A Sale on The Great Companies of the World

One of the great investment habits is that of investing during a market downturn. We call it investing during a "sale". When there's a sale at the shops, people rush in. When there's a sale on the great companies of the world, people rush out. Good investing habits are almost always counterintuitive, and this one is no different.

Warren Buffett once said that as an investor, it is wise to be “Fearful when others are greedy and greedy when others are fearful." Train yourself to see the current market downturn for what it is: a sale on human ingenuity. As the stock market captures human ingenuity.

Main Feature

2019 Berkshire Hathaway Shareholders Letter [20 minutes]

For those with good taste, here's the latest business and investment masterclass from The Oracle of Omaha. He's continued his praise for investing in the great businesses of the world.

As he's previously said, "Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market."

Articles and Blogs

Financial advisers should ‘shut up and listen’ [4 minutes]. Be the guide, not the hero.

Coach your clients to stay put [4 minutes]. Market corrections come around as often as your birthday.

Fees vs. Fines [3 minutes]. Investing has a cost of admission.

Having Difficult Conversations: A Skill Every Financial Advisor Needs [9 minutes]. Talking about difficult subjects is unavoidable.

Top Ten Behavioral Biases, Illustrated #1: Believing is Seeing (Confirmation Bias) [6 minutes]. Once we start seeing confirmation bias, it’s hard not to see it everywhere.

Financial Planning - Why doesn’t everyone do it like this? [4 minutes]. Only by truly understanding clients can you find the correct solutions.

Infographic: 50 Cognitive Biases in the Modern World

Avalanche Accidents and Investment Risk [5 minutes]. In highly intricate and unpredictable environments, applying simple decision rules or heuristics can be invaluable.

A lesson still worth learning three centuries later [4 minutes]. Investing is not about chasing the most exciting opportunities.

Podcasts

Creating a Remarkable Client Experience Through Personalization, Co-Creation, and Journey Mapping [51 minutes]. Have you seen your process through your client's eyes?

The last decade was the best in human history [42 minutes]. Why so sad?

How to Market Yourself and Attract Your Ideal Clients with Brad Johnson [36 minutes]. How do you become more than a commodity?

Book Recommendations

ReWork: Change the Way You Work Forever by Jason Fried and David Heinemeier Hansson. There's more than one way of doing business.

Scripts by Nick Murray. The way you communicate with clients is important. (If you order this book from Phynancial, use discount code "voyantist" to get a 5% discount.)

Other

The last week has been a terrible one for the markets. But is it really different this time? We know from history that market corrections come around as often as your birthday!

The JP Morgan "Guide To The Markets" is a great resource for client-friendly graphics. The US version is updated daily and can be found here.