The Davis family sponsored the inaugural University of Central Arkansas Davis Lecture Series with a speaking appearance on Thursday by John Bachmann, senior partner at Edward Jones Investments.
The lecture was held at the new UCA College of Business building’s auditorium, which was filled to capacity for the event.
Bachmann, who rose through the ranks at Edward Jones and in 1980 succeeded Edward D. “Ted” Jones as the firm’s managing partner, spoke to students and community members on smart investing, telling students in the crowd that they’d need to “take responsibility for (their) own retirement” if they planned to spend their golden years doing anything other than “sitting on the porch.”
This, Bachmann said, can be made possible through investing, but only if the investor has a plan and “the discipline not to follow the crowd.”
He broke this down into a number of rules, one of which concerned the various forms of risk associated with investing. There’s the risk that a company can go bankrupt, he said, as did GM, which a few years ago was considered a “blue chip” investment, and then there’s the risk that the market could collapse, as happened a year ago and in the mid-80s; there’s the risk that interest rates can go up, causing bond markets to go down, and that inflation may outpace projections. All of these, he said, are carefully considered by successful investors.
And then there are financial risks that couldn’t have been foreseen, such as the the Sept. 11, 2001, terror attacks and the 1979 return of Grand Ayatollah Sayyed Ruhollah Mousavi Khomeini to Iran and the subsequent implications of this for the global oil trade.
These can’t be predicted, he said, but they can be prepared for to an extent by diversifying one’s investment portfolio.
Other bits of advice were to “buy to keep,” meaning that it can cost more money to dispose of an investment and acquire a new one than the new investment is capable of recouping, and to drop investments that seem to be languishing, as many investors keep their money tied up in under-performing investments for far too long. He also advised against planning investments based only on whatever tax credits may apply to them at the time.
The lecture series is made possible by a $50,000 gift from Milton and Claudia Davis and their son and daughter-in-law, Granger and Jan Davis. This gift is also being used for the Davis Faculty Enhancement Fund.
(Staff writer Joe Lamb can be reached at 505-1238 or by E-mail at firstname.lastname@example.org. Send us your news at www.thecabin.net/submit.)