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What’s the smartest way to invest your money to win in the long term?
Dental practices benefit from being in an industry that is mostly recession proof. But can you build an investment portfolio that will also survive an economic downturn?
Brandon Hobson, CFA®, CPA serves as Chief Investment Officer at PracticeCFO.
On this episode of The Dental Board Room, he joins host Drew Phillips to continue their conversation on investing in the current economy.
Brandon and Drew discuss several factors impacting the economy right now, including the Fed rate hike cycle, the pause on student loan payments, and the US labor market.
Brandon shares the thinking behind PracticeCFO’s diversified approach to investing, explaining how we’re managing our client portfolios and why we allocate more to value stocks than growth investing.
Listen in for insight on the relationship between bonds and the banking sector’s recent instability and learn the investment strategies that will help you and your practice thrive in an uncertain financial landscape.
[1:12] Why the Fed is pausing its rate hike cycle and what to expect when they meet in July
[4:04] The data points Brandon looks at to gauge the probability of a recession
[8:21] How the end of the pause on student loan payments is likely to impact the economy
[13:30] Why the dental industry is more affected by the current labor market than other businesses
[17:30] How PracticeCFO is managing its client’s portfolios right now
[25:17] The thinking behind Practice CFO’s diversified approach to investing
[30:15] How PracticeCFO makes decisions around investing in growth vs. value stocks
[37:49] The concept of a bear market and how long a typical market cycle lasts
[40:33] Brandon’s advice for young, early-stage investors on navigating the emotion of investing
[45:39] Why it’s beneficial for PracticeCFO to manage a client’s business strategy, personal investments and personal financial plan
[50:43] How the devaluation of bonds drove recent instability in the banking sector
[1:00:01] Brandon’s take on what the future holds for the banking industry
[1:03:43] How the SVB bailout differs from what the government did in 2008
[1:07:53] The benefit of keeping bonds in your portfolio (despite their recent decline in value)
Brandon on The Dental Board Room EP028
Periodic Table of Investment Returns
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This commentary contains general information that is not suitable for everyone. The information contained herein should not be construed as personalized investment advice. Past performance is no guarantee of future results. There is no guarantee that the views and opinions expressed in this commentary will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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