“The best thing to own? A good reputation.”
Tangibles
Watching little kids picking up Easter eggs reminds me of my first experience finding and collecting things. As I grew older, my interests advanced to bumble bees, football cards, and stamps from around the world. But thanks to my lovely mother, these small collections disappeared in garage sales while I was away at college. After graduation and a move to Dallas, the acquisitions resumed, with cars and houses and all the stuff that got squeezed into them. But over time, I realized that—aside from mortgage lenders—no one really cared about what I owned. If someone liked me, it was just for me being myself. I suppose we all need time to realize that there are more important things in life than things.
Intangibles
To my mind, intangible assets—those that can’t be physically touched—are the most valuable. Freedom, love, friendships, and wisdom top the list. In the business world, experience, reputation, and product quality are all important. As an investment manager, my business involves dealing with intangible assets—stocks, bonds, etc. And so, my collecting interests dovetail with intangibles … knowledge, ideas, perspectives … all necessary in running my little lemonade stand here in Plano, Texas.
The Basket
In my office, at my fingertips, sits my basket of ‘golden eggs’—a few dozen sharp minds that make up my virtual ‘team’. With a few taps on my wireless keyboard, I can summon any one of these experts from my Google bookmarks for updates and insights. But with today’s cornucopia of voices, curating a good collection takes familiarity and time. Who’s in this basket? People I’ve come to know and respect over the years, mostly from the investment world—dispassionate truth-seekers dealing in facts and figures, focused on getting things right. Who’s not in the basket? Social media trolls and cable ‘news’ demagogues. These bad eggs just make young people sad, old people mad, and provide rotten returns for the time invested.
So, how does one find these ‘Grade-A eggs’? Know where to look. Be curious. Read more. Watch less. Keep eyes and ears open for smart people with free-range mindsets. Be wary of those who are cage-bound by political ideology. If someone makes you say ‘wow’ in a good way (here), put them in your basket. As for me, I’m always on the lookout for golden eggs. Let me know if you have any … they’re easy to share. My basket is available upon request.
Happy Easter.
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 the strategy selected.
