Keeping Your Head in the Game
by John D. Kirkgard
Registered Investment Advisor/SRI Specialist As many of you know, I spent many years training and developing young baseball players at every level of the game. As a coach at Westmont College and at UCSB, I saw that the standout players—many of whom have gone on to successful major league careers—all shared one specific character trait: discipline. At the collegiate level, every player has the gifts to play the game at a high level: speed, agility, strength, hand-eye coordination. But those who see the greatest progress, reach their goals, and fulfill their baseball dreams never doubt their course of action and never pull up short. I’ve often seen lesser talents achieve great success simply because they possess greater discipline and remain focused on their objectives. The same is true with investors. 
Merely “hoping” to achieve financial goals is not enough. Portfolios grow and achieve great success for their owners only when things are managed with patience and discipline. There is little argument that today’s investment markets hold the potential for significant gains over time. Over time.
The greatest threat to any investment plan is often the investor him/herself. Impatience and an inability to stay the course with consistent effort can cost an investor with even the greatest resources far more than poor tax planning. Current research points to the fact that today’s average mutual fund investor fails to remain invested for a long enough time period to enjoy true portfolio growth. They simply fall short of the returns and appreciation enjoyed by more disciplined investors. In my experience, it’s the individual investor—working without benefit of a trusted financial advisor—who usually acts impatiently and inconsistently and then wonders where things went wrong. Imagine what happens to a base runner who ignores the signs from his coach; he often gets tagged out. The sad truth is that managing one’s own investment portfolio is easily compared to the defendant who eschews lawyers and represents himself in court. The defendant is famously “a fool” and the do-it-yourself investor is often “headed for the drain.” It’s true that today’s markets have shown impressive gains. Given that, it remains a dynamic environment where things can change quickly and the individual investor can be caught as flat-footed as an outfielder who takes his eye off the ball. The only way to survive the inherent volatility of the marketplace is with a long term perspective built on discipline and patience. Just as a baseball player performs best with the moment-to-moment guidance of his coaches, the successful investor works with a trusted, experienced advisor to help him keep his eye on the ball and his head in the game. I’m happy to discuss your individual financial goals, your retirement planning, or ways to improve your portfolio performance. We can even talk baseball! Just give me a call at (805) 570-1590. 
Socially Responsible Investing:
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Socially Responsible Investing: At the Core
By John D. Kirkgard
Anyone with an ear to the ground in the markets today has heard the buzzwords “socially responsible investing” (SRI), the strategy that focuses upon generating financial returns while affecting social change. Wringing even more SRI influence out of the investment dollar is the current trend toward “impact investing,” whereby socially-oriented investors aspire to influence corporate practices promoting environmental concerns, improved labor practices, social justice, and consumer protections. With today’s investor interest often looking beyond P&L statements, the response of investment funds and asset managers—myself included—is increasing awareness of the need for shareholder advocacy and community investing. These are very positive trends not only for our society and the international economy, but for ourselves as individual shareholders and citizens. Just a quick look back at the effects of SRI over recent decades proves its value. The investments of labor union pension funds 70 years ago promoted the improvements of working conditions still enjoyed today. Abroad, the end of South Africa’s apartheid was heavily influenced by international investors creating a negative flow of corporate cash and industrial investment, forcing the hand of that country’s business community. Today, there is a growing number of exchange-traded funds (ETFs) and mutual funds that closely examine environmental, social, and corporate governance (ESG) criteria when placing their clients’ assets. These institutional investors—and those of us who regularly review their objectives and bottom-line performance—act on behalf of our clients’ broader social objectives while adhering to some very clear guidelines:
At J Dyhr Capital, the success of our individual client’s portfolio is always our prime objective. Because ours is a highly personalized, truly hands-on approach—both responsive and forward-looking—our clients’ enjoy the highest levels of SRI awareness. The world of investing is a dynamic place. Success in any market—including those where social responsibility and a commitment to our universal environmental issues is of concern—demands vigilance, foresight, trust, and communication…the foundation of what we do at J Dyhr Capital. The most successful investment planning starts with a simple conversation…so give us a call and let’s talk it over. |
