CI CIS Archive - 2013

January 26, 2013
Subject: Value Investing In the New Year
Speaker: Ingrid R. Hendershott, CFA

Ms. Hendershott will discuss her investment philosophy and investment criteria in seeking high-quality companies at reasonable valuations to own for the long term. She will highlight and discuss specific stocks that she believes represent the best values for the New Year.

Ingrid R. Hendershot is founder and president of Hendershot Investments, Inc., an investment management firm established in 1994. She also is the editor of Hendershot Investments, a quarterly investment newsletter designed for long term investors seeking to invest in high quality companies at reasonable valuations. Prior to starting her own firm, she served as Senior Vice President of The Charles Allmon Trust, a closed-end fund listed on the NYSE, and for 10years, was an investment analyst for Growth Stock Outlook, Inc, the Trust's Investment advisor.

She has been quoted in Barron's, The Washingtonian, Bloomberg Personal Finance, Better Investing, Dick Davis Digest and several other investor publications. She has been a guest on business radio shows in Washington and Baltimore and has guest lectured at American University and Georgetown University.

Mrs. Hendershot graduated from Pennsylvania State University earning a B.S. in Accounting with Highest Distinction honors and also holds an MBA in Finance and Investments from George Washington University. She has earned the Certified Public Accountant(CPA) and the Chartered Financial Analyst(CFA) designations. Mrs. Hendershot is a member of the American Institute of Certified Public Accountants, the CFA Institute and the CFA Institute of Washington DC (serving as past President and Director). As a member of the CFA Institute of Washington DC, she helped to found the Eduction Outreach program. As part of this volunteer program, she taught for a decade investment basics to high school, middle school and alternative school students with the CFA Institute providing scholarships to deserving students. She also has volunteered as a tutor with the Literacy Council of Northern Virginia. You can check out past issues of her newsletter at her website - click on Newsletters on the menu on the right.

February 23, 2013
Subject: "New Economic Era"
Speaker: Dawn Bennett
Topics covered in this presentation were:
  • The debasement & devaluation of our currency
  • The monetization of our national debt
  • Why we see the movement of money from West to East
  • Where's the growth going to come from and why
  • What factors contribute(d) to our present situation
  • Volatility - good or bad? How to handle it?

Dawn brought her 25+ years of investment and wealth management expertise to illuminate the global financial markets. Dawn has extensive knowledge of investing and global markets through running her own investment management firm in the Washington, DC area. She holds the coveted Certified Investment Management Analyst (CIMA) designation and is widely sought out for her unique perspective relating to global markets.

The insight into market trends demonstrated by Bennett Group Financial Services has made the group a staple in the media with regular appearances on Fox News Channel, CNBC, Bloomberg TV, and MSNBC as well as being featured in Business Week, Fortune, The NY Times, The NY Sun, Washington Business Journal and others. See more of her bio, awards and appearances on
the Bennett Group website under "About" - Dawn's Profile.

Tune in to "Financial Myth Busting" on WMAL, Sunday, 11:00 a.m. or "Listen Live"

March 23, 2013
Subject: Financial Planning
Speaker: Herbert G. Hopwood, CFP, CFA, President: Hopwood Financial Services

Herbert G. Hopwood III is the President of Hopwood Financial Services, Inc. He has been in the financial services industry since he graduated from the University of Notre Dame in 1981 and has the designations Certified Financial Planner (CFP) and Chartered Financial Analyst (CFA). He has been named in Washingtonian magazine and the Washington Business Journal as one of the top fee-only investment management and financial planners in the Washington metropolitan area.

In this lecture, Herb discussed the following:
  • Developing a customized financial plan and setting goals: Developing a plan that fits your situation is the most important step to long term success
  • Incorporating your plan into an investment strategy: Once you have set your goals, developing an investment strategy
  • Portfolio construction: Herb's approach to actually constructing a portfolio with real life examples
  • Specific investment ideas: A discussion of specific stocks, mutual funds, bonds and alternative investments
  • Implementation of the portfolio: A plan without implementation is worthless
  • Monitoring your investments: How to monitor your portfolio utilizing proper benchmarks and time frame
  • Assessment: Determining when is it appropriate to change your strategy and investments

Hopwood Financial Services, Inc. is a fee-only investment management and financial planning firm headquartered in Great Falls, VA. The firm was founded in 2003 and currently has 5 employees with a combined experience level of over 75 years. They have two parts of their practice: fee-only investment management (they have approximately 150 clients throughout the country and manage in excess of $200,000,000) and fee-only financial planning.

Herb's website: www.hopwoodfinancial.com

April 27, 2013
Subject: Taxes
Speaker: Alan L. Gordon, CPA, P.A.

Alan discussed the following:

  • Highlight of the American Taxpayer Relief Act of 2012 (Fiscal Cliff Legislation)
  • Review of Schedule D and Form 8949
  • Health Care Reform (ObamaCare)
  • Estate Tax and Estate Tax Planning

Alan L. Gordon, CPA was born in Washington, DC and raised in District Heights, Maryland. He attended Suitland High School and is a graduate of Frostburg State University, both located in Maryland.

Alan became a Certified Public Accountant in 1979. Beginning in 1978, Alan worked with some small and medium sized accounting firms in the Washington, DC metropolitan area and in Waterloo, Iowa. He founded Alan L. Gordon, CPA, P. A. in Rockville, Maryland in 1995.

Alan is a member of the American Institute of CPA's (AICPA), the Maryland Association of CPA's (MACPA), the Greater Washington Society of CPA's (GWSCPA), and the Association of Practicing CPA's (APCPA). He has been a guest of financial planner Ric Edelman on "The Ric Edelman Show" on WMAL-AM 630 to discuss income tax matters.

Having served as the financial officer of religious and charitable organizations as well as being a past president of the Frostburg State University Alumni Association, Alan is presently the treasurer of Our House, a not for profit vocational training center for teens at risk. Alan presently resides in Olney, Maryland with his wife and children.

Alan's website:www.algcpa.com

May 25, 2013
Subject: Using Asset Allocation to Build a Core Portfolio
Speaker: Ty Hughes, President, DC Regional Chapter, BetterInvesting;
            Lifetime Member, AAII; Investor for more than 40yrs.

Our own Ty Hughes plan discussed how to build a core portfolio using assetallocation. He reviewed the academic research that shows why asset allocationworks and why it provides superior results over the long term. He walkedthrough -- step-by-step -- how to combine various equity and fixed income assetclasses to increase portfolio return, reduce risk, and lower cost. He explainedwhich index funds and ETFs to use and which to avoid. Finally, he provided some spreadsheets that can be used to build, monitor, and re-balance yourportfolio and to back-test different asset allocations.

Ty maintains the Model Investment Club web site and you can see some of hisresearch and analysis by visiting that site. Explore the menu's on the rightside to see more of the Model Club or Ty's research.

June 2013
No Meeting this month
July 27, 2013
Speaker: James Katz
Subject: A Basic Guide to Behavioral Economics: Lessons from the "Science of Irrationality" to Better Understand the Behavior of Markets and Investors
Location: Dolly Madison Library, McLean, VA

Economists have traditionally assumed that people and markets are rational. This conventional view presumes that investors are cool-headed decision-makers who always act in their best self-interest, that they make informed decisions based on accurate calculations of the values of what they buy and sell to maximize their profits and optimize their satisfaction with the outcomes. But the greater incidence and severity of bubbles and crashes over the past several years, culminating in the Great Recession, has led more and more observers of the markets to question their rationality.

Behavioral Economics is a relatively new and growing field that challenges the conventional economic view of investing as inherently rational. By examining economic behavior through the lenses of cognitive and social psychology, behavioral economists have found that people tend to naturally make analytical mistakes that are systematic and predictable. Simply because of the way the human brain is wired, people can be susceptible to irrelevant influences from the environment, emotional factors, biases, and common errors in judgment that interfere with their abilities to make good investing decisions.

The good news is that by becoming aware of these influences and understanding these irrational tendencies, investors can learn to recognize them and minimize their impact, and possibly even make use of them in some instances to become more successful. Also, unlike many of the approaches to the psychology of investing currently available, Behavioral Economics provides a more practical perspective for the development of personal strategies and methods to make better investing decisions based on empirical research.

In this presentation, James Katz will explore some of the cognitive and social influences that we all, as investors, have to contend with in making investing decisions. He'll examine common thinking and perceptual errors as well as biases we are all prone to have, and ways to overcome them. James is uniquely qualified to give this presentation, having worked as a psychotherapist, behavior management specialist, organizational psychology consultant and trainer over the course of nearly 40 years. He has a B.A. in general psychology from Yale University, an M.A. in clinical psychology from the State University of New York/Buffalo, and has done post-graduate work in psychology at the University of Maryland, and, most recently, in Behavioral Economics with Dan Ariely of Duke University. In addition, having started investing more than 25 years ago, and having become an active member of the CISIG, as well as the Maryland Investment SIG, Society of Market Technicians, and other investing education groups in the greater DC metropolitan area, James has become well aware of the particular issues of psychology and decision-making processes in investing.

August 2013
No Meeting This Month
September 28, 2013
Speaker: Ali Pashaei
Subject: A Practical Option Strategy for the Retail Trader & Investor
Location: Tysons-Pimmit Regional Library, Falls Church , VA, McLean, VA

Ali Pashaei is a local private investor and options trader who has been trading & investing using equity options for over a decade - managing both his own and family's investment accounts. Ali has extensive experience in options training, serving as an assistance coach to Charles Cottle (The "Ri$kDoctor"), a former CBOE market maker & co-founder of ThinkorSwim. Ali also provides a personalized options mentoring program for individuals seeking more intensive options education; and, is an organizer of the local "Cybermoney" options club.

Noting the many challenges individuals have in using options as an investment tool, during this presentation Ali will describe how to implement a powerful and practical options strategy that has been a consistent source of solid returns for his accounts for a number of years.

This strategy highlights two core advantages in using options over equities:

  1. Ability to define and limit risk
  2. Using option time premium decay to your benefit
When combined with a trend-following model, this strategy has historically produced solid and consistent results.
October 26, 2013
Speaker: Greg Lee
Subject: Using Fidelity Investments Tools
Speaker: Greg Lee
Subject: Using Fidelity Investments Tools

The speaker, via webinar format, was Greg Lee, a Regional Brokerage Consultant for Fidelity Investments. Greg has been with Fidelity for several years and is well acquainted with both the Fidelity website in general, and Active Trader Pro in particular. Greg will be demonstrating the use of the site for both equity research and the use of the Active Trader Pro's execution and analysis tools.

November 23, 2013
Speaker: Mel Dickover
Subject: Why the Market Moves the Way It Does

The presentation described theories of the underlying causes of the way the market moves, and pointed out those trading edges that have and will continue to endure over time because they depend upon the underlying causes of the moves. In the course of the presentation, Mel provided his opinion on answers to the following questions:

  • What causes sector rotation?
  • What causes trends to begin and end?
  • Why do some stocks trend and not others?
  • Do fundamentals really affect price? How?
  • Why do stocks rise more slowly than they fall?
  • Why do some breakouts fail? How can failure be predicted?
  • What causes cycles in prices?
  • Why are markets not efficient?
  • What role does crowd emotion play?
  • Why intuition and expertise can't be depended upon in investing, and why you do not believe it.
  • What is the main advantage of technical analysis?
  • Are the markets manipulated, and if so, how?

Mel Dickover is a retired system designer and builder. He holds a Masters Degree in Physics from Trinity College.

December 2013
No Meeting This Month