Loyalty to a king? On July 4th, 244 years ago, the colonists, having grown weary of this arrangement, declared their independence from George III. In doing so they created what is arguably the greatest country in history. What made America great? Not kings, but independent and enterprising citizens, protected by laws enshrined in the Constitution and the Bill of Rights. Loyalty to these documents, not fealty to a king, is the definition of American conservativism, and the reason for our country’s success.
What does independence have to do with investing? Here, it also pays to be wary of kings. Twenty years ago, I learned this lesson the hard way. Believing in Salomon Smith Barney equity analyst Jack Grubman, then known then as the ‘King of Telecom’, my net worth experienced a rather large drawdown. I then realized that there are no infallible ‘kings’ in the investment world, or in any earthly realm. Independent thinking went to the forefront of my investment process.
Question … if you favor independence and you don’t submit to a king, who’s your daddy? Who do you listen to and believe more than anyone else? Answer … it’s that little voice inside your head … the voice you hear hundreds of times throughout the day. Since this is the case, it’s important to always understand and question the sources and motivations that influence this little voice.
Mark Twain once said, “It ain’t what you don’t know that gets you into trouble … it’s what you know for sure that just ain’t so.” Let that one sink in for a minute …. Once again for good measure ….
To be truly independent, it pays to know the answer to ‘Who’s your daddy?’.
Happy Independence Day. Fly your 
on the 4th!
If you enjoy my monthly missives, share them with a friend. And please let me know what’s on your mind. Thanks for your trust and friendship.
Copyright © 2020 - Any opinions are those of James Aldendifer and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The above situation is a hypothetical example for illustration purposes only and does not represent an actual investment. Expressions of opinion as of this date are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.
