Creating real wealth

When we think of Warren Buffett, Bill Gates, Jeff Bezos or Elon Musk we all recognize the obvious. They are billionaires. Enormous wealth that was created by owning amazing businesses over very long periods of time. Through good and bad times the fruits of their labour took decades to harvest.

Investing is a marathon. Yet today the markets are dominated by short-termism.

How I invest my money

When I tell clients I treat their money as if it’s mine, I’m referring to the deep understanding of self, the care, the thought, the planning that goes into successful investing — and the best way of explaining that is by sharing how I invest my own money. 

About a month ago a client sent me an email with a link to a podcast reviewing a new book called “How I invest My Money – Financial Experts reveal how they save, spend and Invest”. The podcast intrigued me and I bought the book. Twenty-five professional advisors bearing their souls.   

So after almost a month of thinking about it, here is my answer

You’re probably wondering why it’s taken me so long. Well, it’s easy to just make a list, but with deep reflection comes deeper meaning. 

Anyone who has gone to my website and viewed the video on the home page has heard my story of how and why I decided that being a financial advisor was going to be my vocation and lifelong passion. The story I shared in that video is a sad one, of how I received poor advice and lost all my money. As it happens, it was my awakening, yet it’s taken all this time for me to understand why. 

In fact, growing up, experiencing loss was a far too familiar occurrence. At a very young age my father died, then my two uncles, all before my 25^th birthday. We were a close family, all partners in the family business. I watched and witnessed what it took to pick up the pieces and start over. 

You’re Never Too Wealthy to Want a Good Deal

A billionaire many, many times over, Warren Buffett still lives in Omaha Nebraska, in a home he bought for $31,000 in 1958 and is now estimated to be worth $652,619¹. Sam Walton, the Walmart founder, drove the same 1979 Ford F-150 pick-up until he died in the early 90s².

I’m certainly not in their league, not even close, but I am successful — in both my business and as an investor. And I’m not ashamed to admit that I’m always looking for a deal, for ways to save

What’s The Phrase Investors Should Have Tattooed on Their Souls, and Why?

The phrase, which has been around in English since about 1545 is, “Rome wasn’t built in a day.” It’s important for investors to take it to heart because essentially it’s a warning against rashness and impatience — which can be, as behavioural economists — and history — keep reminding us, an investor’s worst enemy.

When we react — or over-react — to short-term performance and behave impetuously, we often do it at the expense of our long-term results. On the other hand, those investors who appreciate and capitalize on the

What Warren Buffett Can Teach Us About Risk

We’re turning our blog over to a guest blogger today. Vincent Linsley is a Canadian investment management sales and marketing professional. He also authors a blog, Investment Graffiti.

 

Warren Buffett’s 2019 Annual Letter to Shareholders was delivered on February 23 and eagerly-read by investors worldwide. The much-anticipated update provided an inside look at his company, currently the world’s highest-priced stock, trading at over US$300,000 per share.

The epitome of “basic” no frills writing style and structure, Buffett’s disciples read the letter religiously,

There’s no shame in being wrong

Don’t know about you, but I’ve never met or read about anyone who’s never been wrong about anything, even experts and the most savvy among us.

Yet we’re always hesitant to talk about those instances. We’re eager enough to discuss our successes but aren’t as willing to open up when things don’t go exactly as we’d hoped, planned or expected — regardless of what it is — a hiring choice, a business decision, a purchase, a relationship, an

It Can Be More Challenging To Stay Wealthy, Than It Is To Become Wealthy

I read a very interesting blog post the other day. In it, there is a Warren Buffett quote that makes so much sense: “The most important quality to do well is temperament which would permit the control of fear and greed which have ruined many. Anyone who has become rich twice is dumb. Why would you risk what you need and have for what you don’t need?”

Excellent question.

Both the quote, and the blog post where I read it, made me think about the recent election in the U.S. and all the commotion it caused. The worrying, wondering and speculating over who would win and what the potential

Concentration is Key

In the investing world, the topic of diversification often arises. As money managers, we advise clients on their stocks, bonds, mutual funds, hedge funds and real estate funds, among others. The intellectual stimulation of this job is hard to beat. We do believe portfolios should be diversified across asset classes. But, when it comes to owning simple common stocks, concentration is the way to go.

My friend David Kaufman recently published an excellent article in the Financial Post on the merits of owning a concentrated portfolio of stocks. David writes for all readers, regardless of their familiarity with high-tone investment language, and his column is worth reading. You can find it here.

David makes a simple point. With the proliferation of exchange traded funds and, I will add, the number of smart people that have flooded into the investment business, it becomes difficult to outperform the stock market.

You’re Not Warren Buffett

As Clint Eastwood said in Magnum Force, “A man’s got to know his limitations”. Warren Buffett is perhaps the wealthiest and most famous investor of all time. Therefore many have tried to emulate him – including professional money managers – without much success. The fact is, very few could ever duplicate the process and the success he and his partner, Charlie Munger, have achieved at Berkshire Hathaway.

First, Buffett has over 75 years of investing experience, having bought his first stock at age 11. As well, except for a few hands of bridge with Bill Gates, he spends all of his time evaluating investments. His wealth and ownership of

It Can Pay to Get Out of Your Comfort Zone

Managing emotions is an important part of investing. An experienced Investment Advisor can help with that. We work with clients to prepare a financial plan and help them stick with it over the long term, regardless of market fluctuations.

In recent years, a whole new field of study has evolved called “Behavioural Investing”. It explains why people react the way they do and points out