What I Read This Week...

Embracing a Rational Investing Philosophy

“Willing to lose clients but not their money.”

In a world driven by hype and the latest technological advances, it’s easy to get caught up in the excitement. But when it comes to investing, there’s wisdom in staying grounded, something we wholeheartedly agree with in the lessons shared in the recent article Lessons from History’s Technology Booms by Vitaliy Katsenelson, CFA .

The piece takes us through the history of technology manias—from the railroad boom in 19th-century England to the telecom bubble of the 1990s—and shows how the emotions of fear and greed have consistently led to overinvestment and eventual market corrections. As investors, it’s important to recognize these patterns and remember that while technology may change, human nature does not.

What resonates deeply with us is the emphasis on rational, process-driven investing, even when the crowd is chasing the next big thing. The article reminds us of the dotcom bubble, where a wise investment manager chose to focus on undervalued, high-quality companies rather than joining the mania. This approach may not have been the most exciting at the time, but it ultimately protected his clients’ wealth and demonstrated the value of sticking to a disciplined strategy.

We believe in this philosophy because we’re in the same boat as our clients, sharing in both the risks and rewards of the investments we make. This concept of “eating your own cooking” isn’t just a saying; it’s a commitment to aligning our interests with those we serve. When we invest, we do so with the same care and caution we would with our own family’s money.

This approach isn’t about avoiding all risk—after all, investing inherently involves risk—but it’s about being thoughtful, patient, and avoiding the pitfalls of short-term thinking. We’re here to build wealth over the long haul, not chase fleeting trends that can lead to disappointment and loss.

Ultimately, this article serves as a powerful reminder that in investing, as in life, the best path is often the one that requires patience, discipline, and a willingness to stick to your principles, even when it’s not the popular choice. By doing so, we can weather the storms of market mania and emerge stronger on the other side.

Here's the link if you would like to explore the topic further:

https://investor.fm/lessons-from-historys-technology-booms/?utm_source=IMA++-+Main+Articles&utm_campaign=680e0ae0b7-UBER_MONEY_MANAGER_KIDNAPPED_COPY_01&utm_medium=email&utm_term=0_f1c90406d1-680e0ae0b7-152521437&mc_cid=680e0ae0b7&mc_eid=9016f1a5ae

Thank you for reading, and have an amazing long weekend! :)

- Connor Velikonja