Slowing Down and Thinking Critically: Lessons from Altrius and Bow Hunting

Before I officially started at Altrius, I found myself reading a copy of “Invest Like An Aardvark” on a shockingly warm December day. I turned the page to the second chapter and read something that has been stuck in my mind like super glue ever since, “Investors should be buying boring, more stable stocks that pay a growing and above average dividend yield. They would enjoy less volatility, and potentially enjoy better performance over time. They would avoid investing in what I call hope.” “WOW!” I thought to myself, this insight was completely contradictory to what I’d continually heard throughout my college and professional career. I was curious, I was excited to learn more about why Jim thought this way and what evidence he had to back up his beliefs. Before long, my questions were answered and then some!

I dove headfirst into the track record and reasoning behind Altrius’ value investing philosophy and came to realize that Jim and the firm were doing something that many others were not. Jim and the rest of Altrius knew the value of slowing down and thinking critically, a virtue that is all too often overlooked by both retail and institutional investors alike.

During my first week at Altrius, I couldn’t help but notice and admire the people around me. I saw exceptional men and women who embodied the values that my wonderful parents raised me on. Students of history who analyze the past, seekers of current events who dissect the present, and educated philosophers who contemplate the future. During our lively morning meetings, Jim leads our pack in analysis, dissection, and contemplation while regularly reminding us of the rapidly evolving world that we live in. With that ever-present reminder, as well as the breakneck speeds at which technology and society are innovating, it becomes increasingly vital to stick to our virtue of slowing down and thinking critically.

Avoiding the Bleeding Edge

Over the years, we’ve seen countless trends come and go in the world of investments. The allure of bleeding edge technological developments and shiny new businesses often capture investors' imaginations with their promise of groundbreaking innovation and rapid growth. Hope and excitement become intoxicating emotions that continuously cloud the judgement of well-intentioned investors. Sir Isaac Newton, one of the most intelligent men to ever live, lost his life savings investing in the hope and momentum behind the East India Company, countless investors lost sickening amounts of money playing the market with meme stocks like GameStop, both stoners and puritans alike got high and crashed low from the now smoldering remains of most cannabis companies. Chasing investments like these can be a risky strategy, resulting in costly mistakes which could potentially derail your detailed and well-planned investment strategies.

There’s something to be said for investing in boring companies. For more than a quarter century, Altrius has stood its ground and remained rooted in “boring”, only investing in solid companies with strong records of performance and growth being sold at reasonable valuations. With our experience, ability to slow down and take a step back, and in-depth analysis of both historical and current trends, Jim and the rest of Altrius have consistently been able to call out a whole host of different investment manias and avoid the pitfalls of chasing momentum. From avoiding hot IPOS to calling out ESG nonsense, our core company promises and commitment to value have saved our clients from the pain that comes with following unstable and questionable market momentum.

Final Thoughts

Throughout my time at Altrius, I haven’t been able to help myself from drawing comparisons between my work and my passion for bow hunting. When bow hunting, you can’t allow yourself to have a short-term focus, it might take an entire season or even multiple seasons of preparation and consistency to see the buck or tom you’ve had your eye on. The same principle applies to building your wealth, it won’t happen overnight, it will likely take you many seasons. You should dutifully scout your area and research your shooting lanes to make sure that you truly have a decent shot at securing your target. You can’t allow your movements to be too volatile while you’re in your stand, you must remain committed to your strategy, unless, God forbid, something wildly unexpected happens. You shouldn’t hunt in only one area, it’s important to spread your attention and efforts across the land you’re on and diversify your efforts over the course of the season. It’s crucial to develop patience, strong form, and fundamentals to rely on when you get nervous or excited, and to structure your time in accordance with your goals and where you want to be at the end of your season.

I’ll leave you with the wise words of the legend, Charlie Munger: "You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long time."