timeless wisdom

The Giants Who Came Before Us

© Can Stock Photo / kryzhov

 The work of Roger Babson contains countless worthwhile nuggets. He was a Wall Street pioneer a century ago, creator of the first investment research service, and philanthropist of note. A keen observer of business, the markets and the economy, and an original thinker, his words ring true today.

We see applications to the world of investing. For example:

“Experience has taught me that there is one chief reason why some people succeed and others fail. The difference is not one of knowing, but of doing. So far as success can be reduced to a formula, it consists of this: doing what you know you should do.

Thoughtful people understand the sentiment behind the old saying, ‘buy low, sell high.’ It has become a cliché. Yet in tumultuous and uncertain times when pessimism rules and stock prices have fallen, many people have trouble with step one: buying low. It turns out to be very difficult in practice.

We’ve also had conversations in the tough times with people who say “I know selling out now is the wrong thing to do, but that is what I want to do.” Clearly, this is a case of knowing what you should do—and doing the opposite! We illustrated how costly that can be here.

Without knowing Babson’s Rule, we have spent many years working to find or train investment clients who would do what they know they should do. You, our clients, are the best. We believe our efforts have been good for you-–and for us.

We will keep on working to find good opportunities, avoid threats where we can, and cultivate effective attitudes about investing—helping you do what you know you should do. If you would like to discuss your situation in detail, please write or call.


Securities offered through LPL Financial, Member FINRA/SIPC.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Stock investing involves risk including loss of principal.

What’s Next?

© Can Stock Photo Inc. / chungking

Fifty years ago, comic strip hero Dick Tracy’s famous 2-way wrist radio got upgraded to a 2-way wrist TV. Forty years ago, visionaries were talking about telephones that would fit in a shirt pocket. Instead of each home having a phone number, each person would have one. In between those dates, the country’s only telephone company introduced push-button “dialing” as an alternative to the rotary dial.

You all know the rest of the story. In many respects, what seemed like science fiction or fantasy in decades past has become a routine part of everyday modern life. The same is true in many aspects of our lives.

There are constants in life, of course. We each seek to make a difference, to be happy, to provide for ourselves and others, to smile and be smiled at, to connect with our fellow human beings. Many of our most fundamental impulses remain unchanged since the dawn of time.

So the conditions of our world are a mix of unchanging things like human nature and the sun rising in the East, and rapid change in other things. All the way back in 1970, futurist Alvin Toffler wrote about “Future Shock,” a perception of too much change in too short a period of time. If anything, the pace of change has accelerated since then.

In life, we suspect that being grounded in the enduring truths help equip us to adapt to change.

In the field of investing, we believe that understanding the unchanging aspects of human nature help us understand and deal with change. The ever-evolving landscapes of the economy, markets, companies, and technology produce constant and unpredictable changes. But no matter how different the world may seem, new changes will still produce reactions and over-reactions, fads and manias, and varying amounts of fear and greed.

We will admit it. We are entranced with the conflict between simple eternal principles and the endless complexity of the world. Making sense of it to help people in their real lives—that’s why we wake up and get to work every day. If you would like to talk to us about your situation, write or email us.