Blog

Thoughts and musings from my desk to you.

Advisory Practice Evolution

Advisory Practice Evolution

Advisory Firm

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.”

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Predictably Irrational Investing

Predictably Irrational Investing

Behavioral Finance, Investing

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.

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Don't Overvalue Dividends

Don't Overvalue Dividends

Dividends, Investing

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.”

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The Great Inflation Debate

The Great Inflation Debate

economy, inflation

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.

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Death and Taxes

Death and Taxes

Step-up in Basis Rule, Tax Strategy

Everybody has heard the old saying that nothing is certain in life except death and taxes. But not everyone knows how death and taxes are inextricably linked.

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Emotional Investing Mistakes

Emotional Investing Mistakes

Behavioral Finance

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.

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Investing is All About Perspective

Investing is All About Perspective

Behavioral Finance, Investing

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.

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Smart Money? Maybe. Brilliant Money. Never.

Smart Money? Maybe. Brilliant Money. Never.

Investing

Like all industries, there is a pecking order in the investment arena, a hierarchy if you will. At the top of the financial pyramid are the hedge fund and private equity businesses.

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Investor Trendspotting

Investor Trendspotting

Investing, stock market

One of the greatest misconceptions investors have embedded in their psyche is the assumption that predictions about the future are accurate or even valuable. I struggle with it too.

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Hedge Funds' Comeuppance

Hedge Funds' Comeuppance

Investing

Hedge fund managers are far and away the wealthiest and most powerful operators on Wall Street. This is despite producing some of the worst overall results for investors.

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Gil's Musings

Learn about the world of investing from a 38-year industry veteran. Gil's Musings are inspired by Gil's thoughts on timely finance topics, stock market trends and the psychology behind smart investments.

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