all investment advisors know, excuse, ignore, or don't know that they underperform
most market indexes and the benchmarks they select to evaluate their performances
individual/composite almost all of the time; including
myself at one point in time as a typical underperforming investment advisor
'with the best of intentions' from good to rarely excellent when markets
were rising to poor and occasionally catastrophic when markets were bad.
In 1989, I resolved to address this issue...to
learn what I knew needed to be learned...to
do what I knew needed to be done... and to
have what I knew I needed to have in order to
achieve investment advising and investing performance excellence; nothing
learned the hard way, do it right the first time, suitable, hopefully timely investments,
full disclosure, and investors' informed, economic best interest investing with
specifics and in detail.
my years of investment advising and personal investing experiences while
helping and training new stockbrokers and individual investors who manage their
own capital with what I am certain they need to
think about, learn, know, do, have, use, forget, and avoid to
advise effectively and to invest wisely I have developed a respect for
and a better understanding of the realities of investing, of the laws and disciplines
of investing, and of the dynamics and processes of investment advising and investing
am not so presumptuous as to suggest that there is but one way to invest in the
financial markets; however, I am certain that there is a critical path to learning
how to advise and how to invest; leave out a step, proceed with greater than
necessary investing risks:
that as stockbrokers and investment advisors that we can be better, much better,
that we can do better, much better, and that investors deserve more, much more.
mistakes, observing the mistakes of others, not repeating either, and occasionally
making new mistakes and not repeating them.
that there were and still are many investing tools that detail what needs to be
done establishing and funding goals, analytics; however, there were and
still are no tools that drill down to investing bedrock to address the ongoing
processes that help investment advisors achieve investing objectives for their
that investment portfolios
rather than individual investments, at least conceptually, should be the basic
unit of trade.
and learning from those who have achieved investing performance excellence.
between sense and nonsense, sound and unsound, results and rhetoric, and value
that serves vs. self-serving value.
the investment past, other than as an historical point of interest, as the basis
for advising and for investing; depending
almost exclusively on '20/20 foresight' rather than almost exclusively
on '20/20 hindsight.'
that portfolio management, a 'sense of the markets,' and investment timing
contribute as much/more to investment performance as/than does investment selection.
that the failure to thoughtfully define, relentlessly apply, and rigidly enforce
investment selection and management disciplines, rules, and procedures and portfolio
design, management, and performance disciplines, rules, and procedures are the
critical weakest or completely missing investing performance links for most investment
advisors and almost all individual investors who invest for themselves; the primary
reasons why investment advisors and individual investors underperform most market
indexes most of the time.
and continuously upgrading investing software to help me to process and to manage
what I have learned and to help me to advise effectively and to invest wisely;
organized, efficient, disciplined, and in control.
deciding enough was enough, after deciding 'I'm
as mad as hell and I'm not going to take this anymore!' (Howard
Beale, The Movie Network, 1976),
I resolved to get it right.
an investment advising and investing industry that invested as much in developing
truly skilled investment advisors and sound investing tools as is currently being
invested in product design, promotion, marketing, and sales.
a personal, proprietary investment advising net worth; feel better, do better,
and beat the competition:
an organized, efficient, and disciplined investment advising and investing environment
in which each investor, regardless
of investment need, knowledge, experience, and the amount of investment capital,
will be honorably, properly, intelligently, and efficiently served consistent
with each investor's investment profile and investment goals, the current market
conditions, and the market outlook.
bonds and equities wrapped in a disciplined portfolio creation and management
environment; the most efficient use of capital direct and undiluted participation
in investment opportunities, lower investment risk because free from flawed packaged
investments and predatory investing strategies, and little or no fees and commissions
constantly leaching from capital.
than attempting to predict the short-term oscillations of the markets and investment
no one can do on a consistent basis —
what can be controlled —
skills, and strategies —
to take control of and to take advantage of the uncontrollable and
unpredictable; the markets and investment prices.
an investment advising and management model that does not depend (entirely) on
the correct prediction of the direction of the markets and individual investments
(both always help), but more on a business model that anticipates change and the
certainty of the need to change.
think I know what is going to happen; however, regardless of what does actually
happen, I am thinking and looking ahead and I am prepared to decide and to act.'
an almost perfect investment advising and investing environment:
needed investment advising, portfolio management bulldozers to create and to control
almost perfect investment portfolios consistent with investor investment
profiles, the current market conditions, the market outlook, and relative investment
needed the ability to create detailed cash flow and capital accumulation investment
plans; where you are trying to go.
needed the ability to create unique, tailored investment portfolios for clients
with the client present; how you are going to get there.
No cute, current fad investing marketing tools such as Monte Carlo Analysis,
MPT, and Efficient Frontier Analysis to create the illusion that I knew
what I was doing.
effect, doing nothing more than 'bluff' (poker, OK, investing no) my way
through an 'investment selling' moment, not an 'investment advising'
as a "back office" accounting software program, though it accounts for every penny
(leave that to the custodians and the accountants), but rather as "front office"
investment advising tools and client communication software programs.
see the logic of the build, my plan and strategies, and the possible reasons for
change in the future.
with cash only or already having some investments.
a universe of different portfolios easily.
I needed the ability
to measure performance; if it is measured, it will get done.
is the result of these investing perspectives and of the commitment to achieve
investment advising and investing performance excellence.