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Financial Resiliency: Voice Memo

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Hello, friends. Casey Whitson, you're financial advisor here, and I just wanted to check in and do a quick memo for you all as we are nearing the end of 2023. And I know it's been another roller coaster year with lots of different economic and geopolitical changes and news headlines around the world. So I just want to give you all some thoughts and some more financial vitamin C to ultimately give you confidence to stay the course of your financial plan and to help assure you that what you are doing is the best long term strategy for your future.

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And my thesis for the long run is that the market prices of the shares of consistently superior businesses, they are a direct function of their future earnings, dividends and cash flows. But in the short to intermediate term, the prices of those businesses will often appear to be responding to more immediate concerns like economic expansion or recession, inflation, interest rates and other monetary indicators or political or geopolitical events, but really market prices.

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In the near term, they respond not so much to current events and trends as to the popular perception and extrapolation of those events and trends. And my research finds that short term market prices can often be driven by investor emotion and the constant pressure for active managers to outperform in the short run by trend chasing. And here's something that you all have heard me say multiple times.

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My belief is that human nature has difficulty grasping the concept that stocks represent the direct ownership of successful companies. We sometimes hear terms like, I'm invested in the stock market. Well, we know that the stock market is just the medium for exchange of buying and selling of companies, and you're invested in lots of different companies, in lots of different industries across the globe that are listed on the stock market.

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So please consider the crises that the news talked about before and how the news media has moved on to a whole new list of crises. And I believe they will continue with another new list in the future. And we see this as built into the process of investing. It's part of the process, it's part of the cycle. And I love this quote from Warren Buffett that says, the stock market is a device for transferring money from the impatient to the patient.

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And I would go further to say that it's for transferring money from the non resilient to the resilient. So whenever you're tempted to say to me, but Casey, this time is different, I will lovingly and patiently respond in the purest and simplest form by saying this too shall pass. So continue to work your long term financial plan. And you know, ultimately we want you to do it with joy and excitement.

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So reach out to us if you have any questions. We're always available and it's an absolute pleasure to serve you. We love you very much and we're with you. And I pray that this gives you encouragement and excitement about the future. So stay excited and stay the course.



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