Passive investing, an investment strategy aimed at maximizing returns over the long run by keeping the amount of buying and selling to a minimum, is a popular choice for many. However, like any financial strategy, it has its pros and cons. To navigate these complexities, engaging a financial advisor can often prove beneficial. The investment […]
The ‘Twaddle Tendency’ is a term coined by Charles T. Munger, an American investor and philanthropist, to describe the inclination of people to have opinions and hold beliefs about subjects that they do not fully understand. It’s a potent cognitive bias that happens when people speak with apparent authority about topics they know little about. […]
Albert Bartlett’s quote, “The greatest shortcoming of the human race is our inability to understand the exponential function,” encapsulates a profound truth about human understanding and financial growth. The principle of compounding, represented by this exponential function, is a potent force that can lead to substantial growth over time. However, our instinctive grasp of linear […]
Understanding our past is akin to peering into a mirror, reflecting not just the events that have transpired, but the choices and the intricacies of human nature that have woven the tapestry of our history. The lessons we glean from our past play a pivotal role in shaping the decisions we make for our future. […]
In Streetlights and Shadows, Gary Klein posits that while procedures and rules provide structure and predictability, they can also inadvertently undermine expertise by stifling the very spontaneity and intuition that often lead to innovative solutions and astute judgments. This principle is profoundly applicable in the realm of investment management. Investment management is an environment where […]
“When your values are clear, your decisions are easy.” This quote from renowned financial advisor, Bill Bachrach, serves as a cornerstone in the world of personal finance. At first glance, it may seem like another inspirational quote, but its true depth is revealed when we apply it to our financial lives. Foundation of Values Values […]
In the world of finance, there is a popular sentiment that aligns with the philosophy of the renowned investor, Warren Buffett: “Do not save what is left after spending, but spend what is left after saving.” This nugget of wisdom speaks to the importance of having a clear financial plan in place before making any […]
It has been a year for humility as many of the traditional methods of managing risk inside portfolios have been taxed. It has been a year of consciously focusing on gratitude for all that we have and all that has gone well. It also has been a year where the value of our disciplined commitment to planning has never been more highlighted.
Creating a habit of saving is hard, really hard. It requires discipline and few people enjoy discipline. But your daily disciplines (or lack thereof) can have a profound impact on your future.
Consider the daily latte. The average medium latte at Starbucks costs $3.65 assuming you don’t “doctor” it up with extra flavors, different milks, etc. That cost is pre-tax. We know that $3.65 can add up, but what does it add up to? Let’s look at some simple math behind a lattehabit. The chart below illustrates the future value of that cup of coffee, depending on your consumption.
In the last few days stocks have taken a beating. Volatility has finally returned after a near two year hiatus. Friday February 2nd saw the largest single one day drop in the Dow Jones Industrial Average history. The following Monday (Feb. 5th) saw some of the largest intraday swings in history, ranging from down over […]
In my decade plus time advising clients, I have seen this truth—my most joyful clients are my most successful investors. Not the other way around. The rewards follow the joy, not joy the rewards. They view the future as bright and invest faithfully in it knowing that no amount of market return will ever be able to generate an internal joy, but that prudent stewardship and a long-term perspective can perpetuate the upward spiral of joy.
Daily living, marketing, and the widespread adoption of mobile devices and social media have made it increasingly difficult to remain focused. Often, it is difficult to even know where to focus, much less maintain it over it time. But I’ve come up with a little reminder that I like to review from time to time, and I want to share it with you.
A few weeks ago I attended the retirement party of someone I’ve called a dear friend for over 49 years. Long ago, we were both young financial advisors chasing similar career paths. We even migrated to independent businesses around the same time. His retirement prompted me to reflect with gratitude on all my opportunities and […]
