Interview: Steve de Brun, Co-Founder of StockTouch

Today, I’m proud to publish an interview with a co-founder of a visually dynamic finance application called StockTouch.  Priced at $4.99, StockTouch uses color heatmaps to illustrate fluctuations in price movements.  Unlike the Wall St. Journal listings of NASDAQ and the S&P 500, StockTouch organizes stocks via color-coding into nine sectors--consumer goods, services, healthcare, energy, technology, financial, industrial goods, materials, and utilities.  If you want to read recent news articles or stock charts for a particular a company, you simply press your finger on the ticker symbol.  The app is intuitive, informative, loads quickly over wi-fi and 3G connections.  All things considered, the app blends finance and design fluidly.  To learn more, please visit stocktouch.com.            

1. Can you tell us about your educational and professional background?

Jennifer Johnson, our CEO, has a B.S. in Economics from Wharton and an MBA from Columbia. She is a former investment banker and finance professional who worked at UBS and Merrill Lynch, and is currently an entrepreneur and angel investor.

Steve de Brun, co-founder and VP of User Experience, has a B.A. in Visual Arts from Brown University. He has worked for early digital agency vivid studios, News Corporation, guru.com, and many other venture-funded companies.

John Morris, CTO, is a software developer and mobile game programmer, as well as co-founder of Blue Lava Wireless games, which was sold to JAMDAT, which was sold to Electronic Arts.

2. For our readers, can you describe StockTouch?  Specifically, what differentiates StockTouch from other finance apps in the market?

StockTouch is a dynamic, zoomable heat map of the stock market that gives you a birds-eye view of 900 companies organized by sector, and allows you to zoom in to view individual sectors and specific stocks. It enables you to touch and manipulate the data, and we believe this creates a more powerful experience of the information landscape.

3. What advice do you have for college students interested in starting their own business?

Make sure you develop your critical thinking and problem solving skills, and your social skills. Don't worry too much about specific academic qualifications, but if you're going to be an artist or coder obviously dig in and learn as much as possible. Build pet projects, websites and apps for friends, families and small businesses. Try to get involved with startups as a summer intern - spend time on Crunchbase.com, identify recently funded companies in your area, and approach them.

4. What market(s) are you targeting with StockTouch?

StockTouch is used by retail investors, but we are also finding that finance professionals are using the app as well. StockTouch is focused on equities traded on U.S. exchanges currently (even global companies traded on U.S. exchanges) and we plan on expanding our coverage over time.

5. Is there anything else you’d like to share about StockTouch?  

We believe that StockTouch is in its infancy, and there's a long way to go to expand the capabilities and possibilities with this app. We are entering an age where it will be expected that you can get hands on with data and interact with data visualizations in a more palpable, dynamic and fun way.

Corporate Governance and Generation Y

One of the core purposes of corporate governance is to maximize shareholder value through the elimination and reduction of conflicts of interest between management, the board of directors, and the shareholders.  It follows from this principle that management should consider the interests of shareholders first.  While shareholder maximization theory has its advantages, the downsides associated with this model are rarely discussed.

Last September, a successful businessman spoke to my business fraternity about the millenial generation, which refers to individuals with birth dates ranging from the mid-1970s to the mid-1990s.  In two years, Millennials will account for nearly half the employees in the world.  He characterized us as instant communicators familiar with social networking.  We are more tolerant, expressive, and less religiously observant than our predecessors.  We search for meaning through our professions, viewing work as an inherent part of life, not something we do strictly in exchange for income. 

It will be intriguing to observe how entrenched business practices react as Generation Y climbs the corporate ladder.  The environment, meaningful work, and long-term thinking might conflict with the theory of appeasing grubby shareholders in the short run.  This viewpoint has validity--would you work to maximize value for thousands of remote and impersonal individuals you’ve never met?  Furthermore, what are the implicit costs of shareholder maximization?  

Generation Y has resoundingly expressed that the success of a business should not be measured exclusively by profits.  Innovation and societal development are equally as important as the bottom line.  Businesses that serve society profitably are likely to thrive in a business world run by Generation Y.  An observant person would predict to see a fundamental change how top executives perceive the purpose of business.  Time shall tell.   

Thought Questions

You arrive home after an exhausting day at work or school.  Your mind is preoccupied with that team project that is stuck in the mud or how you are going to pass that economics exam.  You crash on the couch and turn on the tube....

Rarely do we take the time, or have the time, to reflect on the deeper aspects of life.  Self-reflection enables us to learn from experiences of the past and prepare for the future.  Long-term happiness is partially a function of how thoroughly we examine our lives.      

The questions below will help you reflect on your life experience.

-Why do you matter?

-What is missing in your life?

-What do you want to remember forever?

-What are the best decisions you have made?

-When you are 80 years old, what will matter to you the most?

-What fascinates you?

-How would you describe your personality?

-What worries you the most about the future?

-What is the most important lesson you have learned?

-What is your single biggest time waster in your life?

-Where do you find meaning?

-When is the last time you performed a random act of kindness?

-What are you grateful for?

-In five years, how will your life be different?

-What are your best qualities?

-What is something you have that no one can take away?

-What advice would you give to a younger version of yourself?

-What makes you smile?

-What does it mean to be a human being?

S&P Best and Worst Stocks

In 2012, Standard and Poor's 500 index has approached a three-year high, closing at 1,361.23 last Friday. The Dow Jones Industrial Average reached 12,949.87, its highest closing level since May 2008.  Optimism over a second bailout of Greece and higher than expected corporate earnings are likely the dual causes of investor confidence.  In earnings season, 60% of companies that have reported have beaten analyst's estimates.  Among S&P 500 stocks, 63% have beaten estimates.  

Below are the 30 best and 30 worst performing S&P 500 stocks on their earnings report days.  Netflix skyrocketed by 22.06% following its report on January 25th. 

 

Charts courtesy of Think BIG

20 Quotes To Get Through Tough Times

Life throws all kinds of curveballs even to the good people.  Focusing on the positive can be difficult when you find yourself in tough times, but sometimes, the best lessons are learned during the rough patches in life.  The optimal course of action is to continue being the best version of yourself, not a second-rate version of someone else.  You never know how strong you are until being strong is your only option.  Regardless of your situation, the sun rises the next day and you have to lace up your shoes each day.  Here are twenty reminders that the toughest of obstacles can be overcome.

1. Tough times never last, but tough people do.

-Robert H Schuller

2. The difference between stumbling blocks and stepping stones is how you use them.

-Unknown

3. Never let your head hang down.  Never give up and sit down and grieve.  Find another way.  And don't when it rains if you don't pray when the sun shines.

-LeRoy Satchel Paige

4. Show me someone who has done something worthwhile, and I'll show you someone who has overcome adversity.

-Lou Holtz

5. If you aren't in over your head, how do you know how tall you are?

-Unknown

6. Adversity is a fact of life.  It can't be controlled.  What we can control is how we react to it.

-Unknown

7. In times of great stress or adversity, it's always best to keep busy, to plow your anger and your energy into something positive.

-Lee Iacocca

8. You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you.

-Walt Disney

9. Inside of a ring or out, ain't nothing wrong with going down.  It's staying down that's wrong.

-Muhammad Ali

10. Life is riding a bicycle, in order to keep your balance, you must keep moving.

-Albert Einstein

11. It is not the size of the dog in the fight, it is the size of the fight in the dog!  The person who is not hungry says the coconut has a hard shell.

-African Proverb

12. I am not afraid of storms, for I am learning how to sail my ship.

-Louisa May Alcott

13. Whenever there is darkness, there is an extraordinary opportunity for light to burn brighter.

-Bono

14. This too shall pass.

-Unknown

15. You win some, you lose some, and some get rained out, but you gotta suit up for them all.

-J. Askenberg

16. Fall seven times, stand up eight.

-Japanese Proverb

17. I like living.  I have sometimes been wildly, despairingly, acutely miserable, racked with sorrow, but through it all I still know that just to be alive is a grand thing.

-Agatha Christie

18. Difficult times have helped me understand better than before, how infinitely rich and beautiful life is in every way, and that so many things that one goes worrying about are of no importance whatsoever.

-Isak Dinesen

19. A ship in the harbor is safe, but that's not what ships were built for

-Unknown

20. A gem cannot be polished without friction, nor can we be perfected without adversity.

-Unknown

Jeremy Lin

Jeremy Lin has dominated the sports headlines in the past week.  As his New York Knicks ride a 5 game winning streak, Lin is facing the reality that he has become an instant cultural phenomenon.  He has scored at least 23 points in each of his last four games, shot at least 53% from the field, and recorded at least 7 assists in each contest.  

Throughout his career, Jeremy has consistently been overlooked by scouts.  Out of high school, he did not receive an scholarship offer despite averaging 15.1 points, 7.1 assists, 6.2 rebounds, and 5 steals per game.  He led Palo Alto High School to 32-1 record and a state championship.  Instead of walking on at Stanford or UCLA, he attended Harvard where he was a unanimous selection for the All-Ivy League First Team during his senior year.  In 2010, he graduated with a degree in economics and a 3.1 GPA.  Although his basketball credentials were impressive, no NBA team was willing to take a chance on him in the 2010 draft.  After working hard to impress NBA scouts in summer league games, he received contract offers from four teams.  He eventually signed with the Golden State Warriors, but saw minimal playing time in his first season.  He was assigned to the Warrior’s developmental league affiliate on three separate occasions.  On the first day of training camp after the NBA lockout, the Warriors released him. 

On December 27, 2011 the New York Knicks claimed Lin off waivers to be their backup point guard.  After another brief stint in the D-league, Lin has become an instant sensation after his strong performances in the past two weeks.  Even though he isn’t the best athlete on the court, he plays the game with great poise and awareness.  

His success story provides a striking insight.  Overlooked opportunities exist everywhere, and it can benefit us to discover them.  Each day, we miss opportunities because we have inherent blind spots and engrained patterns of thinking.  If we apply this idea to business, we realize that there might be unclear openings to add value to a company.  In relationships, there might be someone that can help you with your personal development if only you are willing to give that individual a chance.  Food for thought.         

This Week In Business and Politics

1. Commodity trader Glencore and mining company Xstrata announced the details of a proposed $90 billion merger.  The announcement came after Xstrata revealed a 20% increase in profits in 2011.  The newly formed company will be the world's largest exporter of coal for power plants and the largest producer of zinc.  Tentatively, Glencore would own 55% of the new enterprise.

2. Multinational natural resource corporation Rio Tinto announced a record annual profit of $15.5 billion.  However, the company also booked an $8.9 billion expense related to the falling value of aluminum.

3. BP posted a 38% spike in quarterly profit at $7.7 billion and increased its shareholder dividend for the first time since the 2010 oil well disaster in the Gulf of Mexico.  However, the company is preparing for oil spill lawsuits, which are expected to start later this month.  CEO Bob Dudley said on Tuesday that the company is ready to settle approximately 600 civil lawsuits.

4. Online coupon company Groupon announced its first set of public quarterly earnings after its initial public offering.  Instead of netting a profit, the company revealed it suffered a $43 million loss.  The markets reacted to the negative news by sending the price of Groupon shares downward.

5. China and Russia blocked a UN Security Council resolution that condemned the violence in Syria and called for President Bashar Assad to step down.  The government crackdown on protestors has become increasingly bloodier over the past 2 weeks, leaving thousands dead in the rebel-held area of Homs.  The United States has closed its embassy and several European countries have withdrew their ambassadors from the country.

6. Egyptian officials announced that 43 charity workers, including 19 Americans will be put on trial for illegally receiving foreign funds.  The capital city Cairo continued to experience protests between police and demonstrators following the deaths of 74 people in clashes at a soccer game in Port Said.

7. Republican presidential candidate Rick Santorum won party caucuses in Colorado, Minnesota, and Missouri while Mitt Romney easily defeated challengers in Nevada.

Wednesday Wisdom: Inspiring and Motivational Quotes

Sometimes, the wisdom of other perfectly articulates what we feel ourselves.  Powerful quotes can cause us to deeply reflect on our values and beliefs.  It's not the busiest that lead the most fulfilling lives, so take a few moments and read the following words with an open mind and a positive attitude. 

“First they ignore you, then they laugh at you, then they fight you, then you win.” ~ Mahatma Gandhi

“Life isn’t about finding yourself. Life is about creating yourself.” ~ George Bernard Shaw

“There are basically two types of people. People who accomplish things, and people who claim to have accomplished things. The first group is less crowded.”

“I am sorry to write such a long letter. I didn't have time to write a short one.” 

~ Mark Twain

“The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” ~ Michelangelo Buonarroti

“Doing what you like is freedom. Liking what you do is happiness.” ~ Frank Tyger

“We act as though comfort and luxury were the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about.”

“Imagination is everything. It is the preview of life’s coming attractions.”

“Any man who reads too much and uses his own brain too little falls into lazy habits of thinking.” ~

“Any intelligent fool can make things bigger and more complex. It takes a touch of genius – and a lot of courage to move in the opposite direction.”

~ Albert Einstein

“I know nothing except the fact of my ignorance.” ~ Socrates

“People, who are crazy enough to think they can change the world, are the ones who do.” ~ Apple Inc.

“You got a dream, you gotta protect it. People can’t do something themselves, they wanna tell you you can’t do it. If you want something, go get it. Period.” ~ Pursuit of Happyness

“Whether you think you can or think you can’t – you are right.” ~ Henry Ford

“Peace comes from within. Do not seek it without.” ~ Buddha

“Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense.”  ~ Buddha

“But it ain’t about how hard you hit. It’s about how hard you can get hit and keep moving forward. How much you can take and keep moving forward. That’s how winning is done!” ~ Rocky Balbo

“Don’t let the noise of others opinions drown out your inner voice.” ~ Steve Jobs

“Interviews I conducted with more than 70 CEOs and other leaders point to 5 essentials for success — qualities that most of those C.E.O.’s share and look for in people they hire. They all shared five qualities: Passionate curiosity. Battle-hardened confidence. Team smarts. A simple mind-set. Fearlessness.” ~ New York Times

“Pause now to ask yourself the following question: “Am I dreaming or awake, right now?” Be serious, really try to answer the question to the best of your ability and be ready to justify your answer.” ~ Stephen Laberge

“It is not what we get. But who we become, what we contribute… that gives meaning to our lives.” ~ Anthony Robbins

“Those three things—autonomy, complexity, and a connection between effort and reward—are, most people agree, the three qualities that work has to have if it is to be satisfying.“ ~ Malcolm Gladwell

“A great pleasure in life is doing what people say you cannot do.” ~ Walter Gagehot

“The question isn’t who is going to let me; it’s who is going to stop me.” ~ Ayn Rand

The question you should be asking isn’t, “What do I want?” or “What are my goals?” but “What would excite me?” ~ Tim Ferriss

“The most important actions are never comfortable.” ~ Tim Ferriss

“Slow down and remember this: Most things make no difference.” ~ Tim Ferriss

“Being able to quit things that don’t work is integral to being a winner.” ~ Tim Ferriss

“Slowing down doesn’t mean accomplishing less; it means cutting out counterproductive distractions and the perception of being rushed.” ~ Tim Ferriss

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” ~ Will Smith

“Avoid losers. If you hear someone use the words ‘impossible’, ‘never’, ‘too difficult’ too often, drop him or her from your social network.  ~ Nassim Nicholas Taleb

“So the only way on earth to influence other people is to talk about what they want and show them how to get it.” ~ Dale Carnegie

“Envision, create & believe in your own universe, and the universe will form around you.” ~ Tony Hsieh, Delivering Happiness

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” ~ R. Buckminster Fuller

“It doesn’t matter how one was brought up. What determines the way one does anything is personal power.” ~ Carlos Castaneda

“God, grant me the serenity To accept the things I cannot change; Courage to change the things I can; And wisdom to know the difference.”~ Reinhold Niebuh

“A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.” ~ Robert A. Heinlein

“Watch your thoughts, they become words. Watch your words, they lead to actions. Watch your actions, they create habits. Watch your habits, they build your character. Watch your character, it becomes your destiny.” ~ Upanishads

“Think about what it feels like when you interact with someone who makes you notice what’s good about yourself (raising your status), who is clear with his expectations of you (increasing certainty), who lets you make decisions (increasing autonomy), who connects with you on a human level (increasing relatedness), and who treats you fairly.” ~ David Rock

“Impossible is just a big word thrown around by small men who find it easier to live in the world they’ve been given than to explore the power they have to change it. Impossible is not a fact. It’s an opinion. Impossible is not a declaration. It’s a dare. Impossible is potential. Impossible is temporary. Impossible is nothing.” ~ Muhammad Ali

“Talent hits a target no one else can hit; Genius hits a target no one else can see.” ~ Arthur Schopenhauer

HHS Ruling on Contraceptive Coverage

Two weeks ago, President Obama signed off on Health and Human Services ruling that could cost him the election.  In a move that has Catholics outraged across America, President Obama consented to a mandate that states under the new healthcare system, Catholic institutions will be required to provide and pay for abortificients, contraception, and sterilization.  

We’re all wondering to ourselves why the President would agree to a decision that blatantly violates Church teaching, and arguably the First Amendment.  Reelection is the first priority in his mind, but his actions indicate otherwise.  In 2008, President Obama won the Catholic vote 54% to 45%.  More significantly, there are 77.7 million Catholics in the United States, a number that comprises 27% of the electorate.  

The Affordable Care Act, popularized as Obamacare, would not exist without Catholic Health Association President Sister Carol Keehan.  She endured criticisms from hundreds of bishops for supporting the legislation when it was passed in 2010.  She maintained, correctly at the time, that the bill would not fund abortions or contraceptions of any kind because this is what the President of the United States told her.  It turns out she was wrong.

There are 620 Catholic hospitals across the country, an amount that accounts for 12.4% of America’s 5,010 hospitals.  They provide 15% of hospital beds in the country, and handle 15.7% of total patient visits.  There are 6,980 Catholic elementary and secondary schools in America.  Catholic social services serve the poor and those in needs, strengthen individuals and families, and are a strong advocate for social justice in communities.  Without question, Catholic institutions matter to the health, education, and well-being of Americans.

So why would the Department of Health and Human Services and President Obama force 27% of the electorate to go against their beliefs?  Is it secularist arrogance or mere political ineptness?  Churches are exempt from this ruling, but church-run schools, hospitals, and social service agencies are not.

Again, Mr. Obama should not expect to win the Catholic vote in November after this decision.  New York Cardinal-elect Timothy Dolan and Cardinal Daniel DiNardo have spearheaded an effort to oppose the ruling at Catholic Churches across the country.  The timing of the ruling makes you wonder as well--the Obama administration announced its decision just three days before the annual March for Life in Washington D.C.  

College Bucket List

You hear so many people rave about their college years.  They tell you college were the best years of their life.  In just 1.5 years, I will be graduating, which is testament to how fast college years pass you by.  Tom Petty summed up this common sentiment when he said, “You have four years to be irresponsible here.  Relax.  Work is for people with jobs.  You’ll never remember class time, but you’ll remember time you wasted hanging out with your friends.  So, stay out late.  Go out on a Tuesday with your friends when you have a paper due...The work never ends, but college does.”   

So how do you get the most out of your college experience?  My recommendation would be to make a college bucket list, a variation of the idea of a list of things you want to do before you “kick the bucket”.  It doesn’t matter if you are a high school senior or a college student, I’d encourage you to sit down and list out some things you’d like to achieve in your college years.  Here’s mine if you need help getting started.  The bolded and italicized items still need to be accomplished.

Academic

1. Earn membership in an honor’s society

I would create my own honor’s society if I had the capital, but being invited to various societies was a good enough self-esteem boost.

2. Be recognized for my academic achievements

3. Study abroad

Immersing yourself in other cultures is absolutely essential to the college experience.  Fortunately, I have taken advantage of the tremendous study abroad opportunities at the University of Kansas.  

4. Take classes that interest me outside of my academic majors

I have taken a number of philosophy courses at KU.

5. Interview a professor

You can read my interview with Dr. Raquel Alexander here.

6. Apply for the Rhoades scholarship

The chances of winning are slim to none, but one thing is guaranteed--you will not win if you don't apply.

7. Win Scholarships

Get commendable grades and search for scholarship opportunities.

Extreme Frugality

8. Pay under $100 for a semester’s worth of textbooks

Just accomplished this one this semester!

9. Go a week without paying for lunch

The first week of the semester is typically the best time to rummage for free food.  Student organizations and companies visit campus and purchase food to draw you in.

Culture and Causes

10.Attend a play, recital, or show

11. Participate in the March for Life in Washington D.C.

Leadership

12. Serve as President of a student organization

13. Start a business with college friends

Time Management

14. Get a job

15. Take 20 credit hours in a semester

Professional

16. Land an internship

Fun

17. Take a road trip with friends

Doesn’t the idea of driving across the country appeal to you?  I hope to get away with some friends and head to the eastern seaboard.   

18. Pull a harmless prank that makes the University Daily Kansan

19. Attend an obscure sporting event

20. Organize a massive game of hide and seek in the Anchutz library

21. Go swimming in the Chi Omega Fountain

Facebook IPO

News broke yesterday that Facebook filed for an initial public offering that could value the popular social networking site between $75 and $100 billion.  These astronomical valuation statistics make Facebook the biggest Internet/technology IPO ever witnessed.  The 150 page S-1 filing with the Securities and Exchange Commission (SEC) details Facebook as a company with 85% of revenues coming from advertising.  Facebook's revenue was $3.7 billion last year, an 88% increase over 2010.  Profits were reported as $1 billion.

Founder Mark Zuckerberg stands to benefit immensely from the unprecedented IPO.  He owns 28% of the company, but Zuckerberg plans to take a $1 per year salary beginning in 2013, similar to what Steve Jobs did while calling the shots at Apple.  Now 27, Zuckerberg started Facebook from his dorm room at Harvard University in 2004, a story which was popularized in the movie "The Social Network".  Today, Facebook has over 845 million users.

Several bulge bracket investment banks are involved in the IPO, although Morgan Stanley took the lead underwriting role.  Goldman Sachs, Bank of America, Barclays Capital, and JP Morgan also added consulting and valuation services.

Investing in Facebook presents both risks and potential gains.  Relative to other tech company IPOs, the magnitude of Facebook is unheard of.  2011 saw the IPOs of LinkedIn, Pandora, Groupon, and Zynga, all of which leveled off after the first day of trading.  If the Facebook stock has a chance of doing as well as Google, it must produce higher profits and margins.  Several questions still should keep investors skeptical:

-What will the IPO offer price be?
-What are Facebook's future growth rate?  Already at 845 million users, when does the growth begin to level off?
-How does Facebook plan to enter the Chinese market?

Reports indicate that Zuckerberg will retain control over the company after it goes public.  He has proposed to go public with a dual-class share structure.  Public shareholders will have the option to purchase Class A shares that have one vote each.  Zuckerberg and current Facebook employees and investors will hold Class B shares that have ten votes apiece.  His control over Facebook could increase in the future as other Class B shareholders sell their stake in the company.  Zuckerberg isn't the first tech company CEO to use this structure to retain control over the business.  Google founders Larry Page and Sergey Brin implemented a similar share structure when the tech giant went public in 2004.

Zuckerberg hopes to attain the best of both worlds.  He wants to be free of shareholder influence while still receiving the benefits of equity and capital that go along with being a publicly traded company.  In addition, Zuckerberg appears to more concerned about the future well being of the company than the stock price.  In a letter to potential investors, Zuckerberg wrote:

"Facebook was not originally created to be a company.  It was built to accomplish a social mission-to make the world more open and connected.  Facebook aspires to build the services that give people the power to share and help them once again transform many of our core institutions and industries.  We don't build services to make money; we make money to build better services."