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You Don't Have to Pay Taxes

Posted Sep 07, 2016  |  By Eric S. Holt, CFA

Many taxpayers will file their final 2015 tax returns between now and October 15th.  While this brings closure to 2015, investors would be well advised to consider the impact taxes had on their portfolios.  Investors need to understand the what in their portfolios: what was my return net of fees and taxes?  What if Ben Franklin was only half-right? Taxes on your portfolio can be managed; taxes on your portfolio should be managed.

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7258 Redefining Investment Advice Luncheon

Posted May 24, 2016  |  By Eric S. Holt, CFA

On May 17th, 55 guests attended the 7258 Wealth Management “Redefining Investment Advice” Luncheon at Guard and Grace in Denver.  The luncheon featured Apollo D. Lupescu, PhD from Dimensional Funds.  Dr. Lupescu addressed the evolution of the markets from primarily being driven by trading on behalf of individuals to trading being dominated by institutional investors.  These institutions are filled with sophisticated, experienced teams making it very difficult for any of them to have a long-term competitive advantage. He presented a compelling case that this change in market dynamics makes it very difficult for high-turnover, high-cost strategies to succeed. While Wall Street has led investors to believe investment success is about picking the right stocks and bonds (or hiring managers to do this for you), Dr Lupescu made the case that long-term success is about investing in markets and not individual companies.

7258 Highlights from the Berkshire Hathaway 2015 Letter

Posted Feb 27, 2016  |  By Eric S. Holt, CFA

The Oracle of Omaha published the 2015 Berkshire Hathaway Shareholder Letter on February 27th. Buffett’s keen business acumen, folksy style and sage advice make this a must read. For those that don’t have time to read the entire letter, we have condensed it below. Happy reading!

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2015: A Year In Review

Posted Jan 21, 2016  |  By Eric S. Holt, CFA

2015 will be remembered more for the continued decline in oil prices than it will be for the returns in equity and fixed income markets.  While there were pockets of strength (namely Hungarian Stocks, Technology Stocks, Small Cap Stocks outside of the US and US REITs), most indices around the world were flat to negative.  For an in-depth look at the above and much more, please read the 7258 Wealth Management 2015 Year-End Review.

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The NFL and Stock Market Games

Posted Oct 08, 2015  |  By Eric S. Holt, CFA

We recently had friends over to watch the Lions play the Broncos on Sunday Night Football.  During halftime, one of them said to his son, “Ask Coach Eric to pick those stocks for you.  This is what he does for a living.”  He then explained the assignment was to pick five stocks and the sixth-grader with the best returns over a 90-day period “wins” the contest.  My heart sank.  The intentions of this game (exposure to financial principles at a young age) are absolutely in the right place but a simulation like this teaches exactly the wrong things to someone learning about investing.  Here are the issues:

Quarterly Market Review

Posted Jul 20, 2015  |  By Eric S. Holt, CFA

Quarterly Market Review – Second Quarter 2015 | Read the full article

Past Performance, Bigfoot, Broccoli and Future Performance

Posted May 28, 2015  |  By Eric S. Holt, CFA

These things have nothing to do with each other. At the bottom of virtually every piece of marketing in the investments industry, you will see the following:

“Past performance does not guarantee future results.”

The Securities and Exchange Commission mandates that this disclaimer be put on all advertising and marketing materials. We want to believe past performance is an indicator of future results; after all, a person’s track record in business/sports/music/art gives us a pretty good idea of how they are going to do in the future. Unfortunately, in the portfolio management world, the past tells us very little about the future.  Consider the following from “The Persistence Scorecard” (“Does Past Performance Matter: The Persistence Scorecard”, December 2014):

Economic Reviews

Posted May 19, 2015  |  By Eric Holt

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