THE FATHER BLOG

I imagine the major fluctuations of the stock market lately is concerning to a lot of people…especially those at, near, or in retirement. When you get to that point of life, there may not be so much time for rebounding from significant losses. But for you young people or those still years from retirement, the buy and hold strategy is still tried and true. Due diligence, purchase stocks/ETFs that have stood the test of time, diversify your investments….and just BE PATIENT.

I look at my portfolio every single day of the week. If you have done the same, then the past several weeks have been brutal as the war on Iran has continued. Basically losing a decent % overall. But I’m not looking to start selling off the losses and stock piling cash. I’m waiting it out. And the best part, I’m still making dividends on the majority of the investments so $$ keeps coming in to reinvest at these lower prices.

The stock market is incredibly reactionary. Remember tariffs? Tariffs imposed and tariffs lifted….stocks go down, stocks go up. Iran war…stocks go down. Trump says today to postpone bombings…pre stock market is up big. It’s going to happen. And whatever the next thing is….it will happen again. Stay the course, my friends.

Buy and hold is widely considered one of the most effective, reliable, and straightforward investment strategies, favored by long-term investors for maximizing returns through compounding. It minimizes taxes, reduces transaction costs, and avoids emotional decision-making. However, it requires patience, resilience during market volatility, and careful selection to avoid holding duds. 

Why Buy and Hold Works

• Compounding Returns: Holding investments for years allows dividends and price appreciation to accumulate, significantly increasing wealth over time.
• Lower Costs and Taxes: By minimizing frequent trading, you pay fewer commissions and defer capital gains taxes.
• Emotional Discipline: It removes the need to “time the market,” avoiding common errors like panic-selling during downturns and chasing high prices.
• Historical Success: Historically, the market tends to rise over the long term, enabling investors to overcome short-term crashes. 

Potential Disadvantages and Risks

• Capital Tied Up: Significant funds are locked in, reducing liquidity for other potential investments.
• Market Volatility: Without selling, investors must endure significant market crashes and downturns.
• Risk of Poor Selection: If the chosen company or sector underperforms permanently, this strategy can lead to significant losses.
• Active Management Limitation: It does not allow for quick moves to protect assets during sudden market shifts.

How to Execute the Strategy

• Diversification: Do not put all your capital in one stock; own a diverse portfolio to manage risk.
• Regular Rebalancing: Periodically check your portfolio (e.g., quarterly) to ensure your portfolio mix remains aligned with your goals, which may involve selling high-performing stocks to buy underperforming ones.
• Focus on Quality: Focus on companies with strong fundamentals or low-cost index funds.

If I could no longer work and just travel all 52 weeks of the year, I would do so without hesitation. But that isn’t how life works…at least not for me and the overwhelming majority of us in the world. However, I’ve been lucky enough to do some great traveling over the years and have been inspired by the people and places I’ve been. So if I can only travel 2 weeks out of the year, then maybe bring some of that back with you to enjoy the other 50 weeks at home.

A few years ago we finally got around to the plan to have a deck built off the back of the house. I had some very specific specifications (a few to do with Deke at the time) and worked with the architect to design what I wanted. And what I wanted was both designed and decorated in a fashion that brought me back to a few of the Caribbean Islands over the past few years that we visited as a family. Here was my inspiration and the final product:

There was an entire line of colorful Adirondack chairs on this beach in Aruba. I loved the vibrant colors!

Mary and Emily at a restaurant in the Bahamas. I liked the ocean blue color of the walls but also the open rafters on the ceiling.

The covered deck overlooking the infinity pool and the island of Nevis while we stayed in St. Kitts.

All of these trips led to this in my backyard and each time I sit outside…..it brings me back those wonderful trips and family memories.

Answer as always: it depends.

Deke has curly and kinky poodle -like hair which is prone to matting. However, he loves getting brushed and I don’t have much trouble keeping him looking nice.

Delaney has velvety smooth hair but getting her to sit still for brushing is like a damn Olympic event. She likes it but she rolls all over, tries to bite the brush, etc.

Bottom line for dogs who have hair that grows vs dogs with short hair/fur that doesn’t: it’s about every 4-8 weeks.

Deke got his haircut and grooming a week or so ago. He hops into the mobile grooming truck and a couple hours later he looks great. Delaney has to have hers done at the groomer attached to the vet office and go through “Chill Protocol” which is a nice way of saying we need to drug the hell outta her to make her grooming even remotely possible. Hopefully as she gets older and more mature, she will calm down and start to embrace the pampering.

Here is a “before and after” of Delaney.