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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: All right.
Welcome back to another
episode of a WM Insights.
Uh, we are gonna kick off a
little miniseries here on building
a Best in Class portfolio.
And
Mena Hanna: And
Justin Dyer: question number one.
Is really foundational question
is why do you actually need one?
Uh, really we, we want to, to kick
this off with a first principles
understanding of how to think
about this, um, how to think about.
Uh, developing a solid
portfolio structure.
Always gotta start with why, why are
we even having this conversation?
Why is this something we really talk about
and kind of live and breathe and, and
focus on with clients on a daily basis?
Um, so, uh, to kick things off,
let's just, let's, let's set out
to answer that question, like,
why are we having this question?
Or why are we, why are I asking
you, Mina, this question around, uh.
What is a best in class portfolio
and why do you need one?
Mena Hanna: Yeah.
And why you need a best in
class portfolio really is.
The investment side ties into how you
operate in life as a professional athlete.
You don't set out to accomplish
a goal without a process
or without a general plan,
Justin Dyer: Hopefully no
one's doing that, by the way.
You don't just have to be a professional
athlete, but you need, you need a process.
You need a plan in place.
Mena Hanna: You always need a plan.
Whether you're running a marathon,
doing an Iron man, you need a plan
to figure out how you're gonna tackle
this large feat ahead of you, and
managing your money, managing your
wealth, your multi generational
wealth, hopefully is no different.
So having, that plan.
Unfortunately is, hard to follow.
but having it helps you get over and ride,
I would say, past some of the noise that
you'll hear in the media on social media,
some things that you'll hear in social
settings from friends, family, and also
just keep your own emotions in check.
we all experience fomo.
You don't want to miss the next Bitcoin
or, whatever fad trend there is.
So there's a lot of distractions
there, and it's really hard to
overcome those distractions if you
don't have a plan, if you look it up
in, just online or use any AI tool.
best-in-class portfolio.
The result that you're probably going
to get is, a well structured and
diversified collection of assets.
That's a good starting spot.
We take it a step further and we tailor
those assets to you, your family,
your life goals, your mission, so
there is alignment between what you
actually own, what you invest in,
and what you're trying to accomplish.
Under this assumption and, and this
knowledge that everyone is different,
every investor is different, the
investment journey is different.
What you're trying to accomplish is always
going to be different from, you know,
maybe someone else in the locker room.
And getting that customization is the
best way of actually setting up a process
that will help you achieve your goals.
Yeah, that's
Justin Dyer: awesome.
Our, our great friend Brian Kane,
mental performance coach, one of the
best out there, uh, often says, and,
and Kane, or I might be butchering
you if you're listening to this, but,
uh, you're getting the results for
the process that you have essentially
is, is what, what it boils down to.
And, you know, if you don't have a
process around building a good portfolio.
Chances are you might be end up, you
might be setting yourself up for,
for crappy results or subpar results.
So, uh, great old quote there, uh,
that certainly applies to the, this
topic that we're talking about today.
Um, so let's, let's dig a little bit
deeper in this conversation and, and
get more granular or more tangible.
So what are the, the, the, the whys whys.
You know, let's call it version two.
You gave a great, great foundational,
first principle, kind of, uh, more
qualitative, um, why, of why you want a
process, why we need a process, but what
are the outcomes of that or the results
from having a good process, uh, around
developing a a, an investment portfolio.
Mena Hanna: Yeah.
And we talked about the long term,
I guess outcome is, is just more
wealth ideally and, and a better
experience in the short term.
You're going to have also benefits that I
think are are more tangible and relatable.
If you have a well structured portfolio.
If you're diversified, you're going to be
able to ride the bumps in the market and.
Have just a nicer experience.
There's always going to be
turbulence, but think about it as
like a car with a better suspension.
you hit a rough, patch, you're gonna feel
it a lot less in the cabin if your car's
suspension is built for the task at hand.
So I would say that's, one of the
short-term benefits, the long-term
benefits too, which come from
some of these short-term comforts.
It's going to help you stay the course.
You're not gonna be pulling over,
you're not gonna be changing cars.
You're going to stay, in the
process, on your journey.
And ultimately, that's really
how you get to your destination.
You just stay on the track.
You stay on the road.
So helping you.
Stay comfortable, help helping
you avoid some pretty tough times.
and actually a month ago we were
in a pretty tough time, April 8th,
was not a fun, fun day to be an
investor, But April 9th was, actually
a great day to be an investor.
yeah.
you
Justin Dyer: yeah.
Mena Hanna: don't,
Justin Dyer: on that point, like if you
don't have a process that helps you get
through those bad days, if you miss.
The 10 worst days or 10 best days,
they can have drastic in or drastic,
impacts on your overall result.
And picking those days ahead of
time are, is nearly impossible.
We just don't know.
And they're often right
next to each other.
Mena Hanna: Yeah.
Yeah.
And you just always have to show up.
you won't win a championship if
you just show up to the easy games.
If you just want to cash that easy
check, this is not the business for you.
You have to be there for the ups, but
also, unfortunately, experience the downs.
that's because that's how markets
really function and we don't know
what games are gonna go well for us
and what games are gonna go poorly.
Justin Dyer: And one thing we always, we
always really focus on is the personal.
Achievements that portfolios,
allow you to do right.
The, you made the comment that
no two investors are the same.
every portfolio should be unique and
really customized, tailored to an
individual's and family's unique goals.
And by having that process, by
knowing what is important, what.
What type of impact you want to have.
What type of legacy or
multi generational focus?
Mena Hanna: that
Justin Dyer: the way a portfolio and
the process in which you can structure
a portfolio gives you a heck of a lot
more likelihood of meeting those goals.
and that's really something
that we take as a, as.
The, almost the most important
success metric, right?
We can talk about benchmarks,
et cetera, and those are, good.
But like at the end of the day, the
most important benchmark is whether or
not you're meeting your goals as, as
what is important, uh, to you in life.
So what, what can we, um, what can we
avoid by having a, uh, a sound portfolio,
construction process, or best in
class portfolio construction process?
Mena Hanna: Yeah, we could avoid being
swayed by, you know, general noise.
We talked about it.
Emotions are easily triggered by these
headlines, these things that we see
in on Instagram reels, all this stuff.
Um, so it'll help us block that out.
It'll also help us from getting burned
if, unfortunately, there is a situation
where there's too much exposure in one
asset when you lack diversification.
You can get burned, that's what you're
really leaving yourself open to.
So, um, really, really big swings in the
market could potentially wipe you out.
And being diversified reduces,
if not eliminates the, the odds
of having one of those events.
So that's, that's another big piece.
Justin Dyer: And it's also, I, I would
say worth acknowledging that it, it's
not ma waving this magic wand and like,
you're not gonna feel the emotions around.
Any of this type of stuff, but the process
should give you confidence and help you
sleep at night to to, to give you that,
that pause and say, oh, I don't need to
react to that current market environment.
We were prepared ahead of time,
or, oh, I don't need to go chase
this one stock because all of a
sudden it's done exceptionally well.
Right.
The process is there to help you.
Process those emotions that
will, will be there, but, uh, you
don't wanna react to them, right?
It's okay to have those emotions.
It's human.
Everyone does.
But if you can rely, go back
to your process, go back to
your training, right, exactly.
Like you do in a game or, or, you
know, giving a presentation or whatever
the case may be, you prepare ahead
of time for, for those, those events.
Um, we're gonna start to, to
try to bring this home here
and, and look more long term.
I know we've touched on
it a little bit, but, um.
If we can build this best in class
process, it helps us achieve our goals.
It helps preventing, uh, uh, reaction and,
and some, some of those common pitfalls
that, that we know and hear about.
But really from a long-term investor
perspective, what are the, what are the.
Big benefits the big drivers
here of, of, of why we're
even having this conversation.
Mena Hanna: I think one of the biggest
ones is there, there's actually more
certainty that you don't get in your
own way and you actually achieve
what you're trying to achieve.
You talked about this, this
concept of being reactive and
I'll just apply it to myself.
You know, I'm going, going through a bulk.
Uh, there's trying to get stronger.
Trying to get bigger.
I'm not trying to chase.
The fad diets or fad routines out
there, I am just staying disciplined,
going, going at it one day at a time.
You know, making sure that I'm
consistent at the gym, making sure
I'm eating well, you know, all of
these small, incremental things.
Help you get there and deviating from
the course not being disciplined, not
being consistent, that derails your,
your journey to ideally success and
the outcomes that you really lay out,
uh, when you work with us in terms
of what you're trying to accomplish.
So really just following, following.
Your path, not getting swayed by the
noise, not shifting your plans constantly.
Um, that's, that's really the big thing.
And then also there's just resilience
during uncertain times, things aren't
always gonna go well, but just sticking
to the plan, having belief in the
plan, this is really what we've done.
We've looked at hundreds
of years of data and.
Established really what the best and
most certain route forward is for our
clients and built this, built this plan.
So yeah,
Justin Dyer: there, there's, there's
a good analogy on that point too.
It's like injury prevention.
You know, a lot of you are either
professional athletes or, or, you know,
can appreciate, um, the, what it takes
to, to pursue perfection in something.
But you don't just focus
on scoring a touchdown or.
Winning that one deal in a single meeting.
If, if that's the case, you
stretch, you recover, you prepare,
you debrief, you do all of this.
Mena Hanna: Watch tape.
Justin Dyer: yeah.
You watch tape, right?
There's not that singular moment, right?
There's all the preparation before
all the preparation after reflecting
and refocusing diversification and
smart allocate asset allocation.
Are your financial warmups and cool downs,
they help really protect your wealth
from, from unexpected setbacks, really.
I think that's a, it's a great analogy.
Um, so awesome.
I think hopefully that's super helpful.
Again, really wanted to give a first
principles kind of a approach to how
we think about best in class portfolio
construction and start with the why.
Um, there's a lot there, but
it's super, super important.
To, uh, to explain kind
of how we think about it.
Um, and, and then from here
we're gonna go to the how.
But I want to wrap and just
kind of conclude that, uh,
the portfolio is foundational.
To your financial success, resilience,
and hopefully peace of mind.
And the process should reflect
that seriousness, that level.
And that's certainly the responsibility
that we take for, for you all, uh,
especially if you're your client.
So, um, uh, we will get into
how at, at the next episode.
Um, and hopefully this was helpful.
Until then, own your wealth, make
an impact, and always be a pro.