Adams Financial Concepts

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  • 401ks,  Adams Financial Concepts,  Return on Investment

    Strategic Versus Tactical Investing

    When it comes to investing, one of the biggest questions in my mind is strategic versus tactical management. Before we can discuss the merits of one or the other, I think we should clearly define both. Strategic management focuses a financial portfolio on a group of assets. Tactical management changes the asset classes of a portfolio depending on the economy. So, which is better? In theory, tactical management sounds wonderful. You get in when the market is low and out when it is high. Unfortunately, this does not consistently yield the maximum returns to investors. Correctly guessing the exact moment to jump in and out of the market can have…

  • Adams Financial Concepts,  Mile High View,  Return on Investment

    Identifying the Value of a Company

    If you and Alice Canlis were side by side in a small hatchback driving across North Dakota, would she kick you out or would you become best friends by the time you reached Chicago? Mark Canlis, co-owner of Seattle’s renowned Canlis restaurant, believes none of the 90-plus person staff at Canlis would find themselves hitch hiking in his mom’s dust. What does this have to do with financial investing? I’ve talked a lot about the qualities of successful businesses. Through interviews and evaluations, I’ve broken down what I believe are the top two qualities: people and inventiveness. As an investor, you need to look at how a business owner obtains these qualities.…

  • 401ks,  Adams Financial Concepts,  Return on Investment

    Fees

    Do you know what your broker is charging you? The North American Securities Association recently published a survey of 34 big and regional brokerage firms and found their fee disclosures were complicated and ranged from 1 to 45 pages. While the disclosures met the technical requirements of disclosure, they were anything but straight forward. The disclosures were often in documents some people put at the side of their bed to read when they needed something to bore themselves to sleep. Fees are important because they can reduce performance. A 1% increase in fees will reduce a portfolio’s value by 17% over 20 years. A portfolio of $100,000 that grows an…