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The Kelly+Partners Post - Issue 4 - April 2024

In this edition, Kelly+Partners' CEO and Founder, Brett Kelly, chats to basketball legend, Shaquille O'Neal, about how his family upbringing, personal values and commitment to teamwork have helped build a business empire valued at US$400million. Plus, get tips on managing financial stress and take a look at life lessons learnt from The Late Charlie Munger and former Hoyts CEO, Peter Ivany.

ISSUE 4

APRIL 2024

THE

HEALTHY

TIPS TO MANAGE

FINANCIAL STRESS

PAGE 5

WEALTHY

CHARLIE MUNGER’S

3 LIFE LESSONS

PAGE 9

WISE

‘GOT THE ITCHES

FOR A SACK OF RICHES?’

PAGE 14

POST

‘YOU CAN HAVE ALL THE MONEY

IN THE WORLD, BUT IF YOU DON’T

HAVE AN EDUCATION, YOU CAN’T

MAKE IT GROW.’

DR. SHAQUILLE O’NEAL

CONTENTS

Created by

BRETT KELLY

Edited by

ELLA MARTIN

Creative Directors

BRETT KELLY AND GARY CHESTNEY

Feature Writers

BRETT KELLY, JOSH THOMAS

KUN SINGH AND GARY CHESTNEY

Contributing Articles

JOHN BEVANS, MARCUS HAMILL

AND TRENT DOUGHTY

Art Director

GARY CHESTNEY

Graphic Design

LIZ PARICKA

Brand and Content Directors

BRETT KELLY, KUN SINGH

AND GARY CHESTNEY

Images

ADOBE STOCK IMAGE LIBRARY

CONNECT

WITH US

HOW WE

CAN HELP?

ISSUE 4 | APRIL 2024

KELLY+PARTNERS

WISE

WEALTHY

HEALTHY

3

Introduction

5

Financial Stress

6

Meditation

9

Charlie Munger

10

Wealth Strategies

13

Life Lessons

14

Shaq x Be Better Of Show

19

Kick-of Karnival

20

New Partners

21.

US Expansion

22

Locations

23

Community

26

Careers

Page 3

HEALTHY, WEALTHY AND WISE

ISSUE 4

Healthy, wealthy and wise is the format of our newspaper. It makes

sense to us at Kelly+Partners because we believe as a business that

helping people sort out their financial situation gives them time, peace

of mind and capacity to focus on the important things in life.

Brett Kelly

Founder and CEO,

Kelly+Partners Accountants

ISSUE 4

HEALTHY

Page 4

ISSUE 4

Page 5

5 PRACTICAL TIPS TO

MANAGE FINANCIAL

STRESS IN 2024

Many business owners are currently

experiencing the challenges of navigating

through tight financial waters. This period

can often present significant cash flow

hurdles for business owners alike.

A Treasury report in 2022 suggested

that Australian small and medium-sized

business owners are grappling with

deteriorating mental health and well-

being stemming from financial strains

within their businesses, particularly

pertaining to cash flow management

apprehensions.

Here are 5 practical tips on how business

owners can manage their financial stress

more efectively.

1. MONITOR YOUR WORKING

CAPITAL

Working capital is vital for businesses,

especially those reliant on debt and

hefty fixed expenses. Borrowed funds

may have been allocated for purchasing

equipment, leading to regular repayments

or lease obligations. In times of cash flow

constraints from customers, this can pose

challenges.

2. ASSESS YOUR BUSINESS

LANDSCAPE

Review your business environment on

a quarterly basis. This entails assessing

market dynamics, ensuring accurate

pricing, monitoring KPIs, and determining

an appropriate wages-to-revenue ratio.

Questions to consider include whether

wage increases align with sales price

adjustments and staying informed about

competitors’ strategies. Promptly address

profit impacts from supplier price hikes.

Evaluate profitability of products or

services and be willing to discontinue

unprofitable ones. Prioritise time and efort

based on financial value.

3. HANDLE DELAYED PAYMENTS

Some customers may delay bill payments,

so ofering various payment options

can help manage irregular payments.

Clearly communicate trade terms,

emphasising upfront payments to cover

staf and material costs. Minimise covering

staf wages before receiving customer

payments.

4. SET ASIDE FUNDS FOR TAXES

Insufcient funds for GST payments at

the end of a cycle can pose significant

challenges. Regular tax payments

are preferable to accumulating

insurmountable amounts. While having a

financial bufer is ideal, many SME owners

live paycheck to paycheck.

5. SEEK ASSISTANCE

Various factors can lead a previously

financially stable company into

significant cash flow challenges. While

online accounting services like Xero

are useful tools that can help, they are

not comprehensive solutions; accurate

data input is crucial. Remember to

ensure company accounts are properly

maintained for an up-to-date financial

picture. Business owners often lack

sufcient capital and may rely heavily on

cash flow for growth or seek investors for

scaling up. If facing insolvency, seeking

advice from an accountant and possibly a

commercial lawyer can be worth the fees.

Original Article by Gill South:

https://blog.myhr.works/en-au/5-

practical-tips-to-reduce-financial-stress-

in-2024

Imagine if your email didn’t have a spam filter and, for every relevant

message, you had to sift through hundreds of messages related to Nigerian

money scams, Viagra and offers from Chinese printing companies.

Meditating helps filter out the internal and external ‘noise’ and negative self-

talk, providing us with the clarity of present-moment awareness. As we learn

to quieten the ‘monkey mind’, we quickly become less stressed, more creative,

more productive and more adaptable to the demands of life, making

meditation a proven competitive advantage in business and in life.

TIME TO TURN ON YOUR

MENTAL SPAM FILTER

ISSUE 4

Page 6

1.

THERE’S NO NEED TO

SWAP THE SUIT AND

TIE FOR ROBES

Meditation can be done anywhere – in an

office chair, on the bus, in your car (while

a passenger or parked of course) on a

lounge, sitting up in a bed. There’s no need

to tie yourself in knots like a pretzel. Just sit

comfortably with

your back supported.

2.

WHAT TO THINK

ABOUT THINKING

One of the most common misnomers about

meditation is that the mind needs to be

silent. The fact is thoughts will come for even

the most experienced meditator. Instead

of fighting thoughts, just observe them and

bring yourself back to your breath. The more

you practice this, the easier it gets and the

sooner you discover that the key to silencing

the mind is being completely indifferent to all

of your thoughts.

3.

IT’S AS SIMPLE AS

BREATHING

Close your eyes and take a few deep

conscious breaths. Now allow your breath

to fall into its own natural rhythm. Keep your

gentle awareness on the breath, noticing the

way your stomach expands and contracts

and the way your breath feels as it goes in

and out of your nostrils. Thoughts will pop

up and that’s completely OK. If thoughts

come, just smile inside and gently bring your

awareness back to the breath.

4.

IT’S NOT A STILLNESS

COMPETITION

If you need to scratch an itch or shift to get

comfy, you can. There’s no right or wrong

way to do it, so just sit comfortably and relax.

5.

DON’T TRY TO

MEDITATE

Meditation might be the only time in life

where not striving hard for a goal is actually

beneficial. When we meditate we’re not

trying to achieve anything or get anywhere.

The process is the goal. We’re not interested

in trying to control the mind or stop the flow

of thoughts.

6.

START SHORT

To start with, practice this simple meditation

technique every morning for five minutes.

As you become more comfortable you can

slowly increase the time to 10/15 minutes.

7.

GO FOR QUANTITY

OVER QUALITY

No, that isn't a typo. When it comes to

meditation, the saying ‘quality over quantity’

doesn’t apply. Instead, you should practice

being completely unconcerned about the

quality of your meditations and instead strive

for quantity. In other words, be as consistent

as possible. The quality of your life will

improve the more you sit.

8.

PUT IT ON YOUR

‘NOT TO DO LIST’

For many people the thought of adding

another thing to the ‘to do list’ is

unfathomable. Rather than thinking of

meditation as another thing we have to do,

try reframing it as 10 minutes to ourselves

with absolutely nothing to do.

9.

WE’RE NOT

PRACTICING TO GET

GOOD AT MEDITATING

We don’t meditate for the experience that

we have during the meditation. We meditate

because it enriches our life in every way.

10.

MEDITATION IS

NOT MEDITATION

There is a myriad of different meditation

techniques out there, with differing degrees

of difficulty and results. If you want to go

deeper with your practice, it’s good to find a

technique and teacher that suits you.

Marcus Hamill is a filmmaker,

writer and meditation teacher.

For more info visit

www.mh-meditation.com

10 SIMPLE MEDITATION TIPS

TO GET YOU STARTED

ISSUE 4

Page 7

ISSUE 4

WEALTHY

Page 8

On November 28, 2023, the investing world

mourned the loss of Charlie Munger, the

esteemed vice chairman of Berkshire

Hathaway and longstanding collaborator

of Warren Bufett. Munger, a luminary in

the realm of investing for decades, was

celebrated for his sharp wit, profound

insights, and enduring wisdom.

In light of his legacy, here are three

enduring lessons drawn from the illustrious

Charlie Munger, applicable not only to

enhancing one’s investing prowess but also

to enriching life in general.

1. EMBRACE CONTINUOUS

LEARNING

Munger championed the ethos of

perpetual learning. He believed in the

imperative for individuals striving for

success in any field, be it investing or

otherwise, to go to bed each night a little

wiser than they had awakened. Central to

this philosophy was the habit of reading:

‘In my lifetime, I have encountered no wise

individuals (across a broad spectrum of

subjects) who weren’t voracious readers

– none, zero. You’d be astounded by the

amount Warren reads – and by how much

I read. My children jest at me; they regard

me as a book with a pair of legs sticking

out.’

For those seeking to enhance their

investing acumen, consistent reading

remains paramount. This may entail

perusing Securities and Exchange

Commission (SEC) filings of companies

of interest, delving into historical business

literature, or immersing oneself in the

works of investing luminaries like Benjamin

Graham’s ‘The Intelligent Investor’ (a

personal favourite of Bufett’s). While the

journey of mastering investing, finance,

and business may appear daunting

initially, by adopting Munger’s methodical

approach and maintaining consistency,

one can gradually amass substantial

knowledge.

2. RECOGNISE YOUR CIRCLE OF

COMPETENCE

Another invaluable lesson from Munger

applicable to all investors is the principle of

staying within one’s circle of competence

– in other words, understanding one’s

limitations.

Remaining within this circle entails

identifying stocks, businesses, and

industries beyond one’s expertise and

refraining from venturing into them with

investments. A pertinent example, often

relevant to many investors, is the realm

of biotechnology and pharmaceuticals,

characterised by its scientific complexity

and necessitating specialised knowledge

for informed investment decisions.

A cursory glance at Munger and Bufett’s

investment portfolios over the years reveals

a consistent pattern: a focus on sectors

within their sphere of deep understanding,

such as consumer products, financials/

banks, and energy. With steadfast

adherence to this principle, the duo seldom

strayed beyond their areas of expertise.

Beyond investing, this principle holds

relevance in choosing a profession. While

one may lack musical aptitude, they may

excel in a trade like electrical work. Munger

advocates for aligning one’s profession

with their areas of expertise to thrive, as he

did with professional investing.

3. CULTIVATE PATIENCE

Munger often lamented the pervasive

impatience among investors. Many

succumb to the temptation of hasty

buying and selling or seek rapid wealth

accumulation. He advocated for patience

in investing, emphasising the importance

of betting on long-term outcomes:

‘It takes fortitude

to hold onto cash

and refrain from

action. I didn’t reach

where I am by

pursuing mediocre

opportunities.’

Munger underscores the difculty in

exercising patience as an investor, yet

he champions it as the most efective

means to wealth accumulation. Investors

subscribing to Munger’s philosophy exhibit

patience, awaiting opportune moments

to make substantial investments over time,

perhaps only once per year. This approach

avoids over-diversification, ensuring

focused investments rather than scattering

funds across numerous ventures.

This principle extends to the realm of

compound interest, where gradual wealth

accumulation often yields substantial

returns over time. As Bufett famously

stated, ‘Nobody wants to get rich slowly,’

yet it remains one of the surest paths to

wealth. Munger’s wealth accumulation

was a testament to his extraordinary

patience.

This principle of patience transcends

investing, permeating various aspects of

life, from skill acquisition in one’s profession

to nurturing relationships with loved ones.

Munger contends that embracing patience

allows the compounding efect – whether

numerical or metaphorical – to work its

magic over time, fostering a fulfilling life for

oneself and those around them.

ISSUE 4

CHARLIE MUNGER

3 LIFE LESSONS

Inspired from: https://www.nasdaq.com/articles/3-investing-and-life-lessons-from-the-late-great-charlie-munger

Page 9

ISSUE 4

MODERN WEALTH

MANAGEMENT

STRATEGIES

In an ever-evolving financial landscape,

the art of wealth management has

become increasingly intricate. At

Kelly+Partners Private Wealth, we believe

it is imperative to navigate through

complexities while adhering to core

principles that drive consistent returns

and safeguard capital for our clients.

The below explores the principles of

wealth management, outlines portfolio

construction strategies, and explains the

core and satellite investment approach as

a viable strategy for Optimising investment

portfolios.

Wealth management goes beyond just

investment management. It encompasses

a comprehensive approach towards

preserving, growing, and transferring

wealth across generations. Kelly+Partners

Private Wealth tailored investment

management solutions designed for

wholesale clients, encompassing:

Personalised investment strategy and

asset allocation advice

High-touch service with regular

portfolio reviews

Portfolio administration and reporting

Collaboration with professionals such

as accountants and estate planners

Comprehensive risk management

assessments, including personal

insurance

Our primary focus is assisting clients in

achieving their desired outcomes with the

highest likelihood of success and minimal

risk.

Kelly+Partners Private Wealth ofers clients

four core oferings:

Page 10

Investment Management

+ Investment Strategy and

Portfolio construction

+ Portfolio Administration and

Management

+ General Advice

+ Wholesale and Sophisticated

Clients Only

KP Alternative Investments

+ Access to diferentiated

investment opportunities

+ Income and Growth focused

+ Portfolio diversification

+ Wholesale and Sophisticated

Clients Only

Personal Insurance

+ Life, TPD, Income Protection

and Truma

Foreign Exchange

+ 20 currencies, no fees or

comissions

KP Direct Invest

+ Self-directed, no advise

investment portal

+ 5 portfolio Options

+ Digital enabled, cost efective

+ Available to all clients

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