Bowers Capital Management
Can You Fund Your Goals?

What are your goals?

When can we retire?  Will we have enough retirement income?  Will we be able to maintain our standard of living?  Will we outlive our money or will our money outlive us?  How much can we travel during retirement?  Can we afford to pay for college?  Do we have enough life insurance?  Will my spouse have enough  income after I die?


Advice (trust the messenger more than the message)

The Sixth Patriarch, long ago in China, once passed two monks who were arguing about a flag blowing in the wind.

One monk said, "It is the flag that is moving."

The second monk said, "It is the wind that is moving."

The Sixth Patriarch said, "You are both wrong. It is not the flag, it is not the wind; it is your minds that are moving."

And so it goes with investing: our moving minds and emotions do more damage than moving markets.  Indeed, investor behavior is the dominant determinant of real life returns.  The worlds greatest golfers don't always hit the longest or most accurate drives, nor do they always putt better than the others.  They make the fewest mistakes.  To an incredible extent, outstanding investment success relies on avoiding the Common Killer Mistakes, most of which ares, which are usually based in emotions.

 

Once we've created a high quality portfolio well-suited to your goals, I become, in a very real sense, your behavioral coach--helping you to make objective decisions and avoid emotional decisions, about what to do and what not to do, regarding the portfolio.

I ask my clients to "trust the messenger more than the message," because sometimes the message--the advice--is counterintuitive and countercultural.  By making objective decisions you should end up with a far better return than do other investors; because--and I guarantee you this--other investors will make decisions that not only will 'shoot themselves in the foot, but will blow the legs off their portfolios.'

  • They will speculate at the top of the market.

  • They will panic at the bottom of the market.

  • They will act upon advice from the media, which preaches what is working today instead of what has always worked.

  • They will try to time the market.

  • Some will over diversify, others will under diversify; they will make a number common killer mistakes.

They will do this--not always through improper selection and timing--but through bad investment decisions fueled by emotions.  It is as predictable as the sun will rise tomorrow.

No one mistake is necessarily worse than another.  The biggest mistake of all is the one your are about to make.

For as long as you are my client, I will keep you from making the big mistakes.  The pickup in return from not making those mistakes should be a huge and enormous force in your long-term returns.


"It's dangerous when people don't know what they don't know."

   ~Anonymous

 

"There are well-dressed foolish ideas just as there are well-dressed fools."

  ~Nicolas Chamfort

 

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