2025 Year-end Letter to Clients and Friends- The Wealthy Soul and the Stewardship of Capital

Few works of literature have left the imprint on Western culture as The Iliad and The Odyssey, Homer’s twin poems that chronicle events surrounding the Trojan War but also delve into timeless themes of heroism, honor, and the search for a meaningful life.

The most remarkable people, we learn, are not those with the greatest treasure, but those with what we might call a ‘Wealthy Soul.’

The Greeks regarded the epic stories as something more than works of literature; they knew much of them by heart, and they valued them as a source of moral instruction.

As we reflect on another year in the financial markets, the metaphor is fitting. Homer’s characters remind us that resilience, clear intention, and patience shape the outcome of any voyage. For wealth management, these qualities translate into thoughtful risk management, disciplined investing, and careful oversight of our emotions and behaviors during times of uncertainty.

Great financial thinkers have echoed a consistent theme: The biggest risks to wealth are not market declines but emotion and behavior. Successful investing is straight forward, but not easy. Stay the course.

In a recent video blog, ‘Why I sold $50 Billion of Apple Stock’ [Market Sage Insights], Warren Buffet reminds us that we never know what the future holds, so we should build a cushion into every decision we make on matters of money.

I rarely reference Warren Buffett in my writing. Not because I don’t respect and learn from him. I do both. But because enough other writers and speakers worship Warren Buffett that I seldom feel I would add much of value.

This instructional video provides different motivation. Beyond defending his legacy at his imminent retirement (which needs no defense), Mr. Buffett provides in living color and unmistakable clarity instruction about investing, risk, and opportunity cost – without vague references and industry jargon.

Here is my wish for you for the New Year 2026:

Invest 30 minutes of your time hearing Warren Buffett describe how we think about Margin of Safety thinking, far better than I can.

The principles of margin of safety and risk management apply to every investor, in every market, in every era. The speech is both interesting and deeply instructional ─ worthy of the time equivalent of a short sitcom.

Here’s the link: https://www.youtube.com/watch?v=Ps01ewm6Cjw

Across more than nine decades, U.S. stocks have produced annualized returns of roughly 10% before inflation, bonds around 5%, real estate, gold, and alternatives somewhere in between depending on category. Adjusted for inflation, stocks have continued to deliver meaningful real returns, while bonds have offered stability, income, and ballast but little return after inflation and taxes.

Our wish for you and your family is to live a life of contentment and purpose. The Wealthy Soul recognizes that money is not the destination but serves us best when it supports purpose and legacy. Our best life lived now.

Happy New Year!

Rexford Cattanach

Keats Group LLC