In investing, it can be difficult to distinguish between investing and speculating. Both investors and speculators aim to make a profit by putting money to work in the financial markets. In the seminal work Security Analysis (1934), legendary value investor… Read More
-
What’s Happening at BWFA
By: Meghan Manas – Office Manager Employee Spotlight – Ben Dorsey | CPA, CFP®, MST – Director of Tax Services Tell us a bit about yourself. where did you grow up? I grew up in Mt. Airy, MD and went… Read More
-
Mosaic Community Services
By: Mike LaViña – Portfolio Manager and Director of Trading Last quarter, BWFA announced a partnership with the Community Foundation of Howard County as part of our effort to facilitate charitable giving in our community. We believe that giving back… Read More
-
Start Planning Now for Next Year’s Tax Return
By: Sharolyn Hockey – Tax Manager Filing their income tax return is a chore most Americans dread. Once that return is filed, you probably stop thinking about your taxes, don’t you? But there’s no better time to start your tax… Read More
-
Underneath the Waves: Sector Rotation Beneath the Stock Market Sea
By: Jim Edwards | CFP® – Financial Advisor and Portfolio Manager The stock market can be compared to an ocean with individual companies representing boats traveling on its seas. There are times when certain parts of this ocean are choppier than… Read More
-
Selling a Medical Practice
By: Brian MacMillan – Managing Director M&A The majority of medical practice owners do not know how to sell their practices, and many are not aware that selling to a third party is even an option. Since many doctors are… Read More
-
A Pilgrimage To Omaha
By: Philip Weiss | CFA, CPA – Chief Investment Analyst Background Each year on the first weekend in May, value investors flock to Omaha, Nebraska, for Berkshire Hathaway’s (BRK) annual meeting, which has also been referred to as “Woodstock for… Read More
-
Do You Have the Right Small Business Retirement Plan?
By: Joseph Caputo – Chief Information Officer and Associate Portfolio Manager Has your business established a retirement plan that is right for you and your employees? If you are like many business owners, you probably do not have the time… Read More
-
Housing, Mortgages, and Interest Rates – Oh my!
By: Mark Stinson | CPA, CFP®, MBA – Director of Planning America’s residential sector was once the preserve of “mom-and-pop” investors or local developers. The role of hedge funds became apparent only when those who bet massively against the housing market—”The… Read More
-
Where There’s a Will… or When There Isn’t…
By: Thad Ismart, CFP ® – Financial Planner What do Picasso, Abraham Lincoln, Martin Luther King Jr., and Howard Hughes have in common? They all passed away intestate—that is, they passed away without a Will. If you have not created a… Read More
-
Tax Inversions on the Rise
Corporate transactions with the purpose – at least in part – to lower U.S. corporate taxes have been on the rise. The latest announcement came on June 15, as Medtronic Inc. announced plans to acquire Covidien, PLC. Under the deal’s… Read More
-
The Changing Oil Markets
Historically, when it comes to generating long-term gains, refining has been one of the energy sector’s least profitable industries for investors. At its most basic level, refining involves boiling crude oil in order to produce petroleum products such as gasoline,… Read More
-
Jobs Return to Peak Level, But…
While this week’s report shows continued improvement in the job’s data, the types of jobs that people are securing is changing. In May, the U.S. finally recovered all the jobs that were lost since the recession that commenced in late… Read More
-
Impact of Millennials on the Housing Recovery
The combination of a sluggish economy and its related impact on individuals is hurting the housing market. The ability of individuals, particularly millennials, to buy homes has been limited by such factors as lack of earnings, less-than-perfect credit and over… Read More
-
The Challenges of Reigning in Executive Compensation
The gap between what CEOs earn and what average employees take home has expanded significantly over the last several decades. Changes that would place some limitations on executive compensation would be welcome by most. However, implementing such changes may be… Read More
-
Market Changes Beneath the Surface
If one only looks at the overall year-to-date change in the S&P 500 Index (+1.2%), he or she might think there has not been much change to the broader market landscape. However, by digging deeper, one will note changes in… Read More
-
Sell in May and Go Away – NO WAY!
A well-known trading adage warns investors to “Sell in May and Go Away.” In other words, sell their stock holdings in May and reenter the equity market in November. This strategy allows the investor to avoid the typically volatile May-October… Read More
-
Steady as she Goes
Last week was a busy week in terms of economic data releases, which collectively suggest that in spite of a difficult first quarter, economic growth is continuing at a moderate pace. The initial estimate for Q1 of 2014 US GDP… Read More
-
Financial Engineering and Share Repurchases
In investing, financial engineering refers to using mathematical principles to present a higher level of earnings. In the current low-growth environment, share repurchase is one of the most common financial engineering strategies employed by firms. The stock market continues to… Read More
-
When Will Companies Start Investing Their Cash?
Investment in new facilities and equipment during this economic recovery has been well below the historical average. The French bank Société Générale noted in a recent report that today’s capital stock is older than at any point since 1964. Among… Read More
-
Market Rotation
After closing lower on Friday, the S&P 500 is now down year-to-date by a little less than 1%. Despite the decline, the index is only about 4% below the all-time highs it reached in March. While the fall has not… Read More
-
Charitable Giving Accounts Make Giving Easy
By: Debbie Daskaloff | Development Officer, Community Foundation of Howard County Baltimore-Washington Financial Advisors is pleased to partner with the Community Foundation of Howard County to offer our clients the ability to participate in donor-Advised Funds. The Community Foundation of Howard… Read More
-
Watch out for Financial Shenanigans
In any market environment, it is important to understand the risks and the potential downside associated with a particular security. When the market moves higher for a sustained period, such risks increase. Under these conditions, it is more important than… Read More
-
What’s Happening at BWFA
By: Meghan Manas | Office Manager Our Family Continues to Grow At BWFA, we strive to provide the best possible customer service for our clients. with that goal in mind, and to keep up with the needs of our growing… Read More
-
Tax Season Ends and Tax Planning Begins
Most tax professionals breathe a sigh of relief after tax returns are filed and tax season ends. Many seasoned tax professionals see April 16 as an opportunity to take an industry-sanctioned holiday and recharge their batteries at the tropical venue of… Read More
-
Strategic Fit in Mergers & Acquisitions
A strategic fit is defined as “a situation that occurs when a specific project, target company, or product is seen as appropriate with respect to an organization’s overall objectives.” Most executives seeking to expand their company through a merger or… Read More
-
Market Timing is a Losing Bet
By: Rob Williams | CFP ®, MSF – Chief Investment Officer Market timers believe they can earn superior investment returns by identifying the best time to buy and sell stocks based on their analysis of economic and market indicators. Market timers… Read More
-
Long-Term Investment Themes
By: Philip Weiss | CFA , CPA – Chief Investment Analyst When selecting stocks for client portfolios, we seek securities that we believe have the potential to generate total annual returns of at least 10 percent to 15 percent over a… Read More
-
Investing For Young Individuals & Families
By: Joe Caputo | Chief Information Officer and Associate Portfolio Manager Investing at an early age is now more important than ever. With pensions becoming a thing of the past and uncertainty surrounding the future of Social Security, self-funding your… Read More
-
Finding Financial Opportunities Across Generations
By: Jim Edwards | CFP ® – Financial Advisor & Portfolio Manager We are at interesting generational crossroads these days between the well- to-do “baby boomers,” who have large investment accounts, and their children, who have lesser means and are sometimes… Read More
-
Financial Planning For All Ages
By: Thad Ismart | CFP ® – Financial Planner Whether you’re 21 and fresh out of college or 81 and deciding if it’s time to move to a retirement community, you should always have a working financial plan. Accomplishing long-term financial… Read More
-
President’s Address
Client Advisory Board By: Rob Carpenter I President & CEO Without feedback from our clients, it’s difficult to know whether we are living up to their expectations. That’s why, more than 15 years ago, we formed the Client Advisory Board—a small group of… Read More
-
The Role of Perception on Short-Term Market Performance
Last Wednesday was Janet Yellen’s first press conference as the Federal Reserve’s chairwoman. She commented on the “considerable period” language in the Fed’s monetary policy statement, which refers to the length of time between when the Fed will end Quantitative… Read More
-
Trapped Cash Continues to Grow
According to research by Bloomberg, the largest U.S.-based companies increased the amount of cash held offshore by $206 billion last year. This is cash kept in foreign countries to prevent U.S. taxation. As a result, these multinational companies have now… Read More
-
Outcome vs. Process
Most investors are focused on outcome rather than process. They judge success on whether or not the value of an investment increases. While we all want to see positive returns from our investments, following a consistent process offers the best… Read More
-
BWFA’s Chief Investment Analyst Quoted in Reuters Article
“Production has been down for a few years. It explains why this stock is a weak performer. They are spending a lot of money, but they are spending to tread water,” said Phil Weiss, chief investment analyst at Baltimore-Washington Financial… Read More
-
US Labor Market Trends – A Closer Look
The current economic recovery is often referred to as the jobless recovery. Although the unemployment rate has fallen from 10% to 6.6% over the last four years, the related data also shows that many Americans have stopped looking for work… Read More
-
Weather and Economic Data
The harsh weather we have been experiencing this winter has in many cases tempered the rosier view of the economy that most had as we entered 2014. It seems the debate among market economists is what impact this winter’s lousy… Read More
-
Recency Bias
At its core, fundamental-based investing is an intellectual exercise. It involves performing research and analyzing financial and environmental data about companies and the industries in which they participate. But, we are only human, and there are many behavioral biases that… Read More
-
Jobs Growth Falls Short Again
On Friday, the Labor Department reported that U.S. payrolls rose a seasonally adjusted 113,000 in January, falling well short of expectations. January also marked the second consecutive disappointing jobs report – only 75,000 jobs were added in December. This data… Read More
-
Reflections on January’s Market Weakness
After delivering robust returns in 2013, stocks are off to a much rockier start in 2014. Friday’s decline capped the biggest monthly selloff in stocks in more than a year. The Dow dropped 149.76 points (0.9%) and closed at its… Read More
-
The Rise of Shareholder Activism
Over the last two years, shareholder activism has been on the rise. This is not unexpected as the market has delivered strong gains. On average, activists are good for current shareholders as their involvement usually leads to a higher share… Read More
-
“Preparing Today to Sell a Business”
Recently, Brian MacMillan, BWFA’s Managing Director of Mergers & Acquisitions, published an article for SmartCEO. Brian is known as one of SmartCEO’s Thought Leaders. He presented the BWFA process of helping business owners sell their small- to medium-sized business. You can… Read More
-
Will Profit Margins Continue to Move Higher?
Will corporate profit margins continue to set new highs, will they remain above long-term averages, will they revert to the long-term norm, or will they fall even lower? For some time, experts covering the markets and the economy have been… Read More
-
Weak Jobs Report May Cloud Fed’s View
December’s job report, which was released on Friday, fell well short of expectations. Businesses added only 74,000 jobs during the month, well short of expectations of nearly 200,000. The weak result was far short of many other reports about job… Read More
-
Thoughts about 2014
In 2013, it was a great year to be invested in stocks. The S&P 500 surged more than 30%, closing at 1,848.36, representing the index’s best year since 1997. These robust gains were achieved in a year where earnings rose… Read More
-
Employee Announcements
At BWFA we strive to provide the best possible customer service for our clients. With that goal in mind, and to keep up with the needs of our growing client base, BWFA is pleased to welcome our two newest staff… Read More
-
What is Happening at BWFA?
By: Meghan Manas The Green Spring Tennis & Educational Foundation The Green Spring Tennis & Educational Foundation helps promote the development and growth of tennis for adults and youth in the local community. BWFA was a premier sponsor for their TennisFest… Read More
-
BWFA and Social Media
By: Joe Caputo Our world is now almost entirely a digital reality. Facebook has led the way with its 1.1 billion users. YouTube has over a billion users. LinkedIn and Twitter each have well over 200 million users and are still… Read More
-
Employee Spotlight : Susan Kelley
Sue Kelley is already scheduling appointments for the 2013* filing season. If you haven’t scheduled your annual meeting with your BWFAtax advisor, or if you’re new to BWFA’s tax services, she’d love to hear from you to set upan appointment!… Read More
-
Delayed Start to the 2014 Tax Season Blamed on October’s Government Closure
By: Sharolyn Hockey It’s dejà vu all over again! Last year it was the late-hitting American Taxpayer Relief Act of 2012 tax law changes, and this time it’s the shutdown, but once again the Internal Revenue Service won’t be ready… Read More
-
Tax Law Changes in 2013 from the Affordable Healthcare Act
By: Sharolyn Hockey The Patient Privacy and Affordable Care Act (also known as the “ACA” or “Obamacare”) dominated the headlines before and after its rollout. What many Americans still don’t realize is that the ACA included way more in its… Read More
-
Mergers and Acquisitions: The BWFA Advantage
By : Brian MacMillan If you ask a business owner how much he’d like to get for the sale of his business, the answer inevitably is, “As much as possible!” While this might seem to be the obvious answer, getting… Read More
-
Three Reasons Individual Investors are Coming to BWFA
By: Chris Kelly With the seemingly infinite amount of information available at the fingertips of individual investors – from financial websites, to mobile investment apps, to investment do-it-yourself media personalities (and the list goes on and on) – some investors… Read More
-
Importance of Dividends
By: Philip Weiss It’s well-known that dividend-paying stocks can be an important part of retiree portfolios. These stocks can provide cash flow for income needs while giving retirees the opportunity to hold investments that will grow in value. But dividends… Read More
-
Financial Resolutions for 2014
By: Thad Ismart At the beginning of every year, many of us make resolutions to become healthier and to have a more active lifestyle. However, often very little time is given to address our financial lives. Financial goals can be… Read More
-
Pushing the Limits of Simplicity
By: Mark Stinson …we all think we’re above-average investors, just like we all think we’re above-average drivers… -Jack Bogle Author and financial advisor Carl Richards spoke at the National Association of Personal Financial Advisors (NAPFA) East Conference in Philadelphia in… Read More
-
Registered Investment Advisors and Brokers: What is the Difference?
By: Rob Carpenter Fiduciary Vs. Suitability There are two primary groups that offer investment advice and services to clients – investment advisors, such as BWFA, and investment brokers who generally work for broker-dealers. The key distinction between these two groups… Read More
-
Cautious Optimism Going Into 2014
As 2013 comes to a close, the S&P 500 is trading near its all-time highs amidst a five-year rally. The economic backdrop heading into the New Year is constructive enough for cautious optimism. Economic trends continue to suggest modest improvements… Read More
-
At Long Last, Tapering Is Underway
Wednesday, the Fed announced that it would start tapering its asset purchases. Initially, the stock market fell on the news of the $10 billion tapering; however, it quickly reversed course and the DOW and S&P 500 both closed at all-time… Read More
-
Signs of Change in Washington?
Last week, there were some signs of at least a temporary reprieve to the political gridlock in Washington, as the House passed a Budget agreement. One can only hope this is a sign of some changes to the political landscape,… Read More
-
Upside Surprise to Job Growth
On Friday, it was reported that non-farm payrolls increased by 203,000 in November, ahead of expectations that 185,000 jobs would be added. The unemployment rate fell to 7.0%, its lowest level since November 2008. The November result was roughly in-line… Read More
-
Holiday Shopping Season Is Underway
Black Friday, or the day after Thanksgiving, marks the official start of the holiday shopping season. This year, the holiday season is atypically brief; in fact, it’s six days shorter than last year. In addition, Chanukah started much earlier than… Read More
-
The Many Faces of Risk
There are many different types of risk involved in the portfolio management process. From an overall perspective, we must always take into account the risk of loss. Seth Klarman, who has one of the investment industry’s most enviable track records,… Read More
-
Optimal Control
Earlier this week, the Senate held confirmation hearings for Janet Yellen who is set to take over as chairman of the Federal Reserve when Ben Bernanke’s term expires in January. While we do not anticipate major policy shifts under Yellen’s… Read More
-
Good news for the economy is bad news for stocks. What’s up?
Last Thursday U.S. stocks had their worst day in two months, when the Commerce Department released data showing U.S. GDP grew 2.8% in the third quarter, which was much stronger than expected. The next day the BLS released its closely… Read More
-
Investing for Young Individuals & Families
Investing at an early age is now more important than ever. With pensions becoming a thing of the past and uncertainty surrounding the future of Social Security income, self-funding our own retirement plans is essential. With the right investment plan,… Read More
-
The Changing Face of Technology
Trends in technology spending have been undergoing many changes. According to data from Gartner, Inc., worldwide shipments of devices (PCs, tablets and mobile phones) are forecast to reach 2.32 billion units this year, up 4.5% from 2012. But the growth… Read More
-
Financial Planning for Business Owners
For many business owners, their personal life and business life are practically inseparable. That is why it’s important to integrate all the aspects of owning a business in developing a personal financial plan. To deliver the combined expertise that a… Read More
-
Want to Adopt? Plan ahead with BWFA
Adopting our daughter was the biggest decision Eric and I made; not only that, it was an expensive decision that could have affected our finances in the future if we had not planned properly. In January 2011 the U.S. Department… Read More
-
BWFA Employee Spotlight: Phil Weiss
Employee Q & A with: Phil Weiss, CFA, CPA Chief Investment Analyst Hire Date: June 3, 2013 Tell us a bit about yourself. Where did you grow up? I grew up in Livingston, NJ. My family (I also have a… Read More
-
Preparing Today to Sell a Small Business
By Brian MacMillan (bmacmillan@bwfa.com; (410) 461-3900) Most business owners are so focused on running and growing their business that they have not planned for the eventual sale or transition of that business. Yet, most of their wealth is tied up… Read More
-
Tax Hot Topics for Year End
It’s hard to believe the end of the year is almost here! As we enter the fourth quarter, it’s time for taxpayers to get organized and plan for their 2013 tax returns and recordkeeping needs. Here are some important issues… Read More
-
President’s Address : Enhancing the Client Experience
As we look to the fourth quarter of 2013 and into 2014, I want highlight the progress that we’ve made in this past year to enhance every aspect of the services we deliver. We’re proud of the relationships we have… Read More
-
BWFA Investment Framework
At BWFA, our overall investing approach is centered on identifying stocks that can be part of diversified portfolios that are appropriate for the models we have developed to invest clients’ assets. While we tend to favor industries with above-average growth… Read More
-
Foreign Investing in the Strong Dollar Era
Through July of this year, the U.S. equity markets have posted returns of approximately 20%. This strong performance has led some clients to ask why we bother to diversify their portfolios, since this diversification into foreign assets (equities or bonds)… Read More
-
Changing Growth Patterns
On August 6, it was reported that the U.S. external trade deficit fell to a near four-year low of $34.2 billion in June from May’s $44.1 billion and the consensus forecast of $43.5 billion. Originally, this unexpected result was thought… Read More
-
The BWFA Family
What’s Happening at BWFA: Segway Team-Building Event By: Meghan Manas The Staff recently spent a day bonding and enjoying the sights of DC. As you can see from the photos below, a wonderful day was had by everyone! Our BWFA Team was challenged… Read More
-
Ensuring Data Protection In the Cloud
By: Joe Caputo One of the biggest issues facing us today is the storage and safety of our personal information, whether it is on our home computers, mobile devices, or in the “cloud.” At BWFA, we have investigated these topics… Read More
-
Small-Business Services: Understanding Business Valuations
By Joseph Hill, Jr. | MBA | MSF Recognizing that many of our clients are entrepreneurs, BWFA last year added a division to support small businesses. Business valuations are one of the most important services that this division provides. A… Read More
-
Employee Spotlight: Investment Operations Manager Tanya Blakely
Q: What do you do on a typical day? A: What I do on a typical day is always different, depending on what we currently have going on in the office, or depending on what time of the quarter it is…. Read More
-
What Every Taxpayer Should Know About Identity Theft
Think your identity is safe from hackers? Think again, especially if you live in South Carolina. A hacker struck the South Carolina Department of Revenue in October of 2012, stealing 3.6 million Social Security numbers and data from 387,000 credit and… Read More
-
Why the U.S. Still May Be the Best Place to Invest Your Money
As U.S. stocks hit record highs in the first half of 2013, some commentators raised concern that our markets are entering another “bubble.” However, when BWFA’s investment team examined the state of the U.S. economy and the condition of our… Read More
-
Investing in a 401(k) World
If you are self-motivated, wow, this world is tailored for you. The boundaries are all gone. But, if you are not self-motivated, this world will be a challenge because the walls, ceilings and floors that protected people are also disappearing…. Read More
-
Variable Annuities: A Closer Look
At some point, you have probably heard a broker or an insurance agent ask that question to you: “How would you like to invest in the stock market, protect yourself from a market downturn, have a guaranteed annual return,… Read More
-
The 10 Myths About Retirement
Myth #1: You will not spend as much money during retirement as you spend now. The general rule of thumb is that you will need approximately 70% of your pre-retirement income in order to maintain a lifestyle similar to that… Read More
-
At the conclusion of this past week’s Federal Open Market Committee Meeting
At the conclusion of this past week’s Federal Open Market Committee Meeting (the branch of the Federal Reserve Board that determines the direction of monetary policy) Federal Reserve Chairman Ben Bernanke confirmed that the Fed may begin to taper off… Read More
-
BWFA Family Continues to Grow
As BWFA continues to grow, we continue to add new employees. We are excited to welcome the following individuals to our family: Thad Ismart, CFP® Financial Planner – Thad has been working in the financial planning industry since 2005. He is… Read More
-
BWFA Now Offers Tailored Services for Business Owners
BWFA has added a new department that we are calling Business Services. I’m proud to have joined the BWFA team to deliver a comprehensive approach for selling and buying small- and mid-sized privately held businesses. The idea for offering business… Read More
-
To File or Not to File: That is the Question for April 15th
On January 2nd, Congress passed the American Taxpayer Relief Act of 2012, narrowly avoiding the fiscal cliff. The IRS delayed the start of tax season and scrambled to play catch up to the late-hitting changes. Because of the delay, many… Read More
-
Making Sure the Right REITs Are in Your Portfolio
A real estate investment trust, or REIT, is a security that trades like a stock on the major exchanges and invests in real estate directly. Typical REITs might include a group of apartment buildings, hotels, commercial real estate, or timber… Read More
-
The Family Summit
Though one of America’s wealthiest men, Joseph Kennedy often lectured his family about their extravagance. One evening at dinner, having received a new batch of bills, the senior Kennedy unleashed a barrage of criticism, causing Ethel (Bobby Kennedy’s wife) to flee from… Read More
-
Enhancing the Client Experience
BWFA has occupied our current office space for nine years. As our client base has grown, the traffic in and out of our meeting rooms has increased substantially, and scheduling of those meetings has occasionally been a challenge. Recently, we… Read More
-
Are the Days of Easy Money and Low Interest Rates Over?
That’s the question many nervous investors are contemplating after the Federal Reserve hinted two weeks ago that it might end its quantitative easing (QE) policy sooner than analysts anticipated. Currently in its third round of QE since 2008, the Fed… Read More