WHAT WE VALUE
Speculation has gained an increasing share of markets, as we have glorified the short-term trade. In the 1950s the average holding period of a stock (ie. a business) was 8 years. Today it is closer to 5 months. A businesses performance has become all about the stock price. CEOs are compensated, not on the success of the business, but the gain in the stock price.
Read more about we and Grant Williams thinks about this strategy.
This week I share with you a summary of a talk that famed investor Howard Marks, Chairman of Oaktree Capital Management and a legendary value investor I greatly admire, shared with his clients. Marks has been quite prescient at turning points in financial markets and it is worth listening to his market wisdom.
As summer quickly comes to a close and kids are headed back to school, many of them with a wad of cash in sitting in the bank, we thought it apropos to share some thoughts on how to encourage the youth in your life to use this opportunity to it's fullest.
Encouraging teenagers to work during the summer and save through a Roth IRA is a powerful strategy for building their financial future. This real-world experience instills a strong work ethic, fosters the understanding of the value of money, while leveraging the benefits of tax-free growth and compound interest. Starting them on this path early can make a significant difference in their long-term financial well-being, can set themselves up for a more secure and prosperous retirement, all while learning the value of hard work and responsibility.
"When we long for a life without difficulties, remind us that oaks grow strong in contrary winds and diamonds are made under pressure." - Peter Marshall
In the world of investing the concept of volatility as a measure of risk is foolish. The entire investment world has been built around this concept and it’s ridiculous. Instead, the concept of anti-fragility as introduced by Nassim Nicholas Taleb in his seminal work, Antifragile: Things That Gain from Disorder, holds profound importance for investors.
The meeting in general is a masterclass in business, investing and general advice to live a rich, abundant and happy life. Most importantly we get an update from Warren Buffett on how our company is performing. This year felt a little different, Warren Buffett (93 years old) was without his business partner of 60 years, Charlie Munger, who passed away in November at 99.9 years old.
The Pilot’s Log is Back! Prior to covid we thought it important to send out more frequent communication, and well it’s time to reignite that effort. To that end, we are happy to share the first entry of the revived Pilot's Log based on a follow up to our recent Q1 commentary.
To read why Costco shoppers are buying as much as $200 million dollars worth of gold per month....read on.
Ensuring the resilience of our hard-earned savings demands a diversified portfolio that includes commodities, particularly oil or gold. US investors have been woefully unprepared for inflation with a historically significant under allocation to commodities…not us.
We love investing in companies that offer clear paths for growth at cheap prices today with great management teams. It’s how our minds are wired, and we are always on the hunt for new, undiscovered opportunities.
We have recently increased our focus on looking for smaller, undiscovered, and cheap companies to add to portfolios. The “small” part is the newest edition to our process, and we believe there is a ton of value to be found in companies that are below Wall Street’s investment radar, companies they can’t invest in.
As summer is upon us, many of us including myself are trying to figure out what to do with the kids. By now, most of the major activities/camps are scheduled, but what about the rest of the time? I am sure video games, basketball or other activities are at the top of their list, but what else could we be encouraging our kids to do? The research is pretty compelling: they should start a business!
Founded by Nick Fisher (Portfolio Manager, Pilot Wealth Management) and his wife Maurissa, Young Entrepreneurs Business Week (YEBW) was started in 2005 with a simple vision— to host a summer camp where Oregon high school students could get inspired and learn how to become leaders in the world of business. We were excited when 26 students attended our first Business Week on the campus of the University of Portland, and had high hopes the program would grow in the coming years. Little did we know just how many students we would be able to reach, not only in Oregon, but also from across the country and even internationally!
Our goal as a Registered Investment Advisor is to provide our clients with the best risk adjusted returns in the pursuit of achieving their goals. We try to be agnostic regarding how investors achieve their return and many of our clients invest in real estate as part of their overall strategy. Many we have spoken with recently are increasingly cautious when it comes to acquiring new real estate investments. This is a result of either prices being too high relative to potential rents and/or a worry about the Federal Reserve’s change in monetary policy. So, how worried should we be? Do high prices and higher interest rates justify caution?
I’ve long been of the opinion that emotional intelligence (EQ) is one of the hardest skills to acquire. But with it, it’s a heck of a lot easier to admit what you don’t know. And ask for help. And seek out mentors, advisors, and people smarter than yourself. To share your dream with others and then trust they can help you figure out how to execute it. Phil Knight’s EQ is on full display throughout the founding of Nike and in his candor retelling the story some 50+ years later.
We share some thoughts about what we believe on our Pilot’s Log and Navigating Markets including words of wisdom inspired by the greats, periodic updates about current markets and timely seasonal reflections.
2233 NE 45th Avenue
Portland, Oregon 97213
Office: 503-847-9723
