One (Poor Dad) believed, “Our home is our largest investment and our greatest asset.” The other (Rich Dad) believed, “My house is a liability, and if your house is your largest investment, you’re in trouble.” – From the book Rich Dad, Poor Dad by Robert T. Kiyosaki

houseatwhatcostTwo articles last week: one worries whether how long the free fall of home prices to continue and the other worries what if they don’t bounce back after hitting the bottom. Both made me wonder if home ownership is not such a good thing after all. That house is not an asset, and is in fact a liability. Through fall in valuation, interest on mortgage, property taxes, maintenance expenses, depreciation we pay month after month. It drains our cash flow in all the years of ownership. It precludes us from looking for other, better investment opportunities. It neither rewards us financially nor emotionally.

I couldn’t agree more with the author of this book when he says for most people buying a nice home is an emotional thing and I can also vouch for it from personal experience. I put all my savings and took on some debt to buy my spanking new apartment when I was young. Subsequently I had to let go of so many better investment opportunities as well as sacrificing even some simple pleasures of life like taking vacations, going for movies, etc just so I can service this debt and give myself the emotional high of home ownership. I even skimped on clothes to save a few dollars.

What is worse, you may not believe this, pursuing my career, I moved from city to city and never once, (I repeat, not even once) did I get an opportunity to sleep in my own apartment. As soon as the apartment was finished and the builder handed over the keys to me, I gave them to my new tenant collecting the rental deposit, and off I was on my way. I thought to myself, while I am paying the mortgage, the tenant builds up part of my home equity month after month. I patted myself on being such a genius.


I never took into consideration the risks involved:

  1. What if my tenant doesn’t pay the rent just for a month?
  2. Or skips paying rent for months in a row and vacates without notice?
  3. While vacating, if he does any damage to the property, how much would it to cost to fix?
  4. Or worse still what if he refuses to pay and refuses to vacate either?
  5. What would be the legal costs of vacating the errant tenant?
  6. And how long would it take?

Luckily for me no such thing happened. And I got out of this debt by selling my apartment in the boom time at nearly 4 times the price I bought. Still the real price I paid in terms of missed opportunities, and the enormous stress I underwent month after month paying my mortgage wouldn’t compare for the fleeting pride of home ownership.

Just having bought once only and sold it a few years later doesn’t qualify me as a real estate consultant. However believe me this one experience of having bought and sold a piece of real estate will stand me a lifetime. I believe I am qualified to ask you a few questions:

  • While it is reasonable to expect to have a roof over our heads, do you really have to own the roof?
  • If you decide to own your house are you willing to take on a mortgage for the next 30 years? I remember in one of the episodes (Office Olympics, Season2, Episode3 of the TV Sitcom Office(US)) when Michael buys his condo his assistant Dwight Schrute reminds us that Michael is really buying an expensive coffin.
  • Are you willing to stay tied to your house and let go of other lucrative investment opportunities.
  • Or are you willing to let go of many brilliant career moves that may be rewarding many times over in the long run just because you can’t move out of your house or city.
  • If after all this you decide to own it, should it really be new? Can’t you settle for an old or refurbished house in a good neighborhood that comes at a bargain or throwaway price?

When someone buys a house for just $101/- at an auction (as the second article says), then the price is right for me.

Weight loss programs: Do they really work? Only about 20% of those on such programs seem to maintain that weight loss for a full year. If you don’t believe this, listen to what Oprah has to say from personal experience.

When rating agencies fail to rate investment vehicles objectively or when the most trustworthy person (Bernard Lawrence Madoff) as seen by the most prudent community fails it, I have reasons to be skeptical about many things in life.

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Recently I came across a cartoon in which the flight attendant demonstrates the use of oxygen masks in case of an emergency. It is the part of the usual  pre-flight safety drills but with one change. It needs you to swipe your credit card prior to the dropping of the oxygen mask. i.e.Even in an emergency, you can’t breath free, if you have exceeded your credit limit.

At the time I was reading it, I thought it to be too extreme and wondered which airlines would go to such lengths to squeeze out its already depleting list of passengers. So I didn’t bother to save the link for you. However to compensate I have saved this one which is just as good and as a bonus it comes with a good article that bears upon the current turmoil the airline industry is mired in. 

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I love apples raw, ripe, and cooked. Even if I go to any McDonald’s restaurant my eyes instinctively look for apple pies. But lately my attention is drawn towards different kinds of apples and Macs: iMacs. I have always been using Windows OS running on PC Clones and had little incentive to look outside ‘windows’. No one could dissuade me from using them for three reasons: my familiarity with Windows, its compatibility with a wide range of applications and its economy of use.

Every time I see the Mac vs. PC ads put out by Apple on TV and print media, a sense of anger builds up in me. It is as much due to my loyalty towards Windows, as it is about ignorance of Macs and my jealousy to those who can afford Macs. A chance exposure to this YouTube presentation made me only too happy that at last Windows gets its due recognition.

I am told for simplicity and ease of use nothing comes close to Apple products. A customer of ours who bought a few computers from us running Windows recently bought an iMac and was quite happy with it. In fact he was so enthusiastic that he was selling me on the merits of iMacs in particular and Apple products in general! Internally I started to worry whether I lost this customer forever to Apple products while I am devoted to selling PCs and laptops running Windows.

His reasons seem convincing enough that I may become a convert soon. See for yourself.

  1. User is totally freed from the details of hardware and the connection details. You bring home the iMac, connect the keyboard, mouse in the respective ports and turn it on. That’s it and it is ready to use. Rest of the items like monitor, webcam, wireless connection, all the hardware integrated and out of sight makes things simple. There is very little chance the user can go wrong in setting up the computer for the very first time.
  2. The system is intensely focused on giving the user the necessary help in getting his (her) job done. By that I mean all the necessary applications that an average user needs are preinstalled and come as a single package. The user need never have to worry about compatibility issues, no product key to forget and retrieve during installation or reinstallation.
  3. Apple is not content with just making their systems user friendly but even the after sale service is dedicated to giving an user friendly introduction to the use of Macs and solving Mac related issues on an ongoing basis. If you go by their slogan “Come to shop. Return to learn“, you will understand what I mean. Of course this service is not free but is on chargeable basis.
  4. Contrast this with us the Windows vendors, who are busy pushing hardware and software to a saturated market and in the process ignore the pleas of a customer who bought a Windows system but is beseeching to learn the basics. Often times I have come across customers who ask me as to where they can learn how to use the PC. To be honest with you, I directed them to some bookshops, library or the Internet!
  5. We learn about Windows from such disparate sources as friends, outdated books, manuals, internet articles, forums. A little here, little there and we are never sure we have learned enough or in a professional manner.

I believe there is a real business opportunity for us (the vendors selling PCs and Laptops with Windows on them) if we can combine training customers with selling them the system. Even if we don’t do this in a proactive way, soon we will be forced to be on the defensive as Apple continues to gain market share at the expense of Windows.

In writing this post I have become a traitor to myself.

Recently I happened to read the column Are Low-Cost Laptops for Real? written by Tim Bajarin in PCMag.com, where he discusses the increasing popularity of inexpensive, but very small form factor laptops. Asus made Eee PC and HP made Mini-Note are two notebooks that belong to this category. He was wondering if other Laptop manufacturers will pick up this trend and bring out their own versions of very small form factor notebooks that are cheap. He also wonders if it would not make sense to go for these less powerful albeit very budget friendly notebooks, if all that one does while using his/her laptop is to browse the web or read the mail.

This discussion set me thinking in a new direction. How does a mininote(which is cheap) stack up against an ultra portable(which is pricey simply because it is an ultra portable thus becomes exclusive) in terms of specifications? The point of this exercise is to see if the mininote (by virtue of its size becomes even more portable than the ultra portable and thus nullifies the advantage of the latter) doesn’t compromise much in terms of specifications vis-a-vis the ultra portable and so can do as much at a lower cost.


To eliminate any bias, I have taken the very small form factor laptop and the utra portable from the same manufacturer viz. HP. Also they are taken from the same market segment to which they are targetted viz. business category. And lastly I have taken the highest end mini-note and pitted against the lowest end ultra portable to narrow the price gap and reduce any distortions due to pricing.

The following is the comparison and my comments against each specification:

Make
HP
HP
Comments
Model
Business
Business

Category
Mini-Note
Utra Portable


hp-compaq-2133-mini-note-pc_400x400.jpg compaq-2510p-business-pc-series_400x400.jpg
Model Number
HP 2133 Mini-Note
Compaq 2510p

Part number
KX870AT
RM246UT

Operating System
Genuine Windows Vista Business
Genuine Windows Vista Business
Same, no difference
Processor
VIA C7-M ULV Processor 1.6 GHz 128 KB L2 cache 400 Mhz
Intel Core2 Duo Processor U7600 1.20 GHz 2 MB L2 cache 533 MHz FSB
Major advantage for ultra-portable as it has dual cores,supports faster frontside bus, huge cache. Suitable for data intensive applications like database applications, photo editing, gaming.
Memory
2048 MB (1 x 2048 MB)
1 x 2048 MB DDR2
Same, no difference
Memory Slots
One SODIMM memory slot
One user accessible SODIMM slot
Same, no difference
Memory Upgrade
Upgradeable to 2048 MB maximum
Upgradeable to 2048 MB maximum
Same, no difference
Hard Drive
120 GB
100 GB, PATA
Advantage mini-note, offers greater storage space.
Hard Drive Speed
7200 rpm
4200 rpm
Advantage mini-note, faster hard disk drive enables speedier access to data
Optical Drive
No Optical Drive
DVD+/-RW SuperMulti with Double Layer
Advantage ultra-portable, as it enables burning CDs and DVDs
Display
8.9 inches diagonal
12.1 inches diagonal
Advantage ultra-portable, as one can see more details on the screen.
Display Resolution
1280 x 768 WXGA
1280 × 800 WXGA+WVA
Almost same
Battery
6-cell (55 WHr) or 3-cell (28 WHr) Lithium-Ion battery
3-cell (28.8 WHr), 6-cell (55 WHr) or 9-cell (83 WHr) Lithium-Ion battery
Same, no difference
AC Adapter
External 65W HP Smart AC Adapter, HP Fast Charge
External 65W HP Smart AC Adapter, HP Fast Charge
Same, no difference
Sound System
High Definition Audio, stereos speaker, stereo headphone/line out, stereo microphone in, integrated stereo microphone
High Definition Audio, integrated mono speaker, stereo headphone/line out, stereo microphone in, integrated microphone
Same, no difference
Wireless Connectivity
Broadcom 802.11a/b/g, Bluetooth 2.0
Intel Wireless LAN 802.11a/b/g/n, Bluetooth 2.0+
Almost same
Modem
_
56K modem
Advantage ultra portable, as it enables sending and receiving faxes. And also enables dialup connection to the Internet.
Gigabit Wired Connectivity
Integrated Broadcom Gigabit Network Connection (10/100/1000 NIC)
Integrated Intel Gigabit Network Connection (10/100/1000 NIC)
Almost same
Input Output Ports
2 USB 2.0 ports, VGA, stereo microphone in, stereo headphone/line out, optional VGA webcam, power connector, RJ-45
2 USB 2.0 ports, VGA, stereo microphone in, stereo headphone/line out, Firewire (1394a), power connector, RJ-11, RJ-45
Almost same
Keyboard
92% full-sized keyboard
Full-sized keyboard
Almost same
Pointing Device
Touchpad with scroll zone
Dual-pointing devices (touchpad and pointing stick)
Advantage ultra portable
Included/Pre-installed software
Preloaded software : (depending on configuration) HP Backup and Recovery Manager, Roxio Creator 9, Symantec Norton Internet Security, Microsoft Office Ready 2007
Preloaded software: PDF Complete, HP Backup and Recovery Manager, HP Help and Support Center, HP QuickLook (Windows Vista only), HP OpenView Radia Management Agent, HP Universal Print Driver, HP ProtectTools Security Manager, HP Quick Launch Buttons, HP Wireless Assistant, Roxio Creator 9 (for optional DVD+/-RW and DVD/CDRW drives), Symantec Norton Internet Security with complimentary 60-day live update, Intervideo WinDVD DVD Player
Not too major a difference
Security
Kensington Lock slot
Kensington Lock slot, HP Privacy Filter
Almost same
Warranty
1 year carry-in (pick-up and return in some countries (upgrades available, sold separately)) 1 year warranty on primary battery
Protected by HP Services, including a 3-3-0 standard warranty. Terms and conditions vary by country
Huge advantage in favor of ultra portables. 3 year warranty gives a lot of peace of mind
Price
CAD $749.00*
CAD $1,779.00*
Huge advantage in favor of Mini Note as it is much cheaper. As you could see it is almost less than half the price of the ultra portable.

* Prices are as seen on http://www.hp.ca/

As you could see the ultra portables have distinct advantage in terms of processing power and manufacturer’s warranty. But my argument is who would use such processing power for say photo editing or gaming( with such a small screen). I can’t visualize anyone running database applications on a day-to-day basis in an ultraportables while travelling. With Vista business one can always do a remote login to pull out all the information that one needs from their servers.

So one distinct advantage is nullified. What about the additional 2 years warranty in the ultra portables? Well, if it is required extended warranty can be bought for the mini-note to bring it on par with the ultra portables, including this additional cost the mini-note will be much cheaper than the ultra portables.


Well, what about the modem that comes with an ultra portable which is missing in a mini-note? you may ask. When e-mail is there who will bother about faxing? is my counter question. But then what about dial up networking? you persist.

OK I give up. May be I am over enthusiastic. I have sold a couple of them (very small form factor laptops) to my customers and they are loving it.Honestly I feel I can live with the limitations of the mini-note for such a low price. If you have different opinion or experience, I would love to hear it and correct myself.

Would it be wise to buy a laptop off the shelf or build one to your specifications? There are vendors who offer products in either one or the other or both ways to buy. I think it merits some thought as to which is more advantageous to you, as a buyer.

For instance vendors like ACER, Toshiba, HP offer laptops that are pre-configured and hence available off the shelf. While Dell, Lenovo, Alienware offer base laptops that are pre-built as well as ship custom-built units that are fully customizable. There are also some lesser known brands that offer purely made-to-order laptops.

Hardcore game enthusiasts (who have unlimited budget and time on their hands) may willingly advance their hard earned cash to such companies like Alienware and wait patiently for the arrival of their technological wonders. They would stop at nothing to gain, even a small edge that technology can offer, over other players (enemies?) in an online war. They may have justifications for such extreme behaviour.

Barring such cases, my question is addressed to the rest of us who buy laptops for day-to-day computing (i.e.for business, pleasure and even gaming). I think it is not hard to find pre-configured laptops from brandname vendors that would well meet our requirements .

So what advantages are there for the buyer in user-configured laptops that are made to order?

1. There is a perceived choice offered by the vendor.
2. User configured laptops can be more powerful with advanced features not available currently in the market.

These advantages are illusory in my opinion for several reasons:

  • You can always find pre-built laptops that comes close to if not exactly match those made-to-order laptops.
  • Often most of us are not power users who stretch the laptops to the maximum while using. So a laptop almost always is under utilized.
  • Useful life of a laptop (pre-built or user configured) is a maximum of three years and soon there will be laptops coming into the market that exceed those carefully configured laptops. So there is little sense to configure a system online and wait for its arrival only to find it to become obsolete soon.

While it is not advantageous to the buyer, it is every bit advantageous to the vendor who offer custom built laptops for the following reasons:

  • Vendors get the entire order amount instantly as deposit through anyone of their payment options – viz. credit card, Paypal, wire transfer, money order. Even in their ‘buy now and pay later financing offer’ they might get their invoice amount fully from the financial institution that pickup the tab. Interest gained from such deposits is pure profit though they may have only two to three weeks to deliver the promised order
  • For the vendors there is the certainty of the order and hence can plan their production well. Inventory carrying costs is very much reduced.
  • Because of this certainty they have less need to offer incentives to the push an otherwise pre-built, perishable (yes, laptops are perishable!) product along the line: Distributor -> Wholesaler -> Retailer -> End user
  • While they may collect interest on such deposits, they have no need to raise working capital and hence save interest on it. If my memory serves me well, there was a time when Dell was so flush with cash it had negative working capital requirement. In this respect it is even better than the restaurant business which enjoys credit from its supplier while the customer pays cash and carries the benefit immediately

While these and other advantages offer a lot of savings for the vendor, will the vendor be willing to share a slice of the pie with the customer?

To you as a potential buyer, my advice would be to think if there are any real advantages to order a user-configured system and if so negotiate with the vendor to pass on some his benefits.

How often have we heard someone say, “Listen to your heart son, you’ll be OK”. I think that advice may mean that one should listen to one’s intuition or the voice of the soul in any situation, where a decision is required. Majority of us take this route (including myself) when we take decisions, even important ones.

May be we think, if we listen to the voice of the soul and not the head, it is morally right. We think that showing empathy to your opponent is the right thing to do. We comfort ourselves that it will reward us financially too in the long run (because we are empathetic?). Or we presume that we are wicked or selfish or seen as being a manipulative person if we pay heed to our head in negotiating a deal. Or is it plain laziness that we don’t do our homework before negotiating a deal?


Later we justify that our decision was based on what our heart said at the exact moment we signed the deal. It couldn’t have been any other way. We feel comfortable with that deal until someone points out that they got the same deal on much more favorable terms. As a buyer, as well as seller of goods and services, I can relate to this discussion in a meaningful way. Let me give you one example from personal experience as a buyer.

Last year I helped my son, buy a cell phone with cool features from a dealer with the services being provided by a leading service provider. You bet, we did our homework before finalizing the deal. We looked at several cell phones from different manufacturers (in terms of features and specifications), read user reviews of many and finally narrowed it down to just the one that we are interested in. Similarly we listened to many existing users of the service provider and its competitors before deciding to go with the one we chose. We also noted down the standard monthly fees charged by the service provider for a set of calling features we are interested in. Finally we decided to go ahead with this particular dealer for the cell phone as well as the service because he offered a monthly fee that was below the market rate.

businessoverbreakfast

So far so good. Our heads ruled our decision. But our hearts took over when the dealer said that, while our monthly fees would not change if we sign a two year or three year contract, it would greatly help him gain a concession from the service provider if we signed a three year contract. Will we do him the favor? Apparently it was a guileless request. For a moment, we felt powerful and the dealer was at our mercy.

What did we do? Of course we obliged.
Our justification:

  • My son is going to be in the same city for at least another three years
  • While it is not costing us extra, we get an opportunity to help another person.

But remember in “helping” this person we inadvertently extended the time horizon of the deal. Within the last one year of the three-year contract, so many changes can happen that may turn out to be favorable to us, the customers. We have no way of knowing those at the time we agree.

But for the dealer (as well as the service provider) it is definitely a better deal. Both have a better time view of the time horizon. They know their business. While we are only one of many customers to them, for another three years we are not shopping for another contract! The dealer knows how to pitch and must have practiced and perfected it as an art with very many customers (victims) before meeting us. For sure the service provider is rewarded with a steady payment for one extra year, and the dealer could have been rewarded instantly with some cash bonus.

Even if things remain the same, in hindsight I feel I should have been smart enough to restrict ourselves to a two-year contract and negotiate a better deal at the end of the contract period. Why not? After all we have proved ourselves to be loyal to them and we are going back to them for a repeat business.


Suppose we decide to sign the three-year contract anyway at least we should have gained a concession or two in agreeing for a three-year contract for it matters little to us to whether it is a two or three year contract. Looks like it was not a win-win situation. All because we let our heart rule.

My line of thinking is supported by a recent article in the Economist titled ‘Inside a deal’. I recommend you to read it, think it over and let me know your feedback.

My dear readers,

As always my effort and focus is to save you time and money while providing useful content. This project is about getting you the latest information about current notebook models in the market. I attempt to keep this site as a one stop shop for assistance in buying a suitable notebook from among so many makes and models available in the market.

Till recently I noticed many of the commercial and non commercial websites that educate the consumer in the proper selection of notebooks focussed entirely on the technical aspects of the notebook. They talk about the importance of CPU, amount of installed memory in the notebook, the size of the screen etc and not so important details of the hard drive (its size), optical drive, and the type & number of ports available that would meet the needs the user.

Their efforts were commendable in bringing an awareness in the buyers of notebooks and my expertise would count for nothing compared to their vast database of knowledge and experience. But I know enough to say that, try as they can, they can only reach an unknown average user in such a dispensation of knowledge. The reason being it is not interactive. Users like you and me don’t get a chance to communicate our requirements and get an instant feedback as to which makes and models would meet our requirements.

Each user is unique in his requirements and it would be difficult for an online consultant to sit on a one-on-one basis to educate and justify his recommendation that would ideally meet a client’s needs for a notebook. One website has come close to remedying this situation by, taking exhaustive input from a potential notebook buyer and provides a complete list of makes and models that would go to meeting his(her) needs.

But here the user’s needs are given focus, but he or she is kept in the dark about the rationale behind the choices. You may say,I don’t care about the details, all that I want is a notebook that would meet my needs. But tell me honestly, don’t you want to know why a particular CPU is better than the next or why a smaller or a bigger hard drive makes sense in your case.

I am not saying this website (at least not in its current state) will strike a perfect balance between user’s needs and the technical specifications of notebooks available in the market, though it is my ideal.

This means eventually you need to look nowhere else for additional information. Just narrow down your choice to just one or two notebook(s) based on your own criteria and go buy it at the best possible price and terms. Ofcourse I will be there with you every step of the way providing useful tips.

Till such time please bear in mind that this site is evolving, and I will not spare myself to make continuous improments. So in your first visit should you feel that this site is inadequate in some respects, try me again in subsequent visits. I guarantee you that it would have moved one notch up atleast in terms of professional standards.

In the meantime feel free to drop me a feedback about your experience at rayan@iamyourguide.com

Now I let you go to my Laptop Buying Guide webpage.

Thanks,

Regards,

Rayan