June 14, 2023
Why Invest with a Strategy: A Lesson from the Man in the Tweed Hat
“You can shoot okay. But your form is bloody awful!” Shane Bisgood said jokingly in a thick Irish accent. The colourful shooting instructor sported a medium-length grey goatee with fine strands of blackish hair peppered through it. His shooting attire was traditional from head to toe – tweed cap, tie, thoughtfully pressed white dress shirt tucked neatly under his dull-green shooting vest and matching trousers.
It was the spring of 2017. My wife and I travelled to Ireland to explore the countryside in a place called Connemara, a western region associated with traditional Irish culture. During our trip, we had the opportunity to sign up for a two-hour shooting tutorial with one of the most renowned, respected (and honest) shooters in Ireland.
The weather during the day of our shooting lesson was inconsistent; wet mostly, and characteristic of the island’s temperate coastal climate. Shane Bisgood picked us up at the meeting spot at our hotel, and my first impression of him - his welcoming demeanour, professionalism, and sport shooting dress, let me know this was going to be an unforgettable experience.
When we arrived at the shooting range, Shane asked if I wanted to try some targets before he gave his lesson - perhaps he wanted to use me as a yardstick for what not to do. I had few rounds of amateur target shooting experience from time spent at my Northern Ontario cottage, so I jumped at the opportunity to prove to Shane that I could actually shoot.
I hit four out of the ten targets that were released. Forty per cent for my first time shooting clays - I thought that was a decent showing. I took off my ear protection and glanced at Shane through the lenses of my clear, rain-spattered shooting glasses.
His expression was unmoving and he spoke to me with intention, “You clearly have the ambition, but you don’t have the method. Without a proper method, you may hit a few clays, but you’ll never be successful and never reach your goal. If you don’t use the proper method you’ll never achieve the level of success that you are hoping for.”
Shane’s comment affected me and offered a universal lesson that applied to me professionally. His philosophy on shooting was a parody of smart investment practices, and the message was at the core of why the Intrinsic Financial Group at CIBC Wood Gundy have been successful investors for years.
We have a method to help clients reach their investment goals. And much like shooting clays, applying that method is essential to hitting the target of successful returns.
Every client who invests has the ambition to make money for their own reasons – retirement, start or expand a business, or meet other long-term financial objectives. However, the problem for many investors is that, regardless of how ambitious they are, they refuse to take cues from the Shane Bisgood’s of investing – the ones with time-tested and proven methods.
With some experience shooting, I hit four clays out of ten. And from time to time inexperienced investors will take aim and pick the right investment. In both cases, the outcome isn’t great and is inconsistent at best.
The reality is, outcomes almost always improve when there’s a strategy.
Some food for thought – the average investor achieves a long term return of only 1.90%.1 The average client that works with an advisor for more than 15 years has 3.90x more financial assets.2 This is something the advertisement for the latest DIY investment product won’t tell you.
Finding a wealth management team like the Intrinsic Financial Group, that has a proven method, is one of the best financial decisions an investor will make to reach their goals. This is because, over time, the opportunity to substantially increase the amount of wealth is greater not only in the short-term, but for future generations.
It was simple advice from a renowned clay shooter halfway across the world that reminded me the key to success can be found in a method. Our method is steeped in 60 + years of experience on how to successfully invest money. We know what works and we know how to stick to a process that can achieve superior returns.
This is why people should choose and trust professional money management.
Adam Slumskie, CIM
Portfolio Manager, Senior Wealth Advisor
CIBC Private Wealth
1Source: “Quantitative Analysis of Investor Behavior, 2019”, DALBAR, Inc., Bloomberg LP. Bonds: Barclays Capital U.S. Aggregate Bond Index; Gold: Bloomberg gold spot price per troy ounce; Homes: S&P/Case Shiller U.S. Home Price Index; Oil: Bloomberg WTI Cushing Crude; Inflation: U.S. Consumer Price Index. Average investor return based on DALBAR, Inc. analysis using asset allocation funds and monthly net of aggregate mutual fund sales, redemptions and exchanges as a measure of investor behaviour. Asset allocation funds invest in a mix of equities, fixed-income securities and money market instruments. All returns annualized and in US$. S&P 500 Index return is a total return which includes reinvestment of dividends.
2Source: The Gamma Factor and the Value of Financial Advice CIRANO, August 2016
Adam Slumskie is an Investment Advisor with CIBC Wood Gundy in Sault Ste. Marie. The views of Adam Slumskie do not necessarily reflect those of CIBC World Markets Inc.
If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. “CIBC Private Wealth” is a registered trademark of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.