ runs Battenfeld Technologies (Battenfeld is Potterfield in German).
Russ has been spending time in Chine and provides the following perspective.
“Life in China is fantastic. The people are wonderful. The US Dollar goes a long way here, if you choose to make it. The more westernized things are very expensive ($50 for lunch for two), but other things are quite affordable. I typically spend about 8 RMB ($1.15 US) for someone to ride a bicycle from their restaurant to deliver my lunch; a lesson in contrasts.
The talent pool is deep and the people want to work. I’m reminded of your comment (I made in a previous letter) that “Nobody worked harder than I did because I worked all the time”. It’s easy to find hungry people here. Most of the people I’ve hired are between 20 and 35; their parents have seen genuine poverty. Two of my hires fought their way through colleges and into a high rise in Shenzhen—these are people you want on your team. They reply to emails at 10 PM local time without fail.
I’m more sympathetic than ever to international trade. I can tell you that the Aussies, French, Russians, and many other countries are in China in a big way and were here for at least a generation before the Americans arrived.
Living close to Hong Kong, I have developed a real appreciation for the British Empire. If you think about what those guys were able to do, you really can understand the wealth-making ability of inter-continental arbitrage. What a great culture. Hong Kong is a fantastic place. We haven’t been to Singapore yet, but it’s on the list.
Adding value with unique design or market insights seems to be the only predictable way to win. The days of getting-rich-by sending-your-manufacturing-department-overseas ended in the early 2000s. Now you’ve got to have deep market insights and be able to implement it quickly…Manufacturing isn’t a sustainable market advantage—market knowledge and customer intimacy are sustainable.
RMD comment: We have to stop bashing China and out-compete them.
I also agree with Russ’ comments about the British. They exported their system of democracy and capitalism to the “colonies” that are now the United States, Canada, Australia, Hong Kong and Singapore.
RMD
One new regulation in the Obama-care bill is that, starting in 2012, everyone will have to file a 1099 Form with the IRS if you do more than $600 of business in one year with anyone. Talk about government intrusion into the fabric of society. I suggest you Google this topic for yourself and read about it, because it is Draconian. If you own a small business, the record keeping required could put you under.
Over the last 6 months, US-minted gold bullion coin sales have been relatively flat but silver coin bullion sales have tripled. I believe the two reasons are 1) Silver is starting to out-perform gold, and 2) Unless the above regulation is repealed, starting in 2012, you sell a 1 oz gold coin, and unless you report it, you are a criminal. Individual silver coins will stay below the government’s radar threshold.
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