Quick Financial Hits 8.16.19

Today’s quick hits might not be so “quick.” All of these are great pieces and worth some time spent reading them.

Don’t skip all of them, BUT if you only have time for one, make sure to read How the Financial Advice Business is changing and will Change because it will REALLY get you thinking.


Here are the world’s Top 20 Biggest Asset Managers…and then here is why they are on the brink of a historic Shakeout.

  • “In their scramble for survival and under consistent fee pressure, firms are being forced to adapt. Many will be absorbed by other bigger competitors, some will disappear altogether and almost all will need to either cut costs or hone their strategies to increase profit in these uncertain times.”

Great simple explanation on why the stock market must go down.

  • “Without the threat of losses, the gains never show up.”
  • “I want you to picture a world in which stocks never went down. What multiple would you pay for the earnings of a public company’s stock if it was never going to drop? What would make you ever sell your stocks other than needing to use the money?”
  • “When nobody fears anything, stocks no longer work for investors’ long-term return needs. When the possibility of loss goes away, so does the probability of gain.”

Innovation is guts plus generosity – Seth Godin Post that I re-read 5 times. It takes guts to be truly innovative.       

  • “If failure is not an option, then, most of the time, neither is success.”
  • What are you being innovative with in your business?

How the Financial Advice Business is changing and will Change – WOW – great nuggets in here!

  • “For finite thinkers, a competitor is somebody you want to beat,” he said. “For infinite thinkers, a worthy rival is another player in the game whose very existence reveals your weaknesses.” – Mic Drop
  • He raises some legitimate questions and brings up some very good points to start to think through how we can become more Innovative as Seth Godin says.
  • What If Amazon chose to enter the financial advice business?
  • What if another firm introduces subscription pricing where asset-based fees have long been the standard?
  • As new clients begin to realize that the value of an advisor is to help them navigate financial decisions… they will begin to recognize that how they are paying may not be aligned with the value they are receiving.

Sketch that got me thinking:

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  • Why worry about something you can’t control…and why try to control something that doesn’t matter?


Make it another great week!

Helping you help others,