Critical Thinking Required

In this episode, we did some self-reflecting exercises with each other.  Dan shared his experience regarding being at home for over a month and a half, he got the chance to figure out what's important to him, and what shocked him in terms of "I didn't know I used to spend that much on ABC!"  Tim agreed and mentioned that it's extremely important for us to think about our financial needs when times are good so that we can plan and even take advantage of bad times like these.  As for our half-machine-half-human friend Nathaniel, his message is loud and clear: when it comes to investing, have self-discipline, think long-term, and be rational.  In the end, Dan added the following: please be aware of what you are good at, and what you are not.  Do not be ashamed to ask for professional help when it's outside your expertise, and do not hesitate to give a hand to the less fortunate.

Stay tuned, and we will talk soon. 

In the second part of the "Doctor is In" episode, we asked Dr. Ross Goldberg a couple of questions about COVID-19: Will the cure be worse than the disease?  What is herd immunity and will it work?  What's the future for our healthcare system and medical facilities?  Can tech change the industry or is it bigger than that?  Not only has he been working the healthcare system for over 20 years as a doctor, but Ross is also the President of the Arizona Medical Association, as well as an Associate Professor of Surgery at both Creighton University School of Medicine and The University of Arizona College of Medicine-Phoenix.  These roles give him the opportunity to view the current situation from a more macro and long-term perspective.  Tune in and listen to Ross' fascinating thoughts!

In this episode, we invited one of our good friends Dr. Ross Goldberg, M.D., FACS, who is the Specialty Ambulatory Medical Director and Vice-Chairman of the Department of Surgery at Valleywise Health in Arizona.  With his 20 years of experience working in the U.S. healthcare system, Ross discussed the impact of COVID-19 both economically and health-wise, and how they are tied together.  Even though hospitals are about saving lives, they can't do anything if they don't have proper business operations to keep them afloat.  Ross then addressed the potential changes within the healthcare system and his expectations regarding the reopening of the economy.  Stay tuned for part 2 of the "The Doctor Is In" episode!

In part 2 of this episode, we continue speaking to our dear friend Jon Crawford, who owns and operates a third-generation family business in the oil and propane business, about the most recent ups and downs in the oil industry.  We talked about the oil price going forward; potential reverse effects of demand destruction, and the decrease in supply; the U.S.’s oil independence, and the effect on that, both good and bad.  We also discuss his thoughts on whether he thinks the U.S. oil companies deserve a bailout from the government.  Finally, we talked about propane and propane prices for our Midwest audience.
 
 We hope you enjoy this episode, and talk soon!

In this episode, we invited one of our dear friends Jon Crawford, who owns and operates a third-generation family business in the oil and propane industry, to talk about the crazy oil market.  He talked about the historical background of the oil price war between Russia and Saudi Arabia, and what role the U.S.'s oil industry played in the most recent oil price rollercoaster.  Like everything else in the market, it ultimately boils down to supply, demand, and people's greed and fear.
 
We hope you enjoy this episode, and Part 2 of this episode will be available soon.  Talk later!

Due to the recent market volatility, some people have asked us: why didn't you sell AAA when it hit $80?  Why didn't you buy BBB when it collapsed to $1?  Market timing sounds simple enough, but can it be done?  Per JP Morgan Asset Management, did you know that from Jan. 3, 2000 to Dec. 31, 2019 (~almost 20 years, 5040 trading days total), if you were fully invested in the S&P 500, your performance would be a +6.06% annualized return; if you missed the 10 best-performance trading days, your return would be +2.44% annualized; and if you missed 60 best-performance trading days, your return would be -7.02% annualized.  How crazy is that!  Whoever tells you that he/she has the ability to pick those 10 or 60 days out of 5040 days and time the market correctly, is either lying or high.  As Tim said, yes you may have a friend that has "timed the market" successfully in the past (for example, they bought lots of cheap but valuable stocks back in 2008), but what you don't know is that that friend may have done some very boring but thorough financial planning before 2008, set up their goals, and continued to save money every month.  That made it possible for them to take advantage of the 2008 financial crisis.  Their success is due to what they had done before 2008, not in 2008.  Nathaniel summed it up perfectly: market timing doesn't work; it's luck, not skill.

In the past five weeks, unemployment claims have climbed to 26 million as panic flooded the market due to COVID-19 and an unpredictable future.  A lot of business owners are in a pickle: on one hand, the business may not survive without some serious budget cuts, like laying off employees; on the other hand, without their trusted associates, no business can succeed and improve to the next level.  What can we do?  In this episode, we talked about the power of human capital.  Tim and Dan explained the importance of planning for the long term when times are good.  Drawing from his experiences in the Marine Corps, Nathaniel introduced the efficiencies of a bottom-to-top hierarchical structure.

We hope you enjoy this episode and talk soon.

A lot of clients and friends have been asking us recently: "I'm not worried about the market, I'm actually excited!  But how do I take advantage of the crisis?  I've heard that I should refinance my mortgage, is it true?  Should I buy Amazon, Netflix or Zoom?  What should I do?"  
All very good questions.  In this episode, we spoke about how to take advantage of a market downturn.  Dan introduced the idea of Roth IRA conversions and mortgage refinancings.  However, you should always understand the upside and downside of a concept.  After all, there is no free lunch in this world.  Nathaniel talked about his "filter process" when selecting investments, and cannot emphasize enough the importance of sticking within your circle of competence.  As he brilliantly pointed out: "I know what I know, and I know what I don't know!"  In addition, as Tim always says, without proper financial planning, you won't know how and when to take advantage of anything.  A thorough plan puts you in the best possible position to face any challenge in the market and in life.  
Enjoy this episode, and we will talk again soon!

As one said, small business isn't for the faint of heart; it's for the brave, the patient, and the persistent.  This is particularly true in today's market: while COVID-19 affects almost every corner of the world, small business owners are getting more and more worried and confused about their future.  In this episode, we talked about the importance of having a professional network (investors, CPAs, attorneys, bankers, etc.) for you to rely on since no one can be an expert in every area.  As small business owners ourselves, our motto is: "trust but verify" so that we can make sound, well-informed, and rational decisions in this crazy market.

This episode is about "positioning."  With the CoronaVirus pandemic, a lot of people are worried about their job security, health benefits, inability to keep a job, or having to go to work while your kids no longer have daycare.  What do you do?  We can not emphasize enough the importance of an emergency fund.  With it, you can ride the market without sacrificing (too much of) your life standard, or even take advantage of a down market.  Stay tuned, and listen to three guys speaking about how they utilize the emergency fund concept in their investments, their own personal finances, for their clients, and for their business.