Yours truly can attest to Fidelity’s banner year, as business is booming in my neck of the woods. Never before have I opened more accounts for existing and new customers. Who would have thought this would EVER happen in a pandemic year? I certainly did NOT. But as I’ve written to you before, when it comes to investing, you don’t want to be in the PREDICTION business. It never hurts to have a front-row seat, though. “Fidelity’s Retail Investor Accounts Rise 17% to 26 million” reports the WSJ here: Fidelity Investments capped 2020 with record annual operating profit, lifted by strong … [Read more...]

It’s nice to have some traditions you can count on. One of those is Warren Buffett’s annual letter to shareholders of Berkshire Hathaway, released over the weekend. With all the chaos in the world, it’s nice to have stability when you can find it. I read the report Sunday morning before Becky and I met my parents for lunch at a favorite spot in Tiverton, RI. My Mom and I ordered the fresh cod with littlenecks and linguica. My Dad commented that he had the same dish Friday with his friend at another restaurant in New Bedford. If you’ve ever read the history of how Berkshire Hathaway got … [Read more...]

I had a conversation with a prospective client yesterday telling me he wants preservation of principal with growth. And on top of that, he told me what stocks he wanted to own. (You know the names, I won’t bore you.) “Because I don’t like to lose money,” he said. In my over 25-years working in the investment business, I have yet to meet someone who “likes” losing money. It’s not a “well he can afford to lose some money” thing either. Losing money is losing money. No one likes to be a loser. Period. On a separate note, I had a real nice conversation with another prospective client earlier … [Read more...]

When dollars are created out of the air, they’re wasted. When dollars are too easy, there’s too much of them. And they’re misallocated. What could possibly go wrong? The virtue of making money year after year after year, and saving a little bit as you go, is that you don’t need to make monumental decisions about what to do with it. You create a plan. You save on a consistent basis and over time you look back and are pretty amazed at what you’ve amassed. (You can teach a grandchild how to do this here). The more government injects itself into the money equation, the more the natural law … [Read more...]

If you’re a client, you know you matter. We have a relationship. We talk about our families. You matter. In an industry where mega-investment-firms are acquiring medium-sized firms, what tends to get lost in the churn is you, the client—the one making it all work. Integration of your needs into a bigger firm’s desires is like a chicken processing plant, where there’s not much to talk about afterward because the relationship died long ago, and you’re there for the pickin’. Bringing in a new client takes time. It shouldn’t happen with a takeover deal. It takes care. It takes several … [Read more...]

Real quick. You’re interested in hiring a financial advisor—one who’s held to a fiduciary standard by law, not some silly suitability one. You know you need help, but you just can’t make it happen because there’s resistance: No time, no real interest in digging into it, or you don’t know enough to explain to a loved one why you need it. “We’re fine, aren’t we?” She might ask. OK, here are summaries of two calls I had yesterday with prospective clients that will help you gain some perspective. The first one was with a prospective client whom was referred to me by a client I’ve been … [Read more...]

You know how I feel about keeping what you’ve made and perhaps working a side hustle. You Owe it to Yourself to Continue Doing What You’re Good At Keep Working, if You Can How Many “Retirees” Will Keep Working?: Some Just Won’t Stop How Many “Retirees” Will Keep Working?: Today’s Elderly Twice as Likely to Work than in 1985 Your Retirement Life: You Can Keep Working These Americans Are Never Going to Retire You also know the benefits of working with someone who can be unemotional about your money. The entire country is emotional today. My RAGE Gauge, which measures … [Read more...]

Is your broker making money lending out your cash? Because in times like these, banks are making money any which way they can. Thankfully Fidelity is not a bank. You can rest assure they’re not loaning out your cash. What are you sure about today? I’ll tell you what I know. First and foremost, we need to come to grips with low interest rates. This is more troubling than you think. When interest rates are this low, the average investor (not you, I hope) can’t sit still and just earn a couple percent. The average investor needs more. The average investor will think nothing of lending it … [Read more...]

“I’m a plodder,” a prospective client told me yesterday. “I like what you wrote last week, I read your stuff.” “Thank you,” I said. “Plodders are especially welcome in times like these.” In case you missed it, I wrote: Why You Should Listen to These Wise Men in Times Like These OCTOBER 30, 2020 BY E.J. SMITH - YOUR SURVIVAL GUY I recently received this message from a client: EJ, it was great talking to you yesterday. While doing a little reading last night I came across a quote I thought you might like. The Old Testament book of Proverbs was compiled by King Solomon who many … [Read more...]