Dear Valued Clients and Friends,
I recognize that this week’s Dividend Cafe is a little unconventional. For those looking for economic principles, you have last week’s to fall back to. For those really missing Fed talk, you only have to go back two weeks. And for those excited for dividend growth talk, you have the next two weeks to look forward to (and a new book about to hit). But today’s Dividend Cafe is a little more touchy-feely than normal, a little more “real life,” if you will.
On Monday, Joleen and I will head down to Charlottesville, Virginia, where we will get our daughter, Sadie, set in her dorm as an incoming freshman at the University of Virginia (where she will be attending as a pre-med student for the next four years). Move-in day, parent orientation, and all the goodbye/drop-off moments await. It is, of course, bittersweet, because on one hand I am so unbelievably proud of my daughter and extremely excited for her as she begins this next chapter of her life – a chapter she worked incredibly hard to make happen. But on the other hand, she is a constant source of joy and laughter to have around, and so not having her around is going to be, well, hard. I intend to show up unannounced sometimes and generally not let go the best I can, but yes, this will be a hard moment in that sense (as I am sure many of you can imagine).
I know it was a stretch when I turned my commencement speech from her graduation a few months ago into a Dividend Cafe (the video is here), but I always have to remind myself, “this is my Dividend Cafe, and I can do what I want.” And so today I thought I would share in the Dividend Cafe a letter to Sadie, intended to offer life advice as she delves into this next journey. Now, if what you are thinking is, “that’s all great, old man, and I am sure you will miss your daughter, but what does this have to do with investing?” – the best I can say is, (a) I promise it does, and (b) It’s just one week (two weeks if you count the commencement), and (c) You’ll really like the dividend growth talk of the next two weeks. But in all seriousness, I believe the lessons here intended for Sadie could very well have some message for others, and for that reason they are in today’s Dividend Cafe.
With all that said, let’s jump into the Dividend Cafe…
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Dear Sadie –
I wanted to send this letter to you ahead of time because I don’t know what to expect amidst next week’s drop-off. Obviously, there will be some logistical challenges around the twenty boxes you have shipped out, the six suitcases you are bringing, the four boxes and suitcases Mom and I are bringing for you, and the eight other packages you asked us to bring that we are just not bringing. So I want you and your mom to be able to focus on the move-in itself Tuesday, and I imagine you will need some time to process the fact that college dorm life does not facilitate the storage of 380 different outfit selections. But those things will work themselves out by Tuesday night, I am sure.
But even after all of that drama, and the basic move-in itself (you have the best helping you, and I am not referring to me), and the “parent orientation,” I just figured it would be a busy few days, and I’d rather leave things open and flexible, hence this letter now.
The first thing I want to say before my boring “dad advice” stuff is that your mom and I are extremely proud of you. You have heard it already, but as you begin the next four years at the University of Virginia, I just want to repeat what should be clear… You did this. It was your work, your discipline, and your fortitude that got you here. The 7% admissions rate at Virginia is what it is. You refused to settle, and the discipline you applied to your high school years is something I will never forget for the rest of my life. But I want to be clear: That you maintained such a focus on your studies and that you achieved these acceptances without sacrificing the real point of high school – the friendships, formation, and fun that the whole thing is supposed to be about – is what your mom and I care about. A lot of kids got into some pretty prestigious universities with their parents pushing them each step of the way towards the end of higher education, and you never had that. Your mom and I never cared a lick about what school you got into – we just wanted you to be the best you could be, to enjoy the moment, and to develop and form as a person. And you did it. You really did. I know some moments were stressful, and I know AP Statistics was not exactly something you took for fun, but I really feel that you enjoyed your high school experience in the way I have always wanted for you and your brothers, and you did not succumb to the “high school is for college admissions” idol that so many people succumb to these days.
And that brings me to the first thing I want to say. You know how much I criticize people who “peaked in high school,” but I actually have spent far more time in my life criticizing people who “peaked in college.” Admission to a great university is nice, but it is all done before your life is a quarter-way through (Lord willing). All at once, I really want you to enjoy the heck out of the next four years (as you did the last four), and yet use the experience as a springboard to a truly fulfilling and rewarding life. I am mystified by people I still meet who are well, well into their adult life (I mean people even older than your old man) that are still obsessed with that college admission thing from 30-40 years prior. You have gotten into a great school, and I believe you have an opportunity to have an incredible experience there, and then I think you get to live real life. And if your journey so far is any indication, you are going to enjoy each moment along the way.
The advice I have for you for your college years is pretty simple: Make good decisions, and seize the day. Enjoy the moments that come your way socially and personally. Make meaningful friendships, some of which should last the rest of your life. But that “good decisions” thing should not be overlooked. On one hand, the college age presents decision opportunities that, on average, should be less consequential than some of the decisions adults have to make when they are older in life. But on the other hand, the decisions are no longer tiddlywinks. Real-life stuff is on the line, and I just ask you to do what you have always done: Be smart. Be vigilant. And be responsible.
Yes, I want you to study and take the schoolwork seriously, but I barely have to say that to you. I know you are going to take the classes seriously, and I know you are going to learn – a lot. I hope you pick friends that fill your cup, that don’t act like idiots, and that encourage you to be your best self. And I hope you and these friends parlay your college experience into one of great memories and great personal development. The academic side is the least of my concerns with you.
Speaking of which, I have already told you of some of the great professors UVA has and some of the knuckleheads. Every university today has some that I believe fit better in a European Union cabinet post, or running an NGO somewhere. Actually, many of them are only in academia because they couldn’t get one of those two jobs. Do not feel the need to argue with these folks. If they come after you, that is one thing, but you don’t need to go after them. You already learned more from ages 3-19 than 1960’s radicals would even comprehend. It is okay to hear things you disagree with. And since you are pre-med, I am not too worried about an Economics professor trying to de-program you, but you know what to do if they step. And yes, text me the funniest stuff they say. I don’t think Saturday Night Live gets material as fresh for mockery as what gets said in some college classrooms. You got this.
I am not going to turn this letter into dating advice. You already know that no boy deserves you, and I just want to make sure they know that, too. Now, I think every dad says something like that, and it is very sweet and cliché for them to do so, but it is different when I say it to you. They don’t deserve you. All I ask is that, for the love of God, you never, ever act dumb to get a boy’s attention. You are smart. You are beautiful. And it is not your fault that we are living in a moment of history that many 20-29 years olds have the maturity of a 0-9 year old. But that is not universally true, and again, it will all work out. But yes, remember my advice on this one: You are a ten, and you should be treated like one.
I want you to understand that there is absolutely nothing more pressing right now in the psyche and soul of our nation than this: 99% of what is going to matter to the kind of life we have is within our control. And no one seems to understand that anymore. We are all so unbelievably focused on surrendering our own agency and responsibility that we have bought into this idea that our fate is out of our hands. It is not true. You know it is not true. And I beg you to live with this understanding. Your life will be fulfilling if you choose for it to be so.
I know what the response often is to those who are critical of that mentality. But please note what I did not say. I did not say that 99% of what happens to us in our lives is about what we do. A whole lot of things happen to us. Many people have different things that hit them that are far, far worse than the things that hit others, and many of these things are totally out of our control. I am not suggesting that we can control 99% of what happens to us, because I am not even sure we can control 1% of what happens to us. What I am sure of is that the kind of life we are going to have is within our control, because that is an entirely different thing than “that which happens to us.” The kind of life we are going to have is about our response, our attitudes, our behaviors, our adaptation, our resilience, and our decisions. In whatever difficulties that come, may your own agency shine through. May you cast the vote on the kind of life you are going to have, and never, ever give that vote to someone else.
I would give some more practical advice in closing out this letter that is more conducive to a financial commentary, but I don’t want to sound like a broken record. A credit card (which is what Apple Pay is connected to, and the Starbucks app, and the Equinox membership, and the Uber account, and the DoorDash app, and the Amazon account, and anything that takes money as payment) is something that, after charges are run, has to be paid for. There is a part of me that thinks a pre-med student who got into the University of Virginia with a 4.5 GPA in high school might actually know this, but sometimes your mom and I wonder. You have had it good, Sadie. But let’s remember that thrift and self-restraint are character virtues. Just like discipline and tenacity are. You got this. =)
The final thing I have to say is not just about college or the next four years of your life, and it is not just from me. I know I am speaking for your mom when I say this, too. Please know, every second of your life, every second of your time at school, that you are loved unconditionally. And I swear to God I will have your back in any way I can for the rest of your life. There are only three people who I know love you unconditionally. One is your Heavenly Father, who loves you perfectly. But the other two are your mom and dad, and we will walk through a concrete wall for you. We will.
With that said, baby girl, GO HOOS (unless they are playing Duke in basketball), and may this next phase of your life be all that God has for you. We are so, so proud of you.
Love,
Your Dad
Quote of the Week
“Things may come to those who wait, but only those things left by those who hustle.”
~ Abraham Lincoln
More to Chew on
- Running a grocery store is hard, says someone who knows
- Dear Lord
- Lots of reasons to fear our national debt, but this ain’t one of them
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Next week we get back into the normal rhythm of Dividend Cafe with the first of a two-part series about dividend growth investing in the here and now – in this very era in which we are living. It will not be touchy-feely, and my daughter will not be mentioned. In fact, she won’t even read it – she knows dividend growth investing is the way to go. To that end, we work.
With regards,
David L. Bahnsen
Chief Investment Officer, Managing Partner
The Bahnsen Group
thebahnsengroup.com
This week’s Dividend Cafe features research from S&P, Baird, Barclays, Goldman Sachs, and the IRN research platform of FactSet
