Tommy Wilson: How to play the game of business

The share market has been the subject of much iwi discussion over the past week.

Financial literacy is a bit of a buzz phrase these days, especially in the education sector, and the art of making a quid in the form of profit is something I believe we should not only teach more of in our schools but have more understanding of in our own everyday lives.

Yes, it's true that I teach - and some say I preach - that the currency we measure success by should be more about mana and not money but I feel strongly that for far too long Maori have been gun-shy of success in the form of making money from business and investments.

I guess getting the balance between both is possibly the secret to a successful and healthy, happy life.

This last week the subject of the sharemarket has been much discussed as iwi up and down the country look toward investing some of their settlement putea (funds) to guarantee there will always be a healthy financial future for tomorrow's generations. (I can almost hear the gnashing of teeth and fervent typing of letters of protest to the editor, from the far right who believe Maori have been feasting at the treaty trough for way too long).

Some say we should sit on it and hide it underneath our mattresses earning zero interest, while others prefer the safe 'up and under' with the boys at the local bank.

But for others who walk in the world of making a good quid, the sharemarket is the place to put your money.

A recent success story is an investment by one of our informed business bros where in 18 short months he turned $400,000 - invested in a Katikati titanium dental manufacturer, into a return of $1.2 million, equating to a 300 per cent return that came back to the iwi.

Not bad going in anyone's books but still some doubt by the bank it all on four per cent brigade and the safe as houses- sit on it - under the mattress members.

I have always been a fan of the financial section of the newspaper.

I find the inner sanctum of stock exchange 'darlings' and their dividend-dependent, high-rolling - highly-paid chief executives a voyeuristic delight, and almost hypocritical for someone like me who plays no part in the guessing game of the sharemarket.

For as long as I can remember I have opened up a newspaper and made a beeline for the business section while my mates fought over who would get first scoop on the results of the sports section.

"What do you read that rubbish for?" they would ask, "it's just for rich people and you ain't one of them bro!" to which I would reply, "It's exactly the same as what you are reading. Business is a fascinating game, with all the drama and theatre of any other fiercely contested endeavour."

Obviously the bro who invested us into the titanium treasure chest knew a lot more than most about the game of buying and selling shares.

Many moons ago I was challenged by a good friend who enjoys a healthy retirement from an executive position within the banking industry, to test my knowledge of the sharemarket industry and the major profit-making players.

The challenge was to put up my imaginary, well researched share portfolio against the one he and his mates had put together for more social than money-making reasons.

Ten years down the track I can proudly proclaim that my sharemarket 'darlings' based on local and ethical investment (Ports of Tauranga, Comvita, Carrus and the clever Katikati dentist) have easily out- performed their 'insider' portfolio.

When you look at the vision of all of their founding fathers you can see a pattern of success.

Comvita ticks all the boxes, balanced with the huge potential of Manuka honey, which many Maori Trusts are now investing into.

If I were to venture into the highly speculative Wall Street world of the stock exchange I would have three rules that spell success when buying shares.

Firstly invest locally and ethically.

Secondly invest in a company that has a CIO - a chief imagination officer who not only believes in the story behind the brand he is the masthead for, but is also a story teller himself, because if what the marketing gurus of the world are saying right now, that we are heading into the imagination world from the information world, then the Fortune 500 of the future will all have chief imagination officers not chief executive officers.

And lastly, from someone who believes in the taiaha (weapon) of knowledge, learn how to play the game of business and all of its forms of financial literacy.

You may surprise yourself by what you learn and earn.

broblack@xtra.co.nz

Tommy Wilson is a best-selling local author and columnist.