A century's worth of advice from Edward Jones' CEO video transcript

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Video transcript

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Host, Jack Hough: Each week we talk to people about markets. We focus squarely on investing. We don't do a lot of personal finance, but we wanted to speak to people about decision of how and when and whether to go get advice from someone. And I know that's your business. I wonder if you could just tell us a little bit about your firm, what differentiates you from the other choices people have out there?

Guest, Penny Pennington: For 99 years we've been helping individual investors, what we call serious long-term individual investors, achieve what's most important to them. Those serious long-term individual investors, what does that mean? They're looking for advice, they value relationship with a human being, not predominantly a machine, in order to help guide them to their future. And they're willing to put aside some resources today for a future of their own making and their optionality in the future.

Jack Hough: What do you make of this landscape where you've got some wild trading in some, let's call them some pretty dubious assets out there?

Penny Pennington: Individuals are entering the markets or are being impacted by their perception and their experience with the markets, and they're figuring out for themselves if those markets are there to help them or not. I believe very strongly that FOMO, fear of missing out, is not a good investment strategy. And one does not put the words "play" and "money" in the same sentence and expect long-term, really positive outcomes for themselves and their families.

Jack Hough: Your advisors don't use rocket ship emojis at all, do they?

Penny Pennington: No, they do not. It is tried-and-true investment philosophy. Figuring out how much risk you're willing to take, think about the goals that you have and how long you have to achieve those goals, and put together an intentionally-built plan and portfolio to build those.

I do worry that right now emerging investors, folks who've never been involved in the markets before, got involved in the markets, got invited into some of the things that you've just shared, and have been turned away feeling that the market is not there to work for them. And that's not that's not good for capitalism. It's not good for innovation or growth. It's not good for our economy.

And so our financial advisors, 20,000 of them, are spending their day every day helping people understand how those tools and resources can be there to help them and their families while at the same time creating growth and innovation in our economy, making our economy the strongest economy in the history of the world.

Jack Hough: I want to ask you about mistakes you see people making over and over again, or areas of people's investing or saving life that you feel that they don't pay enough attention to.

Penny Pennington: FOMO, Fear Of Missing Out. My neighbor or my brother-in-law told me about this thing. Penny, I got to have some of this. I don't want to miss out. That can often lead to mistakes.

Another one is taking it from the other direction. I don't need to start now because I really can't put aside very much, and so it won't mean much. Recognizing the magic of compounding over time, it is a force of nature. It's like gravity. It's the most amazing miracle, is the magic of compounding. Put away a little bit today rather than putting away a little bit more tomorrow. Strangely enough you have more when you start with a little bit today.

The other thing is to take the emotion out of it. To not trade or make decisions during a period of anxiety or a moment of fear or greed. To seek to take the emotion out of the investment decisions that we make. There are three pieces of advice that I've learned over the years from all my study, my experience, and the experience of a 99-year-old advisory firm.

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