What’s the best investment advice you have ever received? Not a “hot stock tip” but actual ADVICE. How about something you could implement into how you invest long-term, a large strategic change in your allocation, or an investment philosophy and process you could use?
Everyday I see a few articles or interviews from high profile individuals talking about what they are doing with their investments. As much as I enjoy hearing what edge they believe they have, strategies they are using, and learning about new ideas, I understand that their situation and goals is probably not the same as mine. Therefore, their strategies and risk are probably not the same as mine either. Now, do not get me wrong. These are typically intelligent and hardworking people. But they aren’t me and they aren’t you.
Here’s a few quotes I’ve read or heard recently:
Jamie Dimon, CEO of JP Morgan: “I don’t own any bonds”
Suzie Orman, TV Host and financial “expert”: “I only municipal bonds”
Ray Dalio, CEO of Bridgewater: “I am now bearish”
These people give VERY different “advice" because of their financial situation. Do you have billions of dollars like Dimon or Orman or Dalio? Are you paid millions to talk on TV? Do you have enough cash on hand to pay for everything you need? They do. They can decide to take on an incredible amount of risk or no risk and their financial life and what they do on a daily basis probably doesn't need to change.
Let me ask a slightly different question. Did your best advice ever come from a headline on the Wall Street Journal or a quote from a billionaire? Then why do investors spend so much time listening to them? Since we can probably agree that you and I have different goals and financial situations than most of these high profile individuals, let’s not take investment advice from them or manage our money like them.
You have goals that are, hopefully, tied to your assets and savings. Align your capital with your values, analyze what you need to earn, and allocate accordingly, allowing the markets to work for you.
If you aren't sure if your capital and values line up or need a second opinion on how you are doing, we would love to connect. Reach out.