By: Sean E. Savage, Professional Wealth Management
“As a financial advisor, I believe my clients need someone who understands how to build wealth and has applied it to their own life.”
Several years ago Alice Schroeder, the author of The Snowball: Warren Buffett and the Business of Life called me. The purpose of her call was to recommend her literary agent to my wife Carolyn and I. I was sitting in my car when I answered her call and Alice began to espouse the tremendous virtues of her literary agent. I was not listening to anything she said about her literary agent. What was running through my mind while she spoke is that I am speaking with a highly accomplished professional who had personally spent thousands of hours with Warren Buffett, the greatest investor of our time. Of course,as soon as I had a chance to speak, I asked numerous questions about Warren Buffett and none about her literary agent. I have read so many books about Warren Buffett and writings from Mr. Buffett that I considered it an absolute privilege to speak with Alice. Warren had given Alice incredible access to him for a prolonged period of time and she wrote an extraordinary book which captured Warren Buffett well. How does a story about Warren Buffett apply to you and your investments?
2016 has arrived in the market with a bear’s roar globally and I am reminded of a couple of golden nuggets of advice from Warren Buffett which are worth repeating at this time.
Occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics is equally unpredictable, both as to duration and degree. Therefore we never try to anticipate the arrival or departure of either. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.- Warren Buffett
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient to patient people.- Warren Buffett
Fear seems to be ruling the day in the markets, but this fear will eventually come to pass. I believe you should avoid allowing fear or impatience to drive investment decisions. Instead, make investment decisions which are rationally based with your long term objectives in mind.
Sean E. Savage, CLU, ChFC, AIF is a financial advisor with clients in 23 states. Sean developed the Sean E. Savage Wealth Management Process™. Minimum portfolio size for new clients is $500,000. You may reach Sean at 419‐725‐7272 or at Sean.Savage@SavageAndAssociates.com