And, building wealth is a powerful incentive. Ask anyone if they want to "get rich quick" and they will be wary. Ask them if they want to "build wealth," and the answer will be, "Great! Show me how."

Moreover, money as a prime goal in life seems to be pervasive in the American psyche. Every time I look on the Internet to check the price of Collectors Universe Stock (CLCT on NASDAQ) I see all these annoying little blips and blinking bright spots, or shriveling then expanding type, suggesting that if I investigate here and there, I can find out the price of stocks before they open on the market, inside trader information, what to buy or what to sell, and so on.

I think one could become a nervous wreck simply by analyzing and studying too hard all the information that is available on a given stock—whether it be Disney (of which I have been a stockholder for many years), General Mills (ditto), or CLCT.

As you should know, in the stock market everyone has 20-20 hindsight, but when "dot.com" stocks were rising, all of the big investment houses were in clover, with few if any saying "don’t buy." Now, everyone knows that a "dot.com" business with no proven business strategy, no experience, and an uncertain market is a risky stock purchase.

Investing in Stocks
Knock on wood. All of my life I have been an overall winner in the stock market. And, I still haven't pushed any of those blinking buttons, and if someone I don't know calls me with a hot tip, I hang up.

I am a tortoise, not a hare. My formula for success, apart from buying some favorites (such as Compudyne, run by my friend Marty Roenigk, whose business acumen I admire), is simply to invest in a mutual fund of proven track record. For example, Fidelity Magellan has done rather well over the years. John W. Adams (well known in numismatics as well as in investment securities, the latter through Adams, Harkness & Hill, an old-line conservative firm) has suggested some "buy and hold" things; the other day I saw that something that one of my sons bought for $10,000 is now worth $44,000—not bad. Thank you, John.

Just as in numismatics, jumping around from one stock to another seems to make money only for those selling the stocks, not for those owning them.

However, that is not the purpose of this article… I do not presume to give stock market advice and, besides, I wish that Collectors Universe (CLCT), which does have proven earnings, would go up!

Taking Care of Business
The other day, I was engaged in a conversation with a highly successful American business person who has quite a few dollars—not by turning his business over to someone else for "wealth management," but by tending carefully to his own business for many years. We were discussing money and the popular press. I mentioned an article that I had seen in the Columbia Journalism Review, "'Wealth Porn' and Beyond," by Gary Andrew Poole, which told about all of the emphasis on wealth, making money, spending money conspicuously, and so on.

Poole quoted an article in the New York Daily News about a new restaurant where with wine and tip the dinner cost $500, and "the entire place is so chichi women will have special stools just to rest their handbags." According to the same writer, an article in the Washington Post told about the hot trend of spending $250,000 per week to charter a yacht, and buying a $26,500 Patek Philippe watch.

Similarly, a recent cover of Fortune magazine depicted Larry Ellison, CEO of Oracle, with a reporter's comment that he could hardly stand it being the second richest man in the world after Bill Gates. Our own view is that we seriously doubt whether "competitor" Gates spends much time wondering whether he is the wealthiest man in the world, or second wealthiest, or tenth wealthiest, or anything else. High praise goes to Gates for giving away a substantial amount of his fortune, becoming, to the best of our knowledge, the most generous single supporter of charity America has ever known. Now, that's important. A great challenge would be to catch up with Gates' generosity!

After discussing the matter a bit further, my friend and I concluded that chasing after money was a rather unfulfilling sport. No matter how fast one runs, someone will do better. And, the bigger they are, the greater they fall. Recently the Wall Street Journal has run a series of articles on "Internet tycoons" who once had zillions of dollars, and now have just a tiny fraction, or little if at all. Yesterday's ideas which were oh so exciting are now, in clear hindsight, ridiculous—again the question: Why did anyone pay so much for all of those e-commerce stocks a year ago?

Anyway, what is the purpose of gaining money? One can "build wealth" and have little enjoyment from it. The case of millionairess Hetty Green is well known. Nicknamed the "Witch of Wall Street," she lived in poverty in decrepit premises in New Jersey, while owning millions of dollars' worth of assets. She would not give proper medical treatment to her son, Edward H.R. Green (who later became a famous coin collector, and whose story is chronicled in my Adventures with Rare Coins and in other places), who became crippled as a result. She lived a rather miserable existence—but her son, upon inheriting all of her squirreled wealth, spent lavishly.

Many others—their numbers are legion—have spent decades of their lives working up the management ladder, accumulating stocks and stock options, but not taking the time to enjoy anything. Then, all of a sudden they have a heart attack, die, and their heirs have all the money—to spend on personal enjoyment. The individual who earned it didn’t enjoy it.

By the way, I think if someone collects Patek Philippe watches, or wants one because it is beautifully crafted, he or she should buy one if budget permits. However, to buy such a thing just to impress someone else is, in my opinion, a mistake.

Numismatics
This article, of course, has a numismatic theme, and the highly successful business person with whom I was talking—reference the first part of this article—is also a dedicated numismatist. We both congratulated ourselves on how lucky we were to have a few dollars (his accumulation of assets is far, far greater than mine, but I have always lived fairly decently) and, at the same time, to have our personal lives in order to the extent that we have spend some of this money on enjoyment.

My friend has a very nice coin collection (and is a regular bidder in our sales and buyer from our fixed price lists), has a superb library, and also has his own personal museum—where he has put on exhibit some of the items of interest to him, which he willingly shares with his friends.

I have never seen my friend's personal balance sheet, and if given the opportunity I would decline, as I have never been snoopy (not even about competitive coin dealers—I hope they all do well and enjoy themselves). However, I can say that however many dollars he has, he probably could have 50% more if he did not collect so intensely and extensively. He would pay a high price for this extra 50%. He would then be a driven man, would never be truly happy, would never reach his ever-expanding goals (Tantalus, the mythical Phrygian king comes to mind as does Aesop's fable of the dog, bone, and reflection in the brook), and would not have experienced the rich enjoyment that he has—by fraternizing with other collectors, reading books in his library, enjoying our coin catalogues as they come in the mail (enthusiastically saying so), and more. He is a happy camper who has had success in his business life, but who has used this success for his hobbies and other interests. And, lest anyone think otherwise, he has been a substantial donor to charity (without publicity).

A Rare Token
I collect tokens—as you cannot help but know if you have been a constant reader of what I write. The other day I had the chance to purchase for the best part of $2,000 a token made by James A. Bolen in the 1860s, depicting on the obverse an elephant (similar to that found on the circa 1694 Elephant token of colonial fame), with the inscription ONLY TEN STRUCK. I have been looking for one of these for years. At the same time I bought a bunch of clipper ship advertising cards relating to San Francisco in the 1850s. I plan to arrange these in a display of California-iana here at the office—some colorful printed material to go along with the display of the 1857-S $20 (grade: MS-62) I bought from the S.S. Central America treasure. I realize that the money spent on these things, if invested in a money market account or given to someone in "wealth management" would yield my estate a few more dollars. But, why should I care? I love these "collectibles." And, for me, they are also a store of value. Someday, someone will probably pay a profit to buy them from me or my heirs. Or, even if they don't, I have fun owning them.

A few years ago, I was visiting a shopping mall and saw a decorative pillow labeled: "FLY FIRST CLASS - YOUR HEIRS WILL." I thought this was quite funny, and I mention it now as it is relevant to the present article. One should enjoy the fun of getting through life, and if flying first class is your "thing," and you have taken care of your other obligations, this is the way to go. (I usually fly tourist class, but that is my choice. The next time I fly from here to California and back, the savings will pay for a colorfully lithographed clipper ship card or a Currier & Ives print, which to me is a better value.)

Longevity of Interest in Numismatics
With regard to coin collecting, each time I attend an annual meeting of the Rittenhouse Society I see a number of friends I have known for 40 years or more. The Society was founded in 1960, and just about everyone who was a charter member, and who still lives, is as enthusiastic as ever. Let me mention Kenneth E. Bressett. Back in 1960 he was a collector in the private sector, liked colonial coins, and was a frequent correspondent about such things—in an era in which the number of interested researchers could probably be counted on the fingers of both hands.

In the intervening years, Ken has gone on to become the editor of A Guide Book of the United States Coins, president of the American Numismatic Association, author of multiple books, a highly valued numismatic consultant, a rare coin dealer, and more. Having talked to Ken last week, I can say that he is every bit as enthusiastic right now as he was when I first met him (which must have been about 1955 or 1956 even before the Rittenhouse Society was formed). I do not know the extent of Ken's private coin collection, but I do know that whatever he has he enjoys, and if he had collected no coins at all, but had bought a few more common stocks or invested an equivalent amount in his saving account, he would be much poorer as a result.

A number of years ago—this would have been in the 1970s—I drove through the California Gold Rush country, one of my favorite areas of the United States. Crossing the line into Nevada, I went to a very elegant new casino and checked in at the front desk. I was greeted warmly by a man who mentioned that he had been a customer of my company for a long time. The tangible reward is that I received a super deluxe room at a "regular" price—a thank you from him for all of the nice coins he had bought. He then said that he had spent all of his adult life in the business end of the hotel industry in order to earn a decent living, and that he could hardly wait until he retired. Then he would do the things he wanted to—including spending more time on his coin collection. I could not help but think of how many years this man had wasted.

When I think of numismatics, I think of it as a way of life. I know that this is not for everyone. Some people collect casually, want no more than this, and that is how it will stay. There are any number of people who enjoy owning an "old silver dollar," or a "gold coin—I have never seen one before," but whose interest is no deeper than that. In a related vein, I think old slot machines are interesting, and I just bought a very ornate Caille slot machine made in Detroit circa 1905. However, I am not the slightest bit motivated to buy 20 varieties of slot machines, or to study them intensely, or to attend conventions about them, or to otherwise be involved. I wanted this one piece, which is a real beauty, and that was it, the beginning and the end. So it is with some coin collectors. That said, if longevity and deep involvement is for you, numismatics has much to offer. A hobby of any kind adds a rich dimension to life, a place to "escape" the everyday pressures, the challenge of completion, the excitement of learning new things, the enjoyment of meeting other people who share interests, the attending of conventions to look around and see what's new, bidding at auctions, reading in a comfortable chair in a leisure hour, and more. I have always felt that if Uncle Sam spent less on welfare checks and more on getting kids interested in hobbies (coins, computers, chess, anything with a challenge and a framework of enthusiasts to befriend) that juvenile delinquency would drop to the vanishing point. A client of ours who is a juvenile court judge stated that he had never sentenced an active Boy Scout. This must mean something.

Although I have no way of knowing, I suspect that one of the best ways to "build wealth" would be to tend to one's business or profession on a regular basis, but at the same time allow sufficient extra hours, days, and weeks to indulge in a hobby as well, to "build emotional wealth." Now, there is a catch phrase worth adopting!

Come to think about it, anyone who could promise and deliver emotional wealth to his or her clients will have all of the monetary wealth they can ever use.

I suggest that becoming involved in the joys of systematically forming a rare coin collection and learning the romance and history of the pieces you own will build a great deal of emotional wealth for you—and your overall enjoyment of life, your happiness, will increase at an exponential rate.

Besides, a hobby such as coin collecting is always there. Markets can rise and fall, but something that is interesting remains interesting.

Regarding markets, in the rare coin field, if the market falls, the true collector views this as an opportunity to buy. I would much rather acquire a token for $1,500 when the market is "low" than buy the same token at $5,000 when the market is "hot." In fact, being a contrarian by nature, I have always bought against the tide, and have sought out things that others did not particularly want at the time.

Right now is a great time to be a coin collector. There is more information available in print than ever before, market prices for many issues range from "reasonable" to low, there is a great deal of enthusiasm in the air, and while the investors are "away" from the market (they've been buying "dot.com" stocks, I suspect), you can buy coins without artificial competition from them.

Being a numismatist can enrich your life in many ways. It has for me.