From time to time, as a contrarian thinker, I find it helpful to articulate my investment philosophy and my best business practices in writing.

I live at a northern latitude where ideal sun exposure can be found on the north shore of any lake. A northern shore is an ideal place to enjoy the outdoors, invest in property, or spend your time. Metaphorically, it’s a reference to gaining exposure to the right financial advice, which should position you within the ideal investment exposure for your place in life. Just as the sun shines on the Northshore, I want Northshore Wealth Management to shine a light on the right investment strategy for you.

I hold the companies I invest in to very high standards of operating efficiency, and I hold my own company to those same standards. When my clients win, I win. That’s not a metaphor, that’s a mathematical fact. That’s why I make every effort to maximize the efficient use of my time, allocating as much of it as possible toward the success of my clients’ investment strategies. I don’t serve more than 50 clients. Many financial advisors have upwards of 500 clients, and most firms have multiple advisors. That’s because it takes 500 clients paying fees, multiplied by several advisors, to shoulder the cost of leasing office space, paying administrative staff, offering healthcare benefits, and a 401(k).

Let’s put those numbers into perspective. For every one call I take from my clients, the large practice takes ten. If three of my clients need to talk to me today, 30 need to speak to the other guy. How many of those 30 people are realistically going to be helped today or even this week? Maybe an administrative assistant can call you back, but do they manage your portfolio? Are they studying the recent price dip in Apple shares? Do they understand the tax liability of the transfer you’d like to discuss? If that assistant is on vacation or out sick, it’s going to be a while. And if your advisor is taking 30 calls a day, who’s managing your portfolio? Who’s capitalizing on this Apple pullback?

I’ve done this for two decades, and the only math that adds up is managing 50 clients. The only way to make a living by managing just 50 portfolios is through operating efficiency. I don’t rent office space; I work from home. I don’t hire stock analysts; I am one. I don’t pay an administrative assistant; I am one. I don’t buy portfolio models; I build them – but that has more to do with my tough standards for model performance. I’ve worked for other firms and worn many hats, mastering many skills, which has left me with little need to outsource. And while I do it all, it’s imperative that I protect my time to do the most important work, strategically and actively manage my clients’ investment portfolios.

My final message may sound blunt, but someone needs to say it: A financial advisor should be a good investor. A seasoned investor, who has had the opportunity to gain experience over time, should have had the means to build their own wealth. A wealthy financial advisor doesn’t need to keep 500 clients or take 30 calls a day unless they’re behind on their retirement savings and desperate for income. If that’s the case, they shouldn’t be giving financial advice. That’s how I see it, and that’s obviously not how most people in my industry see it. To many people, my business strategy and rationale are unconventional, and that’s how I know they’re right.  

Just as last week, investors were panicking and selling Apple shares as they fell 16%, which is how we knew it was time for our clients to buy more. Apple has already recovered 8.5% from that drop. I hope my contrarian views continue to serve my clients’ advantage.

Live long and live well,

Alyse