STEWARDSHIP 26 april 2025 www.goodnewsfl.org Good News • South Florida Edition Both of our children grew up attending Florida Panthers hockey games with my wife and me. Today they are passionate hockey fans. We are joyfully repeating the journey with our grandchildren. Having attended Florida Panthers hockey games since the team’s inception, we had tears of joy in our eyes on the night the Florida Panthers hoisted the Stanley Cup. This brings us to the dictum that a hockey player should skate toward where the puck is going, not to where the puck is now. The investment world encourages much the same. But wait, that’s what “Wall Street” may want, but not necessarily what you on “Main Street” should. Proverbs has long been considered the Book of Wisdom. One wise nugget from the Good Book can be found in Proverbs 13:11, which says that “those who gather money little by little make it grow.” Or as we like to say, we know who wins the race, the Tortoise, not the Hare! In other words, when investing, it’s more than fine to engage the puck right where it’s at and ignore Wall Street’s “chase it” mentality. Be disciplined After a career of more than four decades in the financial services industry, we have developed many core principles that we believe as foundational to long-term investment success. The first of which is: Be Disciplined. The single most important attribute for success is a consistently applied strategy. And to apply a strategy, you first have to have one. Speculation versus investment Moreover, it is very important to distinguish between speculation and investment. A very wise person once said that speculation is an effort, usually unsuccessful, to turn a little money into a lot. While investment is an effort, often successful, to prevent a lot of money from becoming little. Let that sink in. A long-term mindset The single greatest edge any investor can have would be a long-term mindset in everything that they invest in. High quality businesses that have a proven track record of price stability, growth, and strong and predictable profits are, in our humble opinion, the ones to own. Wall Street likes to point us towards “forward earnings” predictions, but looking back at the earnings history tells us much more about a company’s future prospects. Once a well-determined investment has been made and stood the test of time there is a basic rule that it should be rarely sold. In other words, a good investment is good throughout any and all cycles and the investor can be free to ignore the current price. Control your emotions One of the wisest words ever given about any particular investor is that their nervous system more than their head largely determines their success. In other words, most importantly, an investor must, before they do anything else, determine what their ability to control their emotions and nerves are in ALL investing environments. Once that honest assessment is in place, it should fundamentally drive all of their investment choices; along with what and with whom they will associate with in terms of an investment and getting their investment advice. Integrity and ingenuity Prudent investments are certainly associated with leadership/management that consistently demonstrates integrity, ingenuity and hard work. Our faith-based outlook and values should make it easier to see these in business leaders. When these characteristics cannot be seen, it should be avoided no matter how great the “opportunity.” Similarly, a wise investment is one that is most likely to conserve future purchasing power at a minimum risk. Risk, as well as the overall inherent attributes of the investment, needs to always be completely considered. Don’t be swayed by others Most we have known throughout our years speculate while few invest. If that’s you, sit down with your advisor, and family, and develop a well thought out written investment plan. Then be highly disciplined in executing against that plan. Don’t be swayed by where others tell you the puck might be going. Take your shot with the puck that has been studied and is right in front of you! We hope to share other core investment principles, and share about the economy with you in the future. In the meantime, keep looking up. Patrick J. Kelly has spent more than four decades at the most senior levels in the financial services industry. He has held executive leadership positions in banking and securities firms, served numerous profit and nonprofit boards, possesses advanced education in economics, accounting and finance, and has been a featured guest in numerous financial media forums. At present, he endeavors to impart his experience and knowledge to younger generations whenever possible while also offering consultation on securities and banking industry practices for litigation-related expert witness testimony. The Hockey Player Dictum - Patrick J. Kelly - President, Kelly Advisory Group Florida Panthers players during morning practice session for NHL regular season 2021-2022 at Florida.
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