Collectibles have been a real passion of mine since I was a child. Most of my friends collected baseball cards, and although I love sports and sports memorabilia, from a young age I developed a deep appreciation for rare antiques and other artifacts rich in American heritage.   Over the years, I have lovingly assembled a collection of original writings by historical luminaries such as Ronald Reagan, Mother Teresa, Aaron Burr, Charles Evers, Lewis Strauss, Jimmy Carter, and many others. As my professional involvement with Chevron and American Airlines grew over the course of my career, I began to develop a real passion for historic Standard Oil and American Airlines memorabilia.  If you have ever visited our office, you’ve likely seen on display 1955-1956 Standard Torch magazines; a 1936 letter written by J.T Rhodes on original Standard Oil letterhead; a Red Crown gas pump; American Airline bulletins; and an original American Airline stock certificate.  I cherish each and every article in this collection and I love to share the stories behind these pieces with those I encounter.

A few weeks back, I was fortunate to find myself on the receiving end of some rich collectable information. I was speaking with Hugo Vargas, Chevron retiree and publisher of The Petro-Philatelist, about his passion for stamps. The Petro-Philatelist is a publication that reviews and discusses postage stamps featuring petroleum industry themes or imagery. Mr. Vargas is not only an avid collector of rare stamps, but also a researcher and author on topics related to collectibles. Mr. Vargas shared with me the story of the petroleum industry told through these stamps.  He also educated me on how many global stamp designs hold historic petroleum information. Like he said “incredible historical lessons are to be learned from studying stamps.” My favorite stamp collection story was about Nobel Brothers Petroleum Company.

Here is an expert from an article written by Mr. Vargas in 1995,

“When it comes to many aspects of early extraction and oil processing, Azerbaijan was among the first in the world. In 1919, it also was the first country to issue a petroleum-related stamp.

In June 1994, the Republic of Azerbaijan issued a series of stamps commemorating the 115th Anniversary of the founding of the Nobel Brother's Petroleum Company. The new stamp (#1) depicts the three Nobel brothers-Robert, Ludwig, and Alfred (who was benefactor of the Nobel Prize)-along with Peter Bilderling, all co-owners and executives of the Nobel Brothers Oil Extracting Partnership. This souvenir-set stamp is framed against a photo of early wood drilling rigs and juxtaposed onto a map of the Absheron Peninsula where these early oil fields were discovered.

The Nobel Brother's Petroleum Stamp is the first petroleum-related stamp issued by Azerbaijan since the dissolution of the Soviet Union in 1991. The stamps anticipated the signing of the Western Oil Consortium contract which was ratified in December 1994.

The Nobel Brothers established their company in 1879 and played a significant role in modernizing technology as it related to oil production in Azerbaijan in the 40 years that followed (see Azerbaijan International, Autumn 1994; 2:3).

For example, they initiated the use of a continuous distillation process in their refineries, a procedure which was not adopted in the United States until some 20 years later.”

I found this historical information fascinating and enlightening. For centuries, people have illustrated and created artwork that portrays the world around them and the rich history printed on stamps is no different. The resurgence in of Renaissance artwork, the return of classic automobile body styles, an increase in the collectable markets coupled with a strong desire for change can be interpreted as contemporary society’s desire to return to the “Good old Days”.  It speaks to our human need to use history as a navigational guide for the future.

Most of you are probably thinking, “What is the importance of this article?” Our office believes it is time to reexamine the fundamentals—the basics of the markets. Historical trends, data and cycles need to be consistently reviewed and assessed.

Investment gurus would do well to remember that market runs are all temporary and everything is cyclical. Money is consistently rotating out of one hand and into another. The passion for collectibles today – like stamps or baseball cards – will at some point be replaced by the passions of tomorrow. Knowing this, we must remember that in spite of current trends, reviewing historical patterns and swings is always prudent. Just like life lessons can be learned from stamps, financial lessons can be learned from revisiting global investment market snapshots. It is indeed wise to look back upon the prevailing economic perspectives of Benjamin Franklin’s day or those of Teddy Roosevelt, Ronald Reagan or Bill Clinton. We can chart the new way forward by taking what worked in the past and renovating it, updating it and optimizing the underlying wisdom to make it successfully address the challenges of today.

For example, consider the 2004 The American Jobs Creation Act. “This law incentivized U.S. businesses to bring $360 billion of foreign subsidiary earnings back onto the U.S. at a reduced corporate tax rate of $5.25% for one year. A survey of several hundred of these companies found that they used on average 25% of those funds for U.S. capital investments, 23% for hiring and training, 14% for U.S. based R&D, and 13% for U.S. debt reduction”( Sinai, Wall Street Journal, January 28, 2009). A measure similar to this past legislation could be useful in helping stimulate the job market, increase capital expenditures, improve financial business conditions, loosen up the credit-constrained environment, and bring needed funds into the market.

Although stamps are rich with historical life lessons, I contend that now is the time that we use our past knowledge to create new stamp designs.