Summer Reading

July 2017  By: JOEL GOODMAN, CFA, SCOTT McGHIE, CFA, CPA, ALEX MORRIS, CFA, MBA

As part of our job as investment managers, we read numerous shareholder letters every year. Occasionally, these letters offer a unique perspective or insight that renews our enthusiasm for how we think about businesses and the art of long-term investing. The most recent letter from Amazon CEO Jeff Bezos is a gem that has kept…

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Countering Volatility with Counterintuitive Action

April 2017  By: JULIA BUTLER, CFP®, JD, MBA, CFEI

My mom asked me once how I swallowed pills. “Show me,” she said. I went through the motions of pretending to put a pill in my mouth, mimed the act of taking a sip of water, then leaned my head back and swallowed. “That’s exactly the opposite of what you should do,” she said. “Instead…

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Chasing Good Companies, Not Yield

October 2016  By: JOEL GOODMAN, CFA, SCOTT McGHIE, CFA, CPA

In the second quarter newsletter, we noted there were more than $10 trillion of negative-yielding bonds around the world. While U.S. Treasury bonds are not in that group, they are pretty close: the 10-year Treasury currently yields 1.6%, compared to an average of 6.5% over the past 50 years. This period of low nominal interest…

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It’s a Mixed-up Investment World!

April 2016  By: MALCOLM BUTLER, JD

Source: Strategas The most successful investment theme in 2015 centered on investing in high growth stocks like Alphabet (formerly Google), Amazon, Facebook and Netflix. In a slow growth economy, investors placed a premium on companies that could deliver high revenue growth. Thus far in 2016, by contrast, we have seen many slower growing—but good dividend-paying…

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Active vs. Passive Mutual Funds

April 2015  By: JULIA BUTLER, CFP®, JD, MBA, CFEI

Are mutual fund investors better served by investing in actively or passively managed mutual funds and ETFs? Short answer: depending on one’s individual circumstances, both types of funds can play a positive role in a well-diversified investment portfolio. Diversification among active and passive strategies can be additive to a portfolio’s returns, reduce overall expenses, and…

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Corporate Cash Allocation Decisions

July 2014  By: JOEL GOODMAN, CFA, SCOTT McGHIE, CFA, CPA

Although the economic recovery since the 2008 financial crisis has been less than robust, companies have been doing quite well. Corporate profits as a percentage of GDP are at record levels, as companies have benefitted from the tailwinds of low interest and labor costs, while also focusing on the bottom line. This operational proficiency has…

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Understanding Mutual Funds

July 2014  By: JULIA BUTLER, CFP®, JD, MBA, CFEI

When I meet with 401(k) participants to educate them about saving and investing, I always start with the basics—explaining, among other things, what stocks, bonds, and mutual funds are, and how and when they might be utilized in an investment portfolio. Because participants seem to find this information helpful, I thought it might be beneficial…

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Lessons On Investing from My Dad

April 2014  By: MALCOLM BUTLER, JD

My father started The Fiduciary Group over 40 years ago with the idea that clients would come to him primarily for trust and estate administration (he previously worked in, and ultimately was the head of, the trust department of a local bank). Early on, he found that more and more clients wanted him to manage…

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Investment Selection

January 2014  By: JULIA BUTLER, CFP®, JD, MBA, CFEI

This is the fourth installment in a series on the Investment Process of The Fiduciary Group. Before jumping into the subject of selecting investments, let’s recap the key takeaways from the first three steps in our investment process. Planning Execution of any important undertaking is more effective when planning precedes action. Effective planning helps us…

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