Long-term strategies may challenge investors to stay focused. The fight against short-term thinking is getting harder as we accomplish so many things with increasing ease and speed.
There is more computing power in an iPhone than what NASA had during the first landing on the moon. Remember when Netflix mailed DVDs to your home? Now we can stream just about anything to our smartphones. And what would you have said ten years ago if I had told you the President of the United States’ main communication tool in 2018 would be Twitter?
But speed doesn’t change everything.
Janiczek community members recently enjoyed an evening of sushi rolling at Izakaya Den in Denver. Chef and Owner Yasu Kizaki taught twenty clients and employees about the history, types, and methods of rolling sushi.
“Everyone enjoyed meeting each other and we learned some fascinating things from a master of his craft,” said Brady Siegrist, partner. “It was a rather unique cultural experience.”
This year, the Janiczek team resolved to nurture personal and professional connections between community members.
“Many of our clients reside in the greater Denver area,” said Siegrist. “Our team plans to present future opportunities for clients to get to know one another. One of our goals is to explore topics and activities that seek to enhance life and living in some way.”
Whether discussing investments, longevity, or sushi, the benefits of connecting Janiczek community members can be powerful. Future events are in the planning stages, so if you are interested in learning more about the growing Janiczek community, let us know!
Books, Reading and Knowledge
“I read and read and read. I probably read 5 to 6 hours per day. I read five daily newspapers, I read a fair number of magazines, I read 10k’s, I read annual reports, and I read a lot of other things too. I’ve always enjoyed reading. That’s how knowledge works. It builds up, like compound interest.”
– Warren Buffett
In other words, reading opens one’s mind to bigger and better things. Another voracious reader, Bill Gates, recently shared his picks for some good summer reading. And who wouldn’t be interested in reading what a brilliant thinker like Gates found illuminating?
Of course, the Janiczek community isn’t short on good book recommendations either. In December, our team offered up some of our favorite books of the year, and our client community responded with some great picks of their own. (One client recommendation made the current Bill Gates list … great minds think alike, right?!)
So, as you begin your summer reading, whether to learn or to simply escape, we gladly share a few of our picks. Personally, I’ll be reading one of Bill Gates’ picks, Origin Story: A Big History of Everything by David Christian.
If you have book recommendations, by all means, let me know!
Book Recommendations from the Janiczek Team
One asset class has rebounded to new all-time highs — U.S. small cap stocks.
After a bullish 2017 and hopes of a continued global equity melt up, 2018 has instead reintroduced market volatility. Despite global market volatility, U.S. small cap stocks have rebounded to new all-time highs.
Factors influencing the success of U.S. small cap stocks
I’m not sure Yogi Berra is big source of investment knowledge for most investors. But, that doesn’t mean his words of wisdom, “déjà vu all over again,” don’t apply.
Today’s Wall Street Journal included an article titled, “Value Investors Face Existential Crisis After Long Market Rally.” It discussed the “rut” that value investing has experienced since 2009. No arguments there. Value stocks are down about 1% year-to-date while growth stocks are up nearly 8%. The tech-heavy NASDAQ Composite Index, which holds many of the favorite tech names among growth investors, is at its all-time high.
A Familiar Scenario
But as I sipped my morning coffee and read further, I didn’t ask myself how we should change our current value approach (for the portion of our portfolios dedicated to value investing) to match the current environment. Instead, I found myself thinking about earlier in my career, the late 1990s. Tech ruled the day from 1995 through 1999, and value investors lagged back then too.
“The Return of Volatility.” “Volatility Is Back With A Vengeance.” These are some of the headlines recapping the first quarter of 2018. Many of them
discuss volatility and risk interchangeably, as though they were both the same … but they’re not.
Risk and volatility are different, and we intend to set the record straight. In this issue of Portfolio Matters, we cover the first quarter’s risks and volatility that was (and wasn’t) witnessed in markets, and provide investors some clarity on thinking about the two individually and separately…read more.
If you read the Wall Street Journal or Barron’s Magazine this last week, you will see that Barron’s listed Joseph J. Janiczek of Janiczek Wealth Management in its 2018 listing of top advisors in the nation.
This represents the fifth year in a row we made this prestigious list, adding to our tradition of making many top investment and wealth management lists and/or rankings going all the way back to 2001.
This latest award adds to top advisor lists published in or by:
- The Wall Street Journal
- Barron’s Magazine
- Financial Times
- Worth Magazine
- Mutual Funds Magazine
Tax season is in full swing, and it can bring some uneasy thoughts. “How much will I get back?” “How much will I owe?” “Am I forgetting anything?” “What can I expect next year?”
In a recent team meeting, one of our firm’s partners shared a question from a client that’s often not heard, “Why is my tax bill so low?!”
This client had been taking significant IRA distributions since the beginning of retirement as they had settled into a routine of travel and other retirement leisure. Of course, IRA distributions are generally going to be taxed as income, and the client became accustomed to paying a steady tax bill each year. In recent years, their travel slowed and their expenses correspondingly decreased, but their regular withdrawals had not.
Janiczek® Wealth Management is pleased to announce we have once again been named among the TOP RANKED WEALTH MANAGERS IN DENVER COLORADO by AdvisoryHQ. This ranking adds to a long list accolades going as far back as 2001 and as recent as 2018, including:
- Financial Times
- Worth Magazine
- Mutual Funds Magazine
- CIPA (best Business/Finance Book of the Year)
What separates the ordinary from the extraordinary? I believe consistently doing the best with what you have with daily choices and actions. In a word: habits!
When you use the power of choice and habit, outside forces play a secondary role. It doesn’t matter how educated you are, what occupation you choose, how much you earn or who you know. What does matter is what you do with what you have today.
Habits Make the Difference
For instance, take Gladys Holm who, as a secretary, earned no more than $15,000 a year throughout her life. Yet she left $18 million dollars to a hospital for heart disease research when she passed away! Gladys had the opportunity to invest in her employers’ stock over her career and she did. She also had the opportunity to invest in other stocks (like all of us do) and she did. She had the opportunity to participate in her employer’s stock option plan and did. Notice the trend… she had many opportunities and took advantage of each one to the degree she could with her modest salary. She became known for driving her fire-engine red Cadillac and delivering teddy bears to children at a local hospital in her Chicago neighborhood.