In our recent reading, we came across another useful concept from Morgan Housel. He talks about the three kinds of investment performance:
1. Bad.
2. Overall good, but occasionally bad.
3. Always good but fraudulent.
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Many have had experience with the first one. The last one is obviously not a place to be. The key to the second one, according to Housel, is communication. Communication builds the trust required to get through the rough patches and down times.
Every day we are grateful for you, whom we believe to be the best clients in the world. You talk to us, you listen to us, we usually understand each other. We work to communicate in various ways, but it is a two-way street!
You know we won’t get mad if you ask a pointed question—if it is in your head, we want to hear it. You trust us enough to start a dialogue when you think we may not be on the same page. When there is something you think we should know, a development in your life or an investment idea, you tell us.
And we do you the honor of believing you can handle the truth. If we need to acquaint you with some aspect of changing reality as we see it, we do so.
Our mutual trust and straightforward communications seem very valuable. It is indeed the key to living with ups and downs. Our best guess is that things will turn out well, on balance, over the long haul. Of course, we can offer no guarantees.
Clients, if you would like to discuss this or anything else in more detail, please email us, call, or set an appointment.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.