Ten years ago, for my 40th birthday, I attended Berkshire Hathaway Inc.’s annual shareholder meeting. This shows my geeky side and I must admit, I loved every minute! I was also planning to attend this year for my 50th; however, COVID-19 and social distancing made that impossible. So instead I “attended” their day-long virtual meeting and typical of Warren Buffett, he provided wisdom and wit that only a man of his age and stature can manage. He did not disappoint. Mr. Buffett emphasized that he was as uncertain about the short term as he is optimistic in the long run, and further commented that Berkshire isn’t itching to make any giant investments yet. However, Mr. Buffett provided optimistic remarks and said, “We’ve faced tougher problems, and the American miracle, the American magic, has always prevailed.” Mr. Buffett spoke of patience and respect for the overall investing process. Well said. We need to be more Buffett-like. But when markets swing as wildly as they have over the past few weeks and months, the urge to act—especially to sell—can be overpowering. To point, this made me think of the following quote:
“All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room.” – Blaise Pascal
At The Kelly Group, we spend a considerable amount of time and energy in coaching clients how to channel that nervous (market) energy, and turn it into a disciplined investment routine. That way, their decisions become driven by a customized investment policy rather than by impulse. Rebalancing, or automatically adjusting their mix of assets back to predetermined target levels, forces a buy low and sell high strategy instead of selling low and buying high. Part of this process is to simply do nothing at all. BE Buffett. This may sound odd but believe me it’s true. We ask that you visit our website, www.kellygrouponline.com or Facebook Page on a regular basis for continued inspiration. We welcome your feedback and discussions, and if pressed – I am happy to share more of my geeky thoughts on listening to Mr. Buffett.
Stay Safe and Healthy, and May God Bless You and Our Community.
Bryan E. Kelly, CFP®
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. Advisory services offered through investment advisor representatives of Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. The Kelly Group and Cambridge are not affiliated.