Welcome to the first edition of Markets Demystified by Aesop Advisor, where we talk about how investing fits into money management for individuals and households. Investing versus trading, short-term versus long-term, speculation versus diversification — these are ideas we will explore and relate to personal finance. In this first edition, we thought it might be fun to talk about why we chose Aesop as the name for our firm.

Who Was Aesop
Aesop was the perhaps legendary ancient Greek author of Aesop’s Fables. We chose the name Aesop because principles found in the fables, such as “The Tortoise and the Hare,” vividly reflect our approach to investing. Well-known investor Warren Buffett has used the Aesop fable, “The Nightingale and the Hawk”, to describe his investment style. Buffett said the hawk in the fable illustrates his approach of investing in established companies with longer-term track records instead of newer companies whose long-term prospects may or may not materialize.

Be the Tortoise
Many may remember the story of the slow and steady tortoise whose steadfast persistence allowed him to win a race against a speedy hare. This fable is a great metaphor for how long-term, diversified investing can be the best option for most individuals and households. A less-diversified, more short-term and active approach may be appropriate for some investors and firms, though it may not be the best option for the average investor. The tortoise’s approach of pacing himself and staying consistent may serve investors well while building wealth over time.

No Buffett Flix...
Holding on to investments over many years, with a portfolio diversified across the broad stock market, may seem a lot less exciting than trying to pick a few winners to sell right away for a quick profit. That might be part of why, despite being perhaps the world’s most well-known investor, there is no movie (besides documentaries) about Warren Buffett. In Markets Demystified, we will explore how the portrayal of finance professionals in popular culture may influence people’s perceptions of the field. We will also explore topics such as day trading, what moves stock prices, and how regulations are meant to protect investors. We hope you will find Markets Demystified interesting and informative!

May 19, 2021

Markets Demystified is published the first and second Wednesdays of each month,
and is meant to help readers understand how stock market investing relates to household and personal finance.

Thanks for Reading!

Jonathon Oden
Owner | Aesop Advisor LLC

Aesop Advisor LLC newsletters are for informational purposes only. They do not attempt to predict future stock market moves and are not intended as individual investment advice. Aesop newsletters are not recommendations to buy, sell or hold any asset and are not intended as actionable investment advice or market timing. Equities references generally refer to the overall stock market, though if individual companies are mentioned, it is not a recommendation to buy, sell, or hold shares of the company. Unless otherwise indicated, terms including "stocks", the "stock market", and "market(s)" refer to Standard & Poor's 500 index. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. While diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and customers may lose money, including their original investment.