Memories of Don Sheehan and "Value Investing"

Don Sheehan, a superstar salesman who used to do Dale Carnegie seminars nationwide, used to spend quite a bit of time on teaching sales pros what to concentrate on and what to ignore. To make a point, I remember him whipping off his belt---quite startling in a room packed with people---and then asking everyone to guess what they thought his belt was worth. He then reminded them that he was well travelled---- France, Germany, New York, and San Francisco, and that to remember that this belt was genuine cowhide with a premium belt buckle. He went around the room and asked each person what the belt was worth. The price variation was pretty wide. From $3.99 to $25. "Well," he said, "I bought it at K-Mart just down the street in Richfield. It cost $4.99." We were really shocked. "People are always guessing what you paid for things. It is really none of their business. Let em guess. There is a difference between what you pay for things, and what they are worth. Never forget it." I never have. Thanks Don.