Negotiating Your Investments

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Negotiating Your Investments Page 28

by Steven G Blum


  Fisher, Roger, and Scott Brown. Getting Together. London: Penguin Books, 1989.

  Fisher, Roger, William Ury, and Bruce Patton. Getting to Yes: Negotiating Agreement Without Giving In. 2nd ed. New York: Penguin Books, 1991.

  Freeman, John P., and Stewart L. Brown. “Mutual Fund Advisory Fees: The Cost of Conflicts of Interest.” Journal of Corporation Law 26, no. 3 (Spring 2001).

  Goldberg, Stephen B., Eric D. Green, and Frank E. A. Sander. Dispute Resolution. Boston: Little, Brown and Company, 1985.

  Goleman, Daniel. Emotional Intelligence. New York: Bantam Books, 1995.

  Grant, Adam. Give and Take: A Revolutionary Approach to Success. New York: Penguin, 2013.

  Kolb, Deborah, and Judith Williams. Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco: Jossey-Bass, 2003.

  Lathrope, Daniel J. Selected Federal Taxation Statutes and Regulations. San Francisco: Thomson/West, 2012.

  Lax, David A., and James K. Sebenius. The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain. New York: Free Press, 1986.

  Levitt, Steven D., and Stephen J. Dubner. Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. New York: William Morrow, 2005.

  Lewicki, Roy J., Joseph August Litterer, John W. Minton, and David M. Saunders. Negotiation. 3rd ed. Homewood, IL: R. D. Irwin, 1985.

  Lewis, Michael. The Big Short: Inside the Doomsday Machine. New York: W. W. Norton, 2010.

  Malkiel, Burton Gordon. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing. Rev. and updated ed. New York: W. W. Norton, 2007.

  Malkiel, Burton Gordon, and Charles D. Ellis. The Elements of Investing. Hoboken, NJ: John Wiley & Sons, 2010.

  Mnookin, Robert H., Scott R. Peppet, and Andrew S. Tulumello. Beyond Winning: Negotiating to Create Value in Deals and Disputes. Cambridge, MA: Belknap Press of Harvard University Press, 2000.

  Rackham, N., and J. Carlisle. “The Effective Negotiator—Part 1: The Behaviour of Successful Negotiators.” Journal of European Industrial Training 2, no. 6 (1978): 6–11; Rackham, N., and J. Carlisle. “The Effective Negotiator—Part 2: Planning for Negotiations.” Journal of European Industrial Training 2, no. 7 (1978): 2–5.

  Raiffa, Howard. The Art & Science of Negotiation. Cambridge, MA: Belknap Press of Harvard University Press, 1982.

  Schelling, Thomas C. Micromotives and Macrobehavior. New York: W. W. Norton, 1978.

  Schelling, Thomas C. Choice and Consequence: Perspectives of an Errant Economist. Cambridge, MA: Harvard University Press, 1984.

  Shapiro, Ronald M., Mark A. Jankowski, and Jim Dale. The Power of Nice: How to Negotiate So Everyone Wins—Especially You! New York: John Wiley & Sons, 1998.

  Shell, G. Richard. Bargaining for Advantage: Negotiation Strategies for Reasonable People. New York: Viking, 1999.

  Shropshire, Kenneth L. Negotiate Like the Pros: A Top Sports Negotiator’s Lessons for Making Deals, Building Relationships, and Getting What You Want. New York: McGraw-Hill, 2009.

  Siegel, Jeremy J. Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies. 2nd ed. New York: McGraw-Hill, 1998.

  Stone, Douglas, Bruce Patton, and Sheila Heen. Difficult Conversations: How to Discuss What Matters Most. New York: Viking, 1999.

  Susskind, Lawrence, and Jeffrey Cruikshank. Breaking the Impasse: Consensual Approaches to Resolving Public Disputes. New York: Basic Books, 1987.

  Taleb, Nassim Nicholas. The Black Swan: Second Edition: The Impact of the Highly Improbable. New York: Random House, 2010.

  Taleb, Nassim Nicholas. Fooled by Randomness: The Hidden Role of Chance in Life and in the Market. New York: Random House, 2010.

  Thompson, Leigh L. The Mind and Heart of the Negotiator. 3rd ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2005.

  Tobias, Andrew. The Only Investment Guide You’ll Ever Need. Rev. and updated. New York: Houghton Mifflin Harcourt, 2011.

  Tversky, Amos, and Daniel Kahneman. “Judgment Under Uncertainty: Heuristics and Biases.” Science 185, no. 4157 (September 27, 1974): 1124–1131.

  Ury, William. Getting Past No: Negotiating Your Way from Confrontation to Cooperation. Rev. ed. New York: Bantam Books, 1993.

  About the Author

  Steven G. Blum, who holds two law degrees, has been guiding clients through all aspects of their financial lives for more than 30 years. In addition to maintaining a law practice, he is a principal at Steven G. Blum and Associates, LLC, which places a special emphasis on the ethics of the professional-client relationship. The firm is based near Philadelphia.

  Blum has been teaching in the Department of Legal Studies and Business Ethics at the Wharton School of Business of the University of Pennsylvania since 1994 and was a visiting professor at the ALBA Graduate Business School in Athens, Greece, for more than a decade.

  In addition to teaching semester-long courses for undergraduate and MBA students, Blum has taught in Wharton Executive Education programs, lectured and consulted widely, and frequently leads seminars and educational forums. He has led training sessions for a number of Fortune 100 companies as well as organizations of lawyers, physicians, accountants, and other professionals.

  Of all the different aspects of his career, Blum takes tremendous pride in his role as teacher. He believes it is the highest calling in society. He has five times won the William G. Whitney Award for outstanding teaching at Wharton.

  Blum holds a bachelor’s degree from Wesleyan University, a law degree from Northeastern University School of Law, a master’s degree in education from Harvard University, a certificate of specialization in negotiation and dispute resolution from Harvard University’s Program on Negotiation, and a master’s degree in the law of taxation from the New York University School of Law.

  To read more of Blum’s writings or to get further information, visit www.negotiatingtruth.com.

  Index

  Accountant

  Achievement

  Action, need for

  Active listening techniques

  Adversary identification of

  vs. partner

  Agents added knowledge of

  agent employment foolishness

  agent employment wisdom

  conflicts of interest

  extra drag of

  interests and incentives

  interests of

  involvement of skilled

  summary

  Aggressive approach

  Aggressive behavior

  Agreement, structure

  Agreement steps

  All or nothing

  Alternatives power from

  use of from

  when making direct investments

  Annuity

  Appearance, of good outcome

  Arbitration system

  Ask price

  Asking about needs

  Asset allocation

  Asset classes beyond stocks

  diversification of

  major

  Asymmetric information knowledge, taking advantage of

  tricks of trade imbalance

  summary

  Atmosphere, interpersonal

  Atmosphere creation

  Authority

  Avoiders

  Ayers, Leonard P.

  Bad outcome

  Bargaining

  Bargaining for Advantage (Shell)

  Bargaining phase about

  concessions, slow and fair

  conditional language usage in exploration

  fair and favorable proposals

  fair share insistence

  pie increasing and sharing

  summary

  Bartering

  BATNA (best alternative to a negotiated agreement) awareness of

  identification

  of other side’s estimate

  of other side’s, weakening

  vs. relationships

  strengthening

  Bauer, L
eigh

  Beardstown Ladies

  Berkshire Hathaway

  Best agreement

  Best alternative, power from perception shaping of others

  possible alternative inventory

  summary

  Best interests and trustworthiness

  Best investment deal among many

  Best possible price

  Better offer vs. more money

  Bias toward trusting

  Bid price

  Biden, Joe

  Big-ticket negotiating similarity

  Binding

  Blind trust

  Bogle, John

  Bonding with others

  Bonds

  Brainstorming process

  Broad index funds

  Brokers, investing through

  Brown, Scot

  Buffett, Warren

  Business model

  Buy-sell disparity

  Call (buy)

  Callable bonds

  Capital, controlling

  Capital calls

  Car sales

  Care

  Cash

  Cautions

  Caveat emptor

  Certificates of deposit

  Chamberlain, Neville

  Charges. See Costs and fees and charges

  Checking and getting out ability

  Class A shares

  Class B shares

  Clients new and current

  profitability from

  retaining

  Closing and commitment phase about

  patience

  promises that will be kept

  scarcity as enhancement for deal

  summary

  Closing window of opportunity

  Codes and expectations

  Cognitive dissonance

  Commission-based compensation

  Commissions and fees. See also Costs and fees and charges

  Commitments binding tightness

  binding timing

  degree of

  duration

  little agreement steps

  meter

  in negotiations

  thinking about

  throughout the process

  what and when

  summary

  Commodities

  Communication failures

  method of

  monitoring efforts of

  planning

  Compatible interests

  Competition

  Competitors

  Complexity

  Compounding

  Compromise

  Compromisers

  Concessions

  Conditional language

  Confidence-building measures

  Conflict(s) of interest about

  agents

  incentives

  other than money

  summary

  Confusion

  Contracts of adhesion

  Contractual agreement, one-sided

  Control, seizure of

  Conversation

  Convertible securities

  Cooperation

  Coppola, Francis Ford

  Cost minimization

  Costs and fees and charges advisor

  of agents

  awareness

  brokerage charges

  excessive

  explanation of

  of financial intermediation

  hidden

  hourly fees

  management

  negotiation over

  sales charges

  transparency of

  Currency risk

  Danger of lies

  Data gathering

  Data presentation

  Deal, new

  Deal improvement

  Deal structure, possible options for best investment deal among many

  cautions

  training interest of others vs. yours

  working together to make packages

  summary

  Dealers, investing through

  Deals, Pareto optimal

  Deciding consulting before

  vs. inventing

  Default risk

  Defense systems

  Defined-benefit plans

  Defined-contribution plans

  Demand response with confidence

  Derivatives

  Differential treatment

  Direct investments, when making about

  alternatives when investing through intermediaries

  demand response with confidence

  Direct purchases

  Dirty tricks

  Distractions

  Distributive bargaining

  Diversification about

  of asset classes

  asset classes beyond stocks

  efficient markets hypothesis

  further

  index funds selection advice

  in investment portfolio

  and portfolio risk

  risk tolerance and

  summary

  Documentation in writing

  Dodd-Frank law

  Dollar cost averaging

  Double meanings

  Dow Jones Industrial Average

  Dubner, Stephen

  Early exit penalty

  Economic truths for investor-negotiators

  Efficient markets hypothesis

  Ego

  E-mail

  Emerging market bonds

  Emerging market stock funds

  Ending focus

  Enemies

  Errors

  Even better outcome

  Exchange Traded Funds (EFTs)

  Exit fees

  Expertise

  Experts, trust of

  Explanations, comprehensive

  Facebook

  Face-to-face cues

  Fact collecting

  Fair and favorable proposals

  Fair deal

  Fair division demands

  Fair profit

  Fairness about

  defined

  definitions of

  fair share

  fair share insistence

  fair standard

  fairest solution

  measurement beyond market value

  norms of

  outside measures of

  understanding of

  summary

  Fairness standards, insistence of use of beware of variances to

  fair division demands

  fees and costs awareness

  measurement of

  profitablity and transparency awareness

  value-providing services payment

  summary

  Faithfulness

  Fama, Eugene

  Fee impacts

  Fee-only advisors

  Fees. See Costs and fees and charges

  Fiduciary pledge

  Financial advisors characteristics of

  concerns about

  investing through

  questions for

  Financial experts

  Financial instrument

  Financial markets, nature of

  Financial practitioners

  Financial products

  Financial services firms

  Financial services industry

  Firm deadline

  Fisher, Roger

  529 College Savings Plan

  Fixed pie

  Flexibility vs. binding

  options

  Footdragging

  Forbes (magazine)

  Framework

  Fraud, legal definition of

  Freakonomics (Levitt and Dubner)

  French, Ken

  Friendly in person

  Friendships

  Front running

  Future dollars

  Gain

  Gambling

  Gambling and market return

  Getting to Yes (Fisher, Ury and Patton)

  Getting Together (Fisher and Brown)

  “The Gift of the Magi” (Henry)

  Give and Take (G
rant)

  Goals. See also Individual goals; Interests, options, and goals; Relationship goals reflection vs. relationships

  setting

  tentative

  The Godfather (movie)

  Gold

  Goldman Sachs

  Good negotiating process

  Good outcome about

  appearance of

  vs. bad outcome

  defined

  identification of

  for investor

  of negotiations

  process planning

  and relationships

  vs. winning

  summary

  Good outcome regarding investments about

  individual goals regarding

  investment goals

  summary

  Google

  Grant, Adam

  Growth stocks

  Haggling

  Hedge funds

  Henry, O.

  High costs. See also Costs and fees and charges complexity and creative genius

  impacts

  Historical average stock return

  Historical professionals

  Hitler, Adolf

  Honest dealings

  Honesty

  Human behavior

  Ideal client

  Ideas, latching on

  If-then statements

  Impatience

  Incentives

  Index funds

  Index mutual funds

  Individual goals about

  investing to be clever

  investing to be safe

  investing to be wise

  investing to feel connected to peers

  Individual Retirement Account (IRA)

  Industrial bonds

  Industry risk

  Inflation-protected bonds

  Influence

  Information access to

  clarifying

  on facts

 

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