Thoughts and musings from my desk to you.
Gil penned a piece describing the evolution of his billion-dollar advisory practice in Financial Advisor Magazine!
“Many advisors get stuck in the path of least resistance methods and never evolve to scale.”
“Over my nearly four decades as an advisor, I’ve seen quite an evolution in my practice. There was a day when I would take on new clients with $2,000 IRAs, and I would buy securities for them as their whims dictated. I figured out what they thought worked, and I aligned my recommendations to their biases. My goal was to amass assets and aligning with client predispositions seemed the path of least resistance. But I began to realize that my practice would have no common themes if I allowed it to develop this way.”Read More
The field of economics has long assumed that people make decisions that optimize their own utility, and to derive the greatest benefit for themselves. However, psychological studies show that we humans do not do this, but rather we often make irrational choices, and we do so predictably. In this case, irrational investing choices.Read More
Gil published a piece in Advisor Perspectives entitled "Don’t Overvalue Dividends."
“My advisory firm is a big fan of stocks that pay dividends. Segment’s tax-efficient rising dividend portfolio is our most popular strategy. But if you dig into the numbers, the dividends our holdings pay are not huge. This is because we manage for total return, not maximum cash flow.
We buy stocks with a mind toward dividend sustainability and a history of payment hikes. This contrasts with normal bias toward dividend shopping, where one would simply buy the highest-yielding companies as though nothing else mattered.”Read More
Signs of inflation abound with chip shortages, car shortages, and sky-high lumber prices, among others. Many forecasters are predicting 70s style inflation or even stagflation. Given the similarities in Jimmy Carter’s and Mr. Biden’s policies, it’s a valid concern.Read More
Investing is an emotional art form with very little science, although Wall Street does a great job of creating the illusion of scientific certainty with their expensive strategies. Even if they were scientifically advantageous, it’s all moot if clients make emotional mistakes.Read More
As investors attempt to navigate choppy waters, we often come to realize how difficult it is to predict the future. Most tend to project today into tomorrow and more dangerously, we tend to act today based on what we feel about tomorrow.Read More