Now that we are already half-way through the year (which is hard to believe), I thought I would offer some of my favorite beliefs regarding investing. These have been on my mind recently given the announcement from Warren Buffett that he will be stepping down as the CEO of Berkshire Hathaway at the end of the year. I have always appreciated his thoughtful investing insights over the years – and how he is able to get to the core issue in just a few pithy words.
As an investment manager, I have tried to emulate many of Warren Buffett’s philosophies and adapt them into my own style for our clients. While there is only one Oracle of Omaha, the Nepsis way of investing has been modeled on many of the same principles — evolving and progressing over thirty years.
So, I would like to offer my own favorite Top 7 Investing Words of Wisdom.
1. Process before Progress®
At Nepsis we really believe great investing starts with a disciplined approach. All of our clients take our proprietary Clarity Assessment as part one of our five-step process. This process establishes the foundation for all future investment decisions.
2. It’s All About Clarity®
Clarity is the key to our entire approach. In fact, Nepsis is a Greek word that essentially means ultimate clarity. We apply this principle to everything we do for our clients: clarity in investing; clarity in tax planning; clarity in financial and estate planning; clarity in retirement; clarity in giving; clarity in living.
3. Know What You Own And Why You Own It
The essence of investment clarity is very simple: know what equities (what businesses) you own and why. Yet, it is always surprising how many people actually have little or no idea of what is in their portfolio and why it’s there.
4. Invest In Great Businesses Over Time
My approach has always been to invest (own) great businesses, period. It’s not about “the market” per se. It’s about identifying great businesses at a reasonable price and participating in their future growth.
5. Make Volatility Your Friend
This is easier said than done. But embrace volatility. In any given year, the market typically has a spread of 14 percentage points between the high and the low. This volatility is not to be feared, rather it is your opportunity to buy great businesses with solid fundamentals at a favorable price.
6. Time Invested In A Business, Not Timing A Business
Invest in great companies and give them time to deliver great results. We look for opportunities to buy at a reasonable price, but do not attempt to time the market or time a particular business based on news or short term factors.
7. Addiction to Prediction®
We believe investors need to find a cure for the fear and anxiety created by the financial press — and that is clarity. Don’t look to soothsayers and prognosticators, follow known market principles and actionable strategies devoid of speculative predictions. Break free from this addiction and enjoy more of life.
These are the philosophies that we believe in and have been the foundation of Nepsis. These core principles have helped to set us apart from the herd for the past 30 years. I hope you enjoy them.
Please visit us at www.Nepsis.com or reach out directly if you would like to learn more about our approach to investing, estate planning and tax solutions.
Chuck Etzweiler
MBA, CIMA®, CFP®, CMT
Chief Research Officer & Senior Vice President
Advisory Services offered through Nepsis, Inc., An SEC Registered Investment Advisor.