Author Archives: John Kvale CFA, CFP

Modern Day “Saw Sharpened” … Newsletter Research Findings … Summer Friday …

With a few days out of the office …. that saying of “Sharpening the Saw” comes to mind… Think it speaks more to a solitude down time than we have in this day of technology and need to stay connected… but we get the point, and feel the saw has been sharpened, maybe in a more modern day sense….

Enjoyed catching fish, extra jogs and work outs… and even some movie nights with most of the gang….

The 15 year old even learned to drive a manual “Stick shift” – ouch to the back on the lack of smoothness … fortunately not hitting the roads ANYTIME soon.. not kidding here!

Newsletter Research Findings

While the exact data that was being searched for the next Newsletter (Business Tax Refunds resulting from ERC – Employee Retention Credits – causing a slow motion economic slowing due to remaining stimulus being burned off- wow- what a mouthful) WAS NOT FOUND YET -grrr… we did stumble onto some great IRS feeds via the bird site (Twitter) that we will keep in our pocket for future use… Even AI could not help us, go figure (You mean it doesn’t know EVERYTHING- digressing with a full caffeine intake this am)

Ahhhhh….but TODAY is still a Friday, heading into a drive back home weekend and early summer “Pools are open” weekend!

Enjoy and talk next week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

May 2023 Audio Video Review – Buffet/Munger Words of Wisdom, Debt Ceiling, – Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our May 2023 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!

Hope you enjoy!

May 2023 Video –


YouTube

Financial Planning Tip(s)

Berkshire Hathaway – Buffett Munger Words to Live By

In this post Charlie Munger and Warren Buffet are discussed in great details… along with a secret to speeding the time to listen (1.75x speed)…..

Main thoughts to live by from Charlie and Warren:

  • The world is full of foolish gamblers, and they will not do as well as the patient investor.
  • If you don’t see the world the way it is, it’s like judging something through a distorted lens.
  • All I want to know is where I’m going to die, so I’ll never go there. And a related thought:
    Early on, write your desired obituary – and then behave accordingly.
  • If you don’t care whether you are rational or not, you won’t work on it. Then you will stay
    irrational and get lousy results.
  • Patience can be learned. Having a long attention span and the ability to concentrate on one
    thing for a long time is a huge advantage.
  • There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero.

Particularly added this as just last week, saw a review of the meeting that completely missed several of these points in my opinion.

Capital Market Comments

Debt Ceiling Fizzle- All done until after next elections

With several comments from the field, we spoke multiple times, here and here about the Debt Ceiling, the history and the most likely outcome…

Much of our confidence on the matter comes from our contacts that we have developed over the years that try to give us a 100% straight scoop as much as possible…. They could always be wrong, but being numbers folks, we go with the odds…

They were right, once again!

Have a Great Day, Talk to You at the End of June !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Memorial Day Weekend … Debt Ceiling Fizzle (So Far, Fingers Crossed) … School’s Out … Extended Weekend Week …

With family, friends and a lot of contacts involved in the US Armed Services…. This time of the year have become more special as the year notches have occurred in the belt…

For all those in the Armed Services, fallen, retired from the forces, and any family of … or in any way near the US Armed Services…

Thank you for your service, we could not have what we do without you!

Debt Ceiling Fizzle

With worries front and center and lots of back in forth, for the most part the Debt Ceiling talks seem to have been handled orderly…. a lot going on behind the scenes (we listen every morning to contacts in Washington), but lots of contacts just wanting finality… without drama…

Hopefully that is what we will eventually get!

School is out – Well Almost!

The 15 year old is finishing two toughies (finals) as you receive this and hits the streets at the half way point today with the rest of the crew … the 18 year old DU headed Senior took several last night and only has two/three more for finality…so almost there…

Not sure about the rest of you….but time officially hits “Warp Speed Captain” (Star Trek) as soon as the gates of school close… Hang on!

Extending the Long Weekend

With a totally awkward summer schedule…. afore mentioned getting off to College … we are extending next week with the family…. Actually … two kids, two dogs and a cat for a bit...

Beverly Hillbillies anyone?

Oh…Watch out…with the time out of the office … the thinking cap usually gets going with the Newsletter in sight… Let’s go!

Happy Memorial Day Weekend and Schools Out Friday!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Rates… Fastest Increase Review … Looking Forward for Effects … Newsletter Precursor …

This is an updated chart from our favorite buds Visual Capitalist

Last year we spoke of the speed of interest rate increases a lot… given the unique pace at which rates increased AND the super low level of (zero is about as low as you can go) starting point … it became a shock to the financial system….

So in all likelihood, rates are near their top for the foreseeable future….what lies ahead?

We will have more on this in the coming Newsletter but rates 500 times higher than they were just a few quarters ago AND looking to stay higher… there are major implications..

Debt/Financing costs higher =

Better safe investment returns aka Fixed Income/Bonds

More costs to debtors (lower returns for those using debt because of higher costs)

End of companies requiring very low costs to make profits

Have a Great “Fastest Rate Increase Effect” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Form 5498 … Sneaky late arriving tax form can cause confusion … Reminder of purpose of said sneaky 5498 …

Had a great Post about rates garnered from an updated Graphic from our friends at Visual Capitalist ready… it even is the starting point for a group of articles in our next Newsletter… BUT…this sneaky tax form causes lots of confusion and a late week email reminded….so watch for the Rate Post Wednesday – and a shortened Memorial Day Weekend post Friday with family travels next week! So lets go!

With a reminder email hitting our in box late last week from our back office team….

We wanted to share as this late arriving tax form can be confusing…

Late Arriving Form 5498 About to hit !

Form 5498 is the settlement of contributions to Qualified assets like Rollovers, SEP’s and also an ending balance …. most all of this is for the IRS (Internal Revenue Service) recordkeeping….

Here is why:

The contributions allows the IRS to know we in fact did make the contribution i.e. Did not spend the funds – so no taxes or in other cases a tax write off is A ok on our tax return

IRS needs to know the IRA balance for RMD (Required Minimum Distributions) – Recall mandatory draws are based on age and prior year end balances…

Ohh…one other confusing but important point… contributions to SEP or the like made for the prior year (2022) will show a current year (2023) contribution… no worries the IRS matches it to our tax return!

Have a Great “Sneaky Tax Form Reminder” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Debt Ceiling History/Thoughts … Pools Ready to Open in our Neighborhoods … Memorial Day on the Horizon …

Would you believe or be surprised to know the US had raised the debt ceiling aka Increased their Credit line some 90 times since the 20th Century? Probably not….

Most including ourselves believe this will get resolved… but there may be drama…. seems more the norm …

By Wikideas1 – Own work https://fiscaldata.treasury.gov/datasets/debt-to-the-penny/debt-to-the-penny, CC0, https://commons.wikimedia.org/w/index.php?curid=131990039

We know the history very well and will not bore you with the things that have happened in the last three or so decades…. just know headlines may be …. ahhhh… dramatic next week!

Speaking of dramatic …. but on a more fun note… Who let the pools out ? Next week!

Memorial Day Weekend Beckons

Next weekend marks the opening of pools, the very wonderful remembrance of those that allow us to safely ponder things like debt ceilings and a long weekend to boot…

Ahhh…that is all next week …. today is a Fun Friday, near the end of the school year for our clan… Enjoy and talk next week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Crypto Coins Annual Demise from you guessed it, our buds at Visual Capitalist …

With a somewhat heavy post Monday… the weekend garners extra time for longer posts, especially when it rains enough for an Ark on Sunday….digressing…

Saw this last week and thought it may be interesting…. to us the most interesting thing is just how many Coins there are/were…

Crypto Coin Annual Demise

From our buddies at Visual Capitlist

Here is a non chart look for those interested!

Thought this was a repeat chart, but this actually shows on a percentage basis…

Have a Great “Watch out for Crypto Coin Demise” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Berkshire Hathaway Annual Meeting, Buffet Munger Analysis, Thoughts, High Points, Words to Live by and be Successful According to them …

On May 5-6 of 2023, the Annual Shareholder Meeting of Berkshire Hathaway (BH) occurred… if you are not familiar with BH, here is a nice review from Wikipedia.

At 92 (Warren Buffett) and 99 (Charlie Munger) a 7 hour marathon where random, unscripted questions are answered in very good form (if we could all be so lucky) makes for great theatre and some what of a cult like experience…

Until just a few years ago, thanks in part to the lockdown years, BH meetings … while not secret, were behind closed doors and demanded in-person attendance, even if one had to sit in the hall outside of the actual area of the meeting and watch a live feed of the event… today as noted, earlier in our pre-view post not only can you access the event live, but also in replay with the ability to turn up the speed !

Personal High Points of Interest from the Sped Up meeting (Live by comments at end):

Neither man would rather live in a different country or location, even while there are of course, short comings,

Warren would not mind starting over today with nothing, to see if he could do it again, Charlie, not so much.

Charlie: China and the US should just get along, do business together and jointly prosper, rather than bowing up to each other for perceived dominance. Was Russia in the day, today China. (Large Applause)

Not withstanding point one, the bifurcation and hatred in society is disheartening, unproductive and destructive according to both men.

Buffet reversed course on a $5 billion investment in a semiconductor company located in Taiwan due to tension, location and likely provoking point three above.

100 Year Plan/Dream/Desire (question from audience) Buffet explains to operate a Company that compliments society, is good for society and has good people working for it. (Simple, fresh, positive!)

Vice: NetJets – Charlie still rides in coach, even on NJ – Expensive, but worth it according to Warren, especially on overseas extended trips.

Absolutely bash (and do not care for), Venture Capitalists and Private Equity guys at every chance and state that at the onset of most deals, they are already looking for the escape hatch/sale.

BH is actually too big to make agile, more aggressive and growth like investments, which prevents it from being a growth like company. (Reiterated for years now)

Management Skill recommendation – “Phrase by name, criticize by category!”

Live on less then you earn to keep stress down.

You do not have to be lucky to make it.

Be nice to people.

Get toxic people out of your life.

From the infamous Buffett Shareholder letter, released 2-25-23

  • The world is full of foolish gamblers, and they will not do as well as the patient investor.
  • If you don’t see the world the way it is, it’s like judging something through a distorted lens.
  • All I want to know is where I’m going to die, so I’ll never go there. And a related thought:
    Early on, write your desired obituary – and then behave accordingly.
  • If you don’t care whether you are rational or not, you won’t work on it. Then you will stay
    irrational and get lousy results.
  • Patience can be learned. Having a long attention span and the ability to concentrate on one
    thing for a long time is a huge advantage.
  • There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero.

Remember, these are Warren and Charlie thoughts, only with a few comments and notes from us!

Have a Happy “Oracle of Omaha’s” day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Happy Mother’s Day Weekend – Oracles of Omaha (Warren Buffett & Charlie Munger) Preview – Turn Around Trip Week Productivity – Friday …

Happy Mother’s Day weekend to all of you very important Mother’s !

Enjoy your very special and much deserved Day!

Nerds in Action

So you guys all know we are Financial Nerds …we are ok with this – calling a spade …..if the shoe fits… or however that goes…ha

Care to guess what Financial Nerds do to multitask?

Turn Around Trip Productivity – Warren and Charlie, Oracles of Omaha

If you click here, you will be directed to the 2023 Annual Berkshire Hathaway Shareholder meeting… it is a mere 7 hours and 44 minutes long…. eeeekkk

Break In – Think we finally figured out how to make the picture hotlink back to the webpage – lets see if it works when the email is received – fingers crossed!

Shhhhh…. don’t tell anyone, if you increase the speed to 1.75 X it is only a bit over 3 hours AND the voices sound amazingly normal (because everyone is speaking so slow normally) …

Turn around trip completed, lots of fun to a state just north of our resident Texas, great visit with Friends and clients…. AND the complete Berkshire Hathaway Annual meeting digested….

Now that’s multitasking…ya ya.. nerds, but that is ok, we will keep the review short but with the most important stuff!

Full report next week….ahhhh, but that is next week, enjoy your Friday and your Mother’s Day Weekend!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Kastle Back to Work… Stuck on Half Way! Effects beginning to be seen …

It has been a while since we previewed one of our favorite resources from the lock down. A chance article, below, rekindled our attention. We have added more observations.

Per the article:

A San Francisco office building was worth $300 million before the pandemic. Now, it could sell for only $60 million — a perfect example of why downtowns are in trouble

Kastle Systems Analysis and Barometer

Latest release

Publicly trade REIT – Real Estate Investment Trust – Actual Company withheld purposely (Public Venue) – Specializes in office space Assets

About a 75% drop in value. Not sure if the office headcount stays away, but certain office buildings are bearing the brunt!

Have a Great “Kastle Office Asset Analysis” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents