AVERAGE FOR A VERY LONG TIME

BY KEITH THOMSON

“Compound interest is the eighth wonder of the world.He who understands it, earns it …. he who doesn’t … pays it.” —Albert Einstein

I am humbled to have worked with a number of families for over 25 years. Their long-term returns have ranged from 7% to 9%*, which, on the face of it, seems fine, but not necessarily outstanding. But here’s the thing … 7% to 9%*…

SIMPLICITY IS THE ULTIMATE SOPHISTICATION

BY KEITH THOMSON

“It’s taken me all my life to know which notes not to play.” —Dizzy Gillespie 

As I rapidly approach my 60th year I am increasingly convinced that, as in most things in life, simple is usually better than complex. And so it is with investing. As a wealth advisor I am on the receiving end of the marketing skills of individuals and companies that have “interesting…

WHAT WE DON’T KNOW

BY KEITH THOMSON

“There are two kinds of forecasters; those who don’t know and those who don’t know they don’t know.” —John Kenneth Galbraith

At age 24, when I started in the wealth planning business I was about as naïve and ignorant as a young man could be. Unfortunately, I just didn’t know it at the time. Back then I wanted to be the guy who had all the…

THE PYRAMID OF
INVESTMENT SUCCESS

BY KEITH THOMSON

“The single most important variable in your quest for equity investment success is also the only variable that you ultimately control: your own behavior.” —Nick Murray

What is the secret to multi-decade, inter-generational wealth creation? Fortunately, it can be summed up in one easy illustration I call “The Pyramid of Investment Success”.  Having been in the wealth management business since 1985, I’m convinced that over…

ARE YOU A PLEASANT, WEALTHY SOCIOPATH?

BY KEITH THOMSON

“I always want to say to people who want to be rich and famous: ‘try being rich first’. See if that doesn’t cover most of it. There’s not much downside to being rich, other than paying taxes and having your relatives ask you for money. But when you become famous, you end up with a 24-hour job.” —Bill Murray

One of the ways I filter out 99.9% of the…

IT’S TIME TO PLUCK THE GOOSE

BY KEITH THOMSON

“The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least amount of hissing.” —Jean-Baptiste Colbert  

As we prepare for this year’s “plucking” perhaps the article below will help minimize the “hissing”. The article, written by Ryan Holiday, is directed towards an American audience (with a Stoic bent). However, if you change the date to…

MAR 26, 2021

WHY HAVING ALL OF YOUR EGGS IN ONE BASKET MAKES SENSE

BY KEITH THOMSON

“The rich invest in time, the poor invest in money.”  —Warren Buffet

I was recently referred to a wonderful family who had come into a significant windfall as a result of a commercial real estate sale. I thought the potential relationship was moving ahead swimmingly well right up to the point when I mentioned that one of my “non-negotiables” was that I manage all my…

FEB 24, 2021

THERE’S NO PLACE LIKE HOME?

BY KEITH THOMSON

“The only investors who shouldn’t diversify  are those who are right 100% of the time.” —John Templeton

I do appreciate that for most investors one of our behavioural “ticks” is to invest primarily in what we are familiar with. As a result, time and time again, I come across portfolios that are significantly over invested in Canadian companies. RBC Global Asset Management reported that as of May, 2019, while Canada…

JAN 25, 2021

IT ALL GOES BACK IN THE BOX

BY KEITH THOMSON

“You have to ask yourself: When you finally get the ultimate possession, when you’ve made the ultimate purchase, when you buy the ultimate home, when you have stored up financial security and climbed the ladder of success to the highest rung you can possibly climb it, and the thrill wears off – and it will wear off – then what?” —John Ortberg

Growing up I was…