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BOURBON FINANCIAL MANAGEMENT
Patrick Bourbon
Best of BFM
 
We've carefully assembled practical tips you can use to help you make better, more informed decisions.

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Since many of you like Behavioral Finance research to help you improve your decision making process, please find attached some research papers on:
 
 
We have also attached a summary: BFM_Newsletter_05_2011.pdf.
 
 
We can summarize some of the practices that an investor should try to follow, such as:
 
  • Continuously striving to become more educated about investing.
  • Understanding personal objectives related to investment.
  • Determining one’s own risk appetite.
  • Exploring all the practically possible and logically sound alternatives related to investments.
  • Evaluating investment options carefully and comprehensively (without skipping the fine print).
 
We also recommend some things that an investor should try not to engage in. For example:
 
  • Evaluating decisions too frequently.
  • Comparing outcomes with past performance or outcomes of other people’s decisions without an actual understanding of the real factors behind the outcome.
  • Becoming sensitive to short term devaluation of investments.
Schwartz observes an important attribute associated with decision making. We quote Schwartz:
 
“We seem to do our best thinking when we’re feeling good. Complex decisions, involving multiple options… demand our best thinking. Yet those very decisions seem to induce in us emotional reactions that impair our ability to do just the kind of thinking that is necessary.” We would like our investors to focus on the first part. We need to feel good when we make important decisions. Not something easily controllable but it is always worth the attempt.
 
We conclude with a hope that our recommendations would assist you to gain a more pragmatic and cognizant approach to investing.
 
 
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Many of you know of my involvement with a youth organization called South Shore Drill Team, and I am sharing an article about the group that the New York Times ran on April 24. For the past two years, I have been on the Board and chaired the Finance Committee. We have been working since November, 2009 on "Strengthening Financial Management," a project funded by the Wallace Foundation of New York. Like most nonprofits and for-profits, too, South Shore Drill Team is struggling in the current economy, but it is continuing to serve young people on Chicago's southside, and the attached NYT article makes this abundantly clear.(click here to get more details on New York Times)
 
On June 4th, South Shore Drill Team will host a VIP Night Reception and Performance from 6-9 pm at Illinois Institute of Technology's Hermann Hall.
 
The VIP tickets are only $75 (reception before the show), and I would love for you to join us for this special evening. You may also buy regular tickets for $20 (show only).
 
Let me know if you would like to join!
 
 
 
 
 
 
 


We would welcome the opportunity to know you better, introduce ourselves, share with you the work we do for our clients, and position ourselves as a useful resource for you. A consultation would be a wise first step toward achieving your vision.

 

Getting to know you, your needs and motivations, is as important as you evaluating our capabilities to help you meet your financial goals. We do not charge a fee for our initial consultation during which we review your portfolio, and discuss your goals and objectives.

 
“ Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money, 1936
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Thanks to the 500+ of you who have read the Best of BFM Newsletter (click here), which summarizes the newsletters you enjoyed in 2010-2011. By now, you should have uncovered that financial decisions are not only driven by rationality but they are also influenced by emotions. You also found out that your vision can literally "trick" you whenever it can (click here)!



Has BFM Helped You Yet? Click Here for Your Personal Guide to Financial Peace of Mind

 
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All Rights Reserved.

Bourbon Financial Management, LLC
616 W. Fulton St. Suite 411
Chicago, IL 60661
(+1) 312 909 6539 - patrick@bourbonfm.com
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This Newsletter is not advice.  Pursuant to the rules of professional conduct set forth in Circular 230, nothing contained in this communication was intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose. This newsletter may be an advertisement pursuant to federal law. 
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