Warren Buffett has now been in the business of running Berkshire Hathaway for 53 years, and counting. In his newly released 2017 letter to shareholders, he reminds us why his name has grown over those years to be nearly synonymous with sound business practice here in America and as a master communicator of the money world.

As usual, his latest letter is filled with advice worth heeding. First, as we previewed in December 2017, Buffett shared the final results of the 10-year bet he placed against hedge funds. He won so dramatically that his opponent threw in the towel last May, before the decade was even through. Reflecting on his win, Buffett wrote (emphasis ours):

The bet illuminated another important investment lesson: Though markets are generally rational, they occasionally do crazy things. Seizing the opportunities then offered does not require great intelligence, a degree in economics or a familiarity with Wall Street jargon such as alpha and beta. What investors then need instead is an ability to both disregard mob fears or enthusiasms and to focus on a few simple fundamentals. A willingness to look unimaginative for a sustained period – or even to look foolish – is also essential.

The wager was all the more telling, in that Buffett often bills himself as a person who avoids unnecessary risks. In this year’s letter, for example, he reiterated:

Our aversion to leverage has dampened our returns over the years. But Charlie and I sleep well. Both of us believe it is insane to risk what you have and need in order to obtain what you don’t need. We held this view 50 years ago when we each ran an investment partnership, funded by a few friends and relatives who trusted us. We also hold it today after a million or so ‘partners’ have joined us at Berkshire.

Exactly. This is our perspective at HIG as well. Take care of your clients above all else. Help people focus on their own goals and the financial fundamentals – regardless of what’s hot and what’s not in trending techniques. Excel at these essentials, and the rest will likely take care of itself.

“April showers bring May flowers.” Can the same be said about the recent GOP tax reform and stock market returns?

I don’t know and neither does anyone else!

What does the evidence tell us?

Dimensional Fund Advisors’ Apollo Lupescu answered this very question when he joined us last fall for presentations in Houston and St. Louis.

Relive it here.

Do politicians affect the market? from Hill Investment Group on Vimeo.

Apollo asserts, “The tax policy, the president and the politics have much less to do with the market than the fundamentals.” We agree.

Hill Investment Group’s investment philosophy is based on the fundamental belief that, over the long view, global capitalism will succeed. HIG also loves continuing education – for our clients, our future clients, and ourselves. We’ve also got a demonstrated commitment to giving back.

When the Saint Louis Fashion Incubator launched in late 2016, we found another natural place to combine all three of these core beliefs. Through this non-profit incubator initiative, HIG has partnered with others to make a significant financial and mentoring commitment to six talented young designers who have come to St. Louis from across the U.S. Their two-year fellowships here are preparing them for full commercial debuts upon graduation. 

Relationships are important too, which is how HIG came to lead a perhaps surprising charge in fashion and design. It came about in part when our Houston team introduced us to the husband/wife fashion aficionados, Sid and Ann Mashburn. We’re excited to co-host the Mashburns when they visit St. Louis in mid-October to share their decades of fashion world experience. From “brick and mortar” stores to an online, Skype-based business offering made-to-measure clothing, Sid and Ann have been there, done that, and will be sharing their leadership experience with our incubator designers … and a few others while they’re here.

Just as we’re proud of our entrepreneurial and philanthropic involvement here at HIG, we enjoy inspiring other business owners and friends to share their time, talent, and treasures to spread their own unique vision and values. Cheers to the Mashburns for joining us!