INVESTMENT THOUGHTS TO LIVE BY FROM FERNDALE WEALTH ADVISORS, LLC Wayzata MN
1. Asset diversification is an essential activity to mitigate a degree of risk and potentially, over the long term enhance your returns. Avoid over-concentrating your assets in any one position.
2. To have a successful investment outcome it is important to maintain patience, prudence and a positive attitude. When investing you cultivate, you sow, you water and you wait.
3. Exceptional market returns are not sustainable. Keep in mind the statistical term (Reversion to the Mean). When the pendulum swings too far right or left it should ultimately return to the norm.
4. Compounding assets on a tax deferred basis in your 401(k) or IRA accounts is very important. Tax deferment provides a greater asset base at the time of retirement. Albert Einstein once declared compound interest to be “the most powerful force in the universe”.
5. “Investing is most intelligent when it is business like”. Warren Buffett has called this observation, penned by his mentor Benjamin Graham, the nine most important words written about investing.
6. Do not hesitate to take a conservative approach to your assessment of a given investment situation. Keep in mind that timing the market is an exercise in futility.
7. Return on equity (ROE) is an extremely important statistic to consider when evaluating the merits of any company. High ROE provides corporate flexibility with regard to incurring debt, paying dividends, issuing more stock and buying back shares in the open market.
8. Spend time alone with your thoughts, for only when we are alone with our thoughts do we actually have any thoughts of our own. Not to know certain things are a great part of wisdom. Always be open to change and creativity. Practice creative listening; learn to stay quiet so that insights can come into your mind.
9. Foremost when investing is to know you. Understand clearly your financial expectations and determine the risk level you are willing to tolerate in order to achieve your goals.
10. We all must constantly monitor our progress to make certain we do not lose track of our mission. The methods we employ will become apparent once we clarify our objectives.
This communication is strictly intended for individuals residing in the states of AZ, CA, FL, IA, KS, MN, NY, TX, & WI. No offers may be made or accepted from any resident outside the specific states referenced.
Diversification and asset allocation strategies do not assure profit or protect against loss.
Owen V. Kane
Ferndale Wealth Advisors, LLC
499 Bovey Rd
Wayzata, MN 55391
425 Dockside Dr. Unit 201, Building III
Naples, FL 34110