|One -||Quiet Money Is A Means To An End. Not An End In And Of Itself.|
|Two -||Quiet Money Appreciates A Good Listener.|
|Three -||Quiet Money Values The Contrarian.|
|Four -||Quiet Money Is Measured, Not Giddy.|
|Five -||Quiet Money Doesn't Need To Be At The Front Of The Line. Merely In The Right One.|
|Six -||Quiet Money Well Knows The Difference Between Activity And Results.|
|Seven -||Quiet Money Seeks Equally Unassuming Company.|
On the surface money is what we help clients manage. But to excel at that, we first seek to appreciate something more important: the human needs and motivations behind it. Is it an exercise in amassing as much wealth as possible? Or will one’s worth be defined in different terms? Like setting up your children? Or a magnanimous gesture that establishes a charitable legacy? We ask a lot of questions around this topic. And we do it because uniquely understanding clients’ needs gives quiet money the plan – and frankly the confidence – to move steadfastly in the right direction.
To see the world through a client’s eyes begins with our ears. And the all important act of listening. For in doing so, we come to understand the personal motivations that underpin the plan that helps clients achieve greater financial and human returns. Listening. It seems so simple, but the art seems lost among many firms these days. Ultimately, the greatest asset we can bring to growing your assets will always be profoundly human. We have lived much and learned much along the way. Such experiences could be a powerful complement to helping you achieve your goals.
Humans love to stampede after things. Money markets included. This presents a splendid opportunity for quiet money to find value in exactly the opposite directions. Remember Bre-X? Nortel? The stampeding masses do and were pouring money at their feet while we quietly invested elsewhere. Companies like Whole Foods (up 4x in five years) and TMX Group (up 5x in four years). We believe the key is to find situations where expectations under estimate reality and not the opposite. But change does not happen overnight, so we hold our investments long enough to afford the company the time to drive the value creation.
There is a calm and measuredness to quiet money that we love. It knows what it wants. It sees the long plan and it sticks with it. This requires discipline. It’s about knowing when to get in and, as importantly, the value of staying the course. In heady times, markets can lure brash money into action just because it feels good, not necessarily because it’s right. You won’t find Kingwest doing this. Slow and quiet wins the race.
The next, the new, the hot tip, the “hey, have you heard?” This is the kind of bluster and distraction that quiet money avoids. The faux prestige of being first in the wrong line will never supplant the weight quiet money gives to being in the right line. For instance, when the Canadian market soared 32% in ’99, our Kingwest Avenue Portfolio was up only 22%. Of course, when the tech bubble burst and the S&P/TSX plummeted 18% over the next three years, our Kingwest Avenue Portfolio was up over 30%.
A flurry of excitement and sound may be a good thing for entertainment. But in financial terms, action guided by unproductive noise is the height of foolhardy, mistakenly born of the belief that action in the markets equates to success. This is the reason we’ve beaten the S&P/TSX and S&P 500 consistently for over 25 years. We manage money in a deliberate and thoughtful way that values success above the hyperbole and the noise that, let’s face it, the market loves to create.
Discretion is the heart and soul of our success. The unassuming door of our office bears witness to this. Our business is at street level, not the rarified air of the 40th or 50th floor. So when we look out our window, we see your world, not clouds. We see hustle. Sometimes bustle. We see concern. We see happiness. We see what you see. So much so, we make it a practice to invest right along side our clients.
The greatest assets we can deploy in the service of growing yours will always be human.
Should you feel such an approach would benefit your money - and more importantly - your personal goals, we should talk.
Fittingly, let's make it a quiet conversation.
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