Business Books
By Andrea Sachs
The New Elite: Inside the Minds of The Truly Wealthy
By Jim Taylor, Doug Harrison and Stephen Kraus Amacom; 245 pages
Countless books tell you how you can get filthy rich and join the wealthiest 1% of the U.S. population. But less energy has been expended on assessing the attitudes of that fortunate demographic. The three market researchers behind this book are seeing The Millionaire Next Door and raising it $4 million. By interviewing 6,000 people with liquid assets of at least $5 million, they have written a comprehensive book that statistically defines this well-heeled group. You might not be one of them, but that doesn't mean you can't enjoy their peculiarities--or learn how to sell them something.
Certainly, there are common traits, say the authors. Central to understanding today's superwealthy (average age: 47) is recognizing their essentially middle-class mind-set. Less than 5% inherited their wealth. In fact, say the authors, "they are undeniable proof that the American Dream of unrestricted social mobility in a single lifetime is alive and well." They are usually practitioners of what this book refers to as "stealth wealth--having money, but keeping it under the radar."
Naturally, there are conspicuous consumers buying Louis Vuitton bags and Cartier watches, but a large number of the wealthy agree with the interviewee who said, "I have a Chevrolet taste on a Mercedes income." The contemporary wealthy shopper, say the authors, is "the logic shopper" (70%) whose middle-class upbringing leads to a focus on value and due diligence before a purchase. That may explain why the retail store most likely to have been shopped in by this demographic is Target (80%). Why pay more for the same roll of toilet paper?
From there, the ultra-rich fan out. The length of time that one has had a fortune will probably shape one's behavior. Apprentices (five years or less of experience with moola) are cautious and self-conscious; journeymen (six to 14 years) have gotten used to their millions and learned to buy expensive toys; masters (15 years plus) have learned to steer their portfolios and amass greater sums. In addition, there are at least five different wealth personalities, from wrestlers, who are conflicted about their exalted financial status, to directors, who feel they've earned every penny, thank you, to patrons, who are ready to share their bounty. So take heed, luxury providers: if you pay more attention to the elite customer's history and disposition, you are more likely to strike gold.
Click: What Millions Of People Are Doing Online and Why It Matters
By Bill Tancer Hyperion; 221 pages
In an earlier era, the author would have been a pollster. Now, as the general manager of global research at Hitwise, an online intelligence firm, he sifts through a database that reveals what more than 10 million Internet users do every day. With this digital treasure trove, Tancer (who is also a columnist for TIME.com can aid traders by gauging the market's direction on specific issues, as well as answer pressing questions such as which day of the week is most popular for porn websites (Friday). The author assures the reader that the user data he analyzes are "anonymized and aggregated," but here's hoping that Big Brother doesn't have a PC.
The 3 Big Questions For a Frantic Family: A Leadership Fable
By Patrick Lencioni Jossey-Bass; 240 pages
Memo to mom: "if my clients ran their companies the way we run this family, they'd be out of business." So says the management-consultant dad in this slim but thought-provoking volume. BlackBerrys are blurring the line between work and home. Why not apply business principles to "the most important organization in your life"? It's hard to argue with the idea that family goals should be carefully articulated. Likewise, a weekly family meeting can only help team spirit. But please, let's draw the line at pink slips.