I just finished with a conference call with Uni-Pixel (UNXL), hosted by Williams Financial Group (Dallas, TX).
UNXL finally announced that they have been partnering with Intel (ecosystem partner). Although we’ve assumed
this for some time, it was refreshing to hear the name mentioned publicly for the first time. It appears that it’s “all
systems go” with the market place anxiously awaiting UNXL’s next generation touch screen. I believe that it is
theirs to win or lose. However, six months ago, I felt that we would know everything we needed to know by this
September, but I am now changing this forecast to next March/April. New/disruptive technology never comes in
on-time (You can take that to the bank! )
My business was recently audited by regulators, and I appreciate all the assistance that clients provided in meeting the
challenge. They were here for a couple of days and left no folder unopened. It’s a nerve-wracking experience
because they have your fate in their hands. As hard as I try to remain compliant in the post-Madoff era, it’s very
difficult due to the constantly changing and restrictive regulations. Throughout the ordeal, I admit to feeling like a
guilty party needing to prove my innocence. I’m pleased to report that the audit ended with the regulator stating no
deficiencies and that, if he were ever to start his own practice, he’d model it after my mine. Whew – glad to have that
crossed off the list!!!
So…. I’m still in business, but what does the future have in store? Despite the challenges facing wealth managers, I
am grateful for the personal relationships that I have established. I am well aware that my job/role is to protect your
interests and grow your assets, but I feel that the dialogue (as well as the industry landscape/regulations) are changing.
The dialogue has traditionally been about beating the stock averages, but this is really starting to feel passé.
Furthermore, it’s not very rewarding.
You came to me based on trust and that I do not sell products or make commissions of any type. You are also aware
that large brokerage firms and banks often lack the personal touch and the ability to avoid conflicts of interest.
Currently, GCM is holding an abnormal amount of cash in client accounts because of what I believe to be high market
valuations, leading me to be more conservative and protect assets. Therefore, beating the S&P does not seem
imperative. Avoiding unpleasant outcomes seems more important and relevant.
I think that the dialogue should evolve from what it has always been (beating the market) to what you want and need
it to be. My only goal is to assist you in reaching yours. I welcome dialogue and your insights.
KEY FACTS TO LIVE BY
- People who are compensated as a result of an action on their part have a much better relationship with money than those to whom it is just given (i.e. –a child working/saving for that trendy bike)
- If you find yourself in a hole, stop digging
- Teach children the difference between an asset and a liability. Rich people buy assets, others buy liabilities they think are assets
- Wealth is a person’s ability to survive so many days going forward
- If your pattern is to spend everything you get, the more you get, the more you spend
- Don’t be afraid to spend a small percentage of the principal in retirement
“I’ll Sell the Stock as Soon as the Price Goes Back Up,” & Other Sorry Sayings – Most individuals are somewhat savvy investors but some say the darndest things……
But if I sell the stock at the current price, I’ll lose money.
You have already lost money. The difference is, when you sell, you (or me) are forced to admit a mistake and give up
any chance of making back the loss. Don’t forget the opportunity loss also.
Maybe I should make a gift to my kids and take a tax deduction.
Sorry, gifts to children do not qualify as charity.
I don’t want to invest in any stock that may fall in value
OK. Sorry, but you should not invest.
I try to save money by going to the stores every time there’s a sale.
When you buy something on sale, you’re not saving but SPENDING money.
I want to hang onto the stock, because I’ll get more shares when it splits next month.
True, some stocks rally when a split is first announced. But if you hang on until after a stock is split, say, 2 for 1, you
will simply end up with twice as many shares, each of which is worth 1/2 the price of the presplit shares.
I don’t want to refinance my mortgage to get the lower rate, because this is the only tax deduction I’ve got.
Get with it — REFINANCE! All that mortgage interest is costing you a lot more than it’s costing the government. For
instance, if you are paying in the 28% tax bracket, every $1 sent to the mortgage company is saving you just 28 cents
in taxes, with the rest coming out of your pocket!
SOME THINGS NEVER CHANGE
The ancient Egyptians built elaborate fortresses and tunnels and even posted guards at tombs to stop grave robbers.
In today’s America, we call this … Estate Planning
Remember, a penny saved is ….. a Congressional spending oversight!
Goldberg Capital Management is an investment adviser registered with the State of CT Department of Banking. This Newsletter and its contents are for informational and educational purposes only. You alone will need to evaluate the merits and risks associated with the use of the information provided herein. Although this Newsletter may provide information relating to approaches to investing or types of securities and other investments you might wish to buy or sell, no information provided in this Newsletter is intended or should be construed as an investment recommendation or endorsement from Goldberg Capital Management. Please remember that past performance is no guarantee of future results.