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Investing Mistakes to Avoid: #7 DEI DOA

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Your Survival Guy puts in a solid effort to recycle his trash weekly. Rolling out the blue bin to the curb makes me feel good and a bit anxious, wondering if they can track me down for misallocated debris. But, when it comes to my money, I don’t want ESG (environmental, social, and governance) or DEI (diversity, equity, and inclusion) separated from the fiduciary responsibilities.

Sure, ESG and DEI might feel good and provide good copy during PowerPoint presentations. But it’s more sizzle than steak. And what about their job as fiduciaries? It’s why I look at all this ESG and DEI as dead on arrival (DOA). It’s an easy way to charge higher fees and virtue signal. Not in my portfolio, thanks.

But Your Survival Guy’s a positive guy. I look to help you through the tangled swamp to see a brighter day. My DEI, dear reader, is one I can live with: Diversification, Equities, and Income. My three most important words in today’s markets.

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Because with diversification, your money is out there seeing the world (Consider Rome or Paris for your next adventure). You own pieces of businesses—an eclectic mix of companies. You’re not a one-stock meme speculator in Mom’s basement surviving on frozen pizza and chips. No, you’re enrolled in chaos theory, where lots of tiny butterflies help fund your riverboat cruise through the Amazon.

And how about your stocks or equities? You’re an owner. You have a seat at the boardroom table. You put up with the social governance director’s boring presentation. Then, while the room is still giddy, your hands calmly resting on the table, you raise a finger, clear your throat, and ask: “How much will my dividend increase be this year?”

And, of course, I want you to be an income investor. I want you to be inclusive with bonds. Because it’s the bonds, their income stream, that stirs the drink. But here’s the kicker. As a bondholder, you sit high up in the capital structure, above equity holders, which can be a nice bin to be in when the you-know-what hits the fan.

Action Line: Get some DEI you can live with. When you’re ready to talk, I’m here.

Read every one of the Investing Mistakes to Avoid here.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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