By Jay Gadberry
A couple of weeks ago, my team and I hosted a webinar on the subject “Investment Opportunities Born From Disruption.” It was a fascinating presentation provided by an investment management company that has identified 11 big ideas ranging from deep learning and drones to 3D printing and the next generation of DNA sequencing.
The presentation was compelling as we listened to the methodology, prognosis, ideas of disruptors and the resulting opportunities that lie ahead. Compelling indeed, as 2020 will go down as undoubtedly the most disruptive year of my lifetime.
I wonder, is disruption ahead? I try to take away several critical thoughts from such a presentation and look for ways to apply them, or perhaps even more important, I look for validation of how we currently manage wealth. Perfect timing as we are closing the chapter on 2020 and looking ahead to 2021. Here are my takeaways.
Do what you do best.
The investment management firm above has been successful by being consistent, investing in opportunities only if they see considerable disruption born from innovation. Having a disciplined, consistent approach to investment decisions allows you to concentrate on what you know, not what you feel. Having strong feelings about investment decisions we make is not necessarily bad, but it can become harmful if we allow our emotions to override what we know.
It is essential to play defense in times of disruption.
Along with being amazed at these “disruptors” emerging, I can’t help but think of all those disrupted businesses left in the wake. Every time we read about an innovative company “disrupting” a market, there are an awful lot of people, employees, business owners and investors that are also “disrupted,” even if only for a while. Over the years, Gadberry Financial Group has managed the “disruption” of volatile investment markets by consistently practicing discipline in our investment decisions and practicing discipline in our performance expectations and those of our clients. We will indeed be approaching the new year, fraught with change, anticipation and even concern, with this same discipline as we too look for opportunities.
There are a lot of bright people out there.
Disruption is born from innovation, and innovation is born by someone with an idea or concept, undaunted in his/her pursuit of making it a reality. Our approach is to find these smart people and invest alongside them. I am privileged to be an independent branch owner of National Securities Corp., a subsidiary of National Holdings Corp., a publicly traded investment banking firm. Our wealth management services are provided through National Asset Management Inc., and combined, National Securities and affiliates have more than 900 affiliated persons and almost $12 billion in client assets under management (AUM) as of Sept. 30, 2020. What an asset it is to come to work every day with access to some of our businesses’ brightest minds.
If you haven’t experienced disruption, just hold on.
The truth is, I don’t know anyone who did not find themselves “disrupted” in 2020. Most of the “disruption” discussed thus far came in the form of innovation brought to a marketplace, imparting “disruption” along the way. There are other disruptions that very few of us escaped. COVID-19 had us sheltering in place for months while our friends and loved ones had businesses disrupted to the point of failure. This disruption is almost impossible to predict and plan for, but this pandemic has certainly taught us that we must be prepared and ever vigilant. I am proud of the way the Gadberry Financial Group served the needs of our clients and community. We are looking forward to serving many more friends in 2021, helping them invest in opportunities while also making plans to protect their businesses and families in anticipation of disruption.
If you haven’t experienced disruption, just hold on (part 2).
I mentioned the privilege of being affiliated with a national investment firm. As such, we have access to some of the very best analysts, market strategists and investment bankers on Wall Street. All bright minds. We are looking forward to sharing their thoughts with our clients and friends in 2021.
Jay Gadberry, CIMA, is president and CEO of Gadberry Financial Group in Little Rock. Securities offered through National Securities Corporation (NSC), Member FINRA/SIPC. Advisory services provided through National Asset Management, Inc. (NAM), an SEC Registered Investment Advisor. Fixed Insurance products offered through National Insurance Corporation (NIC).