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A Behavioral Approach to Investing

Using Scientifically Engineered Models

Why SEM?

I know everyone; don’t fall out of your chair because you are reading a blog from me.  Jeff is alive and well. 

 

Over the past several months, we have been thinking through the “Golden Circle”, by Simon Sinek.  Essentially, his thoughts are centered on having a better explanation of why you are in business.  Too many companies spend all their efforts on what they do and how they do it, versus why they are in business.  His thoughts are, “People don’t buy what you do, they buy why you do it”.  In other words, while most marketing campaigns start from the outside in, successful companies start from the inside and work their way out.

 

After spending a considerable amount of time, I thought about it and agree with his assessment.  After all, there are thousands of third party managers out there that essentially do some of the same things we do, so why use us?   Going back to what Mr. Sinek said, “People don’t buy what you do, they buy why you do it” I came up with a list of our “why, how, whats”:

 

Why

  • We are passionate about helping advisors and their clients overcome the obstacles of their behavioral biases.

 

How

  • By educating advisors and clients about the specific behavioral biases they may be susceptible to

  • Creating customized portfolios designed to address each clients’ individual biases.

  • Providing an abundant amount of resources available to help streamline your back office

  • Leveraging the 25 years of experience we have in successfully navigating all type of markets

  • Providing continuous improvement processes to our existing and potential new portfolios

  • Helping advisor understand what role we play in the overall design of the financial plan

  • Educating the advisor what key risks we are attempting to remove in the overall plan

 

What

  • A successful 25 year track record of portfolios that play OFFENSE and DEFENSE.

  • Nine risk managed blended tactical and dynamic portfolios to meet most return & risk objectives

  • A process to implement, monitor and inform the advisor about what role we play in the financial plan

  • Provide an outsourced back office – operations, marketing, portfolio management

 

As I have talked to advisors across the country and our loyal business partners, it really boils down to why we do what we do versus what we do.  Don’t get me wrong, there is still a bar that we must meet to make sure you are helping the client achieve their financial plan.  Yet, it comes down to the “why”.  A couple of examples of what I am talking about.  I had a group of our advisors mention to me that they really love the fact that Jeff Hybiak is accessible for conference calls, seminars, etc.  His passion is teaching clients & advisors about how the markets work and more importantly what really matters when it comes to developing an investment portfolio. I had another advisor tell me last week, Tim, you are not the typical wholesaler, you really care about my practice and work with me to make sure we are doing the right things for the clients.  None of these have to do with what we do, it has everything to do with why the team at SEM gets up in the morning. To serve our advisors and their clients!

 

Please keep your eye open for an email from us about some upcoming webinars.  The title is “The role of the Advisor and SEM”.  We will be expanding more on “Why SEM”.  Check back tomorrow for further updates!

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New Kent, VA
Jeff joined SEM in October 1998. Outside of SEM, Jeff is part of the worship team at LifePointe Community Church where he plays the keyboard and bass guitar. He also leads a small group Bible study.