Harrison Todd Grodnick
July 18, 2018

Harrison Todd Grodnick CFA, Senior Portfolio Manager, Minneapolis Portfolio Management Group:  “Turning bumbly Rides into Smooth Landings – How Creativity and  Innovation Offer Investment Opportunities”  Host:  Herbert Schechter
Upcoming Events
7/25/2018  John Gordon, Executive Director of the Minnesota ACLU:  “Civil Liberties and Civil Discourse:  Friends or Enemies?”  Host:  Mark Stageberg

8/01/2018  Member Amy Koch, Manger for Karin Housley’s Campaign for US Senate:  “An Insider’s Look at a Nationally Profiled Campaign”  Host: Tom Horner

8/08/2018  Tim Penny, Co-Chair of the Committee for a Responsible Federal Budget:  ”Our Nation’s Precarious Fiscal State”.  Host:  Al Maxson
Matt Biersdorf   Ready everybody?   Let’s get started!

Guest Today
Dennis Alexander guest of Herb Schechter
Proud today to announce two new members (husband & wife):  Rick Everson & Silvia Ontaneda.   A warm welcome to both!
Continuing Ritual
Matt Biersdorf stated efforts to formalize opening ritual, long provided by Victor Kirsch (forced to resign due to wife’s illness): 

Tom Horner then stood suggestive (if not worded):  Today, I’m your man!”.

1ST of two fast humors:  “What do you call 2 crows on a telephone wire? An attempted murder!”  
This joke relies knowing English language, not just on the language, but on a somewhat erudite aspect of it. – Janus Bahs Jacquet 

A group of crows is called a murder. [Wikipedia]
2nd :  “Philosopher Descartes walks into bar. Bartender asks, "Would like a drink?" Descartes says, "I think not."  Poof! He disappeared.  (Descartes was philosopher who said, "I think, therefore I am. ")

Tom Horner then declared “Why we’re here!”     
Thank you Tom! 

Introduction & Speaker
Herbert Schechter  “Pleasure to be here”.   Herb opened with short review of personal activity. “Daughter, fiancé, fiancé’s brother & Dog moved in yesterday!”  Amid background groans, Herb assured all is well and welcomed in the Schechter household.
Harrison, why we’re here today, is a rare breed!  He doesn’t plan - he’s a doer providing clients track records of how portfolios turned out.  Third time in ten years top portfolio manager in US, today’s speaker, welcome Harrison Grodnick.  

Harrison Todd Grodnick
Thank you Herb for kind words.  “Book smart & common sense smart my associate Herb”.  First thought of Dr Seuss hearing ‘Eggs & Ham’ association.  Key ingredient to investment -  A ‘Secret Sauce’!   Today going to talk ‘Secret Sauce’. 

Following are notes from Harrison Grodnick’s presentation, read at Ham & Eggs today: 

-Chart of $1M Investment 1995-2017 presented – Showed where would be $9M today, then with ‘Secret Sauce’ would be $14M today. 

-Harrison started off with Track Records of Client experiences. 

-John Glenn story sitting in capsule waiting for countdown, what was he thinking? Associated with ‘Secret Sauce’ theme, Harrison here relates response:  “Exactly as you would knowing sitting on 2 million parts purchased by government from lowest bidder.” 

-3 Elements  “The Convergence” from 1962 John Glenn’s wisdom enabling space program: 
Element of Science
(these helped get to moon & timely help today)
-Multiple subsequent technologies listed

-This morning - ideas to look forward:  Dr Michio Kakn “The Future of Humanity” recommended book.  Discussed time when China prosperous, then down-turn and hundreds years backward (inward looking) policy.

-Continued turn of prosperous US space policy discussed.   We started downward (inward looking) trend. 

-Elon Musk launch program –great returns – Put Innovation, Science & Economics to work.  The ‘Secret Sauce’!

-Greatest wealth creation vehicles in History -1802 –2014 examples displayed.  Stocks far outperform all other asset classes...   Why?  Innovation with equity...

-Price is everything

-MPMG verse STP 500 return performance (2017) chart displayed (very favorable). 

HARRISON here concluding superb presentation and forcasting repeat of summary of Secret Sauce secrets, pushed the audio/video button.  A long silence void occurred....   WHAT?  1) an audio video H&E mishap,  or 2) Perfect conclusion to phenomenal ‘Secret Sauce’ presentation?

Q What companies going to benefit from new space interest renovation?
A –Ton of em...  Test however, who will be priced correctly?
Q-You offer 1 mutual fund or several? What’s your vote?
A –MPMG is different –fact we do only 1 thing.   Not everything for everybody.  All efforts on 1 portfolio. 
Q/Statement –You highly discussed short term gain – from long term gain?
A –Short term verse long term discussion followed -  involved long term government turn of assists to private, making considered long term gains turn  to short term gains. 
Q –Silver lining with current trade war?
A – Too soon to tell.  Saying this, we have far more ammunition than China –we’re going to win.
Q –What’s sell criteria?
A –Tuff part of equation. Sell discipline concerns reducing risk.   Many factors - Price is big. Not necessarily afraid of companies with problems or weaknesses.
Q/Statement – Meeting yesterday, Tax regulators met in White House wanting regulation for easier 401K Plans to get back on track. 
A - Yes
At this point, President Matt stepped in because of time and declared.   Thank You!   See all next week”. 

Thank You  Darrell Bertelson & Dale Borgeson  for photos (presented in Newsletter weekly email distribution). 
Ron Jensen

Roger  O’Daniel
July 11, 2018

Member Roger O’Daniel“Ten Innovation Secrets that made the 3M Company Famous”.  Host:  Leslie Sharpe

Upcoming Events
7/18/2018  Harrison Todd Grodnick CRA, Senior Portfolio Manager, Minneapolis Portfolio management Group:  “Turning bumbly Rides into Smooth Landings – How Creativity and  Innovation Offer Investment Opportunities”  Host:  Herbert Schechter

7/25/2018  John Gordon, Executive Director of the Minnesota ACLU:  “Civil Liberties and Civil Discourse:  Friends or Enemies?”   Host:  Mark Stageberg
Newly ordained Club President Matt Biersdorf  opened with a hearty Good morning amid spoons tapping on watergrasses (must be a Rotary Club ritual?), thanking Mike Schall for 6 months of dutiful Club Presidential service.   Matt then gave brief overview of self, hailing from Edina, IT work and now owning a Software business.  Then, aware of late meeting opening:   “Let’s get started!”
Todays Guests
Bob Slesinger guest of Bob Lewis
David Hann guest of Charley Hann
Ray Witter regretfully announced long time icon  (of numerous) Victor Kirsch regrettably leaving membership.  Victor’s wife is suffering further health issues.   
Before continuing, Roger O’Daniel projected a short video of Victor’s famous opening:  “Why We’re Here”.

Introduction & Speaker
Leslie Sharpe   Hello Friends!  Roger O’Daniel double majored in Mechanical & Industrial Engineering, ROTC & Military, Numerous Significant projects, Boy Scouts, Distinguished Club Memberships, etc –over whelming.  Noting beyond: how fortunate today our Club to have numerous with talents and such skills.  Please welcome our own:  Roger O’Daniel. 

Roger O’Daniel   (re concerning tardy meeting arrival) “Gotta tell what happened on way over!” Roger’s saga began:   Starting with Summer Scout Summer Camp –(Willow River –actually a Lake) damn collapsed, emptying and turning lake to at mosquito filled swamp story.  Darn things so huge had to do battle with...Then returning, engine light turned.  Further, a wheel bearing started to whine!     

Explaining recent experiences, Roger reiterated Murphy’s Law commenting “Murphy was an optimist!”  Continuing saga, the scouts blew the audio chip on my motherboard – so bit cramped this AM...

Roger’s presentation:  “3M Company’s Innovation Secrets” (OPEN SECRETS FEW BELIEVED) began with statement: “3M had most ridged non-disclosure clause have ever seen – continuing thru today...”  Saying, still can make comments heard from upper management.

Multiple stories from Roger’s work as Product Planners in Duplicating Products Lab (1962-65) with extreme security, followed.  After key stories, 10 Secrets that MADE 3M SUCESSFUL. Remarkably again, many wouldn’t believe....

RULE 1 – First Name Recognition and Discussion.  At meetings, the issue was the enemy – no personal retaliation permitted.   Wild ideas welcome

RULE 2 – 15% Project.  Anyone with Marketable idea could spend 15% of time to work that project.   Also, could ask others to join in on 15% Project.   Remarkably, every $100 Million idea started as 15% Project.  Thermo Fax, Scotch Tape...

RULE 3 – Managers Salary doesn’t have to be greater than highest subordinate.  Salary related to company worth, not job level.

RULE 4 – Never overlook profitability of a mistake.   Sandpaper story, Recycle Program story, Low tack adhesive story, and Post-It Notes! 

RULE 5 – Pricing Strategy.   Double what think maximum price the market will bear.

RULE 6 – Worth Being Poorly First.  What’s worth doing well is worth doing poorly first.  (theme, don’t let R&D finish product design...)

RULE 7 – Patent Protection.  Absolute requirement to recoup R&D.   Patent extension practices designed in...

RULE 8 – Consumable Supplies.   If 3M makes it, you can throw it away. 

RULE 9 – Spin Offs.  For marginal & unprofitable – don’t fire people, transfer em.   Imation Story.   Imation Co did not remember 10 Rules of Success.  Instead concentrated on application with floppy disk ending up with no marketable product.

RULE 10 – The Old is Forever New.   New solutions for old problems come from ashes of solutions forgot. 

-Those, friends were 3M’s core concepts becoming one of most profitably companies ever. 
Q-(tongue in cheek) – I make mistakes.  Why a not rich?
ANot aware of capability
Q-Scotch Tape – the patent seemingly got away from em.
A –Yes, can’t talk further on. 

Q --Did 3M invent Teflon?
A – No, DuPont invented.  3M developed products that could use and how to apply it.
Q –Give some examples of products 3M produced
A – You have all day?  They started new divisions for many new products.
At this point, President Matt stepped in and declared.   Thank You!   See all next week. 
Thank You  Darrell Bertelson & Dale Borgeson  for photos. (provided on Member email Distribution) 
Ron Jensen

David Schultz
June 20, 2018

David Schultz, Hamline University Professor of Political Science:  “American Politics in the Age of Donald Trump”.  Host: Gene Hoff

Upcoming Events
7/11/2018  Member Roger O’Daniel“Ten Innovation Secrets that made the 3M Company Famous”.  Host:  Leslie Sharpe

Club President Mike Schall   Good morning.  Vibrant group this AM.  Lots of Guests.  Lets get Started!   

Todays Distinguished Guests
Gene Revat guest of Gene Hoff
Josh Downham guest of Gene Hoff
Jana Noonan guest of Gene Hoff
Bill LeMire guest of Gene Hoff
Pat Mazoral guest of Gene Hoff
Leo Espinoza guest of Gene Hoff
John Halpern guest of Gene Hoff
Al Swintek guest of John Halpern
John Emond guest of John Halpern
Manly Zimmerman guest of John Halpern
Chris Makre guest of John Halpern
G. Rolf Svendsen guest of John Halpern
Eric Mitchellette guest of John Halpern
Bill Ahlberg guest of John Halpern
Silvia Ontaneda guest of John Halpern
Greg Rye guest of John Halpern
Rick Everson guest of John Halpern
Dr Rick Memer guest of John Halpern
Bishop Harding Smith guest of John Halpern
Ruth Smith guest of John Halpern
Carman Smith guest of John Halpern
Jack Hart guest of John Halpern
George Beck guest of John Halpern
Mary Pryor guest of Henry Pryor
Bob Koldis guest of Roger O’Daniel
Luke Derheim guest of Dan Biersdorf
Jeff Thompsen guest of Joe Langer
Todd Andrews
Mike Schall   SUMMER PARTY June 27th  6PM.   No Meeting that Morning!  Notify Bob Lewis  952.941.9328 with updates IMMEDIATELY (Today!)   Menu selections are either Walleye or Beef Tips.   Music provided via “Crosscurrents”.  Cost is $50 per Member & $50 per Guest.  
Opening Ritual
Victor Kirsch -  First, from the not too bright dept:  She asked him if he was planning to be a weatherman.  “No.  Why you ask?”  “Because someone keeps calling asking if the coast is clear”.  Then  Why we’re here!”

Introduction & Speaker
Gene Hoff   Good Morning.  Then after a Sven & Olie humor, Gene stated todays speaker has been in local media once a week for years.  Multiple acclaims including 3 time Fulbright Scholar, Professor, author of 35 books & 150+ articles and now 3 times at Ham & Eggs:  David Schultz. 

David Schultz   Thank you for having me.  Today’s title doesn’t well define what I want to talk about.  A better title perhaps:  “President Trump verse the Law”   Without judgement, today will present 5 legal challenges against Trump or his Family & Associates. 

Partial excerpts of presentation heard follow:  

-(Tongue in Cheek)  Gene forgot to mention Election Night Channel 11 News Anchor between hours of 12 midnight and 5 AM after all regular Anchors went home for beauty sleep.

-Again, today want to outline 5 items involving our Constitution and Law that are largely grinding President Trumps agendas to a halt.  Quickly, the Items include:  1) Bob Muller Investigation of Russian election tampering, 2) Administrative Law challenges,  3) what I’ll term the ‘Stormy Daniel’ Lawsuits, 4) Emolument Lawsuits, & 5) Attorney General against Trump Administration lawsuits.  

-These items are an enormous impact on Trump’s ability to do his job.  

-1)  “Robert Mueller Investigation” – We knew early that Russia attempted to influence our elections – no dispute.   We know involvements by Julian Assange, Sputnik Radio and etc. What we don’t know is the scope of James Comey’s involvement. With Bob Muller investigating, Jeff Sessions reclusing himself (rightly per David Schultz) led to investigation of entire Trump Family & Trump Associates. 

-The Investigation recently took a turn to involve other countries.  Federal Law states anyone trying to impede an investigation is guilty of obstruction of justice.  Trump may be guilty with his agency firings.  Today, nobody knows where the Investigation will end. 

-2) “Administrative Law” (David Schultz teaches) is the law on how Federal government actually operates.  This involves Presidential Executive Orders & Delegations to Make/Change Rules.  Important is the Administration Procedures Act defining these laws.  The Star Ship Enterprise Captain Kirks “Make It So” statement doesn’t apply to Presidents. 

-The 2017 prediction that a flurry of lawsuits would occur in 2018 is proving true.  The Presidents “lack of attention to detail” (much laughter) with numerous lawsuits building today is slowing him down. 

-3) “The Stormy Daniel Lawsuits” (name created) with extramarital affair payments is involved.  Note, there is nothing illegal with payments, that is, unless the payments were made with involvement of the upcoming election.   If payments involved the election, they must be reported as expenditures. If intent was to hide, then a potential felony.    
-Michael Cohen initially stated he acted on his own.  Cohen had lobbied congress claiming he had significant influence over Trump.  Today, the best harassment attorney in US, Gloria Allred, is pursuing legal actions.  

-Trump claimed as President that he was too busy for this lawsuit.  Remarkably, Bill Clinton had a similar suit and wanted a delay until he was no longer President.  The Supreme Court rejected.   (Justice Delayed Justice Denied).  In last few days this lawsuit is moving ahead – thanks to Bill Clinton.

-4) “Emolument Clause”.   Regarding actions with other governments, Article 1 of Constitution states that Officers of US cannot accept bribes or gifts from foreign governments (even rooms in the Trump hotel).  The Clinton Foundation has similar concerns which are considered more significant than the Email Issues..  This lawsuit against Trump would expose his tax records and other documents. 

-5) “Attorney General Against Trump Foundation”  The Trump Foundation is a shell.  It’s Board of Directors hasn’t met in 20 years.  Q. Where did the money go?   Civil & Criminal Lawsuits are in play. 
-Today, these 5 categories are moving forward and absolutely consuming the Trump Administration.  They will continue into the future.  The Trump verse Law issues today are critical to his Presidency. 

-Thank You Very Much.   
Q/Statement – Trump has a long list of accomplishments – Comments?
A – Perhaps accomplished things.   The Legal issues are still impacting.
Q/Statement –Interpreting Constitution including Immigration Laws are not the Presidents job.  Impeachment?
A – Couple thoughts:  Constitution guards for impeachment. For Bribery, Treason & High Crimes you can impeach.  Then, what are High Crimes vs Misdemeanors? (malpractice  in office?).  Impeachment is a political proceeding, not legal proceeding.   It’s a judgement call. 
Q/Highly Condensed  - Can President under Constitutional Law be Pardoned by VP if VP became President?
A – First, US is not under Constitutional Crisis (addressing complex Q) instead a Political Crisis.  Our Constitution & Union are stable (experiences of 1960’s diversity/polarization described). If President were pardoned, could not then plead 5th Amendment.
Here Mike Schall, regretfully fast ending his tour as Ham & Eggs Club President, had to conclude a fascinating presentation & Q/A session.  
Thank You  Darrell Bertelson, Dale  Borgeson  & Mike Casserly for photos (included in Member Email Distribution). 
Ron Jensen


Colonel Donald G. Patton
June 13, 2018

Colonel Donald G. Patton, Retired: Director of The Twin Cities
WW ll Round Table: “Minnesota’s Involvement in WW ll: Host:
Mike Lehmann.

Upcoming Events
6/20/2018, David Schultz, Hamline University Professor of
Political Science: “American Politics in the age of Donald Trump”.
Host: Gene Hof.


Club President Mike Schall, Good morning, noting the
perfect weather outside asked if there were any guests present.

Today’s Distinguished Guests
Jack Burbidge guest of Victor Kirsch
David Hahn guest of Charlie Hahn

Mike Schall, reminded attendees of the summer party on June
27th at 6PM and circulated the sign-up sheet. Menu selections are
Walleye or Beef Tips. Music provided by the “Crosscurrents”.
Cost is $50 for Members and $50 for Guests. Mike stated that he
was working on arrangements for a golf outing and would
communicate details.

Opening Ritual
Victor Kirsch teased the club members with his usual humor
followed by the traditional “Why we’re here!”

Introduction & Speaker
Mike Lehmann introduced today’s speaker, Colonel Don
Patton, US Army (Ret.) with 30 years of service in various
command positions and Co-founder of the WW II History Round
Table. The Round Table a Minnesota institution is an organization
whose mission is to promote the study of and preserve the factual
history of World War II, an event that claimed 100 million deaths
from all associated activities. Don’s work through the Round Table
includes organizing and leading tours of European battlefelds and
American cemeteries to educate and pay tribute to American

Colonel Patton’s message focused on Minnesota’s involvement
in WW II with excerpts as follow.

The USS Ward an aging US Navy Destroyer fred the frst
American shot on December 7, 1941 outside Peral Harbor just
hours before the Japanese attack. The destroyer sunk a
Japanese Two-Man Submarine. Manning the destroyer was a
US Navy Reserve Group out of St. Paul MN.

The B-25’s Squadron that successfully invaded Japanese
airspace and bombed Tokyo were secretly modifed for long
range fight by Minnesota aircraft mechanics in a maintenance
hangar located at the current sight of the MSP control tower.
The 34th Tank Company of the MN National Guard was sent to
the Philippines to defend Manila Bay and fought bravely
during the Battle of Bataan and eventually endured the
Bataan Death March. Of the 64 men sent to war only 32
returned to Brainerd.

Bob Lewis interjected that club member Charlie Hahn was to
his knowledge the sole surviving current club member who
served in WW ll. (applause).

Gliders (one-way aircraft) played an important role in the war
as airborne troops when dropped into combat were strung out
and were difcult to supply. Gliders could transport a squad
of 13 soldiers with equipment to a selected location. Nearly
15,000 Gliders were manufactured in kits, shipped and
assembled overseas. The American Radiator Factory at Prior
and University Avenue manufactured 1600 of the Glider kits.
The Glider factory after WW II became the home of
Engineering Research Associates which was founded by US
Navy veterans who participated in codebreaking of enemy
communications. Out of ERA came Control Data, Unisys, Cray
Computing and many others.

Colonel Patton continued with examples of Minnesota’s WW
II connection and participation. (abbreviated
connections follow-non inclusive)

**The US Army Arsenal in New Brighton employed 24,000
men and women manufacturing munitions. It became a
model of cost efciency and quality.

**The Red Wing Shoe Company provided boots for combat

**The Snead Manufacturing Company provided administration

**Camp Savage, a former CCC Camp in Savage MN became a
Japanese language interpretation training facility.

**The Ford Automotive Assembly Factory in St Paul was
converted to manufacture armored cars and aircraft engines.

**The Hormel Company is famous for its production of SPAM
that became a major component of the infamous “C Rations”.

**Northern Pump in Fridley built large guns for Navy Vessels.

**Minnesota was host to over 400,000 POW’s during WW II
spread over more than 15 camps located throughout the

A lively Q and A session followed.

Reported by Bob Remakel