Podcast guest and personal finance author Morgan Housel recently wrote a piece warning of the dangers of trying to take the “fast” approach to investing. Housel’s “Too Much, Too Soon, Too Fast” tells the story of what happened to the third, lesser-known, investing partner of Warren Buffett and Charlie Munger.
Here’s an excerpt:
Everyone knows the investing duo of Warren Buffett and Charlie Munger. But 40 years ago, there was a third member, Rick Guerin. The three made investments together. Then Rick kind of disappeared while Warren and Charlie became the most famous investors of all time.
A few years ago, hedge fund manager Mohnish Pabrai asked Buffett what happened. Rick, Buffett explained, was highly leveraged and got hit with margin calls in the 1970s bear market.
Buffett told Pabrai:
One of our team members recently received a check from a past employer. Why? A class-action suit. His former employer was found misbehaving – managing their employees’ retirement plans for their gain rather than for their employees’. As a result, the firm paid up, returning a small portion of inappropriate fees and lost returns. What a joke! This kind of dirty dealing is way too common, and at HIG, we invite you to rage against this machine. Vote with your wallet, choosing ONLY independent, fiduciary advice. Check out this list of the 10 Most-Fined Financial Services Firms. What you see may surprise you!
Why didn’t you tell me how simple you were going to make my tax life?
We like good surprises! Because each client’s tax situation is unique, the time and dollars saved are challenging to quantify in advance. No matter your situation, we are confident your tax experience will likely improve, whether your tax bill this year goes up or down.
You may be asking yourself, “how can I save more on taxes?”. Whether you are wondering about this year or next, if you’re a client, you already know you have a team working on it. We provide a spectrum of services to minimize your tax bill, in addition to guidance throughout the year and regular evaluation of potential tax law changes. In other words, you don’t have to worry that you’re leaving money on the table – we’re already working with you and your tax team to avoid that. If you want to learn more about how we see tax management schedule a complimentary call with us – we’d love to chat!