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WEALTH
PLANNING & MANAGEMENT, LLC
REPORT TO CLIENTS AND TO PROSPECTS Third Quarter, 2001 |
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We welcomed three new clients during the third quarter. Principal managing partner and primary fixed-income portfolio manager Nancy Haddock attracted a new municipal bond account, while President John Guy commenced work with two new families, one a referral, the other a client from his days at Morgan Stanley. The composite results of the quarter were good, but perversely so. While the whole world performed miserably, we performed only poorly. Here are the composite numbers: 1. Measuring 59 accounts at the portfolio level (the level that includes all assets), our composite result for the period between December 31, 1999, and September 30, 2001 (21 months), was a negative 10.45 %, compared to a negative 17.89 % for the S&P 500. For the quarter, we were down 10.45 %, compared to negative 14.99 % on the S&P. 2. Measuring only the results of common stocks in portfolios, we were down 14.04 for the quarter, and down 6.84 for the 21 months. When we compare the negative 6.84 to the negative 17.89 on the S&P, we are tempted to shout, "whoopee," but the reality is that no client feels good about a decline, regardless of its relative merit. (Readers of these numbers in 2001 will understand the context, which includes the bear market starting in 2000, and the terrorist attacks of September 11, 2001. We mention this information because persons reading the above several years from now will not immediately recall the unique situation of the world today.) The
above numbers do not include results of accounts invested only in tax-exempt
municipal bonds. While including results of tax-exempt bond accounts
would "smooth" our composite numbers, we feel that the personal
objectives of these accounts are not comparable to the objectives of
our other accounts. Wealth
Planning&Management, LLC |