Patience is a Virtue
Patience is a Virtue
Using data from the New York Stock Exchange, Reuters calculates that the average holding period for US stock ownership has fallen to under six months. While falling for decades, the decline in holding periods has accelerated in recent years. Twenty years ago, the average hold time was 14 months. Back in the 60s and 70s, however, it was routine for investors to hold stocks for five to eight years, on average. In our view, a big reason for the decrease is the price of equity trades, which are now free at most brokerages. Additionally, enhanced user interfaces have reduced trading friction, making the buying and selling of securities as easy (and fun) as playing a video game. Despite the apparent benefits, we wonder if free trades and the gamification of investing are actually long-term negatives for average investors. By making it cheaper and easier to sell stocks, investors are becoming conditioned to take a short-term perspective with respect to their investment portfolios. In doing so, we fear investors are becoming less disciplined and less likely to stick to their investment plans. We believe a lack of discipline is a big reason why the average investor has significantly underperformed the broader market averages. At First Fiduciary, maintaining a long-term view is paramount to investment success. We own high-quality, industry leaders that can compound value over multi-year periods. By limiting churn and sticking to our quality threshold, we strive to own only the very best companies for our clients.
Articles We Liked:
Digital Dollars and Cryptocurrencies
As enthusiasm for cryptocurrency grows, government central banks won’t want to get left behind. This article details what a Central Bank Cryptocurrency might look like.
College Athletes Cash In
Finally, college athletes can be paid for the use of their Name, Image, and Likeness (NIL). How will that shift the balance of power among players, coaches, and universities?
UFO
The scientific community and the US government are coming around to the idea that UFOs represent actual extraterrestrial technology.
Coelacanths
Thanks to a new study, scientists have determined that the coelacanth fish (nicknamed “living fossil”) can live for 100 years. These fish have been around since dinosaur times.
Hobbies
Having a hobby unrelated to your day job can help stave off burnout.
$72 Fried Rice
A chef in San Francisco added an over-the-top fried rice dish to his menu as a joke. The only problem was that people couldn’t stop buying it.
Notable Reads:
Chaos: Making a New Science
by James Gleick
Chaos Theory is the idea that there are underlying patterns and feedback loops in complex systems that are highly sensitive to initial conditions. The most common example, now a cliché, used in chaos theory is the idea of a butterfly flapping its wings in Brazil causing it to rain in the United States. The book walks through the history of Chaos as a scientific discipline and its move from the fringes of science to a respected, mainstream field of study. However, unlike Gleick’s book The Information (reviewed in May), Chaos strays too deep into the weeds. While some parts are fascinating, the bulk of the book requires a math background to follow along. – AG
True Grit
by Charles Portis
Unfortunately, the book has been overshadowed by two movies that share its name – first, the John Wayne version that came out in 1969 and more recently by the Coen Brothers’ take on Portis’s story. That’s a shame, because the novel is very deserving of a place on any Best American Novels list. The story centers on a 14-year old girl’s search for her father’s murderer with the aid of an alcoholic US Marshal. Told from the perspective of an elderly lady re-living her youth, Portis’s rich and funny dialogue is the book’s strength. As is his custom, the Arkansas frontier (Portis’s home state) becomes a character in its own right. Highly recommend. – AG
The Lazy Person's Guide to Great Golf!
by Mitchell Lichtman
Lichtman co-wrote the literal book on baseball (The Book: Playing the Percentages in Baseball), and he applies similar statistical analysis to the sport of golf. In particular, his tips on setting up shots and improving chipping & putting strategies will shave strokes off your game. I recommend this quick and breezy read to golfers of all skill levels. – AG
Restaurant Review:
M's Pub
422 S. 11th Street, Omaha, Nebraska
www.mspubomaha.com
A staple of The Old Market district in downtown Omaha since 1972, M’s Pub was recommended to us by a local resident. We were not disappointed. We started our meal with M’s spin on the classic Armenian dish Lahvosh and finished with two of their Satay dishes, lamb and Asian chicken. Situated in a popular Omaha neighborhood, the restaurant managed to be very busy without sacrificing service quality. Sit outside on the patio if you can! – AG
More Than a Trusted Investment Advisor
We recently helped multiple generations of a client family review and analyze disbursements related to the dissolution of a complex estate. By working closely with the family’s legal advisors, we ensured the descendant’s wishes were honored and minimized potential conflict.
Let us know how we can help!
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First Fiduciary Investment Counsel, Inc. is a registered investment adviser with the Securities and Exchange Commission. A more detailed description of the company, its management and practices is contained in its firm brochure document, Form ADV, Part 2. A copy of this form may be received by contacting the company at: 6100 Oak Tree Blvd., Suite 185, Cleveland, OH 44131; Phone: 216.643.9100; Email: ffic@firstfiduciary.com.