Timeless Investing Lessons

July 29, 2022    |    Sage Capone

As a Hawaii Financial Advisor, I am always looking for ways to learn by reading and listening to investment books from some of the greatest investors. To understand some of their lessons I’m going to share a few of my favorite quotes that make you understand their philosophy.

Warren Buffet:

“Be greedy when others are fearful and fearful when others are greedy.”

Howard Mark:

“The herd applies optimism at the top and pessimism at the bottom. Thus to benefit we must be skeptical of the optimism that thrives at the top, and skeptical of the pessimism that prevails at the bottom.”

Joel Greenblatt:

 “The best strategy is the one you can stick to in good and bad times.”

Charlie Munger:

“Mimicking the herd invites regression to the mean (Merely average performance­.”

The daily economic news as an investor can make your head spin and make you rethink your strategy and approach to your portfolio allocation. Should I be more tactical or passive? Should I sale off positions and wait for the market to rebound? In times like this we need to take a step back and be disciplined as our investment performance will be derived from how we handle market corrections and distractions.

If you’re following the news, you will see the headlines on Gross Domestic Product (GDP) declining the last two quarters which leads you to believe we’re officially in a recession. However, the National Bureau of Economic Research (NBER) must decide that answer based on 6 economic factors. These factors include real personal income, non-farm payroll, employment, real personal consumption, sales, and industrial production. As you can see from Bank of America’s Global Research team photo below, each one of these factors have increased since December 2021.

Nevertheless, it’s important to note that a recovery or decline should not change your investment plan. As always, please do not hesitate to contact Sage Financial Investments for a Free Strategy Review or Second Opinion to discuss your portfolio or re-visit your risk profile.

*Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. Investments and/or investment strategies involve risk including the possible loss of principal. For a complete description of investment risks, fees and services, review the Brookstone Capital Management firm brochure (ADV Part 2A) which is available from your Investment Advisor Representative or by contacting Brookstone Capital Management.

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