Good afternoon,
“Mike, Very well done! WMR does a very good job of walking the tightrope and making good points (all with a nice sense of humor!). Not easy to do in these politically charged times!” – Was a reply email to last week’s message.
Thank you so much, I’m trying to include some important/relevant/interesting/entertaining information each week without ruffling too many feathers along the way. Messages in some weeks are easier to assemble than others, so please remember, like the comedian Dennis Miller used to say as he’d finish one of his rants, “That’s just my opinion. I could be wrong.”
Not to twist my arm patting myself on the back, but I got another compliment from a client last week after we completed a Zoom meeting. “Your deep commitment to basics and "positivism" is extremely valuable as we have to remain vigilant and distanced.” Thank you for that as well. Going back to the basics is usually a smart strategy, ask any successful coach, and positivity is simply a choice. We can wake up each morning and choose to be positive or not. Of course, just like composing the WMR, some days are easier to stay positive than others, but the world seems better when your glass is half full most of the time.
Speaking of basic good advice, this is a guy who immigrated to the US with $1000 when he was 25 and 12 year later, he’s worth more than $2 million
Here he dispenses some solidly basic suggestions.
Is Warren Buffett over? This is a headline that I’ve read dozens of times in my financial career and so far, it has yet to come true. But here we go again, this author says that the way Mr. Buffett does it may not work so well going forward. He says that his investing success may not be repeated again. Um, maybe, but I doubt it. Every time anyone else has ever said that and/or bet against Mr. Buffett, they’ve been wrong. They will probably be wrong this time too. Mr. Buffett is almost 90 years old, his business partner Charlie Munger is even older, and they both happily proclaim that their favorite holding time for an investment is “forever.” Most investors their age wouldn’t be buying green bananas and these guys are thinking long term. That’s why it works.
https://www.cnbc.com/2020/09/22/y.html
And even for billionaires, life throws them curve balls from time to time, just like the rest of us. Sometimes billionaires have money troubles, yes, money troubles.
Ron Perelman is raising cash. He’s selling homes, businesses, pieces of businesses, stocks, and even art work and his prized yacht.
https://nypost.com/2020/09/11/ron-perelman-looking-to-sell-massive-hamptons-estate-for-180m/
Is he doing it because he’s 77 y/o and wants to slow down or is he doing it because he needs cash since his net worth has fallen from $19 billion two years ago to $4 billion this year? Gotta do what you gotta do I guess.
Mark Twain once said, “I am opposed to millionaires, but it would be dangerous to offer me the position.”
Not left unscathed by the current economic climate, billionaire Richard Branson is seeking investors for his newest business idea. Which is unusual, because Branson usually funds the start up phase of his projects himself, then he goes in search of investor money. THIS IS NOT A SOLICITATION FOR ANY INVESTMENT.
Sorry for shouting, but I had to include that. Rather, I mention this item because I found it interesting to pass along.
Full disclosure: I’m a fan of Mr. Branson’s for a long time. He would surely be in the running for the real life “Most Interesting Man in the World.” If you don’t know much about him or his history, I’d suggest looking him up when you have a few spare minutes, it’s a cool story. Start with his appearance on the Tim Ferriss podcast from a few years ago. Mr. Branson has also written several books chronicling his exploits.
One of Mr. Branson’s original successes, and there were many, was Virgin Airlines. Now he’s working on going to Mars with Virgin Galactic. So when I saw this article regarding air travel, I thought it was a nice fit in this week’s message. When we eventually choose to travel by air again, here are some suggestions on what you might want to wear.
The article, and I, are not advocating that travelers not dress comfortably, but please put in a little effort. Don’t come to the airport looking like you just rolled out of bed wearing PJs and slippers while carrying your pillow. Sebastian Maniscalco agrees, Google him and “dress code at the airport” for a laugh.
Wow, did you see the Zach Johnson putt in round 1 of US Open this past weekend? The Open was eventually won by Bryson DeChambeau, the same gentleman who won the Rocket Mortgage Classic a few months ago here in Detroit. The man can certainly play golf and was the only contender in the tournament to finish with a score under par. But I include the video of Zach Johnson’s putt because it’s amazing and it was intentional. Watch for yourself.
https://www.golfchannel.com/video/2020-us-open-zach-johnson-amazing-birdie-putt-1
Only the WMR would think of this putt as an analogy to finance, but just hear me out. We’ve always heard that the shortest distance between 2 points is a straight line, which is true. But it isn’t always possible to travel in a straight line. Sometimes you can’t avoid the twists and turns. Zach’s putt didn’t go straight and neither does your portfolio. There will be ups and downs and back and forths, but when you stick to the plan, the ball will eventually reach the hole. See what I did there? Ok, maybe that’s a bit of a stretch, but it’s a good reason for me to include the video of that putt.
This week’s personal story involves a discussion with my youngest daughter.
Hey Muffin, how’s the online school stuff going?
“It stinks. It’s no fun being on my laptop all day. It’s hard to concentrate, my eyes get tired and sometimes I get a little headache.”
Oh man, that’s too bad. I know it must be tough. Why don’t you go outside for a walk or a bike ride after school? Get some fresh air…
“I don’t like riding my bike around the neighborhood.”
You don’t? Why?
“Because it’s all uphill.”
Wait, what?
“it’s all uphill. The whole ride is uphill.”
Um, that’s impossible. By definition, if any of the ride is uphill, then the return ride has to be downhill. It has to be equal parts up and down.
“It isn’t. The first part is a little downhill, then it’s flat for a minute, then it’s all uphill the rest of the way.”
Hmmm, maybe you should try a different route.
“Doesn’t matter, they’re all uphill.”
Hmmm, lemme think about that….
This week’s chuckle is the LA Speed story. A United States Air Force SR-71 pilot recounting a training flight over the western US. Totally safe for work and guys will understand it completely. Women will understand too, they’ll roll their eyes at the “guyishness” of it, but they’ll understand.
https://www.youtube.com/watch?v=ILop3Kn3JO8
LF26 – “We can complain because rose bushes have thorns, or rejoice because thorns have roses.” – Alphonse Karr.
Have a great week and stay healthy.
The opinions expressed are those of Michael Acho and not necessarily those of Lincoln Financial Advisors Corp. CRN-3253496-092320
Michael J. Acho, MBA, CFP®
Private Wealth Advisor
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