2020 Client Letters
We’ll present our outlook for the coming year in our letter to you after the holidays.
In the meantime, let’s set aside the swirl of the daily news and reflect on the values of family, friends, and faith, and appreciate and enjoy them.
The ‘long count’ of Election 2020 is not the first ‘long count.’ The first, the origin of the expression ‘long count,’ aka ‘the long count battle,’ was the 1927 boxing match between Tunney and Dempsey, the latter failing, either because he was unaware or in defiance of the neutral corner rule before a referee would begin counting over a knocked-down opponent, allowed Tunney to take an estimated 13 seconds (the ‘long count’) to get back on his feet and ultimately retain his championship with a 10 round decision.
“One thing that stands out about this pitcher,” announced the color commentator during the call to the bullpen, “is he keeps the ball in the strike zone.” No sooner said than the pitcher gets the sign from Yadi, nods approval, and sends the ball sailing three feet over the batter’s head and to the screen.
Ah, for the good old days of the circuses of the political conventions.
“The honorable state of delirium, home of the best peach preserves and burial place of the former commissioner of cosmetics, places its vote for the nomination of our next President, Senator Alphonse Foghorn!”
Watching a Cardinal game with cardboard people in the stands and piped in fan sounds is not tripping my trigger, However, the other night I took a break from reading, put my book down and, idly curious, started to check a few channels.
We’ve written before how we encourage investors to think not of being a ‘stockholder’, but rather in terms of having passive ownership of companies. Our client, Carla, took it one step further with her experience at Destin Commons in Florida.
And now we approach the mid-point of the year, the month that for many of us begins the vacation season. The beach or mountains or lakes, even perhaps a trip outside the country.
Required Minimum Distribution Alert
The coronavirus bill passed by Congress and signed by the President includes allowing you to not take a Minimum Distribution from your retirement plan this year! If your expenses can be met without tapping into your retirement savings, you could benefit in two important ways:
We think it is time to take a break. The local NBC TV station updates daily the Covid-19 statistics for the St. Louis metropolitan area. Add to that the newspaper and national television radio and TV networks constant reporting of negative news.
Tower to White Swan, “What is your ETA?”
There are Black Swans (most often defined as an anomaly, an unexpected event, with potential negative consequences: we are experiencing that with covid-19!) and there are White Swans, but what about Grey Swans?
We are in the midst of the most irrational investor behavior since 1987, as I write about in the letter to our clients quoted below. Our current buy list includes Great American Companies that have strong financials, positive earnings and dividend growth potential, and have increased their dividends annually for over 25 years—several for over 50 years.
Black Monday—1987! Over a 22% decline in one day!
We didn’t have the computer systems then that we have today, so I was up until around 2-3:00 a.m.with a yellow legal pad, a couple of pencils, and a hand-held calculator. The bargains were every where.
How many times in recent years have the media scared the ‘whatever’ out of readers by portending doom in bold headlines?
Here come the pundits with predictions galore. It’s that time again, when turning the corner into a new year brings out the prognosticators. Where will the Dow be? What will be the best performing stock? Will the Fed raise interest rates? Will Trump be impeached? 0p>