Our Ideal Client
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Article Reposted from LinkedIn:
The 3 Hardest Things in Investing
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We want to work with great people and organizations that we support and have a noble mission.
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Our criteria is that "we want to work with people that we love to talk to, even if we didn't have any business to discuss."
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In order for the relationship to make sense, they have to have enough assets to invest for it to make sense for both sides.
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If it's not a great fit for us, then we also do pro bono consulting to help them find a good solution for them even if that means sending them to an adviser who is better suited to assist them.
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“Success is 10% of what happens and 90% of how you react to it.”
A superb analogy from the "Father of Value Investing"
Mr. Market - Benjamin Graham
​​Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named "Mr. Market", is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or to sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly. If you are a prudent investor or a sensible businessman, will you let Mr. Market’s daily communication determine your view of the value of a $1,000 interest in the enterprise?
Only in case you agree with him, or in case you want to trade with him. You may be happy to sell out to him when he quotes you a ridiculously high price, and equally happy to buy from him when his price is low. But the rest of the time you will be wiser to form your own ideas of the value of your holdings, based on full reports from the company about its operations and financial position. The true investor is in that very position when he owns a listed common stock. He can take advantage of the daily market price or leave it alone, as dictated by his own judgment and inclination. He must take cognizance of important price movements, for otherwise his judgment will have nothing to work on. Conceivably they may give him a warning signal which he will do well to heed—this in plain English means that he is to sell his shares because the price has gone down, foreboding worse things to come. In our view such signals are misleading at least as often as they are helpful.
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Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.
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P. 204-205, Graham, B., Zweig, J., & Buffett, W. E. (2003). The Intelligent Investor: The Definitive Book on Value Investing. HarperCollins Publishers.
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"Remember that the stock market is manic depressive."
-Warren Buffett
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My Downturn Framework
Establish a disciplined plan before volatility emerges, so when markets become dislocated, you can remain composed and decisive while others react emotionally.
(In order of aggressiveness)
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Sit tight if you don’t know what to do. Markets ebb and flow.
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Rebalance your account
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Add money to your investment account
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Increase the account risk exposure
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In the background, we can always consider Roth IRA conversions
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"Widespread fear is your friend as an investor because it serves up bargain purchases."
​-Warren Buffett
We invest on a strict fundamental basis, while combining psychology into our investment strategy. If this reflects your values, we’d love to hear from you today!