Investing is a marathon

Are you more “Chief” or more “Investment?” Rainer, a Swiss investor whose company I worked for many years ago, asked me this as he glimpsed the title Chief Investment Officer on my business card. For myself, the answer was quite clear: “Investment”! Investing and the markets in general have been the common thread throughout my career in finance. Consistently, I resisted a promotion that took me away from that. With the robust support of my Gutmann team, I can continue to put my expertise in this area to full use for our clients.

In the "Chief" area, I make decisions, drive ideas forward, take responsibility and communicate extensively both internally and externally. Moreover, standing up for the results of my work is part of the job.

Why am I so thoughtful? You are currently reading the 100th issue of Gutmann Viewpoint - so allow me to do a little soul-searching.

Repetition without boredom

Speaking of which, you are also reading the newsletter because I still have something to say about investing. For myself, this means no quiet weekend without a first draft of a Gutmann Viewpoint.

Such a sense of priority is always based on firm convictions and a mission. Recurring themes are inevitable. Masters of the writing profession, such as Jason Zweig, are a good source of guidance. The US financial journalist and author of the weekly Wall Street Journal column "The Intelligent Investor" explained years ago*:

“I was once asked, at a journalism conference, how I defined my job. I said: My job is to write the exact same thing between 50 and 100 times a year in such a way that neither my editors nor my readers will ever think I am repeating myself.”

It is more my passion than my profession to write a newsletter, but after 100 Gutmann Viewpoints, I know what he means.

Is it enough if it sounds good?

We want to give our clients good advice. Unfortunately, the advice that sounds good is usually the advice that confirms current events and short-term trends. Jason Zweig on this:

“That’s because good advice rarely changes, while markets change constantly. The temptation to pander is almost irresistible. And while people need good advice, what they want is advice that sounds good.”

My aspiration and hope is that each issue of the Gutmann Viewpoint newsletter will stand the test of time for as long as possible. It is our task to protect and increase the wealth of our clients. To achieve this goal, it is not enough to be excellent in terms of craftsmanship and academics. At Gutmann, we must also communicate our convictions to our clients through as many channels as possible.

Access to markets and investment solutions is becoming more and more efficient and yet one factor has not changed: people with all their desires, fears and needs. Emotions and not naked numbers shake confidence in the depths of a bear market and fuel wealth-destroying actions.

Stick with it and persevere

Issue #1 saw the light of day on June 19, 2020. The two concluding sentences were true then and are still true today. Yes, they are even extremely appropriate:

Going completely out of the stock market never makes sense. No matter what development you expect.

For the 100th issue, I want to highlight this statement: It makes no sense to turn your back on the financial markets. Be it stocks or bonds, investing is a marathon, with highs and at times, surprisingly stressful downturns. No matter what is on your mind, we have an ear for your worries, fears and, of course, wishes. We are there for you.

* The full article by Jason Zweig, from which the quotes are taken, can be found here: Saving Investors From Themselves