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“Is It Investable?”
by Caitie Leibman, Director of Communications

Clients, we love hearing from you about what you’re seeing. Life changes at such a clip, it’s helpful to hear about the patterns and evolutions that pop up in our everyday lives.

When someone pitches us an idea, we don’t start with the obvious question. The obvious question would be, “So, is this investable?”

The real question is, “What’s this mean?”

This happens to us in our own research process. We don’t start with the hottest investment headlines. Instead, maybe we read something about a new technology, then dive in and realize it’s a true innovation in its field.

Then the real question whispers, “Hmm… What does this mean?”

We follow that thread and wonder, “How could people use this in the future?” or “What would the world look like if this were normal?” or “What should companies be doing now to get ready for this?”

Little clues about the future might sprout from these questions. Dorie Clark talks about this idea in her book The Long Game. We don’t have to limit ourselves to one topic with laser focus. We don’t need perfect clarity.

Sometimes, we’ve got enough signals to work with. “Interesting” can be a good enough guide. “Interesting” can lead us to meaningful.

The research process is not a mission: it’s an experiment. Flexible, not rigid. Curious. Open.

We optimize for interesting.

We do the research, put the evidence in context, and go from there. Maybe it would be nice to be able to boil it down more than that, but then… if it were any simpler, everyone would be doing it, right?

It’s fun to be us, and it’s fun to be in it with you.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss.

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The Organizing Question: Mark’s Role, New Clients, and More 
By Mark Leibman, President

What a journey thus far!

I started at the kitchen table. Bought the office building at 228 Main when I could neither afford it nor afford to pass it up. Struggled and juggled for years. Fit a snowbird lifestyle into the middle of it. Survived personal tragedy, a cruel disease that slowly took the life of my high school sweetheart.

And through it all, we grew. More and more people entrusted more and more wealth to our care. More and more teammates helped me hold up my end of the deal.

They say it is not the strongest or the smartest who survive and thrive, but those who adapt and adjust to change.

But then there are the things that are not changing.

I recently heard second-hand the misperception that “Mark Leibman is not taking new clients.” But from a business sense, Mark Leibman became Leibman Financial Services, Inc. (LFS), a long time ago. And LFS is definitely working with anyone who contacts us with an interest in what we’re doing in here. Everyone gets access to the same set of services. One story, one philosophy, one book of business.

And still, anyone with an internet connection can know what I, Mark, am thinking. Every client gets the impact of my ongoing obsession with the markets. And they get a lot more brainpower working for them than I personally possess.

I have always asked myself, and you, and my teammates, and our mentors this question: “What could we be doing differently or better?” The underlying object has always been to try to grow the buckets—and help people connect their money to their lives. Some of you tell us we have done it differently and better.

In an industry seemingly focused on getting new clients and finding new money, we aim all of our intentional efforts entirely at you, our clients. Don’t have time to chase “new money.” Not me, not my teammates.

Eliminating sales activity enables us to put investment research, portfolio management, and communicating with you at the center of our work. Many other investment advisors outsource all of that into model portfolios managed by others and buy canned communications, all so that they can go look for new customers.

Paradoxically (or not), when we stopped pursuing prospects, we began attracting more clients. People tend to like it a lot when their buckets grow.

These distinctions empowered our evolution into a different and better organization. We have many teammates, and ownership and management is now a four-person collaboration. But we still have one story, one philosophy, and one book of business. Many “financial advisor” shops, however, are like a collection of sole proprietors, each on the prowl for new business all the time.

We believe we are organized differently—and better.

At the beginning, Colonel Sanders cooked all the chicken. At the beginning, I did everything, too. The business has grown into something that no single person could operate on their own—not me, not Sanders, not any one of my three partners. It takes all of us.

All three of my partners have the credentials and experience to consult with clients, to take the lead when they are the best fit. Each of us brings the same philosophy, the same investment offerings based on the same research, to every client. Any client can call any one of us. I am still here to talk—and so are my partners.

And the whole enterprise rests on the same values and principles, the same herbs and spices that we started with.

Wondering what any of this means for you? Call me, or any one of them, any time.

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“Fiduciaries” and You
By Greg Leibman, Office Manager

You may have seen headlines in recent weeks about new financial regulations from the Department of Labor regarding retirement accounts.

Some parties affected by the rules are having a pretty sour reaction, but we are looking upon these changes a little more favorably—and believe they have been a long time coming.

A little background: our business is mostly managed on an advisory basis where we make investment decisions on clients’ behalf. That carries with it a fiduciary obligation to disclose and avoid possible conflicts of interest and to put clients’ interests ahead of our own. That’s what being a fiduciary is, upholding that standard.

We prefer this model for many reasons, not least because it aligns our goals with yours: growing your bucket is good for you and us.

So what’s new, now? The latest Department of Labor rule expands this fiduciary duty to almost everyone who services any retirement accounts, whether or not they meet the definition of an “investment advisor.” Now brokerage agents who sell on commission and have no ongoing obligations to clients now also must act in clients’ best interests any time they are dealing with retirement money.

You might be surprised to learn that some financial professionals were not required to act in their clients’ best interest before now. Obviously, fraud is fraud; agents were never legally allowed to lie about what they were selling.

But until now, in one-time brokerage relationships, there was nothing stopping agents from steering clients towards higher-commission products based solely on the peddler’s own benefit.

Owning stocks in individual companies is different than owning packaged investment products. Having equity ownership in companies we’re familiar with gives us transparency in our holdings and avoids adding a (usually hidden!) layer of “middleman” fees to investment product sponsors. That’s our preference, when it’s appropriate by client and situation.

The rules are in place to try and prevent agents from selling complex products with high commissions that are inappropriate for the client. Of course, regulations do have costs. Over the past 20 years, the amount of paperwork required to open accounts and do our jobs has more than doubled. Does practicing within the regulations take time and money? Yes. Will it always stop crooks? No.

But the spirit of the rules… Well, we do happen to believe that when you’re better off, we’re better off. So your best interest has to stay in the center.

Clients, if you have an advisory account with us, and are wondering what impact the new rules will have, the answer is: very little. This rule will bring more change in the world of commission-based agents, which is not what we are to our advisory clients.

When you do have any questions, we are always happy to talk.

Stock investing includes risks, including fluctuating prices and loss of principal. 

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Welcome, Brenda! The Dream Works with Teamwork 
by Caitie Leibman, Director of Communications

Clients, you may have already spotted the new face or heard the new voice around the office. Let us take a moment to get everyone up to speed on some exciting developments.

You may remember that our dear friend Larry Wiederspan “retired” a couple years ago, but it didn’t stick. Then, the time came for certain: his last day in our employment came and went in April. While we miss seeing Larry so regularly, his retirement brought us a new opportunity. (Life’s all about beginnings and endings, isn’t it?)

With Larry’s departure, we were ready for some help on the Client Services team. Our Client Services Coordinator Whitney Engle has been with us full-time for more than a year now, and she’s been on top of everything we’ve been able to throw to her—and then some! She’s so proactive. And Client Services Associate Patsy Havenridge has been holding down the front office with grace and good humor since 2018. Where does the time go?

And now, joining as our newest Client Services Associate, we’re pleased to introduce Brenda Smith!

Brenda brings years of experience in financial services and administrative support, and we were so pleased to discover that her skills were a match for our needs. Her warm personality and easy-going spirit were evident from our first encounters.

Brenda is a Louisville native, and her son Isaac is a third-generation LHS student. When she’s not in the office at 228 Main, she enjoys traveling, reading, cooking, and spending time with friends and family. “I have a group of lifelong friends who still refer to ourselves as ‘the Louisville Girls,’ and we try to get together at least once a month to catch up,” Brenda says. “I’m a history nerd and can be found watching historical documentaries and historical shows and movies when I’m at home.”

Brenda may be the latest addition to the 228 Main team, but she is already caught up on the “history” of our work here. The mission is the same for the whole team: we strive to grow your buckets. And that project takes all of us, from research and trading to paperwork and communications—it happens when all of us are ready to be of service to each other.

Come in and say hello whenever you have a chance. Welcome, Brenda!

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Life Sentences

Sometimes I marvel at my brain. I might wake up from a vivid dream or be surprised by a random thought that pops into my mind while I’m innocently doing the dishes, and I’ll wonder, “Where did that come from?”

It’s a gift to be able to notice when thoughts come and go. Sometimes, our thoughts can start to feel so familiar, we don’t notice them anymore. They turn into wallpaper: we can be surrounded by them all day and never notice. We take them for granted as fact.

Maybe you’ve heard some of these sentences before, swirling around in your own mind or coming out of someone else’s mouth:

“Never go into business with family.” (Ha!)

“I’m not good with money.”

“I can’t do something that risky.”

Are these sentences—or life sentences? Are you serving time in the name of a belief? It’s not “the big house” we get trapped in: it’s a small life.

Our words can become cages when we take them more seriously than we need to. But a thought can just be a thought. Like a cloud we watch in the sky, can we allow it to do its thing, and then go on its way?

We can’t stop those stories from popping up any more than we can keep clouds out of the sky. But maybe we can sprinkle in some more helpful sentences, ones that won’t hold us back.

“What if this works out?”

“What if there was a different way?”

“What if I could?”

In any case, we’re glad to be here with you—for whatever comes our way.

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Looking Back from 68 
by Mark Leibman, President

Fifty-six years ago, I got my first paper route.

Forty-seven years ago, my first license to work with financial products.

Thirty years ago, the beginnings of what became the enterprise that serves you today.

Looking back from age 68, I realize that delivering something of value for money was at the heart of that first entrepreneurial endeavor—and remains core to our work at 228 Main.

I’ll never forget the speaker I once heard at a business conference, the one who began with a visualization exercise. Exactly how much money did we want to be making three years from now, he wanted to know. He told us to write the number down and to look at it morning, noon, and night.

His second point was about the importance of being client-centered.

I thought, “Hmm. You can only be ‘centered’ on one thing, and this fellow is centered on money.” Then I walked out.

From the vantage point of my 68th birthday, I see the compounding miracle of being focused on your outcomes. The better off you are, the better off we are—it is a win-win situation. And who knows how that arrangement might continue to build between now and my retirement at age 92? (Only 24 more years to go until that retirement party!)

Some financial types pander to people’s fears, so that they can “save” their clients with right “solutions” (which often happen to be their own products and services). We have always sought to build your confidence to invest successfully, to grow your buckets. Fear shuts down our ability to think—which is one of the reasons positivity pays, in our opinion. If we can keep our heads while all about us are losing theirs, we are in a contest of wits with unarmed opponents.

I still can’t envision walking away from the best clients in the world. If it doesn’t feel like work, is it really a job? And my associates are the best teammates in the world. We’ve built an enterprise; our capabilities as a team are vastly greater than what I had to work with at the kitchen table, back in the last century.

Thank you all, for everything, to this point. Here’s to the next 24 years. That retirement party will be in May 2048, details to follow.

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Sorting the Buckets and Cleaning the Kitchen 
A bowl of fruit on a counter.

We’re not ones for putting on airs, but we came across an idea lately that has us thinking about fine dining.

In French, it’s mise en place. (To get kind of close, you can say it like “mee zon ploss.”) For those who aren’t in the know, mise en place is French for “sort the buckets.”

Just kidding.

It’s a culinary term for “gathering” or “putting in place.” It’s the practice of preparing the kitchen workspace before service begins. You organize the ingredients. You put together what you’ll need at arm’s reach, and you tidy away what you won’t need for a while.

It can refer to the time you put into the process, and it can refer to the state of mind you get into.

Sound familiar? When we work on your financial plans and planning, we have called this process “sorting the buckets.” (Now, say it again with a French accent!) We take stock of our resources and arrange by time horizon. What do I need now? What will I need later?

What am I low on? What could use some tidying up? Sometimes even a quick review and a few small moves can make a world of difference. More things become possible with a little organization—and a little space to work.

There’s a certain calm afforded us when we know how we’re going to pay the bills, where we would go in an emergency, and what we can turn toward for the future.

That’s “sorting the buckets.” That’s mise en place.

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Larry, Serendipity, and the Building of 228 Main 

The way events might occur by chance, to our happiness or benefit, is called serendipity.

It’s coincidence. 

It’s good luck. 

And maybe sometimes it’s providence. All of these could define the word “serendipity.” And all describe our long association with Larry Wiederspan. 

Mark met Larry in one of his earliest incarnations in business, as a life insurance agent working with country banks and bankers. The owners of a small chain of banks sent him out west to see one of their branch office managers at a location 200 miles away, in the middle of Nebraska, to implement a benefit plan. 

They hit it off. Mark worked with Larry and his wife Marilyn on their plans and planning. They not only came along as Mark’s solo practice grew into an enterprise; Larry played a key part in that transformation. 

Serendipity struck a dozen years ago, when Mark learned that the Wiederspans were thinking about a move to our neighborhood after Marilyn’s retirement. Larry’s integrity, diligence, good faith, attention to detail, and friendliness were things our shop needed. 

At the time, increasing regulatory requirements meant that files needed updating and business processes became more cumbersome—precisely when family health issues took Mark out of the shop for weeks at a time. 

But things came together. Larry and Marilyn moved closer to their grandchildren, Larry started helping Greg and Mark take care of business through trying times, and you got the benefit of getting to know Larry.

It was a big win for everyone.

Larry retired a couple years ago, but it didn’t stick. He tells us now the time has come—for sure. We’ll soon be short the regular company of this conscientious and pleasant fellow who means so much to us. We are still here in part because he was here for us. 

Mark’s gratitude will never repay the debt he feels to Larry.

In the meantime, clients, we’re continuing to work on our business with you—and planning for the future. Call or email us about anything you might need. 

Cheers to you, Larry!

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Warren, Charlie, and Us: The Rights of Owners 
AP Photo

The hallmark of our investment strategy is ownership of companies whose outlooks are favorable, in our view. A share of stock is a piece of the action: ownership of a fraction of an enterprise.

We own businesses in very old lines of work, like manufacturers of farm equipment. And companies in new lines of work, like cloud services. We are in software and chipmakers, miners and medicine.

Owners have rights. We elect directors. We receive our share of dividends paid. We get annual reports, and have the right to attend shareholder meetings. Most of us pay little attention to the trappings of corporate governance, with one exception.

Warren Buffett holds one of the largest annual shareholder meetings on the planet, with tens of thousands of people descending on Omaha for the festivities.

On the first weekend in May, information about Berkshire subsidiaries and products they offer is available at the meeting venue. You can buy everything from GEICO insurance to treats from Dairy Queen and learn about companies as diverse as Burlington Northern and Clayton Homes. Did we mention? Shareholders also get discounts at Nebraska Furniture Mart and Borsheims.

At the May meeting, Buffett and other key people will entertain questions from shareholders for hours, before conducting the business of the shareholder meeting. Some say that Buffett is among the most successful investors in the history of the world; at 94 years of age, there are only so many more chances to witness him at this event. (Charlie Munger, former vice chairman, passed away in 2023 at age 99.)

Clients, if you have an interest in being part of this, you’ll need shareholder credentials. In past years, there has been a postcard to order those included in the Annual Report, or you can let us know if we can help you obtain credentials. Stay tuned for more details in the weeks ahead.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time. Companies mentioned are for informational purposes only, and this communication should not be considered a solicitation for the purchase or sale of their securities.

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2024 edition: Warren, Charlie, and Us on the Rights of Owners – 228Main.com Presents: The Best of Leibman Financial Services

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The “Company” We Keep
A group of magnifying glass
by Billy Garver, Data Analyst

How many strangers do you know? This isn’t some Zen riddle, but this question is trickier than the gut answer of “zero.” At one point, wasn’t your best friend a stranger?

As we meet new people, we may decide to remove the “stranger” label in favor of “acquaintance.” We learn the basics of the person at that point—name, occupation, and so on. We may develop a closer relationship, learning more intimate details. How’d they get where they are? And how are things going now?

We take a similar approach when building portfolios. When an investment opportunity arises, we may or may not have any prior experience with the company. We start by getting to know the basics—what they do, why they do it, how long have they done it, and so on.

From there, we may opt to remove that “stranger” label and start going deeper. When getting to know a company, understanding the company’s management, cash flows, and debt loads gives us a clearer picture. Only then does a company have a chance to enter your portfolios—the real inner circle!

Our relationship with the company doesn’t end there. Quarterly, we review each holding—making sure their business hasn’t deviated too far from what we expected. We check whether our understanding of the fundamentals is playing out.

Why does all this matter? Well, especially in the bumpiest of economic times, you don’t want any strangers in your portfolio. A swift change at the macro level can completely upend a business model. One thing that helps us weather the storms is knowing how our crew might navigate their way through them.

Being friends with the companies you own—being familiar with the details of their operations—helps prevent some of those big surprises in the long run. (Of course, it never eliminates the possibility of a surprise; friends can change and friends can make mistakes).

But, in the long run, it may pay to be careful of the “company” you keep.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss.

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