Good Thinking

Ideas on How to Think and What to Think About for this week!

In this Issue:

1.???? Charlie’s Checklist

2.???? The Corporate Transparency Act (don’t skip, it may apply to you)

3.??? 20+ Years of a Leading Indicator

4.???? Stolen Apples (and how to get them back)

5.???? The One Percent Rule from Daniel Pink?

6.???? Econ Recon?

Charlie’s Checklist

It’s been said that the purpose of education is not to teach us what to think, but how to think. If a successful life is any indication that one has mastered the art of critical thinking, recently deceased Charlie Munger of Berkshire Hathaway should be nominated for a lifetime achievement award.

This article from Chief Executive Magazine provides a terrific executive summary of Munger’s checklist for decision making that he and Warren Buffett applied so successfully to their Berkshire Hathaway holdings. “Munger, like Buffett, believed a successful investment career boils down to just a handful of decisions.”

I hope you’ll spend a few minutes learning How Munger Did It: Lessons for the Board and CEOs.

The Corporate Transparency Act

It wouldn’t be a new year without some new regulations from the Federal Government. This year all executives should be aware of the Corporate Transparency Act. Archford Capital Strategies provides this recap and accompanying link that explains the act, who it applies to and filing requirements.

While companies with more than 20 FTEs and $5 million of annual revenue are exempt from filing, many companies and their owners have related LLCs or other entities that own real estate and other assets used by the business which will meet the filing requirements.

Here is a recap:?

“The federal government created the CTA to stop illicit activities such as money laundering and fraud by enhancing transparency regarding business ownership and management. This federal law mandates that businesses, including LLCs, FLP’s and corporations, submit a BOI Report to the Financial Crimes Enforcement Network (FinCEN). For newly established businesses, the filing deadline is within 90 days of creation, while businesses in existence before January 1, 2024, are required to file by December 31, 2024.” Archford Capital Strategies has prepared a comprehensive summary document. This document outlines key terms and crucial details to help you determine whether you qualify for exemptions or, if not, the necessary information required for compliance. You can access this summary on their website: ?www.archfordcapital.com/BOIReport.

For additional insights, refer to the FinCEN compliance guide accessible through this link:? https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf.

Archford Capital Strategies also warns, “…it's imperative to note that non-compliance could lead to significant civil and criminal penalties. Additionally, please be vigilant, as the government has indicated they will not directly send information regarding this topic to business owners.”

20+ Years of a Leading Indicator

The Vistage Confidence Index provides a quarterly report on the outlook CEOs of SMB companies have about the economy, hiring, and profitability. Measured over time, the Index reflects trends in the U.S. economy and leads both GDP and changes to employment.

The Q4 Vistage CEO Confidence Index rose 6 points to reach 82.0 — the fifth time in six quarters — and while optimism is improving, the historical lows of economic confidence reflects the tension CEOs feel waiting for the next growth cycle to take off.

I will be sharing details of the 4Q CEO Confidence Index via email this week. Email me ([email protected]) or DM f you want to receive the details. Or explore now.

Stolen Apples

Last year I shared a post from Vistage IT Security Speaker Mike Foster who warned us:? “Imagine this: You’re waiting for a friend, texting them on your iPhone, unaware that a thief is watching you enter your passcode. Moments later, your phone is stolen. In an instant, your Apple life, including Apple Pay, Keychain passwords, and family?photos, is at risk.”?

Foster provides an updateabout Apple’s introduction of “Stolen Device Protection.” He notes that “As of now, this feature is a huge leap forward to protect an iPhone and iPad from thieves who see the passcode. Congratulations, and thank you, Apple!”

Foster’s recent blog post will show you how to Safeguard Your Apple iPhones and iPads: Activate the Latest Theft Protection Setting Now!

The One Percent Rule

Daniel Pink has become one of the most sought-after subject matter experts on management. He has a way of making important topics simple without oversimplifying them.??

He attended law school but fortunately for the management world he chose a different path. I recently watched a 2.5-minute podcast of his in which he shares an experience he had while training to be an attorney. In it he shares,? “The most important thing I learned in law school. He calls it The One Percent Rule. And it has nothing to do with the law.

Econ Recon

Good for now, maybe not good for later:? ITR Economics’ Brian Beaulieu looks at year end economic data and suggests things look good for 2024, but maybe not so good for 2025. To find out why, check out his latest Fedwatch video.

Surprising GDP: ?GDP came in at a surprisingly strong 3.3% annual rate.?Even so, Economist Brian Wesbury thinks that the danger of a recession has not passed. Find out why he thinks so in his post 4th?Quarter GDP (Initial).

Wishing you. productive week!

Sue Tinnish, PhD,?Vistage Chair, Facilitator, & Executive Coach

Find me easily at: 847.404.7325, [email protected], X:?@STinnish, LinkedIn: www.dhirubhai.net/in/suetinnish, Website: https://vistage.com/chairs/sue.tinnish