Category: Business

  • Does This Terrify You?

    Does it terrify you that this man has the President’s ear in economic matters? Here is a video of President Biden’s Chairman of the Council of Economic Advisors trying to explain, well, you use your own judgment. I’m not sure what he’s trying to explain. Does it terrify you that…

  • Do You Have a “Secretary” Problem?

    Many advisors tell us that they have a hard time finding and hiring good team members. This seems to be a bigger problem for small advisors than for larger firms. Based on our observations, we believe that hiring is harder for small firms for several reasons. These reasons mostly have…

  • Record-High Gold Prices: Does Gold Belong in An Investment Portfolio?

    Record-High Gold Prices: Does Gold Belong in An Investment Portfolio?

    Gold is trading at record highs, with spot prices exceeding $2250 per ounce as I write this. The chart above might lead you to wonder if you should be investing in gold. In this post, we address two related questions: We’ll first give you the answers, offer brief explanations, and…

  • Why Doesn’t Your Client Act? 4 Factors to Guide Financial Decision-Making

    Advisors can spend hours explaining a great solution to their clients, only to have those clients not act on the solution. There’s no magic bullet. But sometimes clients appreciate it when their advisor helps them identify what’s making the decision hard.  What makes a decision difficult?  Decision analysts have found…

  • Advisors Gain Assets Easily and Stand Out from the Competition

    Advisors Gain Assets Easily and Stand Out from the Competition

    Many financial advisors work hard to grow, or to stand out in a crowded marketplace. A select few are discovering how to grow more easily, and stand out from the competition, by implementing a “blue ocean” strategy.  Blue Ocean Strategy is the name of one of the most famous articles…

  • A Better Way to Regulate Industry

    People don’t like it when airplanes, or parts, explode. Last week, a plugged door exploded out of a brand-new Boeing 737 Max 9 in mid-flight. By good luck or good grace, no one was hurt. Boeing’s new problem with the 737 Max 9 raises the too-often-unasked question of who should…

  • Berkshire After Buffett

    Last week’s death of Warren Buffett’s long-time “partner”, Charlie Munger, got us thinking about what might happen to Berkshire when Buffett, now 93 years old, either dies or becomes unable to continue as CEO. As almost everyone in the investing world knows, Buffett has been unimaginably successful as the CEO of…

  • Hidden Portfolio Risk: Is Sugar the Next Tobacco?

    Certain products, notably alcohol and tobacco, have been demonized at various times in American history. These periodic demonizations typically have many “unintended” consequences.[1] So What?When products are “demonized,” trouble can follow. Consumers may shun the products, taxes may cut into sales and margins, and regulations may further restrict or curtail the…

  • Why is Warren Buffett Looking So Grim?

    Why is Warren Buffett Looking So Grim?

    Warren Buffett has sold about $23 billion of stock since the beginning of the year, including a recent $2 billion trade in a single concentrated position, Chevron.[1] Buffett has built Berkshire’s cash pile to $153 billion! What does he know that the rest of us don’t? Buffett, arguably the most…

  • Can Your Client Actually Make Money By Giving It Away?

    Charitable giving, especially through Section 642 trusts, can surprisingly result in substantial tax savings. A high-income client can, instead of selling an asset, contribute it to a Sec. 642 trust and generate a significant tax deduction. Coupled with the current rules for calculating deductions on new 642 trusts which allows…