3 Words on Investing

MRA-Summer-BBQ-4
 

Originally posted Monday, August 29, 2016

On July 21st, MRA president Neil Hoyt and the rest of the MRA staff welcomed 140 guests to the Greenwood Winery in E. Syracuse for their annual Summer Celebration. Clients, colleagues, and members of the business community listened as US Airman Jamie Biviano spoke about her work at Clear Path for Veterans followed by Neil sharing ‘a few words’ on investing. This post expands on his presentation – we hope you enjoy reading it.

Hello…My name is Neil Hoyt and I am the President of Michael Roberts Associates. We would like to thank you all for attending the first of what we anticipate to be many events supporting Clearpath for Veterans. In a moment I will be pleased to introduce Lynn Fox from Clearpath who will describe their organization and its purpose.

Right now for those of you not familiar with Michael Roberts I would like to take a few minutes to introduce our Company. Michael Roberts Associates is a full service Financial Planning firm headquartered right here in East Syracuse. We are a branch office of Cadaret, Grant and have been in business since 1990. I personally have been here for 25 years and I could not be more proud of the firm we have become…It’s been my life’s work.

At Michael Roberts we take a Long Term, Value based approach to investing, and we begin the process by developing a personal financial plan customized for you. This plan takes into account your own Time Frame, Risk Tolerance, Income Needs and any special family circumstances. There are no “one size fits all” models. Our investment approach, based on Low Turnover, High Dividends, and a focus on Downside protection, reflects our core values of patience and quality. Our conservative philosophy colors everything we do.

Our core group of 7 financial planners, including 3 CERTIFIED FINANCIAL PLANNERS™ professionals, has been together for a LONG time. They are an extraordinary group of people and it has been my privilege to work with them. My two partners in the ownership of MRA have been with me for 20 years and the rest of the group for about ten years. You could say we long ago exceeded Malcom Gladwells “10,000” hours! We have a lot of experience in a lot of different market environments and we continue to develop our professional skills to better serve our clients.

Now just a few words on investing…literally a few…3 to be exact. Turnover, Dividends and Complexity.

Turnover

On more than one occasion I have heard the stock market referred to as “ a casino”. Actually the exact opposite is true. The stock market rewards you for patience….the casino punishes you for it. The longer you stay in the casino the worse you will do. That is the simple tyranny of mathematics and house odds. In 30 years in this business I have met no successful “market timers”. None..Zero. One of the best things we can do for you is to help you to curb your base instincts and keep you from panicking when markets become turbulent.

Dividends

I want my stocks to pay me a share of their profits each year. Every conversation I have about a stock or a Fund begins with its dividend yield. Per share dividends of the S&P 500 have grown by more than the inflation rate Every decade for the past 50 years! Dividends…not some perceived appreciation you hope to get out of your stock, can make your mortgage payments and buy your groceries! During your savings years you can let those dividends grow and compound. Einstein described compounding as the “most powerful force in the universe”. Let it work for you in your investments.

Complexity

Finally…Complexity.

Complexity is an investment landmine. Needless complexity within products, excess activity, high fees, lack of liquidity. These all detract from long term performance. Keep it simple! If you’ll allow me to quote Einstein one more time…”Everything should be made as simple as possible, but not more simple”. Invest in quality high dividend paying assets, hold them though market turbulence, focus on the long term. These are all simple concepts that lead to outstanding long term results. We can help you develop a Financial Plan for your future in a simple, understandable and transparent format. Let’s talk about it