Reflections of a Long-Time Provident Employee
Most of you do not know me, but I have been behind the scenes at Provident for almost 25 years. Scott Horsburgh asked me to share my observations with clients following my retirement on June 30th.
When I joined Provident Investment Management in October of 1998, the company was Seger-Elvekrog, named after its founders. I interviewed with Ralph Seger, Maury Elvekrog, and Scott. Ralph was pleasant with his wonderful reassuring smile, and it was apparent his mission was to share his gift of successful investing. Maury was eloquent, easy to talk to, and then presented me with a psychological multiple-choice test with his charming smile.
By the time I met with Scott he might have detected some stress and was easy on me. I soon found out that Scott had passion in the finance field as his father introduced him to investing at an early age. He gives individualized attention to each client, paralleling the style Ralph and Maury started in 1981. This genuine interest in each client is very apparent in the letters you receive from him. Dan Boyle joined our company in 2004 and continues the founders’ tradition of providing personal advice and a methodical research process.
One of my key responsibilities was to assist in drafting quarterly letters to clients. Over the years the preparation for these client reports has changed. Back in 1998, Ralph would handwrite each draft, including account performances and percentages of each stock owned in a client’s portfolio in his very clear and meticulous handwriting. Maury and Scott dictated letters on their micromini recording devices. Pat Beach, Whitney Shapland, and I would transcribe these detailed purchases, sales, and other transactions onto client letters. Over the years financial software programs would help us track client account details, however, today each quarterly letter gets the same individual attention and goes through an intensive reviewing process before being mailed to our clients. Terri Buchanan, Jeanine Russ, and I have seen the letters grow in number every year reflecting Provident’s growth. And beginning in March, we added Natalie Frederick to our team.
Miles and James joined the team in 2010 and 2017, respectively. They each bring their own specialties and unique contributions with writing styles and interpretations of companies they follow. They have carried on the tradition of researching companies and choosing quality stocks after lengthy study that has led Provident Investment to continued success.
The thorough research and analysis process of each company has not been simplified. Each CFA has a list of stocks that they are accountable for, while sharing earnings reports and detailed company news with one another. They meet frequently, going over each stock being considered to buy, or targeted for sale. They continue to use the Provident investment style that has been the foundation of the company for 42 years. Some stocks are studied and followed for years before becoming a Provident portfolio purchase.
Our two CFPs, (Certified Financial Planners), Dan Krstevski and Eric Pozolo, further assist Provident’s investment strategy with their financial knowledge. “Dan K” is our client go-to guy for questions concerning account setup, IRAs, Required Minimum Distributions, and setting up distributions to their bank accounts and charity. Eric is Provident’s bond specialist and software expert. He is also known to be our Excel champion, creating formulas for helpful account analysis.
Over the years I’ve become more educated about the investing world by observing what goes on behind the scenes. I understand how it is impossible to time the market, but in turn how investing in the stock market is one’s best tool to grow wealth. That said, I would not want to invest in an individual company without the expertise of a skilled CFA, much like you would want a specialized surgeon to perform a medical procedure. Similar to a successful surgeon having the necessary skills to be prepared for the unexpected, so does a financial advisor. Not only is studying a stock thoroughly a must before purchasing, but when a stock goes from a successful growth company to a surprisingly sudden red flag, expertise is needed to decide what to do. When a company has a sudden dip in price or unfavorable shift in direction, our Provident team immediately goes into action convening in the conference room to determine as a team the next appropriate steps of action.
One of the Provident advisor’s characteristics that Scott, Dan B., Miles, and James share and I find amazing is the extraordinary trait of staying calm during the ever-changing financial market seasons. I’ve watched them work through stock corrections, financial bubbles, recessions, but the most incredible time was seeing them deal with the financial challenges of the recent pandemic. During the start of Covid, they all kept their investment hats on, meeting more frequently, and that of course was at times working remotely. They stayed the course and scrutinized stocks they held as well as stocks they had researched but previously considered too expensive. They took advantage of buying “on sale”, trading up for a better-quality stock in the same sector. Our quarterly reports during that time were lengthy and informative explaining their actions. I was happy to be kept busy and appreciated their calm presence and foresight during uncertain times. Thinking back now, I’m sure many of our clients opening their letters during that time were grateful to see continued investment actions in their portfolios. The world may have paused for a while, but the Provident Investment team remained diligent making good stock selections that led to productive investing.
Provident has had changes over the years; it has been amazing to see how the company has evolved, but in ways that matter it has stayed the same. Provident’s goal of buying stocks of well-managed companies when the price is right remains its highest priority, along with individualized client service.
Doreen Phelps