Seymour Schulich is a billionaire whose career has spanned stock brokerage, investment counselling, mining and the oil industry. He is Canadian and is among the greatest living philanthropists and many universities has his name on buildings. He also awards 650 scholarships a year. He is in his 70’s and wrote a book to tell students about his life experiences and the book is called Get Smarter – Life and Business Lessons by Seymour Schulich published by Key Porter Books, Toronto, 2007.

Gold – gold is an inflation edge because it is easy for governments to print money. It is not easy to find and produce gold economically which is why gold has held is value against inflation. When the US dollar is weak, gold goes up in price.

The Power of the 20% Position Versus Hostile Takeovers – Warren Buffett said the greatest bargains come in buying the first 20% of a public company. His group has bought 20% in some very good companies and he says we do not participate in auctions or trying to buy 100% of the company. Invariably the price goes higher than desired.

Corporate taxes – Successful Companies Pay Them! – there is a big difference between trying to minimize taxes and trying to avoid them. The greater the scheme or efforts to minimize them, the greater the ability to make really dumb mistakes, because management spend time and effort to minimize taxes rather than grow the business.

Governance – because 1 1/2 to 2  of US corporations misbehaved, the government overreacted in the field of governance. Reality check is Boards of Directors do not run companies, management does. The only real job of the Board is management succession.

Mr. Schulich would:

Rule 1: no investment dealer can be both a principal and agent.

Rule 2: all multi-vote share should have a 10 year sunset clause where they must be renewed by a majority vote from all classes of voting shares.

Rule 3: No corporate stock options can be granted to any person who owns more than 5% of the shares outstanding.

Governance is best summed by the Bible rule – Do unto others as you would have them do unto you.

Philanthropy  – is about giving back. You can give time, talent or treasure  (the 3 T’s), if you give one or all three they are all important. Mr. Schulich’s passion is education and he gives to universities and scholarships. Every year he gives 400 scholarships to 4 universities because a 100 years from now many things will not matter, but the world might be a better place because you helped a young person.

Linking to dividend paying stocks, over the years you own them part of the reason is to generate wealth for you to live (i.e. pension) and to give away to your family and community. Through owing the companies, you have developed patience and discipline and the markets have worked for you. Do the lessons change every year, not really but you have to keep watch, ensure the companies are staying profitable and continue to take advantage of opportunities.

There are more questions than answers, till the next time – to raising questions.