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A bite sized discussion on timely financial news and investment topics, to help you maximize your net worth and wealth for the next generation with Justin Dyer and Mena Hanna of AWM Capital.
Justin Dyer: Hey everyone.
Welcome back to another
episode of a WM Insights.
We're going to have a little, uh.
Hopefully a little bit of fun,
uh, at least, uh, for two CFAs.
A little bit of fun calling
this a, a hot take, uh, episode.
Really just focus on some lessons
learned over the last, let's call it,
weeks since last episode around, uh, pop
properly sorting your, your a hundred
year family operating system, which we
like to talk about quite a bit here.
So, uh, like I said, kind of a
little bit of a, a round trip
from last week, week's episode.
Um.
You know, we're in this world where
things are changing incredibly quickly,
both for the good and bad headlines
are kind of whipsawing folks around.
Um, and, and probably
generating lots of questions.
So hopefully.
Come, you come to this podcast to get,
get that peace of mind and really orient
back to that a hundred year journey.
Um, and, uh, certainly if there are
any specific questions on current
events, definitely reach out.
We love talking about them.
So, um, you know, going around, uh,
the horn, so to speak, or, or, or
bringing it back to the last episode we
talked about, there was a lot of noise.
There's been a lot of noise in
over the last, uh, six months.
Or excuse me, six days,
seven days in the world.
Um, and to a large extent, it's causing
distraction from that long-term.
A hundred year family operating system,
multi-generational wealth focus.
You pick your word that
you want to use, right?
We are long-term investors.
All of you listening,
our long-term investors.
And while these news items
are certainly, uh, of.
Great importance for us as society,
for the world as a whole, et cetera.
It is a little bit of a
long-term distraction from an
investment, uh, perspective.
So, Mina, I'd love for you to walk
us through kind of top to bottom.
Why is the noise, why is, why
am I saying this as noise?
Why am I saying it?
This is a distraction.
Why should people tune this out?
Mena Hanna: Yeah.
And people should tune this out
because of exactly what you said.
We are long-term investors and we are
investing for a hundred plus years.
It's, it's actually interesting, a
lot of people have coined the conflict
in the Middle East as the 12 day war.
So you can't let 12 days or period
of time, one conflict in a region
affect what you're going to do over.
Potentially more than a hundred years.
So these things will happen.
It's, I can make a guarantee that
they will continue to happen, and
you just have to be resilient.
I believe we, we've given this example
before, but if you're shooting a free
throw, you're at the free throw line in a
packed arena, people are yelling at you.
You cannot be affected by the noise.
You have to just continue to
operate to play your game to.
Do your function.
And that's really how you can
actually achieve success instead
of getting distracted by, you
know, a fan waving something behind
or, or yelling something at you.
So maybe this is a little bit of, of we
told you so it's, it's happened a lot
faster than I would say I would expect.
Uh, I would've expected.
But it is about being consistent
and focusing on the target, which
is being a proper steward to your.
Family operating system for
an extended period of time.
Justin Dyer: Yeah, right.
You gotta have the ice in
your veins, so to speak.
What, and I want to kind of pivot this
to a another, let's call it pillar,
that we, we, we talk about, pillar
might be a strong word, but Right.
Thi this in a way is
positive or not positive.
Might be a, a, a kind of stretch,
uh, on the, on, uh, just might be a
stretch, but it's expected, right?
We, we say, you.
Expect higher returns from
investing in the stock market.
Because of events like we've seen,
like we've seen a lot of them
so far this year, but certainly
over the last couple days, right?
There's, uh, a spike in conflict or
potential large scale war that was,
was, uh, budding in the Middle East.
It's, it's, uh, been tamped down
quite a bit today and, and hopefully
it stays that way, but right.
These things, you can't expect
them or predict them ahead of time.
But these events.
Our why we expect to have a higher
return by holding stocks predominantly.
Right.
So like walk us through
that general framework.
Mena Hanna: Yeah, and it's,
it's very interesting because I.
By being disciplined in the stock
market, you're actually performing
better than most people out there.
By avoiding that noise, by staying
on plan, you're doing something
that most people actually can't
do, and a lot of people choose
not to even be burdened with.
That risk or that noise, and they totally
exclude risk from their portfolio.
So just like our clients, a lot of
them have achieved success through
hard work, through discipline,
through just outworking people.
Ultimately, investing has
a very similar parallel.
Where if you do stay invested, if you
do stay on plan, if you ride these
waves, there's obviously sacrifices
at times, but there's a recovery
that comes, comes in the backend.
If you're able to actually do that,
you're rewarded with those excess returns
that we've talked about and, and that's
your benefit for the turbulence that
you are certainly going to experience.
Justin Dyer: Right.
And when, when, when you say that
referencing various studies out
there that say, Hey, what, what do
the average investors actually earn?
And, uh, it's, it's quite low to
your point, because either you're not
comfortable taking risk and you're just
keeping your money in cash, which doesn't
keep up with inflation, doesn't grow,
uh, enough, uh, for most individuals.
Or you're investing in the market
and letting the, the, the behavioral
side get the better of you.
So you're.
You're, you're selling at lows,
you're buying at highs and just kind
of constantly playing this, um, cat
and mouse game, chasing your tail.
Again, whatever you wanna say there.
So the discipline side of things is right.
You're totally spot on.
The, the parallels between.
Becoming a successful athlete,
becoming a successful executive.
The mental game.
We talk a ton about our
friend Brian Kane, right?
The, the discipline around mental
performance is so applicable
to long-term investing.
Um, and so, you know, along those lines,
we like to say, Hey, focus on winning a
championship, not just scoring a bunch
of individual points in any one game.
Right?
That, that's true.
In the sport you're playing,
it's also true in investing.
Unpack that statement.
Mena Hanna: Yeah, and it, it's
about shifting your focus from
maybe a building block concept.
Obviously scoring wins
games, that's how you win to.
Just a bigger picture item, which is
winning being more, call it just outcome
focused, even though the process needs to
be super, super important and stressed on.
But I.
Justin Dyer: but.
Mena Hanna: I, I was looking at this
and I thought it was super interesting.
Like the chiefs scored 51
points in a game and lost.
There have been two MLB teams that
have scored 20 plus runs, which, you
know, that's, that's a crazy amount
of runs and they've still lost.
So changing your focus and actually
building a plan around winning instead
Justin Dyer: winning instead
Mena Hanna: just scoring is, is.
Uh, really necessary to get to that
ultimate goal of, of winning games
and ultimately winning a championship.
If we think about investing, we want
to win a championship, we want to
deliver performance, that's, that's
pretty much better than everyone
else, and that also achieves our goals
and helps us achieve our priorities.
So.
Really looking at things that
way is looking at winning games,
winning championships instead of
just scoring runs and for focusing
on shorter term trends and results.
Justin Dyer: Yeah, and, and again, going
back to the wise, Brian Kane, he always
says, focus on process over outcome.
If you do that, the outcomes will
kind of take care of themselves.
Again, no different when it comes
to investing and certainly when
it comes to focusing on building
generational wealth, the a hundred
year family operating system where.
There are gonna be distractions.
There are gonna be ups and downs, but
process over outcome trumps everything.
Control what you can
control trumps everything.
We can't control what
happens in the Middle East.
We can't control how we react to
that and, and we can control how we.
Manage our human capital, right?
You might be a, a young athlete, a young
entrepreneur, et cetera, where your
human capital, the value of your human
capital is exceptionally large, and you
are gonna get the best return from that.
Over the entirety of your life, you need
to then harvest that return into financial
capital and we will steward it for you to
then support this continuous cycle of, uh,
of the a hundred year operating system,
right, of this idea of generational
wealth, where we want to, to optimize all
these pools of capital, whether it be.
Financial, social, physical, et
cetera, to continue to generate,
um, returns in various ways to
support your priorities, right?
This, if we think about each one of those
and optimize them, um, and, and really
care for them in this stewardship mindset.
Focus on that process, you will
be successful over the long term.
So, um, that, that one's not,
uh, not so much of a hot take.
Hopefully it's a great reminder though of
why we're here, what we're continuously
focused on, to support everyone here.
Um, and again, if you have questions
around what's going on in the market,
going on in the world today and, and want
our quick take, definitely reach out.
We always like addressing.
Immediate questions, um, on
the top of everyone's mind.
Um, but with that, until next
time, own your wealth, make an
impact, and always be a pro.