Invest Like It’s 1986: Because a Long-Term Plan is Always in Style
If you watch the headlines or listen to the news, you might wonder if you should be trying some new strategies or responding to media headlines for your investments. The answer is almost always a resounding no. While headlines and media topics may fly past you every day, the basics of sound investing remain consistent over time.
At Lawson Kroeker, we can say “invest like it’s 1986” because that’s the year our company was founded. During the the past 30+ years, we believe many of the elements for portfolio management have remained the same. (As for our clothing and hair styles from 1986, well, that’s a different story all together.)
That’s not to say that technology hasn’t improved, or that we haven’t followed it where it advances our client service. There are better tools available for reporting, and you can find convenient predictors for retirement planning now as technology impacts and expands our industry.
The core of the philosophy at Lawson Kroeker hasn’t changed though. You’ll see that when perusing our Lawson Kroeker newsletter, “As We See It,” with archived issues available on our website. It’s interesting that the investment philosophies that have always guided this group of advisors were foundational from the beginning:
In most instances, the building up of one’s assets is, if not a lifetime project, an endeavor that spans many years. It starts with the development of and adherence to a sound long-range plan.
Compare that 1980s message from our newsletter with that of our current philosophy found on our website.
Our investment style is often described as contrarian because it is a patient, disciplined, long-term approach that does not focus on the stock market and its emotional roller coaster ride. Wall Street’s short-term views do not sway our Main Street long-term goals. We believe that following the crowd is not a sound plan for achieving financial success.
In terms of diversification, which you likely hear often, we advised the following in our 1980s newsletter:
Diversification is one of the basic fundamentals of prudent investing. It means much more than simply purchasing a wide variety of securities. It involves spreading risk among asset classes, as well as diversifying within each of those classes.
Today, our website still emphasizes the importance of diversification in an investment strategy:
As a general rule, investors have three objectives when investing in securities. These objectives are stability of principal, current income, and growth. Unfortunately, there is no single security which satisfies all of these objectives. Satisfaction of the three objectives requires the utilization of three types of securities or asset classes: cash equivalents, bonds, and stocks.
While there have certainly been changes in how investment management is handled, the path to success still looks a lot like 1986. It’s consistent, focused and carefully considered. In fact, this is still how we believe your investment strategies should be managed.
Make an appointment today to learn more about our approach.