February 22, 2007
Snider Method "Joint Task Force" Update
The following are the minutes of the first meeting of the "Joint Task Force" formed at the SIM Open Space to work on rigorously tested improvements to the Snider Investment Method™. The task force is comprised of Snider alumni as well as KSFC and Chronim staff. Thanks to James B. for running point and producing the minutes.
Meeting Minutes 02/15/07
Attendees: James, Jesse, John C., Tom, Kim, Ron, Kevin
Agenda topics information:
- Volunteer information: I have now heard from all of the folks from the open space meeting as well as the 2 folks that were unable to make it. With John Cooley and Kevin Konecney joining since I sent out the spreadsheet, the current volunteer count is at 13.
- Open space meeting minutes: I sent out the specifics of our meeting minutes. Kim has let us know that the meeting minutes from all of the sessions will be made available via the Snider Insider in a summarized format.
- Yahoo Group
discussion. I opened the topic up for discussion. We had some folks
comment on the positives of a yahoo group:
- A common place for documents
- Allows for ‘timeshifting’ – meaning I can work on something when I have availability, and then post it, then someone else can work on it when they have time.
- You can set it up to keep you ‘up to date’ in batch mode – rather then getting bombarded with notifications at every posting.
- Allows for a moderator to restrict/grand access
- Etc…
- Decision at this time – Not Yet. If / when things get too complex for direct email communications then I/we will set one up as necessary.
- Survey of Skills. One recommendation made by a volunteer was to take a survey of skills to we know what expertise (give or take) that we have within this group. The call attendees thought it was a good idea, so I will follow up with an email asking for folks to give HIGH LEVEL skills they posses.
- Kim – explain “tackle
the issue of stock selection criteria”. Kim explained that it is an area
that she and Jim have discussed a lot since the open space meeting. Jim’s
recommendation is that this team takes a hard look at all factors that
could be considered to be used as additional stock selection criteria, and
compare past results from the Chronim accounts to determine if there may
be some criteria that could be indicative of a forthcoming ‘Dog’. We
discussed at length why this might be a beneficial area for this team to
start working in. The primary reasons being:
- It is something that folks are passionate about changing – as shown by the multiple discussions of Dogs and Winters at the open space.
- It is an area where there may be some ‘lower hanging fruit’ might be available to add criteria to the stock selection criteria.
- It is something that this team could sink its teeth into, and possible come out with a win (suggestion) to give this group legs (to keep running).
- It is an area where this team may be able to interact with other alumni and use their feedback and/or provide them feedback.
- Discussion
regarding historical data: Primarily Jesse and Clayce are looking into the
options available for historical data (Morning Star, Value Line, the
Chicago datasources, etc). Some recommendations made: Make sure it has
data available that was available ‘at the time’ – meaning:
- Before adjustments for Splits. (may run into $25 minimum price rule)
- Before Restatements have been applied. (best case scenario, have both)
- Updatable – keeping it up to date, as well as growing with new info at time passes
- No one has seen a source with both Stock and Option pricing history – would have to be separate.
- Tom shared with us
a high level description of his model. He has tried to (and successfully)
reproduce historically any stock beginning in any month back to Jan 2000.
He has been attempting to put the decisions demonstrated in the Method
Book into code. He has been gathering historical data from several sources
and has backtested his own transactions (he has 6 months worth) as well as
other positions that have gone into winter that others have shared with
him. It is not a complete and comprehensive model. There is much to add to
get the whole process in the model. (for example it doesn’t include
assigned cash to other positions and stake calculations etc…) Tom (and
others) shared some modeling insights:
- Models can cause problems – you begin to believe what your model says
- Models can be good tools to perform some ‘what if’ analysis
- Models can be good to test what is ‘reasonable’
- Models can help give you insight
- There are different types of models: Empirical, Statistical, and Heuristic.
- Having historical (and correct historical) data is VERY important
- We then discussed
the problems with building a full blown model around the Snider Method:
- The method itself, and the options usage in the method has only been available for a short period of time (in comparison with stocks and stock pricing).
- Therefore, you cannot perform massive amounts of back testing (limited to really late 1990s or early 2000s).
- Also, therefore, you cannot historically model the method against varying economic trends (only those that have occurred over the last 6-8 years).
- Some metrics are not re-creatable based on pure historical data – like the overall ‘mood of the market’.
- At this point the
conversation moved to the discussion of What this team
could/should do, and how should/could we move forward. Several points came
out of this discussion:
- The approach of building – from day one – a completely comprehensive model to account for everything – would be TOO MUCH of an undertaking. It would take a great deal of time, and there would be little to show in terms of progress along the way.
- Instead, we discussed taking on smaller pieces at a time. Working towards smaller deliverables, and building momentum through delivering accomplishments.
- This led to the discussion of using the Stock Selection Criteria as an initial effort.
- We also discussed the benefits of breaking the tasks into pieces, and having small subgroups (or individuals) work on them to help accomplish the overall goal.
- We decided there
were a few activities that can all be worked on at once (in parallel), if
individuals or subgroups volunteer to take them on. The items discussed
were the following:
- Tom’s Model (TM): Tom is going to continue the work on his model
- Stock Selection
(SS): Prepare Data:
- Chronim needs to prepare their data for availability (meaning stripping out any customer identify information)
- Purchase the historical data
- SS: Identify the
‘Area of Focus’:
- Define the characteristics of the positions that this effort is trying to eliminate (What makes a position a ‘dog’? ‘undesirable’?)
- Tag positions as Desirable vs. Undesirable
- SS: Perform DB
activities:
- Define what database format will allow for the best flexibility
- Create the DB structure
- Determine the best way to load the data
- Format the existing (stripped) .xls files for import into DB
- Build DB structures to hold historical data
- Import the purchased data into DB (make it usable)
- General (G):
Other general activities
- Gather insight
from unofficial Snider Alumni Yahoo Group
- Catalog ideas for data points (factors) that are to be considered against ‘Undesirable’ vs. ‘Desirable’ positions.
- Catalog currently circulating ‘tweaks’ to the method for the potential of identifying another area to investigate.
- Gather insight
from Open Space meeting notes
- Catalog ideas for data points (factors) that are to be considered against ‘Undesirable’ vs. ‘Desirable’ positions.
- Catalog currently circulating ‘tweaks’ to the method for the potential of identifying another area to investigate.
- Gather insight
from unofficial Snider Alumni Yahoo Group
- SS: Perform
comparison activities:
- Identify the data points (factors) that are to be considered against ‘Undesirable’ vs. ‘Desirable’ positions. – Maybe driven by historical data provided
- Discover averages of the factors for Undesirables vs. Desirables
- Determine if significant differences exist
- Determine a cutoff point – compare Desirables and Undesirables that would be eliminated
- Finally – see if any recommendations emerge
- Finally, we decided
to end the call, I would write up these minutes, layout for everyone the
tasks identified, and see who would be willing to volunteer to work on the
tasks.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
October 15, 2006
Snider Financial Communications Makes Dallas 100
Snider Financial Communications Recognized as One of the Top 100 Fastest Growing Private Companies in Dallas/Fort Worth
Company's Growth Fueled By Boomers Demand for Financial Freedom
DALLAS, Oct. 4 /PRNewswire/ -- Snider Financial Communications has been honored as one of the fastest-growing, privately held companies in the Dallas/Fort Worth area. This is their first time as a recipient of the Dallas 100 Award (TM), given since 1990 by the Caruth Institute for Entrepreneurship at SMU's Cox School of Business.
Kim Snider, Founder and President of Snider Financial Communications said, "More than anything else, this honor really highlights the growing need for retirement income solutions. There are 76 million baby boomers staring retirement in the face. They are nervous and looking for answers. The fact that we can provide those answers has been a key factor in our growth.
"Quite simply, boomers are demanding a larger and more reliable source of income in retirement than they can find in either stocks or bonds. I talk to concerned people every day, and we have found that pre-retirees say a guaranteed income during retirement is their number-one financial goal, but the vast majority have no idea how to convert their nest egg into a retirement paycheck," Snider continued.
Snider further said, "My primary goal, from the beginning, was to help people learn the investment lessons I had to learn the hard way. One day we sort of looked up and realized we had built a meaningful company around that very simple idea. I am so gratified that we can help people with a
pressing social and financial issue in a way that obviously makes sense to them."
About Kim Snider
Kim Snider is the Founder and President of Snider Financial Communications. Kim began developing the innovative Snider Investment Method(TM) for her own use in 1992 and has been teaching it to others since 1999.
Kim Snider is an author, writer, speaker and leading expert on investing and retirement income. She hosts a radio program on KRLD NewsRadio 1080 in Dallas/Fort Worth, discussing hot topics on investing and retirement. Kim's no-nonsense approach is changing the way people think about investing.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
May 05, 2006
Focus on Process
An incident yesterday reminded me of a conversation I had with my sister about a year ago. She had just started a new job and was excited about the first staff meeting they had.
There had been some kind of problem the week before. Each of the employees was stepping up and saying it was my fault, I should have known better, I'll get it right next time. My sister has worked at a number of companies where the conversation was more like it was your fault, you screwed up, etc. She was happy to finally work at a company where that didn't happen.
She was so excited I didn't have the heart to tell her the new company, while better than the others, still didn't get it. The worst kind of company blames others. The middle kind blames themselves. The best kind fixes the problem, so they don't have to fix the blame.
When you discover a problem or mistake, you want to have an honest discussion about how it happened. Then find a way to change your processes so it can't happen again. In my sister's situation, someone forgot to check some numbers on Friday and they went out wrong. Instead of everyone saying "That's my fault, I'll remember to check them next time", they should have recognized their process had a step where someone had to remember to do something on Friday. Bad process. They should have looked for ways to ensure those numbers got checked without someone having to remember (automated email reminder?). Or find out what the error was that kept creeping in that needed to be checked, and see if it could be eliminated. That way, the problem never occurs, and no one is to blame.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
April 25, 2006
Off the Shelf Software Packages
Years ago, when Chris and Clayce and I were at Daisytek, we had to do our first big software conversion - from stone-age software to something that could carry us to $1 billion in sales. In the end, we ended up buying an enterprise software package from JD Edwards. It didn't all fit, but what we did, was to use it as a starting point. Our programmers then modified, or added onto it, the pieces that didn't fit our business or weren't complete enough for our purpose. In the end, we had a pretty good software system that took the company a very long way.
As Lattco nears completion and we begin to plan for the Chronim Back Office, I think we have to at least consider doing the same thing. There are many practice management software packages out there - hundreds, if not thousands. Here is just one example:
Thomson (the makers of such well-known products as Thomson Advisor and Thomson CDA) has developed an integrated practice management platform called Thomson Elite Practice Manager. Thomson Elite is a complete package of practice management tools. From e-mail handling document location and client relationship management, Thomson Elite contains a comprehensive billing system and workflow activity and management features all in one location to make your practice more efficient. It even has a conflict checker search for potential conflicts of interest so the integrity of the firm's client relationships is never compromised.
No software package is going to fit us just right because what we do is so unique. But for sure, someone has already invented a number of pieces of the puzzle. We would just have to find an software vendor (most would fall in this category I am sure) that would allow us to modify their source code to fit our unique business.
Leave any thoughts, comments or suggestions below.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
April 24, 2006
New Product Idea?
If you look at the post just before this one, it talks about advisors working with baby boomers to educate their children. Here is a totally different slant on the same topic - is this a new product possibility? It would certainly be consistent with our brand and core competence.
Boomers across the country are hoping that advisors like Houser will teach their children how to take control and make wise decisions about money. Call it an exercise in “do as I say, not as I did.”
If boomers’ earning years have been marked by carefree, spendthrift ways and more interest in comparison shopping big-screen TVs or exotic vacations than in getting their 401(k) asset allocation right, they are now at least smart enough to want their kids to avoid the error of their ways.
How critical do boomers believe financial education is for their kids? A whopping 52% of boomers say they believe that “advice to help their children become more financially savvy” is the most important financial planning service a company can offer. That is the watershed finding of a January study of boomers sponsored by Ameriprise Financial Inc. In fact, boomers are so worried about their kids’ financial capabilities, their concerns often overshadowed “worries about their own retirement preparation,” the study of 2,000 adults found.
It’s clear that boomers want their kids to do a better job of saving than they’ve done, says Ken Dychwald, president of Age Wave, which conducted the new research jointly with Harris Interactive Inc. Whether it’s communicating the benefits of estate and multigenerational planning or just plain helping kids understand money, advisors across the country report that they are getting more requests from boomers’ interested in financial education for their kids than ever before.
Thoughts? Leave them in the comments. You can read the full text of the article here is you are interested.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
March 31, 2006
Feedback from B. Womble
I just received some great feedback on Chronim from one of our Asset Management clients this morning. Everyone deserves credit for the peace of mind our clients experience. Kudos! Staying on-brand will strengthen it.
"I just read Kim's newest email and I sort of got "emotional", because of the great peace of mind that you, and the company Chronim, gives me that I never never had before - ever!" B. Womble.
March 21, 2006
What is our culture?
What is our culture? What should it be? How do we operate in relation to one another? Some of you have already seen this in an email I sent. As I wrote it, I realized it wasn’t just good career advice, it is also what I would like to see as part of our culture:
1) Remember, you are the expert in certain areas. Know what they are. Take pride in that. Work to expand that expertise and don’t be afraid to assert yourself in those areas. If you don’t, who will? On the flipside, if you can’t figure out what you are an expert in (even if it is something that seems basic - like how to set up an account at optionsXpress), I would suggest you have a lot of work to do and you better get cracking. Your value to the company is measured in your ability to apply expertise to your work.
2) Ask for opinions or help in areas where you are not or you are unsure. Use others as sounding boards. We learn by sharing and listening to others.
3) Fess up when you mess up. Be accountable for your mistakes and learn from them.
4) Give liberal credit to others for their role in any success. If you are a leader of others and you want to inspire loyalty beyond belief , try this – shield your subordinates from blame, (take action privately if necessary), but give all the credit away. People will walk through fire for you.
They are simple and blindingly obvious but if you do these four things you will always be well regarded and probably more successful than not.
These are some of my thoughts? What are yours? Do you agree? Disagree? Can you give examples of someone within the organization that has demonstrated these characteristics? What else should be part of the culture? Post your comments below.
Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.
