Discipline Determines Destiny
Whether it’s in our personal lives, professional pursuits, or athletic achievements, one truth remains constant: discipline is the foundation of success. It is not the flashy moments or overnight wins, but the small, consistent actions taken over time that shape our outcomes. The same principle applies to financial well-being.
With constant headlines about tariffs, market volatility, and economic uncertainty, it is natural to feel concerned about the future. This is exactly when discipline matters most. I want to take a moment to recognize the strength, foresight, and resilience you and your CPC team have shown in preparing for times like these.
One of our core principles has been to avoid the temptation to chase what is popular in the moment. Instead, we have focused on maintaining a well-diversified investment strategy. This approach may not always seem exciting, but it requires a great deal of discipline. For example, we entered this year with a reduced exposure to the technology and communications sectors and maintained a meaningful allocation to bonds. That was a difficult decision in 2024 when technology stocks were soaring, and bonds were not delivering significant returns. As of today, that discipline is proving its value. As the technology sector faces headwinds, our portfolios are holding up well, and our bond positions are acting as a stabilizing force. Our international stock and bond allocations also reflect this disciplined mindset. Last year, it may have seemed like the S&P 500 was the only place to be. Still, we remained committed to a broader global strategy. That decision is now adding value, as international markets are currently outperforming domestic ones.
Even in the face of uncertainty, our team is continuing to take thoughtful, time-tested actions. We are actively rebalancing portfolios, often selling bonds and purchasing high-quality equities that currently seem undervalued. We are identifying strong companies trading at attractive prices. As Warren Buffett wisely said, “The market is a transfer of wealth from the impatient to the patient.” We intend to be on the right side of that transfer. We are also using this period to strategically realize certain losses, which can be carried forward and used to offset future gains. In some cases, these losses can even be applied to offset gains from real estate or business sales, depending on the structure. This kind of careful planning creates real, lasting benefits.
You have also demonstrated tremendous discipline during our partnership. You have saved diligently and made thoughtful sacrifices to build the wealth that we are entrusted to manage. You have embraced a long-term perspective. This is not easy! You understand that market corrections are not unusual, and you know your CPC team has built a clear and personalized plan for your future.
Take comfort in knowing that our partnership is built on discipline. That discipline will continue to guide us, and I am confident that it will shape a strong and bright future ahead. We are here for you every step of the way. Please do not hesitate to reach out with any questions.
