1 00:00:02,200 --> 00:00:06,800 Speaker 1: This is Masters in Business with Barry Ridholts on Bloomberg Radio. 2 00:00:07,240 --> 00:00:10,480 Speaker 1: This week on the podcast, I have an extra special guest. 3 00:00:10,800 --> 00:00:14,840 Speaker 1: Penny Pennington is the head of investment Giant ed Jones. 4 00:00:15,440 --> 00:00:19,480 Speaker 1: Technically her title is managing partner. She is the sixth 5 00:00:19,480 --> 00:00:23,079 Speaker 1: such partner in the eight year old firm, and the 6 00:00:23,120 --> 00:00:26,320 Speaker 1: first one not to be part of the founding family. 7 00:00:26,520 --> 00:00:30,720 Speaker 1: She was originally a financial advisor who just came up 8 00:00:30,760 --> 00:00:33,919 Speaker 1: through the ranks. If you are at all interested in 9 00:00:34,040 --> 00:00:38,960 Speaker 1: things like asset management, financial planning, what it's like to 10 00:00:39,080 --> 00:00:43,480 Speaker 1: run a giant firm with fifty employees and seventeen thousand 11 00:00:43,840 --> 00:00:47,800 Speaker 1: financial advisors, who better than Penny Pennington. This is really 12 00:00:47,880 --> 00:00:52,199 Speaker 1: just an absolutely fascinating conversation. There's a little bit of 13 00:00:52,200 --> 00:00:55,560 Speaker 1: it that's kind of inside baseball, and and I'll let 14 00:00:55,560 --> 00:00:59,279 Speaker 1: you guys in a secret. I treat these conversations as 15 00:00:59,280 --> 00:01:02,040 Speaker 1: if it's a one on one and I just asked 16 00:01:02,040 --> 00:01:05,600 Speaker 1: the questions that I'm genuinely interested in. I learned a 17 00:01:05,600 --> 00:01:08,320 Speaker 1: lot and I think you will too. So, with no 18 00:01:08,400 --> 00:01:14,320 Speaker 1: further ado, my conversation with Edward Jones, Penny Pennington's This 19 00:01:14,800 --> 00:01:18,840 Speaker 1: is Master's in Business with Barry Ridholts on Bloomberg Radio. 20 00:01:19,319 --> 00:01:22,679 Speaker 1: My extra special guest this week is Penny Pennington. She 21 00:01:22,920 --> 00:01:26,959 Speaker 1: is the managing partner of Edward Jones, a year old 22 00:01:27,040 --> 00:01:31,120 Speaker 1: Fortune five hundred company. They have seven million clients and 23 00:01:31,200 --> 00:01:35,919 Speaker 1: about one point three trillion in assets managed by forty 24 00:01:36,040 --> 00:01:40,920 Speaker 1: nine thousand associates. She is the first non family member 25 00:01:40,920 --> 00:01:44,440 Speaker 1: to manage the firm, and she was ranked number thirty 26 00:01:44,480 --> 00:01:49,640 Speaker 1: three in Fortune's Most Powerful Women in Business list. Penny Pennington, 27 00:01:50,160 --> 00:01:53,840 Speaker 1: Welcome to Master's in Business. Thank you, Barry. It's great 28 00:01:53,880 --> 00:01:56,400 Speaker 1: to be with you. Great to be with your listeners today, 29 00:01:56,600 --> 00:01:59,840 Speaker 1: Really nice having you. You have both an interesting back 30 00:02:00,080 --> 00:02:03,279 Speaker 1: round and an interesting career path. But I'm gonna jump 31 00:02:03,600 --> 00:02:06,560 Speaker 1: a little bit towards the ends. Tell us what was 32 00:02:06,600 --> 00:02:09,840 Speaker 1: going on, oh eight oh nine, What was happening in 33 00:02:09,880 --> 00:02:13,560 Speaker 1: the firm? How did you respond, How did clients react 34 00:02:14,040 --> 00:02:17,480 Speaker 1: to suddenly you know, lots of people were pooh poohing 35 00:02:17,680 --> 00:02:21,040 Speaker 1: the oh, it's no big deal, it's contained until it 36 00:02:21,160 --> 00:02:24,079 Speaker 1: wasn't tell us what the great financial crisis was like, 37 00:02:24,160 --> 00:02:28,160 Speaker 1: what were clients calling and worrying about? And then how 38 00:02:28,200 --> 00:02:32,079 Speaker 1: does this version compare? It seemed people sort of learn 39 00:02:32,160 --> 00:02:36,160 Speaker 1: their lesson not to panic in O eight oh nine. Uh, 40 00:02:36,200 --> 00:02:38,360 Speaker 1: that's that seems to be what at least the lesson 41 00:02:38,440 --> 00:02:42,880 Speaker 1: was in. But what was your experience. Yeah, well, as 42 00:02:42,919 --> 00:02:45,840 Speaker 1: it relates to clients and what they were experiencing. If 43 00:02:45,880 --> 00:02:50,280 Speaker 1: you go back to eight oh nine, UM, the catalyst 44 00:02:50,880 --> 00:02:56,200 Speaker 1: for the ignission switch, for that market volatility, what happened 45 00:02:56,280 --> 00:03:01,720 Speaker 1: in the global markets was a financial ignition switch. It 46 00:03:01,800 --> 00:03:06,240 Speaker 1: was a meltdown in certain aspects of the financial markets, 47 00:03:06,880 --> 00:03:10,800 Speaker 1: and as a result, the stock market, as we certainly 48 00:03:10,840 --> 00:03:16,320 Speaker 1: remember UM did a deep dive and remained deep and 49 00:03:16,600 --> 00:03:21,640 Speaker 1: volatile for some period of time. While the financial markets 50 00:03:22,320 --> 00:03:26,800 Speaker 1: UM were to some degree rebuilt. Regulation was a part 51 00:03:26,800 --> 00:03:32,240 Speaker 1: of that. UM new entrance and new new partnerships among 52 00:03:32,400 --> 00:03:36,640 Speaker 1: financial services companies were part of that. But the investing 53 00:03:36,840 --> 00:03:42,800 Speaker 1: public UM got a got got UM a reminder of 54 00:03:42,960 --> 00:03:48,760 Speaker 1: what significant volatility and a deep um reduction in the 55 00:03:48,800 --> 00:03:52,240 Speaker 1: stock market felt like. And uh it took ten years 56 00:03:52,280 --> 00:03:57,360 Speaker 1: to rebuild from that. The difference with the the effects 57 00:03:57,440 --> 00:04:01,160 Speaker 1: of what I've called a triple pandemic over the past 58 00:04:01,280 --> 00:04:04,360 Speaker 1: eight months or so is that the ignition switch had 59 00:04:04,480 --> 00:04:08,200 Speaker 1: nothing to do with the economy or the financial markets. 60 00:04:08,360 --> 00:04:11,880 Speaker 1: It was a health crisis that was the ignition switch 61 00:04:12,400 --> 00:04:16,400 Speaker 1: for a period of market volatility that was actually pretty 62 00:04:16,440 --> 00:04:20,200 Speaker 1: short in February and March. We have had some more 63 00:04:20,240 --> 00:04:23,440 Speaker 1: recent market volatility and we expect that that will continue. 64 00:04:23,960 --> 00:04:26,920 Speaker 1: But the markets because for for a lot of reasons 65 00:04:26,960 --> 00:04:32,159 Speaker 1: that we could talk about, the markets actually recovered pretty significantly. However, 66 00:04:32,480 --> 00:04:37,560 Speaker 1: the anxiety in the marketplace is still there, and anxiety 67 00:04:37,760 --> 00:04:43,320 Speaker 1: for investors sometimes means that they question, uh, the way 68 00:04:43,360 --> 00:04:47,800 Speaker 1: their portfolios are built, um, they become more risk averse, 69 00:04:48,440 --> 00:04:54,520 Speaker 1: and very importantly, they turned to a financial advisor to 70 00:04:54,600 --> 00:04:57,560 Speaker 1: help them make sense of all of that. So that 71 00:04:57,720 --> 00:05:00,880 Speaker 1: was a common feature of oh eight oh nine for 72 00:05:00,880 --> 00:05:05,120 Speaker 1: for investors and how they responded. The common feature for 73 00:05:05,279 --> 00:05:09,000 Speaker 1: us and our financial advisors and how we respond is 74 00:05:09,040 --> 00:05:11,839 Speaker 1: to keep people focused on their long term goals and 75 00:05:12,040 --> 00:05:15,760 Speaker 1: help relieve as much as we can um the anxiety 76 00:05:15,839 --> 00:05:19,320 Speaker 1: that people are facing with market volatility, but this time 77 00:05:19,720 --> 00:05:23,560 Speaker 1: with things like health crisis, loss of jobs, their kids 78 00:05:23,560 --> 00:05:27,000 Speaker 1: and grandkids who are going through through significant changes in 79 00:05:27,040 --> 00:05:30,480 Speaker 1: their lives. So sometimes I asked questions that I just 80 00:05:30,520 --> 00:05:32,680 Speaker 1: want to know the answer to, Hey, how do you 81 00:05:32,839 --> 00:05:37,000 Speaker 1: create a consistent experience from advisor? Advisor even if they're 82 00:05:37,000 --> 00:05:41,040 Speaker 1: in different offices. The portfolios might look similar, but how 83 00:05:41,080 --> 00:05:45,360 Speaker 1: do you maintain that corporate culture. It's a really challenging 84 00:05:45,480 --> 00:05:48,480 Speaker 1: question because it's you know, it's not an easy thing 85 00:05:48,520 --> 00:05:54,040 Speaker 1: to do, especially during working from home. Our financial advisors 86 00:05:54,040 --> 00:05:57,880 Speaker 1: and our branch office administrators are client service professionals. They 87 00:05:57,920 --> 00:06:01,080 Speaker 1: have been in the branch the whole town on. Our 88 00:06:01,160 --> 00:06:05,120 Speaker 1: branches are very safe and we closed them to the public. 89 00:06:05,720 --> 00:06:09,640 Speaker 1: So we've been meeting with clients, investors, and prospects by 90 00:06:09,760 --> 00:06:13,599 Speaker 1: zoom and virtual means. But the financial advisors are in 91 00:06:13,680 --> 00:06:16,560 Speaker 1: our branches and that really has helped. It's been a 92 00:06:16,680 --> 00:06:20,600 Speaker 1: centering mechanism for them in a way. That's that's kept 93 00:06:20,680 --> 00:06:24,080 Speaker 1: us all together. So that raises a really interesting question 94 00:06:24,120 --> 00:06:25,760 Speaker 1: which I was going to ask later, but let me 95 00:06:25,800 --> 00:06:30,520 Speaker 1: ask now. Edward Jones has something like thirteen thousand branches, 96 00:06:30,640 --> 00:06:35,680 Speaker 1: Is that right? They were all branches fifteen thousand, so 97 00:06:35,880 --> 00:06:39,840 Speaker 1: I'm looking at old data. So all fifteen thousand branches 98 00:06:39,880 --> 00:06:45,839 Speaker 1: were open and actually operating lights on during during the 99 00:06:46,040 --> 00:06:51,120 Speaker 1: entire m during work from home during pandemic lockdowns. It 100 00:06:51,240 --> 00:06:53,880 Speaker 1: wasn't open to the public, but you had people going 101 00:06:53,960 --> 00:06:57,880 Speaker 1: into those offices and turning on the lights. Absolutely. Most 102 00:06:57,960 --> 00:07:01,240 Speaker 1: of our branches we have two to three people in 103 00:07:01,400 --> 00:07:06,000 Speaker 1: the branch, so they are by their nature safe places. 104 00:07:06,080 --> 00:07:09,680 Speaker 1: We could differ o our colleagues could be distanced from 105 00:07:09,720 --> 00:07:14,320 Speaker 1: each other UM and we were deemed in essential services. 106 00:07:14,920 --> 00:07:18,720 Speaker 1: So because of that, even during state by state lockdown, 107 00:07:18,720 --> 00:07:21,080 Speaker 1: and boy, I remember the night that we got the 108 00:07:21,080 --> 00:07:24,720 Speaker 1: news that Pennsylvania was locking down. That was the first state. 109 00:07:25,280 --> 00:07:30,160 Speaker 1: You know, just just a wave of emotion and a 110 00:07:30,240 --> 00:07:32,880 Speaker 1: bit of oh my gosh, this is really happening, and 111 00:07:32,880 --> 00:07:35,920 Speaker 1: this is going to happen across the entire country. And 112 00:07:35,960 --> 00:07:39,600 Speaker 1: so we got set up very quickly, within a matter 113 00:07:39,640 --> 00:07:43,360 Speaker 1: of hours and days UM to ensure that our branches 114 00:07:43,440 --> 00:07:47,200 Speaker 1: could remain open, but also to ensure that our financial 115 00:07:47,240 --> 00:07:50,640 Speaker 1: advisors and our b O as branch office administrator, the 116 00:07:50,680 --> 00:07:54,160 Speaker 1: client service professional in each of our branches could work 117 00:07:54,280 --> 00:07:58,320 Speaker 1: remotely if they needed to or wanted to. So within 118 00:07:58,360 --> 00:08:01,480 Speaker 1: a matter of about ten days days, we went from 119 00:08:01,600 --> 00:08:07,320 Speaker 1: fifteen thousand remote connections available across our firm to fifty 120 00:08:07,600 --> 00:08:11,600 Speaker 1: thousand remote connections. So while every single one of our 121 00:08:11,640 --> 00:08:16,920 Speaker 1: branches has remained open, our colleagues can work flexibly and 122 00:08:17,160 --> 00:08:20,360 Speaker 1: through through all kinds of virtual means like Zoom and 123 00:08:20,440 --> 00:08:24,360 Speaker 1: Skype and webbex with with clients, investors, in prospects, and 124 00:08:24,520 --> 00:08:28,160 Speaker 1: with each other. So what do you think the impact 125 00:08:28,400 --> 00:08:34,200 Speaker 1: of keeping fifteen thousand branches open has been, and let's 126 00:08:34,200 --> 00:08:37,360 Speaker 1: talk about all of your essential communities. What do you 127 00:08:37,360 --> 00:08:40,720 Speaker 1: think it's been on the local community, the employees, the clients, 128 00:08:40,720 --> 00:08:46,400 Speaker 1: and and any perspective clients of seeing the lights on? Yeah, um, well, 129 00:08:47,040 --> 00:08:52,760 Speaker 1: I believe and I've got evidence that proves um that 130 00:08:52,760 --> 00:08:56,400 Speaker 1: that our clients and our perspective clients have seen those 131 00:08:56,520 --> 00:09:01,200 Speaker 1: lights on and recognize that we are purpose riven to 132 00:09:01,440 --> 00:09:06,640 Speaker 1: be there for their well being. You know what what 133 00:09:06,760 --> 00:09:10,240 Speaker 1: has been going on with clients and investors, the anxiety 134 00:09:10,240 --> 00:09:14,280 Speaker 1: that that this pandemic, the economic downturn, and the social 135 00:09:14,360 --> 00:09:20,880 Speaker 1: unrest have caused across our communities. That anxiety has impacted 136 00:09:20,960 --> 00:09:25,280 Speaker 1: clients and investors. It's also impacted every single one of 137 00:09:25,400 --> 00:09:29,240 Speaker 1: us who serves them. And so we've been going through 138 00:09:29,280 --> 00:09:33,080 Speaker 1: the same things that they have. But what being in 139 00:09:33,120 --> 00:09:37,600 Speaker 1: the branch is, what being on the job at work 140 00:09:37,840 --> 00:09:41,680 Speaker 1: for their benefit, for their well being has meant to us, 141 00:09:42,520 --> 00:09:46,880 Speaker 1: is that we're doing something bigger than ourselves, despite our 142 00:09:46,960 --> 00:09:50,320 Speaker 1: own personal anxiety. All of us have had to deal 143 00:09:50,400 --> 00:09:53,960 Speaker 1: with all kinds of disruptions in our own lives, but 144 00:09:54,040 --> 00:09:56,719 Speaker 1: we get out of bed every morning thinking about our 145 00:09:56,760 --> 00:10:00,960 Speaker 1: clients and helping them reduce the anxiety in their lives. 146 00:10:01,200 --> 00:10:03,440 Speaker 1: I'll tell you a real quick story, um and and 147 00:10:03,440 --> 00:10:06,200 Speaker 1: it's and it really is. An image it was sent 148 00:10:06,280 --> 00:10:10,240 Speaker 1: to sent to me back the beginning of April from 149 00:10:10,240 --> 00:10:13,760 Speaker 1: a branch in Florida where the branches were closed to 150 00:10:13,800 --> 00:10:16,840 Speaker 1: the public, but our financial advisors and boas are in 151 00:10:16,880 --> 00:10:20,080 Speaker 1: the branch. And the image that was sent to me 152 00:10:20,320 --> 00:10:24,920 Speaker 1: was a client standing outside the branch with their hand 153 00:10:25,559 --> 00:10:29,920 Speaker 1: pressed up against the window of the branch and one 154 00:10:29,920 --> 00:10:33,000 Speaker 1: of our Edward Jones colleagues on the other side of 155 00:10:33,000 --> 00:10:38,240 Speaker 1: that window, hand to hand with their client, just passing 156 00:10:38,320 --> 00:10:42,679 Speaker 1: back and forth. Good energy, Thank you for being there. 157 00:10:43,240 --> 00:10:47,280 Speaker 1: We know you're there for us. And words didn't have 158 00:10:47,480 --> 00:10:50,520 Speaker 1: to have to go back and forth, papers didn't have 159 00:10:50,640 --> 00:10:53,360 Speaker 1: to go back and forth. That that was not the 160 00:10:53,440 --> 00:10:56,760 Speaker 1: ethos that was being expressed. It was this, Uh. It 161 00:10:56,880 --> 00:11:01,640 Speaker 1: was a convergence of love, of taking care of each other, 162 00:11:01,880 --> 00:11:06,040 Speaker 1: of being in it together, of knowing why we're here, 163 00:11:06,240 --> 00:11:09,040 Speaker 1: and that is to relieve the anxiety of our clients 164 00:11:09,080 --> 00:11:12,720 Speaker 1: and keep them focused on the long term. It sounds 165 00:11:13,240 --> 00:11:17,280 Speaker 1: as if there are certain key values and certain key 166 00:11:17,400 --> 00:11:21,400 Speaker 1: ideas you want to make sure every Edward Jones customer 167 00:11:21,480 --> 00:11:24,880 Speaker 1: experiences or or am I putting words in your mouth? Should? 168 00:11:25,240 --> 00:11:31,199 Speaker 1: Is it more variable from office to office, advisor to advisor? Yeah? 169 00:11:31,280 --> 00:11:34,400 Speaker 1: I like the way that you said that, UM, the 170 00:11:34,520 --> 00:11:38,880 Speaker 1: experience they have UM may be different in terms of 171 00:11:38,880 --> 00:11:43,000 Speaker 1: the products, the services, the tools UM that they are 172 00:11:43,160 --> 00:11:47,520 Speaker 1: exposed to or that they're utilizing. That what is common 173 00:11:47,880 --> 00:11:53,600 Speaker 1: is the outcome UM, that they achieve financially, whatever it 174 00:11:53,720 --> 00:11:55,920 Speaker 1: is that's most important to them, and that they have 175 00:11:56,160 --> 00:11:59,839 Speaker 1: the have this sense of well being as as we 176 00:12:00,000 --> 00:12:03,720 Speaker 1: are helping them achieve that. So you raised a number 177 00:12:03,760 --> 00:12:07,600 Speaker 1: of interesting points that I want to unpack one by one. 178 00:12:08,000 --> 00:12:13,480 Speaker 1: Let's start with why you believe this particular cycle was 179 00:12:13,520 --> 00:12:17,520 Speaker 1: so tight. Why was the downturn in February and March 180 00:12:18,440 --> 00:12:21,320 Speaker 1: six weeks as opposed to oh eight or nine where 181 00:12:21,320 --> 00:12:27,520 Speaker 1: it was eighteen months, which by itself was relatively short. Yeah. Well, 182 00:12:27,600 --> 00:12:29,960 Speaker 1: in large part it has to do with what the 183 00:12:30,000 --> 00:12:37,000 Speaker 1: ignition switch was. UM. The the economy before the pandemic 184 00:12:37,600 --> 00:12:42,360 Speaker 1: was fundamentally quite strong, a period of low interest rates, 185 00:12:42,760 --> 00:12:49,760 Speaker 1: a period of very high employment, a period that fundamentally, 186 00:12:50,520 --> 00:12:54,199 Speaker 1: UM was very healthy for the economy. Lots of people working, 187 00:12:54,280 --> 00:12:57,440 Speaker 1: and in our country, lots of people spending money. And 188 00:12:57,520 --> 00:13:01,760 Speaker 1: since two thirds of our economy as driven by consumer 189 00:13:01,880 --> 00:13:05,800 Speaker 1: spending in demand, when people spend money, UM, stocks are 190 00:13:05,800 --> 00:13:09,319 Speaker 1: doing well and UH, and the market is fairly sanguine. 191 00:13:09,440 --> 00:13:13,359 Speaker 1: That was the environment that we had before the pandemic. 192 00:13:13,400 --> 00:13:16,200 Speaker 1: The environment that we had an O eight oh nine UH, 193 00:13:16,400 --> 00:13:19,920 Speaker 1: we discovered was a little more fragile in terms of 194 00:13:19,960 --> 00:13:24,120 Speaker 1: the fundamentals of the economy as well as the fundamentals 195 00:13:24,160 --> 00:13:27,680 Speaker 1: of the financial services industry. UM that caused a ripple 196 00:13:27,679 --> 00:13:30,360 Speaker 1: when when it began to come apart, caused a ripple 197 00:13:30,400 --> 00:13:33,800 Speaker 1: effect that we know now is global. So that really 198 00:13:33,840 --> 00:13:38,640 Speaker 1: is the distinguishing difference. Now, UM, why UM, why we 199 00:13:38,679 --> 00:13:43,920 Speaker 1: had relatively little volatility. Then at the beginning of the pandemic, 200 00:13:44,760 --> 00:13:47,640 Speaker 1: we do have to look at the broad stock market 201 00:13:47,679 --> 00:13:54,319 Speaker 1: indexes and realize that a few growth companies have performed 202 00:13:54,360 --> 00:13:58,640 Speaker 1: exceedingly well, in large part because of the way that 203 00:13:58,800 --> 00:14:04,200 Speaker 1: they have served the consuming public and businesses during the pandemic. UM. 204 00:14:04,240 --> 00:14:08,600 Speaker 1: I think the five or six highest growth stocks are up, 205 00:14:08,679 --> 00:14:12,440 Speaker 1: you know, over the past six months or so, and 206 00:14:12,480 --> 00:14:14,800 Speaker 1: the rest of the S and P five hundred is 207 00:14:15,440 --> 00:14:18,960 Speaker 1: up far less and in some and on some weeks 208 00:14:19,240 --> 00:14:23,280 Speaker 1: is down. So it's a pretty narrow market that is 209 00:14:23,400 --> 00:14:28,680 Speaker 1: driving those, uh, those those broad benchmarks. So a lot 210 00:14:28,680 --> 00:14:34,160 Speaker 1: of moving parts with how the contraction came about, how 211 00:14:34,240 --> 00:14:37,960 Speaker 1: the economy recovered, what sectors are doing well. But I 212 00:14:38,000 --> 00:14:40,960 Speaker 1: want to focus on what you brought up earlier. You 213 00:14:41,000 --> 00:14:46,440 Speaker 1: have over sevent financial advisors. How do you make sure 214 00:14:46,520 --> 00:14:51,600 Speaker 1: everybody has the same client experience, whether it's portfolio management 215 00:14:51,640 --> 00:14:55,800 Speaker 1: or customer service. How do you translate that army of 216 00:14:55,840 --> 00:15:00,240 Speaker 1: advisors into one I don't want to call it uniform warm, 217 00:15:00,280 --> 00:15:06,160 Speaker 1: but a consistent experience, a consistent interaction with Edward Jones, 218 00:15:06,200 --> 00:15:11,960 Speaker 1: no matter where your office is, where your advisor is. Yeah, um, 219 00:15:12,720 --> 00:15:15,880 Speaker 1: what what a what a great conversation that we can 220 00:15:15,920 --> 00:15:18,840 Speaker 1: have about that. So um, we have nineteen and a 221 00:15:18,920 --> 00:15:22,800 Speaker 1: half thousand financial advisors. We were the largest firm in 222 00:15:22,920 --> 00:15:26,800 Speaker 1: terms of number of financial advisors in our industry. Those 223 00:15:26,840 --> 00:15:31,600 Speaker 1: financial advisors are spread across the United States and in Canada. 224 00:15:32,080 --> 00:15:36,120 Speaker 1: We have forty nine thousand colleagues all together Um, so 225 00:15:36,200 --> 00:15:40,320 Speaker 1: we are all pulling in the same direction in terms 226 00:15:40,320 --> 00:15:45,120 Speaker 1: of what drives us Barry, our purpose, what gets us 227 00:15:45,240 --> 00:15:48,760 Speaker 1: up in the morning is making a meaningful difference in 228 00:15:48,800 --> 00:15:51,400 Speaker 1: the lives of the clients that we serve, the seven 229 00:15:51,440 --> 00:15:55,200 Speaker 1: million that we serve today and the tens of millions 230 00:15:55,200 --> 00:15:59,840 Speaker 1: of more that that look like serious, long term individual 231 00:15:59,880 --> 00:16:03,000 Speaker 1: investors that we would like to serve. Now, you said, 232 00:16:03,040 --> 00:16:06,200 Speaker 1: how do we ensure that every client is having the 233 00:16:06,280 --> 00:16:12,680 Speaker 1: same experience, Well, actually we don't, because we we really 234 00:16:12,720 --> 00:16:17,920 Speaker 1: focus on the humanity of each of our clients and 235 00:16:18,360 --> 00:16:23,440 Speaker 1: discovering what it is that's most important to them, tailoring 236 00:16:23,520 --> 00:16:29,680 Speaker 1: the experience to what they need, um providing to them 237 00:16:29,720 --> 00:16:34,760 Speaker 1: as completely as we can a an experience that improves 238 00:16:34,800 --> 00:16:40,160 Speaker 1: their financial well being, thereby their entire well being, and 239 00:16:40,240 --> 00:16:44,480 Speaker 1: the experiences that that that is rooted in that the 240 00:16:44,560 --> 00:16:49,400 Speaker 1: emotions that that those experience are rooted in is a 241 00:16:49,480 --> 00:16:53,120 Speaker 1: common factor in terms of what we're seeking to deliver. 242 00:16:53,720 --> 00:16:57,760 Speaker 1: We know that our clients want to feel understood about 243 00:16:57,800 --> 00:17:01,960 Speaker 1: what's most important to them, in full about how to 244 00:17:02,080 --> 00:17:06,720 Speaker 1: achieve that financially uh and how they're progressing toward that 245 00:17:06,920 --> 00:17:11,159 Speaker 1: in control. They want to feel like they've got some agency. 246 00:17:11,200 --> 00:17:14,560 Speaker 1: Albeit no one's got control over the market, but some 247 00:17:14,920 --> 00:17:18,119 Speaker 1: some control and agency in their own lives. And we 248 00:17:18,160 --> 00:17:21,040 Speaker 1: know when they feel those things that there's a sense 249 00:17:21,080 --> 00:17:26,560 Speaker 1: of security and confidence about their long term path. So 250 00:17:26,720 --> 00:17:30,440 Speaker 1: the experiences that we seek to deliver, family by family, 251 00:17:30,480 --> 00:17:35,800 Speaker 1: individual by individual are all focused on helping individual clients 252 00:17:35,800 --> 00:17:40,280 Speaker 1: and investors feel those emotions and and how that's achieved 253 00:17:40,760 --> 00:17:46,320 Speaker 1: is through a deep trusted personal relationship with a financial advisor. 254 00:17:46,680 --> 00:17:50,400 Speaker 1: We don't have call centers, Um, we have financial advisors 255 00:17:50,960 --> 00:17:54,720 Speaker 1: in in communities, working face to face, one on one 256 00:17:54,720 --> 00:17:58,960 Speaker 1: with clients and their families. Huh. Quite interesting. So Penny, 257 00:17:59,040 --> 00:18:02,680 Speaker 1: let's talk a little little bit about financial advisors. What 258 00:18:02,680 --> 00:18:06,199 Speaker 1: what makes for a good financial advisor? And is that 259 00:18:06,400 --> 00:18:09,439 Speaker 1: something that can be taught or is it you know 260 00:18:09,520 --> 00:18:12,480 Speaker 1: you either are or aren't. What makes for a good 261 00:18:12,520 --> 00:18:19,240 Speaker 1: financial advisor is someone who recognizes that what we do 262 00:18:19,560 --> 00:18:26,159 Speaker 1: is a balance of e Q emotional quotient emotional intelligence 263 00:18:26,520 --> 00:18:32,640 Speaker 1: and i Q so knowledge that can be learned, expertise 264 00:18:32,760 --> 00:18:38,840 Speaker 1: around the financial markets, around building a portfolio, around balancing 265 00:18:39,000 --> 00:18:47,000 Speaker 1: complex trade offs between among a client's goals. That's the 266 00:18:47,200 --> 00:18:51,440 Speaker 1: EQ part of what we do, and there is Boy, 267 00:18:51,520 --> 00:18:55,959 Speaker 1: there's lifelong learning associated with with the I'm sorry, with 268 00:18:56,000 --> 00:18:58,720 Speaker 1: the i Q part, with the intelligence quota, there is 269 00:18:58,840 --> 00:19:02,000 Speaker 1: lifelong learning a sciating with that, and UM bear your 270 00:19:02,119 --> 00:19:07,080 Speaker 1: organization helps financial advisors and and folks in the financial 271 00:19:07,119 --> 00:19:11,840 Speaker 1: marketplace with that lifelong learning and insight and perspective. The 272 00:19:12,000 --> 00:19:17,360 Speaker 1: EQ part is now more than ever and will continue 273 00:19:17,400 --> 00:19:24,320 Speaker 1: to be a hallmark of what really great financial advisors do. 274 00:19:25,320 --> 00:19:33,040 Speaker 1: The EQ part is being empathetic, recognizing that listening to 275 00:19:33,520 --> 00:19:36,960 Speaker 1: another human being about what their hopes are, about what 276 00:19:37,040 --> 00:19:40,200 Speaker 1: their fears are, and how those are changing over time, 277 00:19:40,240 --> 00:19:46,280 Speaker 1: how they're impacted, especially now by current events. Really generously 278 00:19:46,520 --> 00:19:50,680 Speaker 1: listening UM to that on the part of another human being, 279 00:19:51,359 --> 00:19:55,960 Speaker 1: and UM with with with that kind of empathy and 280 00:19:56,080 --> 00:20:01,200 Speaker 1: with that sort of expertise, building up not only a plan, 281 00:20:02,760 --> 00:20:07,960 Speaker 1: a financial plan, but building a plan based on relationship 282 00:20:09,000 --> 00:20:14,000 Speaker 1: to keep people focused on their long term goals, notwithstanding 283 00:20:14,040 --> 00:20:16,919 Speaker 1: the short term ups and downs that are part of 284 00:20:16,920 --> 00:20:20,720 Speaker 1: that UM to keep people focused on the long term. 285 00:20:20,800 --> 00:20:28,680 Speaker 1: So empathy, generous listening, UM the process of of of 286 00:20:28,680 --> 00:20:33,119 Speaker 1: thinking a short term to long term, All of those 287 00:20:33,160 --> 00:20:36,440 Speaker 1: things make for make for the strength of a financial 288 00:20:36,480 --> 00:20:39,639 Speaker 1: advisor and back to my earlier point about the i 289 00:20:39,800 --> 00:20:43,280 Speaker 1: Q part of this, A lifelong learner someone who is 290 00:20:43,400 --> 00:20:47,320 Speaker 1: really interested in continuing to dial up their own skills 291 00:20:48,080 --> 00:20:52,200 Speaker 1: from an expertise standpoint, but also from from from an 292 00:20:52,240 --> 00:20:56,200 Speaker 1: empathy and EQ standpoint. So let's stick with the concept 293 00:20:56,480 --> 00:20:59,800 Speaker 1: of advisors. You guys are coming up on your hun 294 00:21:00,760 --> 00:21:04,159 Speaker 1: birthday not too far off in the future. You began 295 00:21:04,640 --> 00:21:07,840 Speaker 1: as a brokerage firm, and in the early days most 296 00:21:07,920 --> 00:21:13,359 Speaker 1: of your employees who were client facing were brokers. How 297 00:21:13,480 --> 00:21:17,639 Speaker 1: has over the past century, how has that changed to 298 00:21:17,760 --> 00:21:22,080 Speaker 1: what Edward Jones is today. Yeah, Well, it's a fascinating 299 00:21:22,200 --> 00:21:26,960 Speaker 1: history and it's really one that's rooted in um recognizing 300 00:21:27,560 --> 00:21:33,080 Speaker 1: what was scarce in the marketplace and boldly and sometimes 301 00:21:33,359 --> 00:21:40,240 Speaker 1: of admittedly in a in a very unusual way, going 302 00:21:40,320 --> 00:21:45,680 Speaker 1: after serving that underserved market. So back in the fifties 303 00:21:45,720 --> 00:21:51,040 Speaker 1: and sixties when Ted Jones are founder's son, recognized that 304 00:21:51,240 --> 00:21:56,280 Speaker 1: the brokerage companies were all congregated in the large cities, 305 00:21:56,720 --> 00:22:00,600 Speaker 1: but there was there were significant numbers of both with 306 00:22:01,240 --> 00:22:05,800 Speaker 1: wealth and uh with with businesses and jobs where they 307 00:22:05,800 --> 00:22:11,680 Speaker 1: were creating wealth who really deserved access to financial information, 308 00:22:11,880 --> 00:22:15,280 Speaker 1: to products and services, to the ability to open an 309 00:22:15,280 --> 00:22:19,040 Speaker 1: account and do a transaction in the financial markets, uh, 310 00:22:19,280 --> 00:22:22,960 Speaker 1: in a really seamless and person to person way. Ted 311 00:22:23,080 --> 00:22:26,760 Speaker 1: Jones recognized that that was scarce. It was scarce in 312 00:22:26,800 --> 00:22:30,240 Speaker 1: more rural communities, and so he went about building a 313 00:22:30,320 --> 00:22:35,520 Speaker 1: distribution system that spoke to to those clients. Now fast 314 00:22:35,560 --> 00:22:38,840 Speaker 1: forward to today. You know, as I say opening an 315 00:22:38,840 --> 00:22:42,720 Speaker 1: account and doing a transaction with scarce, then it certainly 316 00:22:42,880 --> 00:22:46,320 Speaker 1: is not. Today. That's not what's scarce, and that is 317 00:22:46,400 --> 00:22:50,080 Speaker 1: not what what is is the definition of value today. 318 00:22:50,119 --> 00:22:52,720 Speaker 1: In fact, the ability to do a transaction in the 319 00:22:52,760 --> 00:22:57,160 Speaker 1: financial markets is nearly a free good today, um, with 320 00:22:57,280 --> 00:23:01,000 Speaker 1: zero commissions on trading and that sort of thing. Today, 321 00:23:01,040 --> 00:23:08,639 Speaker 1: what is scarce is that hyper personalized, human centered relationship 322 00:23:09,080 --> 00:23:14,200 Speaker 1: for tens of millions of people whereby they can get 323 00:23:14,280 --> 00:23:18,159 Speaker 1: good advice in achieving what's most important to them. And 324 00:23:18,200 --> 00:23:20,880 Speaker 1: that is across the arc of generations as well as 325 00:23:21,280 --> 00:23:25,560 Speaker 1: across the arc of complexity of needs. And so we 326 00:23:25,640 --> 00:23:29,800 Speaker 1: don't have account minimums and we don't have account maximums. Um. 327 00:23:29,840 --> 00:23:34,320 Speaker 1: We work with clients who are serious long term individual investors. 328 00:23:35,040 --> 00:23:41,439 Speaker 1: That means UM, they value relationship, they want advice, and 329 00:23:41,480 --> 00:23:46,119 Speaker 1: they're focused on the long term in their lives. Quite interesting. 330 00:23:46,760 --> 00:23:50,439 Speaker 1: You followed Jim Wettle, who was the managing partner at 331 00:23:50,560 --> 00:23:55,680 Speaker 1: ed Jones for thirteen years. He oversaw a giant rise 332 00:23:55,760 --> 00:23:58,719 Speaker 1: in both clients and assets. Edward Jones is now one 333 00:23:58,720 --> 00:24:02,080 Speaker 1: of the nation's biggest wealth management company. Those are some 334 00:24:02,080 --> 00:24:05,160 Speaker 1: pretty big shoes to fill. Yes, they are, and I 335 00:24:05,200 --> 00:24:08,800 Speaker 1: feel it every day. If if you were in my office, 336 00:24:09,200 --> 00:24:11,800 Speaker 1: uh and on the floor where where a number of 337 00:24:11,800 --> 00:24:15,200 Speaker 1: our offices are there, there's some paintings down the hall 338 00:24:15,520 --> 00:24:20,040 Speaker 1: and there are five paintings of our former managing partners. 339 00:24:20,040 --> 00:24:24,439 Speaker 1: Are five former managing partners, including two whose last names 340 00:24:24,480 --> 00:24:29,280 Speaker 1: were Jones uh then Doug Hill, John Bachman, Jim Wettle 341 00:24:29,960 --> 00:24:34,600 Speaker 1: and um. Right across the hallway from those those paintings 342 00:24:34,680 --> 00:24:38,800 Speaker 1: is a picture of Ted Jones, who was our founder's son, 343 00:24:39,119 --> 00:24:42,200 Speaker 1: our second managing partner, And it's a picture of Ted 344 00:24:42,280 --> 00:24:45,600 Speaker 1: with his horse and a couple of dogs out on 345 00:24:45,680 --> 00:24:50,520 Speaker 1: his farm and he's talking about what he loves and 346 00:24:50,600 --> 00:24:56,000 Speaker 1: what he's grateful for. And those those uh, those paintings 347 00:24:56,040 --> 00:24:59,520 Speaker 1: and that picture of Ted remind me every day that 348 00:24:59,560 --> 00:25:02,320 Speaker 1: I'm in the office of what our roots are, what 349 00:25:02,440 --> 00:25:06,639 Speaker 1: our values are, who we came from. Importantly, all of 350 00:25:06,680 --> 00:25:13,159 Speaker 1: our former managing partners were financial advisors. They sat with clients, 351 00:25:13,400 --> 00:25:16,280 Speaker 1: building trust with clients. Albeit all the way back to 352 00:25:16,440 --> 00:25:19,800 Speaker 1: nineteen two, there's a lot that changed about that, but 353 00:25:19,880 --> 00:25:24,480 Speaker 1: what's fundamentally the same is building trust with clients. And 354 00:25:24,560 --> 00:25:29,600 Speaker 1: as you said, UM, my immediate predecessor, Jim wettele Um 355 00:25:29,880 --> 00:25:34,000 Speaker 1: was the leader of tremendous growth and growth and impact 356 00:25:34,440 --> 00:25:37,720 Speaker 1: and our firm that took us from a few thousand 357 00:25:37,760 --> 00:25:43,399 Speaker 1: financial advisors to today, um, nineteen thousand financial advisors in 358 00:25:43,760 --> 00:25:47,720 Speaker 1: every nook and cranny, every large city and suburb in 359 00:25:47,920 --> 00:25:52,200 Speaker 1: North America, in Canada and the United States. So following 360 00:25:52,200 --> 00:25:55,320 Speaker 1: in those footsteps is it is an incredible responsibility, a 361 00:25:55,359 --> 00:25:59,720 Speaker 1: great opportunity because what I learned from studying those former 362 00:25:59,760 --> 00:26:05,360 Speaker 1: managing partners, they all looked forward boldly to the needs 363 00:26:05,440 --> 00:26:09,760 Speaker 1: of millions of investors who we weren't serving yet, uh 364 00:26:09,840 --> 00:26:13,520 Speaker 1: and took some some some pretty distinctive steps in order 365 00:26:13,600 --> 00:26:17,000 Speaker 1: to serve them differentially. And perhaps we'll we'll talk some 366 00:26:17,240 --> 00:26:19,520 Speaker 1: about some of that as week as we go along today. 367 00:26:19,840 --> 00:26:22,320 Speaker 1: That is definitely on my list to get to. Did 368 00:26:22,359 --> 00:26:25,160 Speaker 1: you get to work directly with Wettell. Did you pick 369 00:26:25,200 --> 00:26:28,240 Speaker 1: up anything from him? Oh? Yeah, but well picked up 370 00:26:28,320 --> 00:26:32,119 Speaker 1: tons from him. So I was part of the management 371 00:26:32,119 --> 00:26:37,440 Speaker 1: committee and executive committee while Jim was managing partner. Interesting story. 372 00:26:38,040 --> 00:26:41,640 Speaker 1: I was a financial advisor in Michigan from two thousand 373 00:26:41,760 --> 00:26:46,280 Speaker 1: to two thousand and six. Jim was the managing partner 374 00:26:46,560 --> 00:26:50,120 Speaker 1: who came in in two thousand and six and that 375 00:26:50,240 --> 00:26:53,920 Speaker 1: year invited me to become a general partner in our 376 00:26:54,000 --> 00:26:58,760 Speaker 1: firm and moved to St. Louis UH into home office leadership. 377 00:26:58,920 --> 00:27:03,600 Speaker 1: And so had a ring side seat UM too Jim's 378 00:27:03,680 --> 00:27:07,280 Speaker 1: tenure as managing partner, how he made decisions, how he 379 00:27:07,359 --> 00:27:11,200 Speaker 1: thought about opportunity. I also had a ringside seat to 380 00:27:11,760 --> 00:27:15,840 Speaker 1: UH to our leadership team working through the Great Recession 381 00:27:16,480 --> 00:27:20,280 Speaker 1: and the impacts of two thousand eight two thousand and 382 00:27:20,400 --> 00:27:24,240 Speaker 1: nine on clients, on our industry, and on our firm. 383 00:27:24,320 --> 00:27:28,560 Speaker 1: And boy taught me a lot about about decision making 384 00:27:29,119 --> 00:27:33,040 Speaker 1: during crisis. And I've while we haven't had a playbook 385 00:27:33,480 --> 00:27:35,800 Speaker 1: for what has occurred over the last eight months, I 386 00:27:35,840 --> 00:27:39,520 Speaker 1: have drawn on those experiences UH to know how to 387 00:27:39,560 --> 00:27:45,120 Speaker 1: move forward. So full disclosure, we're recording this a few 388 00:27:45,200 --> 00:27:49,959 Speaker 1: days after the election, but before the outcome is announced, 389 00:27:50,000 --> 00:27:53,960 Speaker 1: so we have an inkling as to what might happens, 390 00:27:53,960 --> 00:27:57,400 Speaker 1: but we really don't know for sure what the outcome 391 00:27:57,440 --> 00:28:00,399 Speaker 1: is going to be. But let me ask you a 392 00:28:00,440 --> 00:28:04,040 Speaker 1: couple of questions sort of in that in that area 393 00:28:04,760 --> 00:28:09,280 Speaker 1: in my office before the election, that's all any client asked, 394 00:28:09,760 --> 00:28:13,000 Speaker 1: what's going to happen? What does this mean for my portfolio? 395 00:28:13,119 --> 00:28:16,479 Speaker 1: What does it mean for my taxes? On and on 396 00:28:16,520 --> 00:28:19,320 Speaker 1: down the road. What what sort of questions have you 397 00:28:19,400 --> 00:28:23,440 Speaker 1: been getting from clients about the election? Is it an 398 00:28:23,440 --> 00:28:25,760 Speaker 1: issue they care about or is it, you know, just 399 00:28:25,840 --> 00:28:31,040 Speaker 1: another element that occasionally comes up. Oh sure, our experience 400 00:28:31,080 --> 00:28:33,320 Speaker 1: has been the same as yours bury. You know, we've 401 00:28:33,320 --> 00:28:36,240 Speaker 1: we've been around for ninety eight years, so through the 402 00:28:36,760 --> 00:28:41,000 Speaker 1: the change of many many many administrations during that period 403 00:28:41,040 --> 00:28:45,720 Speaker 1: of time. And fundamentally, what's what's the same about those 404 00:28:45,720 --> 00:28:51,400 Speaker 1: conversations is clients wondering, um, what what a potential change 405 00:28:51,400 --> 00:28:55,000 Speaker 1: in and policy might mean for them, just as you describe, 406 00:28:55,560 --> 00:28:59,200 Speaker 1: what we know over the long term is that very 407 00:28:59,240 --> 00:29:05,080 Speaker 1: broadly White House policies are gonna help shape the economic terrain. 408 00:29:05,800 --> 00:29:09,600 Speaker 1: History shows that the broader path has been pretty similar. 409 00:29:10,160 --> 00:29:14,720 Speaker 1: Why is that because the nature of the US economy 410 00:29:14,920 --> 00:29:20,240 Speaker 1: because it is broad based, it is diversified. It relies 411 00:29:20,320 --> 00:29:24,680 Speaker 1: on consumer spending and business investment, and while White House 412 00:29:24,720 --> 00:29:28,800 Speaker 1: policy is going to affect those things, it doesn't dramatically 413 00:29:29,040 --> 00:29:33,280 Speaker 1: swing those things one direction or another every four years. 414 00:29:33,920 --> 00:29:37,680 Speaker 1: So again, we keep focused on the long term, recognizing 415 00:29:37,880 --> 00:29:43,200 Speaker 1: that um that that policies may change with a new president, 416 00:29:43,240 --> 00:29:47,080 Speaker 1: and policies may change if we if we continue with 417 00:29:47,160 --> 00:29:49,760 Speaker 1: the president that we've had for the past four years. 418 00:29:49,760 --> 00:29:51,520 Speaker 1: Who knows what's going to happen in the in the 419 00:29:51,560 --> 00:29:55,640 Speaker 1: coming days and weeks. Um, what we do expect is 420 00:29:55,680 --> 00:30:00,280 Speaker 1: that the economy will continue to rebound. We have begun 421 00:30:00,320 --> 00:30:04,080 Speaker 1: a rebound. We're not post pandemic. I'm not saying that, 422 00:30:04,440 --> 00:30:07,239 Speaker 1: but we have begun a rebound in the economy, and 423 00:30:07,240 --> 00:30:10,760 Speaker 1: we believe that that's going to continue. We do believe 424 00:30:11,120 --> 00:30:14,800 Speaker 1: that we're not going to see a rapid snap back 425 00:30:15,000 --> 00:30:19,560 Speaker 1: in to where the economy was pre pandemic. We do 426 00:30:19,720 --> 00:30:22,680 Speaker 1: believe that we're going to see more fiscal stimulus. We'll 427 00:30:22,720 --> 00:30:28,000 Speaker 1: see the size or or or focus of that, depending 428 00:30:28,040 --> 00:30:33,200 Speaker 1: on the administration. And then finally, we we know that 429 00:30:33,200 --> 00:30:39,040 Speaker 1: that monetary policy will continue to be exceptionally accommodative. That 430 00:30:39,080 --> 00:30:42,440 Speaker 1: means interest rates are going to be very low for 431 00:30:42,720 --> 00:30:46,480 Speaker 1: quite some sometime. The Federal Reserve has has not only 432 00:30:46,520 --> 00:30:51,440 Speaker 1: telegraphed that, they've been very explicit about that. M quite interesting. 433 00:30:52,040 --> 00:30:55,680 Speaker 1: One of the changes we did see with this administration 434 00:30:56,600 --> 00:31:02,000 Speaker 1: was the possibility of the fiduciary rule being more aggressively 435 00:31:02,440 --> 00:31:07,480 Speaker 1: imposed on things like qualified accounts for one case, and 436 00:31:07,640 --> 00:31:10,920 Speaker 1: anything like that. If there is a change in administration, 437 00:31:11,320 --> 00:31:14,200 Speaker 1: what are your thoughts as to what might change? What 438 00:31:14,240 --> 00:31:19,520 Speaker 1: are your thoughts on the fugitial rule generally, well broadly, 439 00:31:19,640 --> 00:31:24,880 Speaker 1: what I would say, Barry is that retirement security and 440 00:31:25,560 --> 00:31:30,880 Speaker 1: helping investors have an experience that is that is more 441 00:31:30,960 --> 00:31:37,560 Speaker 1: helpful to them is a nonpartisan topic. It is one 442 00:31:37,680 --> 00:31:41,440 Speaker 1: where we have seen a great deal of reaching across 443 00:31:41,560 --> 00:31:46,040 Speaker 1: the aisles in the past couple of administrations. So we 444 00:31:46,040 --> 00:31:51,040 Speaker 1: welcome an environment where we are partnering with our regulators 445 00:31:51,040 --> 00:31:56,560 Speaker 1: and policy makers to help Americans have more retirement security 446 00:31:57,120 --> 00:32:03,000 Speaker 1: and so access to retirements, say evings, vehicles, um. Regulation 447 00:32:03,240 --> 00:32:08,280 Speaker 1: that that helps clients have more confidence that our industry 448 00:32:08,400 --> 00:32:12,680 Speaker 1: is operating in their best interests. All of those things, 449 00:32:12,800 --> 00:32:16,040 Speaker 1: in one way or another, have been been dialed up 450 00:32:16,080 --> 00:32:20,440 Speaker 1: over the past two administrations. I think that will continue 451 00:32:20,480 --> 00:32:24,680 Speaker 1: to be a hallmark of the investing public's experience. There 452 00:32:24,720 --> 00:32:27,640 Speaker 1: are different ways to get to that, and there are 453 00:32:28,240 --> 00:32:32,720 Speaker 1: different types of regulations, UM, some much more specific, some 454 00:32:32,920 --> 00:32:36,880 Speaker 1: much more prudential or principle based in nature. UM. But 455 00:32:37,120 --> 00:32:42,240 Speaker 1: I have no doubt that our policymakers, legislators, and regulators 456 00:32:42,280 --> 00:32:45,560 Speaker 1: are going to continue to be focused there. Huh. Quite 457 00:32:45,640 --> 00:32:49,719 Speaker 1: quite interesting. I know you've been pretty involved in trying 458 00:32:49,760 --> 00:32:54,480 Speaker 1: to recruit a greater degree of diversity in in the workforce. 459 00:32:54,520 --> 00:32:59,320 Speaker 1: At Edward Jones, I am the median financial advisor. I'm 460 00:32:59,360 --> 00:33:03,920 Speaker 1: a white in my fifties. That's the vast majority of 461 00:33:03,960 --> 00:33:08,200 Speaker 1: the industry. What should we in the industry be doing 462 00:33:08,800 --> 00:33:11,680 Speaker 1: to try and bring about more gender diversity, more people 463 00:33:11,720 --> 00:33:16,200 Speaker 1: of color, just making less of of what's been dominating 464 00:33:16,200 --> 00:33:19,400 Speaker 1: the industry, bringing a little diversity of thought and and 465 00:33:19,520 --> 00:33:23,360 Speaker 1: a little bit of change. Yeah, well, UM, I think 466 00:33:23,400 --> 00:33:27,400 Speaker 1: we've got to ask why is that important to do? UM? 467 00:33:27,480 --> 00:33:29,640 Speaker 1: Let me let me share with you what our statistics 468 00:33:29,680 --> 00:33:32,800 Speaker 1: are are. The average age of our financial advisors is 469 00:33:32,840 --> 00:33:37,800 Speaker 1: forty five years old. Of our financial advisors are women. 470 00:33:39,000 --> 00:33:42,920 Speaker 1: A couple of percentage points higher than on average in 471 00:33:42,960 --> 00:33:46,400 Speaker 1: our industry, and about nine of our financial advisors are 472 00:33:46,440 --> 00:33:51,320 Speaker 1: people of color. Again maybe a point or so higher 473 00:33:51,360 --> 00:33:54,520 Speaker 1: than than the average in the industry. But the reason 474 00:33:54,600 --> 00:33:57,520 Speaker 1: that I share that is really to say that, um, 475 00:33:57,760 --> 00:34:00,760 Speaker 1: two things. We we have been focused on this and 476 00:34:01,000 --> 00:34:05,520 Speaker 1: on a path toward greater diversity for for a couple 477 00:34:05,560 --> 00:34:10,000 Speaker 1: of decades. Um, we are not where we want to be. 478 00:34:10,239 --> 00:34:13,880 Speaker 1: There is so much more opportunity, and so that gets 479 00:34:13,920 --> 00:34:17,480 Speaker 1: to the question of why is this important? Well, this 480 00:34:17,560 --> 00:34:23,200 Speaker 1: is important because it is critical for the investing public 481 00:34:23,760 --> 00:34:28,880 Speaker 1: to have choices about who who they are advised by, 482 00:34:29,080 --> 00:34:31,959 Speaker 1: and to have a sense that the companies that that 483 00:34:32,000 --> 00:34:36,600 Speaker 1: they are doing business with, reflect the environment around them, 484 00:34:36,640 --> 00:34:40,520 Speaker 1: reflect who they are, that that investors and clients also 485 00:34:40,680 --> 00:34:45,480 Speaker 1: have a sense of belonging belonging at that firm, with 486 00:34:45,600 --> 00:34:48,600 Speaker 1: that group of financial advisors. Now I am not saying 487 00:34:48,719 --> 00:34:51,920 Speaker 1: that if you're a woman investor you always want to 488 00:34:51,960 --> 00:34:55,680 Speaker 1: be served by a woman financial advisor, or if you're 489 00:34:56,440 --> 00:35:00,880 Speaker 1: a black investor or client, that you want a black 490 00:35:00,960 --> 00:35:04,400 Speaker 1: financial advisor or a white financial advisor. What my point 491 00:35:04,520 --> 00:35:08,440 Speaker 1: is that that you have a choice, uh that you 492 00:35:08,480 --> 00:35:13,160 Speaker 1: look at the faith literally of the organization that you 493 00:35:13,239 --> 00:35:15,920 Speaker 1: are working with and say, you know that that place 494 00:35:16,120 --> 00:35:20,200 Speaker 1: is open to all. UM is eager to serve a 495 00:35:20,520 --> 00:35:24,600 Speaker 1: diversified marketplace, and are the marketplace is becoming more and 496 00:35:24,719 --> 00:35:30,440 Speaker 1: more diversified less homogeneous every single day. Uh. And so 497 00:35:30,520 --> 00:35:35,000 Speaker 1: that's the big why why why diversity is such such 498 00:35:35,000 --> 00:35:38,000 Speaker 1: a driver for our industry. And just as you said, 499 00:35:38,680 --> 00:35:43,200 Speaker 1: our industry for too long has been more homogeneous in 500 00:35:43,239 --> 00:35:47,000 Speaker 1: its makeup, and UM that that it will it will 501 00:35:47,080 --> 00:35:50,399 Speaker 1: do us good. It is doing us good by looking 502 00:35:50,480 --> 00:35:54,000 Speaker 1: at the marketplace we serve and reflecting the needs and 503 00:35:54,040 --> 00:35:57,920 Speaker 1: desires of that marketplace. So let's talk about a couple 504 00:35:57,920 --> 00:36:01,799 Speaker 1: of more recent investing sings that have come along. Obviously, 505 00:36:02,160 --> 00:36:05,040 Speaker 1: robo advisors were a big thing. They made a big 506 00:36:05,040 --> 00:36:10,400 Speaker 1: splash pretty much around the financial crisis era, and they've 507 00:36:11,200 --> 00:36:16,239 Speaker 1: expanded pretty rapidly over the past decade. What are your 508 00:36:16,280 --> 00:36:25,520 Speaker 1: thoughts on automated investing and those sort of software driven advisors. Yeah, well, 509 00:36:25,800 --> 00:36:29,080 Speaker 1: you know, you could go back to nineteen night in 510 00:36:29,120 --> 00:36:32,200 Speaker 1: the nineteen nineties and look at online trading and the 511 00:36:32,280 --> 00:36:35,160 Speaker 1: advent of online trading during that period of time. As 512 00:36:35,560 --> 00:36:38,799 Speaker 1: kind of the first robo advisor It wasn't exactly an 513 00:36:38,840 --> 00:36:42,480 Speaker 1: advisor per se, but it was the ability UM to 514 00:36:42,680 --> 00:36:45,920 Speaker 1: trade online. Goes back to Ted Jones saying, you know 515 00:36:45,960 --> 00:36:49,880 Speaker 1: what what is where is the underserved market or what 516 00:36:50,080 --> 00:36:54,480 Speaker 1: is the new innovation in the marketplace? And online trading 517 00:36:54,600 --> 00:36:59,279 Speaker 1: came about, UM, it has proliferated and now UM you 518 00:36:59,320 --> 00:37:06,919 Speaker 1: know through areas robot advisors includes more advice associated with 519 00:37:07,080 --> 00:37:11,520 Speaker 1: that trading because that's what investors are demanding. As I 520 00:37:11,640 --> 00:37:16,360 Speaker 1: said earlier, the trade itself. Executing a trade in the 521 00:37:16,400 --> 00:37:20,799 Speaker 1: marketplaces is nearly a free good, UH, and there's much 522 00:37:20,840 --> 00:37:24,920 Speaker 1: more value to be delivered in providing advice. So the 523 00:37:25,000 --> 00:37:28,239 Speaker 1: robot advisor as a way to do that. We know 524 00:37:28,800 --> 00:37:33,280 Speaker 1: UM is appropriate for some investors. We believe that fifteen 525 00:37:33,880 --> 00:37:41,040 Speaker 1: of the marketplace is appropriately self advised, and so robo advisors, UH, 526 00:37:42,040 --> 00:37:47,200 Speaker 1: those that that have very little human interaction associated with 527 00:37:47,280 --> 00:37:53,160 Speaker 1: them are are appropriate for some clients. UM. Where where 528 00:37:53,200 --> 00:37:58,839 Speaker 1: that begins to break down is when markets are sanguine, 529 00:37:59,400 --> 00:38:04,480 Speaker 1: when things or seem easy, and when goals are straightforward 530 00:38:04,680 --> 00:38:08,640 Speaker 1: in terms of the tradeoffs between and among goals, it's 531 00:38:08,640 --> 00:38:11,480 Speaker 1: a little bit easier to take a hands off approach 532 00:38:11,600 --> 00:38:14,640 Speaker 1: or to have that done in a in a mechanical way. 533 00:38:15,320 --> 00:38:21,440 Speaker 1: It's when markets become volatile, which happens unexpectedly when folks 534 00:38:21,560 --> 00:38:26,840 Speaker 1: are are dealing with emotional and complex tradeoffs amongst things 535 00:38:26,880 --> 00:38:30,800 Speaker 1: like you know, how do I say for for college 536 00:38:30,880 --> 00:38:35,239 Speaker 1: for my child or grandchild and have a comfortable retirement 537 00:38:35,320 --> 00:38:40,840 Speaker 1: at the same time. That's not just a mathematical question equation. Actually, 538 00:38:40,840 --> 00:38:45,839 Speaker 1: it's a very emotional conversation about where where values go, 539 00:38:47,160 --> 00:38:49,840 Speaker 1: about what those tradeoffs are going to mean to a 540 00:38:49,920 --> 00:38:54,840 Speaker 1: particular individual or a family. And that's where humanity is 541 00:38:54,960 --> 00:38:59,280 Speaker 1: really important in terms of how we interact between financial 542 00:38:59,320 --> 00:39:04,000 Speaker 1: advisor and client. H really interesting. So the nineties we 543 00:39:04,080 --> 00:39:08,560 Speaker 1: had all that crazy online trading. You mentioned the transition 544 00:39:08,640 --> 00:39:12,719 Speaker 1: to practically free. The modern era, we have apps like 545 00:39:12,880 --> 00:39:18,080 Speaker 1: robin Hood, which supposedly millennials and other young people really 546 00:39:18,080 --> 00:39:22,800 Speaker 1: are liking and engaging in a lot of active day trading. 547 00:39:22,880 --> 00:39:27,200 Speaker 1: Given that everybody's board and stuck at home. Um, what 548 00:39:27,239 --> 00:39:29,759 Speaker 1: do you do when you have a client who is 549 00:39:30,440 --> 00:39:35,799 Speaker 1: enthusiastically swinging cash around because they're bored? How do you 550 00:39:35,880 --> 00:39:39,799 Speaker 1: manage that from from the perspective of Hey, everything we've 551 00:39:39,840 --> 00:39:42,960 Speaker 1: talked about is long term, but but you're in and 552 00:39:43,000 --> 00:39:45,640 Speaker 1: out of stocks every other day. Let's isn't that a 553 00:39:45,760 --> 00:39:48,920 Speaker 1: risky behavior? How do you, as the long term advisor 554 00:39:49,000 --> 00:39:53,320 Speaker 1: manage that? Yeah, well, we go back to UM to 555 00:39:54,160 --> 00:39:59,200 Speaker 1: what a serious long term individual investor is that someone 556 00:39:59,440 --> 00:40:04,920 Speaker 1: who's values advice, who appreciates relationship, and who has a 557 00:40:04,960 --> 00:40:10,560 Speaker 1: long term orientation. The valuing advice is Where that's going 558 00:40:10,600 --> 00:40:14,400 Speaker 1: to come in is UM is sharing with clients and 559 00:40:14,480 --> 00:40:20,280 Speaker 1: investors that beating the market. UM trading in a rapid 560 00:40:20,400 --> 00:40:25,000 Speaker 1: way in order to time the market or time particular 561 00:40:25,160 --> 00:40:31,600 Speaker 1: investment sectors. UM is not a not a particularly good 562 00:40:31,640 --> 00:40:36,480 Speaker 1: way to build wealth reliably over time. That can be proven. 563 00:40:37,080 --> 00:40:40,080 Speaker 1: Uh and in fact, here's here's here's part of that proof. 564 00:40:40,840 --> 00:40:46,920 Speaker 1: Clients who are advised by financial advisors on average have 565 00:40:48,400 --> 00:40:52,799 Speaker 1: more assets than those who are not advised, and financial 566 00:40:52,840 --> 00:40:59,160 Speaker 1: advisors share this kind of investment philosophy with clients. Diversification 567 00:40:59,280 --> 00:41:03,040 Speaker 1: is important. You can't beat and time the market on 568 00:41:03,080 --> 00:41:06,279 Speaker 1: a on a daily or weekly basis, and you need 569 00:41:06,320 --> 00:41:08,920 Speaker 1: to be focused on the long term putting money away, 570 00:41:09,120 --> 00:41:14,480 Speaker 1: investing wisely and high quality investments, albeit rotating them and 571 00:41:14,560 --> 00:41:19,520 Speaker 1: reallocating them as markets change. So UM, you know you 572 00:41:19,560 --> 00:41:23,200 Speaker 1: know Verry you you probably have had this experience. Um, 573 00:41:23,320 --> 00:41:26,480 Speaker 1: you have to say that over and over and over again. 574 00:41:26,520 --> 00:41:29,319 Speaker 1: That is part of the relationship and is part of 575 00:41:29,320 --> 00:41:33,319 Speaker 1: the goodness of having a financial advisor, is that as 576 00:41:33,400 --> 00:41:35,960 Speaker 1: a as a client, you are going to hear that 577 00:41:36,040 --> 00:41:40,000 Speaker 1: advice again and again and again. Take the emotion out 578 00:41:40,040 --> 00:41:44,319 Speaker 1: of it, stick to quality and to the long term. Huh. 579 00:41:44,440 --> 00:41:48,600 Speaker 1: Quite interesting. So we were talking earlier about robin hood 580 00:41:48,640 --> 00:41:53,239 Speaker 1: and people trading at home. Most of the data I've 581 00:41:53,280 --> 00:41:58,279 Speaker 1: seen about what happens when a client passes away and 582 00:41:58,320 --> 00:42:02,160 Speaker 1: the next generation inherits the wealth is that they tend 583 00:42:02,600 --> 00:42:07,560 Speaker 1: not to stick with the existing advisor. How do you 584 00:42:07,600 --> 00:42:12,359 Speaker 1: manage that? What should advisors be doing so that when 585 00:42:12,400 --> 00:42:17,320 Speaker 1: there is a generational wealth transfer, the next generation sticks 586 00:42:17,360 --> 00:42:21,080 Speaker 1: with the company or the advisor they're working with. We 587 00:42:21,160 --> 00:42:24,680 Speaker 1: have to be relevant to the next generation. We have 588 00:42:24,800 --> 00:42:28,560 Speaker 1: to have built a relationship with them where mom and 589 00:42:28,640 --> 00:42:32,799 Speaker 1: dad or grandma and grandpa have a particular set of values, 590 00:42:33,960 --> 00:42:37,840 Speaker 1: a particular set of goals, a particular type of portfolio 591 00:42:38,640 --> 00:42:43,880 Speaker 1: that we know from working with multiple generations of clients 592 00:42:43,920 --> 00:42:48,120 Speaker 1: that what that generation, what that that grandmother, grandfather, mother, 593 00:42:48,239 --> 00:42:53,440 Speaker 1: father are really interested in is passing on their values 594 00:42:53,960 --> 00:42:58,360 Speaker 1: to their children and their grandchildren. Now those values can 595 00:42:58,400 --> 00:43:03,319 Speaker 1: pass through the wealth. UM. But but it's it's more 596 00:43:03,360 --> 00:43:08,439 Speaker 1: than that, isn't it. It's Uh, it's recognizing what that 597 00:43:08,640 --> 00:43:13,719 Speaker 1: family desires to accomplish together and what that next generation 598 00:43:14,000 --> 00:43:19,240 Speaker 1: is motivated by. And frankly, the millennials, that Gen xers 599 00:43:19,280 --> 00:43:23,799 Speaker 1: are motivated differently than their parents and their grandparents. And 600 00:43:23,840 --> 00:43:29,480 Speaker 1: the goodness of the human relationship financial advisor to client 601 00:43:29,560 --> 00:43:33,040 Speaker 1: in perspective client is it's the financial advisor's job to 602 00:43:33,280 --> 00:43:38,520 Speaker 1: understand that, to find out what's important to that next generation, 603 00:43:38,719 --> 00:43:43,040 Speaker 1: what their values are, what motivates them, and UM to 604 00:43:43,239 --> 00:43:47,279 Speaker 1: help form a bridge between the values of the of 605 00:43:47,320 --> 00:43:50,959 Speaker 1: the previous generation and the next generation. There's some really 606 00:43:51,000 --> 00:43:55,520 Speaker 1: important things happening. UH. And this this typically happens. Actually 607 00:43:55,760 --> 00:43:59,439 Speaker 1: it's through research you can show it happens with the 608 00:43:59,480 --> 00:44:03,839 Speaker 1: next generation quote unquote when there has been a significant 609 00:44:03,880 --> 00:44:08,279 Speaker 1: and traumatic event in the marketplace, in the economy, uh, 610 00:44:08,400 --> 00:44:13,000 Speaker 1: in society, and there's a significant impact on the risk 611 00:44:13,200 --> 00:44:19,759 Speaker 1: appetite of of generations younger folks whose whose points of 612 00:44:19,880 --> 00:44:24,040 Speaker 1: view about the world and society are being formed in 613 00:44:24,040 --> 00:44:28,719 Speaker 1: in that crucible um, their risk appetite is affected, their 614 00:44:28,760 --> 00:44:34,240 Speaker 1: trust and institutions is affected, and their reflection on what's 615 00:44:34,239 --> 00:44:36,640 Speaker 1: going to be important to them and going to be 616 00:44:36,760 --> 00:44:40,400 Speaker 1: driving them for the rest of their life is affected. 617 00:44:40,680 --> 00:44:43,799 Speaker 1: You know, the really classic one is folks who grew 618 00:44:43,880 --> 00:44:46,959 Speaker 1: up during the Great Depression and our parents and grandparents 619 00:44:47,000 --> 00:44:50,799 Speaker 1: who who we know and can can see from them 620 00:44:50,840 --> 00:44:53,239 Speaker 1: how they live the rest of their lives based on 621 00:44:53,320 --> 00:44:56,759 Speaker 1: those experiences. Uh that that's really the one that many 622 00:44:56,760 --> 00:44:59,400 Speaker 1: people point to. But people who are coming of age 623 00:44:59,800 --> 00:45:03,399 Speaker 1: dur in the Great Recession and people who are who 624 00:45:03,440 --> 00:45:08,400 Speaker 1: are being impacted today during their working lives, this is 625 00:45:08,400 --> 00:45:10,839 Speaker 1: going to have a lasting impact on them, and so 626 00:45:11,520 --> 00:45:15,960 Speaker 1: as financial advisors recognizing that digging deep into that with 627 00:45:16,120 --> 00:45:20,200 Speaker 1: the next generation is going to help us help them 628 00:45:20,800 --> 00:45:25,680 Speaker 1: be better investors and prepare for a very long life, 629 00:45:26,480 --> 00:45:30,840 Speaker 1: probably much longer than their parents or grandparents had. Quite interesting, 630 00:45:31,560 --> 00:45:36,000 Speaker 1: whenever we see surveys of millennials, there is a very 631 00:45:36,160 --> 00:45:41,200 Speaker 1: enthusiastic embrace of E s G investing or impact investing 632 00:45:41,400 --> 00:45:46,439 Speaker 1: or socially responsible investing. I'm not so sure I've seen 633 00:45:46,560 --> 00:45:52,040 Speaker 1: the dollar flows match that investing enthusiasm just yet, but 634 00:45:52,160 --> 00:45:56,520 Speaker 1: it certainly seems like it's a trend that's developing, a 635 00:45:56,600 --> 00:46:01,200 Speaker 1: work in progress. What are your thoughts on environmental, social 636 00:46:01,239 --> 00:46:05,920 Speaker 1: and governments investing E s G investing. Is this something 637 00:46:05,960 --> 00:46:09,040 Speaker 1: that's going to have a lasting impact or the jury 638 00:46:09,080 --> 00:46:13,799 Speaker 1: is still out? Yeah, it's such a rich topic of 639 00:46:13,880 --> 00:46:16,640 Speaker 1: conversation in one that there's so much focus on in 640 00:46:16,719 --> 00:46:20,759 Speaker 1: our industry and with investors right now. And fundamentally, what 641 00:46:20,800 --> 00:46:27,200 Speaker 1: we're talking about is having our investment portfolios reflect our 642 00:46:27,360 --> 00:46:32,360 Speaker 1: values as as individuals, whatever those maybe, UM, but lining 643 00:46:32,480 --> 00:46:36,879 Speaker 1: up our our portfolios with our values UM. I think 644 00:46:37,320 --> 00:46:41,799 Speaker 1: in individuals, consumers are doing this broadly, aren't we. I 645 00:46:41,800 --> 00:46:43,759 Speaker 1: mean you you you read a lot and see a 646 00:46:43,760 --> 00:46:47,399 Speaker 1: lot and maybe it's your own personal experience that you're 647 00:46:47,480 --> 00:46:52,680 Speaker 1: buying today according to your values. What research says that 648 00:46:52,920 --> 00:46:57,680 Speaker 1: UM consumers are focused on brands that they see as 649 00:46:57,719 --> 00:47:05,000 Speaker 1: being helpful during this pandemic UM, where they see local helpfulness, 650 00:47:05,080 --> 00:47:09,279 Speaker 1: where they seem organizations that are are trying to be 651 00:47:09,360 --> 00:47:14,040 Speaker 1: part of solutions that that is driving consumers to buy differently. 652 00:47:14,440 --> 00:47:16,600 Speaker 1: So you can expect that that's going to happen in 653 00:47:16,640 --> 00:47:19,880 Speaker 1: the investment markets as well. When when you talk about 654 00:47:19,920 --> 00:47:23,000 Speaker 1: E s G Investing. I do. I do want to 655 00:47:23,040 --> 00:47:29,600 Speaker 1: note that sound Investing has always focused on companies and 656 00:47:29,719 --> 00:47:34,520 Speaker 1: management teams that were uh there, that we're focused on 657 00:47:34,760 --> 00:47:39,440 Speaker 1: the durability of their firms, that we're focused on on 658 00:47:39,520 --> 00:47:43,319 Speaker 1: a wide array of stakeholders. Because if you don't do 659 00:47:43,400 --> 00:47:46,400 Speaker 1: that as a company, um, you're probably not going to 660 00:47:46,520 --> 00:47:49,239 Speaker 1: be around for a long, long time. And so there 661 00:47:49,280 --> 00:47:52,480 Speaker 1: are new labels that are put on at E. S. G. 662 00:47:52,480 --> 00:47:56,600 Speaker 1: Green Investing, all kinds of things, UM that label this 663 00:47:56,600 --> 00:48:01,239 Speaker 1: this type of fundamental orientation to multiple stakeholders and to 664 00:48:01,400 --> 00:48:04,799 Speaker 1: the long term. But it is, I believe Mary, to 665 00:48:04,880 --> 00:48:08,800 Speaker 1: your point, it is going to become an ever greater 666 00:48:09,320 --> 00:48:15,799 Speaker 1: h point of emphasis for for younger generations as they 667 00:48:16,000 --> 00:48:20,800 Speaker 1: as they grow into their investing lives. You mentioned earlier 668 00:48:21,520 --> 00:48:25,440 Speaker 1: that we're in a low yield environment and probably lower 669 00:48:25,480 --> 00:48:29,120 Speaker 1: for longer. What does that do to people who are 670 00:48:29,120 --> 00:48:32,239 Speaker 1: looking for income from bonds? What does that mean for 671 00:48:32,280 --> 00:48:38,840 Speaker 1: the traditional sixty forty portfolio? Yeah, um, well, what it 672 00:48:38,920 --> 00:48:42,480 Speaker 1: means is that a bond that you that you bought 673 00:48:43,520 --> 00:48:47,040 Speaker 1: a decade ago in a very different interest rate environment 674 00:48:47,880 --> 00:48:51,440 Speaker 1: was yielding to you a higher rate of income and 675 00:48:51,560 --> 00:48:57,440 Speaker 1: very classically the sixty forty portfolio UM enabled you to 676 00:48:57,680 --> 00:49:02,600 Speaker 1: live off of that income from that fixed income differently 677 00:49:03,000 --> 00:49:05,840 Speaker 1: a few years ago than you would be able to today. 678 00:49:06,480 --> 00:49:10,320 Speaker 1: And so while the split of the portfolio may still 679 00:49:10,440 --> 00:49:13,600 Speaker 1: be seventy thirty or sixty forty, and I don't want 680 00:49:13,600 --> 00:49:15,600 Speaker 1: to get hung up on that split, those rules of 681 00:49:15,640 --> 00:49:19,920 Speaker 1: thumb can sometimes be dangerous. The point is that fixed 682 00:49:19,960 --> 00:49:26,960 Speaker 1: income and stocks, equities and bonds um form the basis 683 00:49:27,120 --> 00:49:34,080 Speaker 1: of a diversified portfolio, and nobody has repealed the the 684 00:49:34,480 --> 00:49:40,600 Speaker 1: fact that where you invest in non correlated assets, you 685 00:49:40,640 --> 00:49:45,120 Speaker 1: are likelier to have a smoother ride during a volatile market. 686 00:49:45,600 --> 00:49:49,920 Speaker 1: And so fixed income or bonds and equities or stocks 687 00:49:50,200 --> 00:49:53,399 Speaker 1: in the right measure for your risk appetite and your 688 00:49:53,480 --> 00:49:58,439 Speaker 1: time horizon continues to be very important. However, living off 689 00:49:58,480 --> 00:50:01,520 Speaker 1: the income of those bond onnes is gonna be a 690 00:50:01,560 --> 00:50:06,520 Speaker 1: little more challenging than it was several years ago. Diversification 691 00:50:06,600 --> 00:50:09,520 Speaker 1: remains very very important now. The flip side of a 692 00:50:09,560 --> 00:50:12,920 Speaker 1: low interest rate environment is that a low interest rate 693 00:50:13,000 --> 00:50:19,719 Speaker 1: environment generally correlates with a fundamentally strong stock market. Uh 694 00:50:19,800 --> 00:50:24,080 Speaker 1: and and we we've seen that over the past ten years. UM, 695 00:50:24,280 --> 00:50:28,759 Speaker 1: So you don't don't don't despair completely in a low 696 00:50:28,840 --> 00:50:33,240 Speaker 1: interest rate environment. There's some counter veiling benefits to that 697 00:50:33,239 --> 00:50:36,760 Speaker 1: that kind of environment. So let's talk about some other 698 00:50:37,239 --> 00:50:41,719 Speaker 1: non correlated assets. What do you think about alternatives such 699 00:50:41,760 --> 00:50:45,080 Speaker 1: as private equity or venture capital. Well, that's getting a 700 00:50:45,080 --> 00:50:49,240 Speaker 1: lot of press these days because there is a significant portion, 701 00:50:49,360 --> 00:50:54,719 Speaker 1: of a more significant portion of of businesses and capital 702 00:50:54,800 --> 00:51:00,120 Speaker 1: formation that is happening outside of the public Mark our 703 00:51:00,160 --> 00:51:06,000 Speaker 1: get and public companies um for the vitality of our economy, 704 00:51:06,200 --> 00:51:09,600 Speaker 1: for the different ways that capital can be created and 705 00:51:09,680 --> 00:51:13,879 Speaker 1: companies can be formed and scaled and grown. I think 706 00:51:13,880 --> 00:51:17,319 Speaker 1: that that's a very healthy thing. Um. What I think 707 00:51:17,360 --> 00:51:20,759 Speaker 1: we have to be really thoughtful about is long term investors, 708 00:51:21,440 --> 00:51:27,440 Speaker 1: is that the public market affords a kind of transparency 709 00:51:27,480 --> 00:51:32,840 Speaker 1: into companies and access to to those companies and owning 710 00:51:32,920 --> 00:51:38,319 Speaker 1: shares in those companies. That results in liquidity, that results 711 00:51:38,480 --> 00:51:44,520 Speaker 1: in ways to verify the financials of those companies. That 712 00:51:44,719 --> 00:51:48,239 Speaker 1: all results in a kind of transparency and reliability. That 713 00:51:48,400 --> 00:51:53,040 Speaker 1: is a really important part of capitalism and about the 714 00:51:53,080 --> 00:51:56,600 Speaker 1: public nature of our stock markets. So flip that over 715 00:51:56,719 --> 00:52:00,439 Speaker 1: and say that venture capital and private equity UM, while 716 00:52:00,480 --> 00:52:04,600 Speaker 1: a really important part of capital formation, and our economy. 717 00:52:04,719 --> 00:52:09,879 Speaker 1: When when an investor gets all whipped up about returns 718 00:52:09,960 --> 00:52:13,400 Speaker 1: that they see or read about or hear about in 719 00:52:13,440 --> 00:52:16,719 Speaker 1: those markets, they have to recognize that that comes with 720 00:52:16,800 --> 00:52:21,800 Speaker 1: a tradeoff, tradeoff of risk, a tradeoff of less transparency, 721 00:52:22,480 --> 00:52:26,520 Speaker 1: different kinds of risks I liquidity, uh, different kind of 722 00:52:27,040 --> 00:52:30,160 Speaker 1: risks than they see in the public markets, and so 723 00:52:30,640 --> 00:52:37,200 Speaker 1: everything in moderation um and recognizing that broad diversification, asset 724 00:52:37,280 --> 00:52:41,560 Speaker 1: allocation across a number of asset classes is what has 725 00:52:41,719 --> 00:52:46,680 Speaker 1: reliably grown wealth over time. So I know the data 726 00:52:46,680 --> 00:52:50,279 Speaker 1: I'm about, the reference is old, but let me uh, 727 00:52:50,719 --> 00:52:52,120 Speaker 1: let me play with it a little bit and tell 728 00:52:52,200 --> 00:52:56,040 Speaker 1: me how far off I am. Your revenue has more 729 00:52:56,120 --> 00:53:00,320 Speaker 1: than doubled from three point five billion to over seven 730 00:53:00,400 --> 00:53:04,320 Speaker 1: point five billion not too long ago. It raises the question, 731 00:53:04,800 --> 00:53:08,200 Speaker 1: what sort of practice areas are there left for you 732 00:53:08,320 --> 00:53:12,480 Speaker 1: to expand into. Where is the room for growth at 733 00:53:12,719 --> 00:53:16,799 Speaker 1: Edward Jones. Yeah, we talk about growth very in terms 734 00:53:16,880 --> 00:53:21,040 Speaker 1: of growth of impact. The impact that we want to 735 00:53:21,120 --> 00:53:24,680 Speaker 1: have is driven by our purpose. Our purpose is to 736 00:53:24,800 --> 00:53:28,200 Speaker 1: make a meaningful difference in the lives of more people 737 00:53:28,440 --> 00:53:33,160 Speaker 1: in North America and the part of the marketplace that 738 00:53:33,280 --> 00:53:39,600 Speaker 1: we serve our serious long term individual investors um and 739 00:53:39,920 --> 00:53:42,120 Speaker 1: I've said a couple of times what that means is 740 00:53:42,200 --> 00:53:46,840 Speaker 1: folks who value relationship, who want advice, and who have 741 00:53:46,920 --> 00:53:51,040 Speaker 1: a long term orientation. Today we work with about seven 742 00:53:51,160 --> 00:53:55,720 Speaker 1: million clients. Our research shows that there are forty million 743 00:53:57,120 --> 00:54:02,319 Speaker 1: investors in North America who look like serious long term 744 00:54:02,400 --> 00:54:08,680 Speaker 1: individual investors. Now they are across multiple generations, across various demographics, 745 00:54:08,920 --> 00:54:14,080 Speaker 1: and spread all over North America. So our addressable market 746 00:54:14,520 --> 00:54:21,000 Speaker 1: is is significantly larger than the marketplace that we serve today. 747 00:54:21,280 --> 00:54:25,840 Speaker 1: So we believe our opportunity remains rooted in what makes 748 00:54:25,960 --> 00:54:28,840 Speaker 1: us unique, the human settered nous of what we do 749 00:54:29,160 --> 00:54:32,239 Speaker 1: and the locality of what we do. And so we 750 00:54:32,360 --> 00:54:36,800 Speaker 1: intend to to continue to focus there, focus on on 751 00:54:36,920 --> 00:54:40,920 Speaker 1: the relationship that we have with clients, focus on a 752 00:54:41,120 --> 00:54:45,840 Speaker 1: kind of smart consistency and serving them, but also the 753 00:54:45,920 --> 00:54:50,400 Speaker 1: ability to hyper personalize to them. That takes greater technology, 754 00:54:50,880 --> 00:54:56,120 Speaker 1: It takes frankly, being more relevant to younger generations, because 755 00:54:56,160 --> 00:54:59,600 Speaker 1: it really suits our purpose to make a meaningful difference 756 00:54:59,640 --> 00:55:03,799 Speaker 1: in more lives. If we get emerging investors started as 757 00:55:03,960 --> 00:55:08,040 Speaker 1: serious long term investors, if we get them started towards 758 00:55:08,080 --> 00:55:11,080 Speaker 1: their goals sooner. Frankly, they're going to live a whole 759 00:55:11,160 --> 00:55:14,120 Speaker 1: lot longer than their parents or grandparents. They got to 760 00:55:14,239 --> 00:55:18,680 Speaker 1: build up more investment over time in order to achieve 761 00:55:18,760 --> 00:55:21,959 Speaker 1: what's most important to them. So let's talk a little 762 00:55:21,960 --> 00:55:25,480 Speaker 1: bit about practice areas. I know you guys do financial 763 00:55:25,560 --> 00:55:28,880 Speaker 1: planning as well as asset management. Do you also have 764 00:55:29,160 --> 00:55:34,400 Speaker 1: other practice areas like trust in the States, tax planning, insurance, 765 00:55:34,440 --> 00:55:39,000 Speaker 1: anything along those lines. Yeah, you bet so. Our financial 766 00:55:39,040 --> 00:55:43,320 Speaker 1: advisors are licensed, uh in a number of different areas. 767 00:55:43,400 --> 00:55:45,920 Speaker 1: We are duly registered as a firm, so we are 768 00:55:46,000 --> 00:55:50,080 Speaker 1: a brokerage firm as well as having investment advisory fee 769 00:55:50,120 --> 00:55:55,560 Speaker 1: based platforms to help our clients and achieve their asset 770 00:55:55,840 --> 00:56:01,239 Speaker 1: management goals over time. We are also like sens in insurance, 771 00:56:01,480 --> 00:56:06,040 Speaker 1: so we help our clients protect their goals um against 772 00:56:06,200 --> 00:56:08,800 Speaker 1: all kinds of things that might happen. You know, the 773 00:56:09,120 --> 00:56:10,960 Speaker 1: the worst thing in the world is to build a 774 00:56:11,120 --> 00:56:16,320 Speaker 1: really solid plan um planning on everything going right and 775 00:56:16,480 --> 00:56:21,319 Speaker 1: then having things go wrong unexpectedly. So things like long 776 00:56:21,520 --> 00:56:24,680 Speaker 1: term care needs. Um. You know, this is an area 777 00:56:24,880 --> 00:56:28,920 Speaker 1: verywhere where people are becoming more attuned to the fact 778 00:56:29,080 --> 00:56:33,279 Speaker 1: that they are going to need significant investment to pay 779 00:56:33,440 --> 00:56:36,840 Speaker 1: for their health needs and potential long term care needs 780 00:56:37,000 --> 00:56:40,440 Speaker 1: later or maybe even earlier in life as well as 781 00:56:40,520 --> 00:56:44,480 Speaker 1: life insurance. And so we represent and and help our 782 00:56:44,560 --> 00:56:49,040 Speaker 1: clients protect their goals as well. UM. We have we 783 00:56:49,160 --> 00:56:53,880 Speaker 1: have products and services that are tax efficient, UM that 784 00:56:54,040 --> 00:56:58,040 Speaker 1: help our clients manage in that kind of situation. UM. 785 00:56:58,239 --> 00:57:01,920 Speaker 1: We also help our clients with charitable planning. UM. This 786 00:57:02,160 --> 00:57:06,160 Speaker 1: is something that that really aligns with folks values, with 787 00:57:06,320 --> 00:57:08,919 Speaker 1: their goals, with the values that they want to pass 788 00:57:09,120 --> 00:57:12,640 Speaker 1: on to the next generation, is their charitable mindedness. And 789 00:57:12,760 --> 00:57:15,440 Speaker 1: so we help our clients with that as well. And 790 00:57:15,600 --> 00:57:19,840 Speaker 1: then we work with with a significant number of businesses 791 00:57:20,040 --> 00:57:25,800 Speaker 1: and business owners, so helping them with their employee retirement plans. Therefore, 792 00:57:25,840 --> 00:57:29,520 Speaker 1: oh one K there, simple step, I raise all the 793 00:57:29,600 --> 00:57:33,480 Speaker 1: different ways that they can support their employees for their 794 00:57:33,560 --> 00:57:37,680 Speaker 1: retirement planning. We do that for businesses and business owners. 795 00:57:38,800 --> 00:57:42,520 Speaker 1: Quite interesting. Before I get to my favorite questions that 796 00:57:42,640 --> 00:57:46,160 Speaker 1: I ask all my guests, let me throw a curveball 797 00:57:46,280 --> 00:57:52,440 Speaker 1: at you dancing with the stars. What was what was that? Oh, Barry, 798 00:57:52,520 --> 00:57:55,000 Speaker 1: you've been doing too much research. I think that's on 799 00:57:55,120 --> 00:57:58,400 Speaker 1: the third page of my of of the Internet search 800 00:57:58,920 --> 00:58:03,920 Speaker 1: so ding from Google. Yeah, we have a local organization, 801 00:58:04,040 --> 00:58:09,480 Speaker 1: a tremendous organization called the Independent Center, and they provide UM. 802 00:58:10,240 --> 00:58:15,840 Speaker 1: They provide support services, full lifestyle support services for adults 803 00:58:16,360 --> 00:58:20,400 Speaker 1: with mental illness UM, and they surround those people with 804 00:58:20,840 --> 00:58:23,560 Speaker 1: UH with with the services they need to live lives 805 00:58:23,640 --> 00:58:26,680 Speaker 1: of meaning and well being. Well. They also have one 806 00:58:26,680 --> 00:58:31,439 Speaker 1: of the most unusual fundraisers every year, and that's called 807 00:58:31,560 --> 00:58:35,640 Speaker 1: Dancing with the St. Louis Stars, and so UM executives 808 00:58:35,760 --> 00:58:39,800 Speaker 1: and and community leaders here in town agree to work 809 00:58:39,920 --> 00:58:44,120 Speaker 1: with a professional dancer, get eight lessons and then do 810 00:58:44,320 --> 00:58:46,720 Speaker 1: that dance in front of seven people. And so I 811 00:58:46,840 --> 00:58:48,840 Speaker 1: did that a few years ago. I learned how to tango. 812 00:58:49,520 --> 00:58:52,240 Speaker 1: And I tell you it was I have a mantra 813 00:58:52,360 --> 00:58:55,240 Speaker 1: do something every day that that terrifies you just a 814 00:58:55,320 --> 00:58:57,760 Speaker 1: little bit. Well, I had my dose the day that 815 00:58:57,880 --> 00:59:01,480 Speaker 1: I did that. But the point wash was not the dancing. 816 00:59:01,600 --> 00:59:04,960 Speaker 1: It was it was raising support for that incredible organization. 817 00:59:05,520 --> 00:59:08,920 Speaker 1: Quite amusing. All right, So let's jump to our favorite questions. 818 00:59:09,040 --> 00:59:12,360 Speaker 1: We asked these of all of our guests, and and 819 00:59:12,520 --> 00:59:15,480 Speaker 1: let's start with the first one. What are you watching 820 00:59:15,600 --> 00:59:19,640 Speaker 1: and streaming these days? What what's keeping you busy under lockdown, 821 00:59:20,240 --> 00:59:24,080 Speaker 1: either Netflix or Amazon or or any podcast you're watching, 822 00:59:24,440 --> 00:59:29,120 Speaker 1: tell us what's entertaining you during this era. Yeah, well 823 00:59:29,640 --> 00:59:32,240 Speaker 1: it's a little bit different than Netflix or podcasts, but 824 00:59:32,680 --> 00:59:38,440 Speaker 1: but it's art I love and appreciate, in particular contemporary art. 825 00:59:38,560 --> 00:59:42,040 Speaker 1: And what I find is that as I study and 826 00:59:42,520 --> 00:59:47,800 Speaker 1: watch all kinds of virtual tours of museums all over 827 00:59:47,840 --> 00:59:50,280 Speaker 1: the world, which has been a real silver lining of 828 00:59:50,440 --> 00:59:53,240 Speaker 1: the lockdown. Haven't been able to go see it in person, 829 00:59:53,360 --> 00:59:56,800 Speaker 1: but but digitally, I'm able to experience all kinds of 830 00:59:56,880 --> 01:00:00,640 Speaker 1: different art and artists and what's inspiring to me about 831 01:00:00,760 --> 01:00:04,600 Speaker 1: that is them making sense of the world during times 832 01:00:04,680 --> 01:00:09,080 Speaker 1: of tumult, during times of high anxiety, and getting that 833 01:00:09,360 --> 01:00:13,560 Speaker 1: out and putting it on canvas or in performance or 834 01:00:13,680 --> 01:00:18,200 Speaker 1: in music. Um is is another way to think about 835 01:00:19,480 --> 01:00:23,920 Speaker 1: how to serve, how to relieve anxiety, uh and and 836 01:00:24,280 --> 01:00:26,920 Speaker 1: and how to make sense of the world around us. 837 01:00:27,840 --> 01:00:30,600 Speaker 1: You know, my wife teaches art, and I've been dragged 838 01:00:30,640 --> 01:00:34,160 Speaker 1: to museums all around the world and one of the 839 01:00:34,640 --> 01:00:38,600 Speaker 1: documentaries we stream not too long ago was on Mark Rothko. 840 01:00:39,360 --> 01:00:42,160 Speaker 1: And if you're if you like contemporary art, that's I'm 841 01:00:42,200 --> 01:00:46,800 Speaker 1: gonna make that recommendation because it was pretty fascinating discussion 842 01:00:46,880 --> 01:00:51,360 Speaker 1: of how his art evolved into what it eventually became. Yes, 843 01:00:51,520 --> 01:00:54,400 Speaker 1: thank you for that suggestion. He's one of my favorites. Yeah, 844 01:00:54,480 --> 01:00:57,640 Speaker 1: me too. And it wasn't twenty years ago. I sort 845 01:00:57,680 --> 01:01:00,640 Speaker 1: of did a one eighty on Rothco and I have 846 01:01:00,880 --> 01:01:04,880 Speaker 1: no explanation for why other than I hit a certain 847 01:01:04,920 --> 01:01:08,240 Speaker 1: age and suddenly, oh, that's not just a splotch of color. 848 01:01:08,360 --> 01:01:11,120 Speaker 1: That's a lot of really interesting things going on. Um, 849 01:01:11,720 --> 01:01:15,280 Speaker 1: maybe maybe she shepherded me along. Let's talk about your mentors. 850 01:01:15,360 --> 01:01:20,680 Speaker 1: Tell us about the folks who helped shape your career. Yeah, um, 851 01:01:21,120 --> 01:01:24,520 Speaker 1: you know the folks who helped shape my life most fundamentally, 852 01:01:24,640 --> 01:01:28,840 Speaker 1: or my parents. Um, my father who was an executive 853 01:01:28,960 --> 01:01:33,520 Speaker 1: at a publicly traded firm in Nashville. Um, who started 854 01:01:33,720 --> 01:01:37,960 Speaker 1: in on the factory floor quite literally, and retired as 855 01:01:38,040 --> 01:01:42,720 Speaker 1: the CEO of that organization. So the daddy daughter CEO 856 01:01:43,000 --> 01:01:46,640 Speaker 1: thing is is kind of a fun story. But um. 857 01:01:46,840 --> 01:01:51,600 Speaker 1: But but more importantly, the way that he thought about business, 858 01:01:51,880 --> 01:01:56,520 Speaker 1: about leadership, about integrity and trustworthiness in the business world, 859 01:01:56,560 --> 01:02:01,120 Speaker 1: about relationship building shaped me. My mother was an executive 860 01:02:01,160 --> 01:02:06,000 Speaker 1: with Tennessee Valley authority, and she was an executive during 861 01:02:06,080 --> 01:02:08,840 Speaker 1: a time and in a place that there weren't quite 862 01:02:09,680 --> 01:02:12,200 Speaker 1: there weren't quite as many women as there were men. 863 01:02:12,960 --> 01:02:17,880 Speaker 1: And so watching her operate UM and learn and UH 864 01:02:18,000 --> 01:02:21,560 Speaker 1: and put up with stuff UH during that time across 865 01:02:22,720 --> 01:02:27,040 Speaker 1: a very long career, was when it was inspiring and 866 01:02:27,160 --> 01:02:31,800 Speaker 1: instructive to me UM in business UH as as part 867 01:02:31,840 --> 01:02:34,920 Speaker 1: of my journey at Edward Jones, we have a very 868 01:02:35,080 --> 01:02:40,080 Speaker 1: widely dispersed UM leadership structure in each of our regions 869 01:02:40,080 --> 01:02:43,520 Speaker 1: across North America. And so my regional leaders, those who 870 01:02:43,680 --> 01:02:47,200 Speaker 1: showed me the way as a new financial advisor UM 871 01:02:47,520 --> 01:02:52,960 Speaker 1: talked to me about values about service UM. They were 872 01:02:53,080 --> 01:02:56,680 Speaker 1: very inspiring to me. And then then my predecessors as 873 01:02:57,040 --> 01:03:00,360 Speaker 1: UM as managing partners here, I'm a student of them. 874 01:03:00,520 --> 01:03:04,400 Speaker 1: Some of them I know and worked with directly. Others 875 01:03:04,520 --> 01:03:07,960 Speaker 1: of I never met Mr Jones Senior and Ted Jones, 876 01:03:08,160 --> 01:03:10,920 Speaker 1: the founders of our firm. I am the first managing 877 01:03:10,960 --> 01:03:14,680 Speaker 1: partner who never met them, So becoming a student of 878 01:03:14,920 --> 01:03:18,920 Speaker 1: their values, of their strategy, about how they thought about 879 01:03:20,080 --> 01:03:24,200 Speaker 1: being differentiated in the marketplace. UM. Those have all have 880 01:03:24,360 --> 01:03:28,200 Speaker 1: all taught me great lessons, very interesting let's go to 881 01:03:28,240 --> 01:03:31,840 Speaker 1: everybody's favorite question books. Tell us what you're reading now, 882 01:03:31,960 --> 01:03:34,640 Speaker 1: and perhaps give us a few titles of some of 883 01:03:34,720 --> 01:03:38,840 Speaker 1: your favorite books. Yeah. So I'm reading a book called 884 01:03:39,200 --> 01:03:46,400 Speaker 1: um uh Agile Transformation Without Chaos. Its focuses on the 885 01:03:46,800 --> 01:03:52,240 Speaker 1: way that companies are organized to create better experiences for 886 01:03:52,440 --> 01:03:56,360 Speaker 1: consumers and clients, organized in an agile way to meet 887 01:03:56,400 --> 01:04:01,760 Speaker 1: the marketplace more quickly, uh and in a more experimental way. 888 01:04:02,400 --> 01:04:06,000 Speaker 1: So I'm reading that. I have several art books stacked 889 01:04:06,080 --> 01:04:09,400 Speaker 1: up on my table, and I'm reading a book by 890 01:04:09,520 --> 01:04:12,360 Speaker 1: David Brooks. It's a new book, it's a It's a 891 01:04:12,440 --> 01:04:16,520 Speaker 1: compilation of interviews that he had done over time with 892 01:04:17,160 --> 01:04:22,360 Speaker 1: some of the world's leading u the spinkers, community builders leaders, 893 01:04:23,040 --> 01:04:25,760 Speaker 1: uh and so just getting their their quick interviews and 894 01:04:26,160 --> 01:04:29,480 Speaker 1: getting a window into those folks. I read one of 895 01:04:29,520 --> 01:04:34,200 Speaker 1: those interviews tonight. Is is really inspiring as well, very interesting. 896 01:04:34,800 --> 01:04:37,160 Speaker 1: What sort of advice would you give to a recent 897 01:04:37,320 --> 01:04:41,440 Speaker 1: college graduate who was interested in a career in finance? 898 01:04:42,320 --> 01:04:44,760 Speaker 1: Very broadly, the advice that I give to everyone as 899 01:04:44,760 --> 01:04:49,080 Speaker 1: they think about their career is ensure that what you're 900 01:04:49,200 --> 01:04:53,200 Speaker 1: doing is lined up with your own personal and professional 901 01:04:53,360 --> 01:04:57,439 Speaker 1: Why I say, what are you really doing when you're 902 01:04:57,560 --> 01:05:00,440 Speaker 1: doing what you're doing every day? I'll say again, what 903 01:05:00,520 --> 01:05:03,680 Speaker 1: are you really doing when you're doing what you're doing 904 01:05:03,880 --> 01:05:07,880 Speaker 1: every day? What is it ladder up to in terms 905 01:05:08,000 --> 01:05:10,560 Speaker 1: of the mark that you want to make on the world. 906 01:05:10,680 --> 01:05:13,400 Speaker 1: Not not the position that you want to have, or 907 01:05:14,000 --> 01:05:17,440 Speaker 1: the role that you want to attain, or the income 908 01:05:17,560 --> 01:05:19,480 Speaker 1: that you desire to have over time, That's not what 909 01:05:19,560 --> 01:05:22,080 Speaker 1: I'm talking about. I'm talking about the mark that you 910 01:05:22,160 --> 01:05:25,800 Speaker 1: want to leave on the world. And so whatever you're doing, 911 01:05:26,000 --> 01:05:30,320 Speaker 1: if it is in financial services, um really reflect on 912 01:05:30,480 --> 01:05:33,480 Speaker 1: how it ladders up to to the person that you 913 01:05:33,560 --> 01:05:35,480 Speaker 1: want to be in the mark that you want to leave. 914 01:05:36,120 --> 01:05:42,600 Speaker 1: I will say very enthusiastically that the financial markets, financial 915 01:05:42,800 --> 01:05:47,640 Speaker 1: services makes a meaningful and positive difference in the world, 916 01:05:48,160 --> 01:05:52,200 Speaker 1: on our country. It can have a much more influential 917 01:05:52,920 --> 01:05:57,480 Speaker 1: impact on society, on communities, on human beings and society. 918 01:05:57,960 --> 01:06:00,960 Speaker 1: And I think that financial services is very much focused 919 01:06:01,040 --> 01:06:04,280 Speaker 1: there today. And so the advice that I would give 920 01:06:04,880 --> 01:06:08,200 Speaker 1: to to those recent college graduates is look at this 921 01:06:08,400 --> 01:06:11,560 Speaker 1: industry as one um that has and will continue to 922 01:06:11,640 --> 01:06:15,720 Speaker 1: be very meaningful in our country and in society. That 923 01:06:15,960 --> 01:06:19,480 Speaker 1: it can intersect with who you are as a person. 924 01:06:19,600 --> 01:06:23,560 Speaker 1: It is not all math and numbers. That's a common 925 01:06:23,640 --> 01:06:26,960 Speaker 1: misconception about the financial services industry. There's certainly parts of 926 01:06:27,040 --> 01:06:30,000 Speaker 1: it that are UM, but there's a vast part of 927 01:06:30,040 --> 01:06:33,720 Speaker 1: this industry UM that that is that is all about 928 01:06:33,880 --> 01:06:38,000 Speaker 1: making connection with human beings and understanding what they value 929 01:06:38,040 --> 01:06:42,440 Speaker 1: in helping them achieve that. And our final question, what 930 01:06:42,560 --> 01:06:45,600 Speaker 1: do you know about the world of financial services today 931 01:06:46,160 --> 01:06:48,760 Speaker 1: that you wish you knew twenty five or so years 932 01:06:48,800 --> 01:06:52,640 Speaker 1: ago when you were first starting out. Well, what I 933 01:06:52,760 --> 01:06:57,240 Speaker 1: probably didn't appreciate UM as I was first starting out, 934 01:06:58,280 --> 01:07:02,640 Speaker 1: was how intersect the financial services industry and world is 935 01:07:03,360 --> 01:07:09,200 Speaker 1: with the trajectory of history, UM, the history of our economy, 936 01:07:09,680 --> 01:07:14,240 Speaker 1: the history of formation of communities and society, UM, the 937 01:07:15,240 --> 01:07:22,040 Speaker 1: history of achievement by individuals, families, and businesses, and so 938 01:07:22,320 --> 01:07:26,040 Speaker 1: charting the course of history being really having a front 939 01:07:26,120 --> 01:07:29,040 Speaker 1: row seat too. You know when I started in nineteen 940 01:07:29,120 --> 01:07:32,240 Speaker 1: eighty five at a bank night seven and the market 941 01:07:32,360 --> 01:07:38,920 Speaker 1: melt down there, UM, the technology evolution revolution in the 942 01:07:39,200 --> 01:07:42,880 Speaker 1: nineteen nineties, UM, the great recession that we had talked 943 01:07:42,920 --> 01:07:46,720 Speaker 1: about earlier, uh, and currently what we're facing in our 944 01:07:46,800 --> 01:07:51,280 Speaker 1: economy I'm a student of history, and so just having 945 01:07:51,320 --> 01:07:54,560 Speaker 1: a front row seat to how the how the economy, 946 01:07:55,200 --> 01:08:01,080 Speaker 1: financial industry, and society intersect has and fascinating and I 947 01:08:01,240 --> 01:08:05,320 Speaker 1: and I guess when I'm in my armchair after all 948 01:08:05,400 --> 01:08:07,840 Speaker 1: of this is over and look back on it, um, 949 01:08:08,920 --> 01:08:11,080 Speaker 1: I'll really be able to see something about the arc 950 01:08:11,160 --> 01:08:14,520 Speaker 1: of history UM from a from a ground level view. 951 01:08:15,160 --> 01:08:17,560 Speaker 1: Thanks Penny for being so generous with your time. We 952 01:08:17,760 --> 01:08:22,200 Speaker 1: have been speaking with Penny Pennington, managing partner at Investment 953 01:08:22,280 --> 01:08:26,080 Speaker 1: Giant ed Jones. If you enjoy this conversation, well, be 954 01:08:26,200 --> 01:08:28,240 Speaker 1: sure and check out all of the hundreds of previous 955 01:08:28,280 --> 01:08:32,280 Speaker 1: such conversations we've had. You can find them at iTunes 956 01:08:32,360 --> 01:08:36,600 Speaker 1: and pretty much wherever you usually find your podcasts. We 957 01:08:36,800 --> 01:08:40,559 Speaker 1: love your comments, feedback and suggestions right to us at 958 01:08:41,320 --> 01:08:44,519 Speaker 1: m IB podcast at Bloomberg dot net. Give us a 959 01:08:44,560 --> 01:08:48,880 Speaker 1: review at Apple iTunes. You can check out my weekly 960 01:08:49,000 --> 01:08:53,000 Speaker 1: column on Bloomberg dot com slash Opinion. Sign up for 961 01:08:53,200 --> 01:08:56,120 Speaker 1: our daily reads at Hults dot com. Follow me on 962 01:08:56,360 --> 01:08:59,400 Speaker 1: Twitter at rid Halts. I would be remiss if I 963 01:08:59,479 --> 01:09:02,160 Speaker 1: did not thank the crack staff that helps put these 964 01:09:02,240 --> 01:09:06,440 Speaker 1: conversations together each week. Nick Falco is my audio engineer. 965 01:09:07,360 --> 01:09:11,439 Speaker 1: Michael Boyle is my producer. Slash booker A Tico. Valbrunn 966 01:09:11,520 --> 01:09:15,280 Speaker 1: is our project manager. Michael Batnick is our head of research. 967 01:09:16,040 --> 01:09:19,479 Speaker 1: I'm Barry Results. You've been listening to Masters in Business 968 01:09:19,960 --> 01:09:21,160 Speaker 1: on Bloomberg Radio