Three Age-Old Values
The three "values" we believe every investor should honor are faith, patience, and discipline.
Faith is a fundamental tenet that all long-term investors must embrace. It is impossible to invest successfully if you are afraid of the future, which means the greatest enemy investors face isn’t greed, ignorance or inflation. It’s fear.
Many investors worry constantly about their portfolios, even though human experience actually encourages us to have faith in the future - especially faith in the long-term prospects for the American economy and its markets. Much of this concern is fueled by media outlets eager to convince us that today’s economic or market setback is new and different and terrible in an unprecedented way. According to newscasters, financial ruin lurks around every corner, so you need to stay tuned or face certain disaster. The volume of fear mongering is often inversely related to the real economic consequences of the disaster, but that doesn’t stop anxious investors from losing sleep.
At DeYoe Wealth Management, we ignore flashy headlines and focus on the fundamentals. We know that Faith in the future is always rewarded in time. The day Jonathan DeYoe’s father was born, the S&P Index closed at 11.7. On his last birthday, the market closed at 1089.03, ignoring all dividends. We were able to find these figures in 15 seconds, because today we command more computing power on a laptop computer than existed on the Earth in 1950. These are not mere factoids. They are our beads of faith. We will not be frightened out of our belief in the long-term prospects for our clients’ portfolios.
Patience isn’t just a virtue. Patience is essential to achieving lasting investment success. Let’s use a 62-year-old couple as an example. Assuming neither of them smokes and they attain only average joint-life expectancy, one of them still has at least thirty years to live. Thirty years is a very long time horizon, so long-term investors shouldn’t be hypersensitive about what their portfolio is doing this quarter, this year or even over the next five years. If you’re asking your investment portfolio to provide for you in 2020, 2030, 2040 (and perhaps beyond that if you live longer than the average age,) you need to look past today and tomorrow towards your future.
While providing an independent future for their own lifetime, most investors also want to create a lasting legacy for their children and grandchildren, which will increase the timeline even further. This is why we have a great deal of patience at DeYoe Wealth Management and strive to help our clients stay focused on long-term goals, rather than daily upsets in the market. Our patience has been rewarded over time, primarily because we aren’t interested in the investment flavor of the month. We are vitally concerned with what’s always worked.
Discipline may be the most important of all the values we adhere to at DeYoe Wealth Management. The need to pay one self first is a discipline. Funding your long-term plan before re-modeling the kitchen or grabbing that great deal on a boat is a discipline. Continuing to fund that plan month-in and month-out, regardless of whether the market is moving up or down, is a discipline. Saving a little bit every day for tomorrow is a discipline. Benjamin Franklin nailed it when he said: “If you would be wealthy, think of saving as well as getting.”
Discipline is the iron wire upon which our beads of Faith and Patience are strung. At DeYoe Wealth Management, we remain focused on these core values, because we understand that all other abstractions are as fleeting as New Year’s diet resolutions.