Hence: “The Buttonwood Project”. For a bit of history, The Buttonwood Agreement, which took place on May 17, 1792, started the New York Stock Exchange. This agreement was signed by twenty-four stock brokers outside of 68 Wall Street in New York under a buttonwood tree. The organization drafted its constitution on March 8th, 1817, and named itself the “New York Stock & Exchange Board”. In 1863, this name was shortened to its modern form and the exchange is now located at 11 Wall Street in lower Manhattan. Things were quite simple in those days. Perhaps we can attempt to re-visit that time, but with today’s information technology.
The aim here is to cut through all of today’s complicated approaches to investing (which, if you think about it, is really speculating), and get back to building a successful investment portfolio for the future through a diversified basket of common stocks and other easy to understand instruments, with which I hope to be of help through this blog.
If you like listening to all of the “talking heads” on TV and you are trying to beat the market so that you can stand out from everyone else at the coffee machine– then this blog is not for you. And, oh, good luck with that. If, however, you want some meaningful advice on building an investment portfolio that will meet your long-term needs, perhaps we can do something here together. Yes, I’m talking about the dreaded “Buy and Hold” strategy where long-term is not next week, or even next year, but somewhere a few years out. Current wisdom is that this approach is “out” and you need to protect yourself with put options, engage in short positions, various hedging strategies or other unnecessary complications that most of us are either too busy to get involved in or just don’t understand. If you can afford a professional money manager who can do these things for you, fine. But let’s face it – not all of us have these types of skills or the time to do this correctly. So, let’s go to Plan B: Building a portfolio that will stand the test of time and provide you with some peace of mind.
Now, fasten your seatbelt. The stock market is indeed the proverbial roller coaster, but like the one in the amusement park, you survive the ride, had fun in the process and get to treat yourself to an ice cream sundae before you leave the park.