Sather Financial

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Sather Financial Group

120 E Constitution St
Victoria, TX 77901

(361) 570-1800


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July 31, 2007 Commentary


Given the recent increase in stock market volatility we thought it would be a good time to provide a little long term investing perspective.  Our stock market investments are made for where we want to be in ten years, not ten months, ten weeks, ten days or ten hours.

Once again we have been reminded that the financial markets can be and will be volatile. Knowing this, what implications does this have for your money?
Between 1986 and 2005 the S&P 500 averaged 11.9%, yet the average investor during this time period only experienced returns of 3.9%. Why?  Trying to time the market is an extremely hard thing to do and is not a recommended investment philosophy.   While there are many people who will tell you that they can time the market none have shown that they can do so with any consistency or any long term results.
The average investor approaches the financial markets and investing from an emotional perspective. As you can see from the results of the above referenced survey, the average investor ends up buying high and emotionally selling at a low point.
In the end the more important thing is to know volatility will occur and to embrace the volatility.

As such, short term volatility does not bother us--if anything, we embrace it as it allows us opportunities to pick up mis-priced companies.

If there have been any significant changes in your financial situation please do not hesitate to contact us.  

We hope you are enjoying the summer.


Warren Udd


Last Updated on Friday, 27 February 2009 14:47