Will the next decade look anything like the past?

Most people don’t remember but from 1966-1982 the US stock market went nowhere. Leading up to that point we had the Nifty 50. Fifty stocks that can only go up. Guaranteed for growth. Investing was simple, just put your money in one of these great growth stocks and forget about it. Valuation didn’t matter to investors as they bid them up to stratospheric valuations. But it did matter as the next 16 years illustrate. In the early 1970’s those Nifty 50 stocks cratered falling over 50%. It took nearly two decades for investors to get back to even. Some investors cashed out never to invest again. Meanwhile, value investors cleaned up. The groundwork for the fortunes of some great investors was laid in this period, including Buffett and Munger and many others. The setup today is similar. While we don’t try to predict market movements, we are preparing for a wide range of outcomes. The more you know about the past the more you can leverage the future to your advantage.

Steve Henry
Owner

Steve Henry, the owner of CSH Investment Management LLC, has been passionate about business for as long as he can remember. “I’ve always had a fascination with business, finance and economics,” he says. “I’m probably more of an analyst than most advisors. I’d be perfectly happy sitting in a room full of research papers and annual reports.” Now, he says he gets to look back fondly knowing people have trusted him and his work for years. “I have families that have been with me for decades. I cherish the relationship and being part of their trusted inner circle,” he says. “Many have become like family.”

For those who haven’t found their trusted advisor, Henry says it’s important to look into their past. “Clients should understand an advisor’s educational background and professional designations.” But experience also plays a huge role in investing. “There are very few endeavors in life where one can get better as they get older. Investing is one of them,” Henry says.