It is often said a small business is like a family. Likewise
the break-room table is much akin to the family dining room. The typical
family, stretching their collective imagination to its limit, could never
imagine their favorite rock star, movie star, athlete or politician stopping by
for dinner and a few laughs. Much the same, the typical small financial
services company would not expect a portfolio manager from the largest mutual
fund in the world to spend an hour and a half at the break-room table
discussing investments with an audience of nine people. Yet today we had the pleasure of having a portfolio
manager, accompanied by an investment analyst, and a wholesaler, do just that.
It’s probably reasonable to assume a large and lavish conference room filled
with plush chairs, power suits and power ties is a more typical environment for
such an impressive trio. Nevertheless, the enthusiasm for the discussion in our
everyday break room was top shelf and they seemed right at home in our familial
digs. A visit like this is solid evidence in the confirmation of two things: we
are doing things the right way and so are they.
www.selahfs.com
I’ve never met an American who doesn’t like at least one
kind of pie. So many delicious crusts, cream fillings and meringues to choose
from; but for me a pie is all about the fruit filling. Apples, peaches,
cherries, blueberries, blackberries and any other delicious fruit that can be
stuffed into a pie all have their seasons and climates in which they thrive and
produce the best results for pie. Unfortunately, I have not discovered a year
round, all season, and all climate fruit that makes a delicious pie. I’ve often
thought about creating a “Frankenpie” with a different fruit in each slice but
I imagine the results wouldn’t match the dream. I’m sure they don’t call it
“Frankenpie” but the primary mutual fund company we work with applies this
approach to portfolio management. During a recent meeting with the portfolio
manager, he described how the company slices up management of their funds
between 3 to 12 different managers per fund. These managers are responsible for
their own slices and manage them based on their own style, experiences,
convictions, strengths and weaknesses. The result is portfolios that are as
naturally diversified as any group of individuals would be and structured to be
complementary so that one manager’s weakness in a given investment climate is
countered to some extent by another manager’s strength in that same climate.
Over time, this approach provides a fund the ability to generate more stable returns
in an ever-changing market place. This portfolio management theory is in
essence management for all seasons.
www.selahfs.com
Plan your attack then attack your plan! The key word in
this age-old saying is plan. Today
is a great day to set some goals, get a plan going and then get going on the
plan. The average investor has underperformed the S&P 500 by almost 4% for
the last 20 years due to getting in and out of the market at the wrong times*.
We feel that this is largely because of a lack of measurable goals. There are
many ways to estimate what your required spending will be in retirement
planning. Please ask us if you need help with this. These numbers will help you
set a savings goal for today. Just remember, if you know where you are going
it’s a lot easier to get there. We can help you set your goals, plan your
attack and decide if you have financial independence for today and tomorrow. * DALBAR
study Quantitative Analysis of Investor Behavior (QAIB) 3/2013
www.selahfs.com
