Before leaving for Christmas break, President Trump officially signed the Republican tax bill into law. The last time this country reformed its tax code, Mike Tyson became the youngest Heavyweight Champion in history, the Oprah Winfrey show had just debuted on television, and the movie “Wall Street” had not yet been released.
A new year is upon us, but don’t let this headline frighten you. Rather now is a very good time to talk about successful investing and the corresponding behavior associated with it.
“The time to repair a roof is when the sun is shining” - John F. Kennedy
In 2018, we are celebrating our 20th year as a firm. The past two decades have offered many lessons for all of us. I thought I would share a few lessons from my experiences in hopes that we can learn together.
This past summer was highlighted with events and headlines that are emotionally charged such as statues, political rhetoric around North Korea and world events of the day. These circumstances reveal the plight of humanity to balance hypothesis and fact. Typically, controversy is generated from hypothesis, not around fact. We tend to hypothesize about subjects to serve our own purposes creating a maze of opinion, attitudes and theories. Facts tend to be fixed and final.
You may have read that hackers broke into the Equifax database and accessed personal information tied to 143 million people. The hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers and credit card numbers.
The first total solar eclipse visible in the U.S. in nearly four decades is happening today. Only 1 in 1,000 people have ever seen a total solar eclipse and the last time this happened, Jimmy Carter was in office. During most solar eclipses, the moon takes just a “bite” out of the sun – these are called partial solar eclipses.
I am frequently asked “who are your biggest competitors”? It is a good question and I appreciate it. The answer is usually unexpected and received with surprising curiosity. Our greatest competitors are not other competing banks and brokerages, but rather human procrastination. In my opinion, this behavioral mistake has reached epidemic proportions.
I am frequently asked “who are your biggest competitors”? It is a good question and I appreciate it. The answer is usually unexpected and received with surprising curiosity. Our greatest competitors are not other competing banks and brokerages, but rather human procrastination. In my opinion, this behavioral mistake has reached epidemic proportions. Maybe you have heard the sage advice if you find yourself in a hole, stop digging. Procrastination is a hole. Although, this might seem simple, it is prevalent among investors who are overwhelmed with options, information and an industry that is changing dramatically.
I received a letter from a client recently that reminded me of a quote from the great Albert Einstein. Einstein said “everything should be made as simple as possible…but not simpler.” The client was appreciative for the successful outcomes over the last decade that involved basic and simple fundamentals. I read this note of gratitude just behind an article in the Wall Street Journal reporting on the lackluster investment results of large prominent Ivy League endowments such as Harvard and Yale.
The financial world is changing dramatically. Unfortunately, some of our friends and family don’t always have the needed information or education to navigate these changes and make wise decisions. I’m concerned about it and so are others. The problem of not having sufficient resources late in life is tragic.