Focus on acquiring valuable assets

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This week at Wyson Financial, we are hosting a family event in our beautiful boardroom. Watching my talented daughter put up the decorations, I thought back to the years since we bought the building.

It was originally a government office that housed the IRS and several other agencies. When we first visited the building was a disaster. It had been vacant for years. The leaking roof had damaged most of the interior and it was easy to see why there was little interest in buying. The place needed a major renovation which would probably exceed the purchase price. Perhaps the only part intact was the unique bulletproof lobby.

As I considered the dilapidated place, my mind filled with ideas. I’ve always loved real estate and a challenge, so put the two together and I’m good to go. As we walked around, stepping over slimy puddles, I was a little worried about what Launa might be thinking. I have to say I was thrilled when she broke the silence with “I like it”. She always had excellent vision, so we bought her.

Through a major renovation, we have converted an unwanted property into a business office which benefits our business and the local community. The finished product was expensive, but what a valuable asset it was. The meetings and rallies, the high visibility on the street, the electronic reading board consulted by thousands of drivers a day, all of this gives us great value or to another in the future if necessary. While we were owners, I never worried about the price at which we could sell the building. We bought it for its value. Because it has value, I don’t worry about getting a good price for it in the future if I want to.

Investors often overemphasize the current “price” of the things they own, while forgetting the “value” of the things they own. This tendency is accentuated when the markets fall. This is a good time to assess the value of your portfolio. Hedge the prices and just watch the assets and ask; Do I have strong businesses whose products and services are valuable to the world, and will continue to be? Have I added property investments (if that’s okay with you) with strong tenants whose products are also valuable to the world? Are these assets likely to continue to provide valuable goods and services to a growing country in the years to come? These are the issues that matter most. You can’t control prices on Wall Street, but you can control whether you own valuable assets.

A wise friend once said, “Rich people become rich people by acquiring and retaining valuable assets. If only investors could learn this simple concept. Acquire valuable assets and when others are afraid, keep acquiring them. Don’t be bothered by price fluctuations. Over time, the price will take care of itself. In the experiences of thousands of investors I have worked with, I have found this to be a principle worth following.

Dan Wyson, CFP® is the author of “The Gold Egg” and “21 Financial Myths” and owner of Wyson Financial/Wealth Management 375 E. Riverside Dr. St. George, UT 84790 – 435-986-9525 – Securities and Advisory services offered by Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser.

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