Consistency is key

In March 2020 we first began suggesting a looming bull market and reiterated this last year. You may recall from the October letter:

“As our readers know, we have been suggesting that a great bull market is in the cards. This projection is based on our view that bear markets, recessions, and pandemics force companies to innovate and become more efficient. When all three occur simultaneously we expect a major bull market. That is what history teaches us.”

Our model and the data agreed with a longer buy list, higher growth projection, and a greater number of companies retiring their own shares. Fortunately, we saw a strong market at the end of the year.

When there is this type of market, people can get swept up in the short-term benefits (or near-term worries of a pullback). For us, it makes us think about consistency. Individual years with these returns are great, but we take even more pride in long-term and long-lasting results.

Larry, throughout his 63 years of investing and 55 years of advising, has maintained this type of discipline, long-term thinking and thankfully ingrained it within our family and Katz Family Financial.

We have always put an emphasis on data so, naturally, Larry was wise enough 26+ years ago to create a model portfolio in which our constantly evolving buy list of equities can be tracked. Over the 26+ years, we have seen a 14% annual return. Meanwhile, the S&P has been around 7% and even the Nasdaq (which includes those high growth tech names) is in the 8% range.

Consistency is key

All of this is to say, we believe in our methods and are grateful that you do too.

Katz Family Financial