Sean Allen Fenn

@seanallenfenn

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Sean Allen Fenn

As the Germans invaded, Sam’s father caught the last train out before the Nazis bombed the tracks. The family made their way through Poland to Lithuania. Sam’s father continued to trade grain. Sam’s mother wanted to settle there. Sam’s father insisted on leaving Europe. Their ultimate destination would either be the British Mandate of Palestine or the US. In July 1940, they sought travel visas from the Japanese consulate in Lithuania. Chiune Sugihara was their last hope for a safe passage through Japan. To be continued...

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Sean Allen Fenn

It’s Life or Death. Take the Money and Run. Methods of Prosperity newsletter no. 73. Sam Zell (continued). TL;DR In 1937, anti-Semitism intensified. It culminated in the Kristallnacht pogroms in November 1938. Nazis targeted Jewish businesses and synagogues. Sam Zell’s father became aware of the growing danger for Jews in Poland. He took significant risks to secure his family’s future. He transferred money to a bank in Tel Aviv. This would ensure a financial foothold outside of Poland. His wife sewed jewelry into their clothing. They relied on coded communication to navigate these challenges. In 1939, Sam’s father learned about the German-Soviet non-aggression pact. Germany would soon invade Poland. He immediately made plans for his family’s escape. Their relatives refused to leave. Sam’s father made sure his wife and Sam’s sister were safe (Sam hadn’t been born yet).

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Sean Allen Fenn

Shabbat shalom!

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Sean Allen Fenn

The story of Sugihara sets up the next section of this newsletter. The son of a Jewish couple from Poland who Sugihara helped was a man named Sam Zell. The following is his story. To be continued...

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Sean Allen Fenn

Unlikely Savior of Jews Methods of Prosperity newsletter no. 72. Sam Zell. TL;DR In 1940, Nazi forces advanced through Eastern Europe. 200 Polish Jews sought help at the Japanese consulate in Lithuania, hoping to escape. Japan and Nazi Germany had an alliance. Japan’s policy allowed Jewish refugees to access its territories. Most countries, including the U.S., turned them away. Chiune Sugihara was Japan’s Consul General in Lithuania. He defied orders from Tokyo. Sugihara issued visas to these refugees, risking his career and reputation. His actions led to his demotion and eventual expulsion from the foreign ministry. Still, Sugihara continued issuing visas. Japanese superiors reassigned him. Sugihara saved an estimated 6,000 Jewish lives. His motivation stemmed from a sense of shared humanity. Sugihara’s upbringing placed him in a household that welcomed and cared for guests. That affected him. Israel later honored him as Righteous Among the Nations for his courageous efforts.

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Sean Allen Fenn

Nike Against the US Government Methods of Prosperity newsletter no. 71. Phil Knight (conclusion). TL;DR The judge sided with Phil and Blue Ribbon in their case against Onitsuka. Phil hired their lawyer full-time. Blue Ribbon still faced financial challenges. Blue Ribbon survived auditing issues from Nissho and creditor payments. Nissho forgave Phil’s decision to make them pay for a secret factory. The Bank of California accused Blue Ribbon of fraud. Nissho’s intervention prevented an FBI investigation. To address cash flow problems, Phil considered taking the company public. He hesitated due to potential loss of control. Blue Ribbon Sports rebranded to Nike Inc. Supply couldn’t meet demand. Nike expanded manufacturing to Taiwan, despite being cash poor. Nike dealt with Korean knock-offs by absorbing the Korean factory that counterfeited them. Competitors including Converse colluded to influence U.S. Customs. They forced a $25 million retroactive import tax on Nike. Nike fought back with ...

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Sean Allen Fenn

It’s easy to listen to “Melanie” by Sean Allen Fenn on Tortoise

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Sean Allen Fenn

It’s possible you think this is a dumb question but I can’t figure out how to access this $degen

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Sean Allen Fenn

That’s awesome! Reminds me of when someone gave me advice. His name is Stefan Sagmeister.

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Sean Allen Fenn

The Holy Grail.

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Sean Allen Fenn

You’re Remembered for the Rules You Break. Methods of Prosperity newsletter no. 70. Phil Knight (continued). TL;DR In 1969, Phil Knight left his teaching job to focus on Blue Ribbon Sports. By 1972 they launched the Nike shoe at a trade show. Despite imperfections in the product, it sold well. Blue Ribbon had a reputation for telling the truth. Their relationship soured with Onitsuka, their Japanese supplier. When Blue Ribbon launched Nike, Onitsuka ended their contract, claiming damages. Phil pushed for independence. He recognized the opportunity to launch Nike. His company secured credit to survive, but struggled to maintain liquidity. In 1975, Blue Ribbon faced a severe cash shortfall, resulting in bounced paychecks. Desperate, they took a loan from a local box company, to cover payroll. It was the same vendor which depended on Blue Ribbon to stay in business. That’s when the Bank of California severed ties. Phil couldn’t pay the $1 million he owed to his equity partner, Nissho. He asked ...

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Sean Allen Fenn

This is great! How do I bookmark it?

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S·G 🎩↑🙂

Bookmarked 📕

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Sean Allen Fenn

What about Layered Debt and Equity with Mezzanine Financing? Combine senior debt (bank loan) at 55–60% LTC. Then add mezzanine debt or pref equity to reach 75–80% LTC. With the sponsor and/or outside investors providing the remaining common equity. For example, Senior lender provides $42M (60% LTC). Mezzanine lender provides $14M (20% LTC). Sponsor/investors contribute $14M (20% equity). Either that or Preferred Equity Layer. Instead of traditional mezz debt, use a pref equity tranche above senior debt. Pref equity investors receive a fixed return. Or build an interest reserve into the loan. That way the sponsor doesn’t need to service debt during construction. Wouldn’t that improve cash flow and reduce equity needs?

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Sean Allen Fenn

The Origin of Nike’s Swoosh Methods of Prosperity newsletter no. 69. Phil Knight (continued). TL;DR Kidami, Onitsuka’s export manager, wasn’t satisfied with Blue Ribbon. He visited Phil in Portland. Phil discovered that Onitsuka was looking for new US distributors. Phil’s bank cancelled him. Phil made a deal with a Japanese trading company named Nissho Iwai. He gave away no equity. Phil found a factory in Guadalajara to import a new brand of athletic shoe. He hired Carolyn Davidson, a graphic design student at Portland State University. She designed the “swoosh” that would become recognizable. Jeff Johnson came up with the Nike name. Not depending on only Nissho for funding, Blue Ribbon raised capital through debentures. The shoes manufactured in Guadalajara fell apart. Phil found a more reliable manufacturer in Tokyo. While visiting Japan, he paid a visit to Onitsuka, who didn’t know about his deal with Nissho. It was the beginning of the Nike brand. To be continued...

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Sean Allen Fenn

Multitasking is for the Unfocused Methods of Prosperity no.68 Phil Knight (continued) TL;DR Creating a successful business demands significant focus and energy. Phil Knight prioritized Blue Ribbon Sports. He worked at Price Waterhouse until it took up too much time and energy. Phil transitioned to teaching accounting to focus more on his business. Blue Ribbon Sports needed to take market share from Adidas and Puma. Blue Ribbon hired competitive athletes as salesmen. Sponsoring athletes helped Blue Ribbon gain market share. Inconsistent deliveries from Onitsuka held up sales and debt repayments. Phil’s banker demanded cash reserves. Blue Ribbon needed liquidity. Phil attempted to take the company public to solve these problems. That didn’t work. Phil raised funds from family and friends. He explored Japanese trading companies for financial support. Phil was considering a deal with a Japanese trading company named Nissho Iwai. That’s when he discovered Onitsuka was seeking a new US distributor.

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by the time anyone can make an app, apps will be the wrong thing to make

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Sean Allen Fenn

It’s Not A Lie If Your Word Comes True Methods of Prosperity no. 67. Phil Knight (cont.) TL;DR Johnson had been attracting the Marlboro Man’s customers on the East Coast. Johnson had done all the ground work. No one promoted Tigers like he did. Now the Marlboro Man placed an ad in Track & Field News. Johnson and Phil devised a plan to cut him off. Phil flew to Japan to secure exclusive US distribution rights for Onitsuka shoes. He stretched the truth about having an East Coast office. This led to Blue Ribbon securing a three-year contract and ordering 5,000 shoes. Phil hired someone to take over for Johnson at the Santa Monica store. Johnson agreed to move to Boston to oversee East Coast operations. Before moving, he demanded a partnership and higher pay. Phil Knight and Bill Bowerman refused to give him equity. He settled for a small raise. In 1967, Blue Ribbon expanded further. They hired new employees and opened a second retail store. They developed the Cortez shoe, a direct competitor to Adidas...

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Sean Allen Fenn

Not culty enough.

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Sean Allen Fenn

Curious what to do with this. It’s not in my wallet?

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