The Kelly+Partners Post - US edition - 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.
US EDITION
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?
US EDITION | 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
US EDITION
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
US EDITION
HEALTHY
Page 4
US EDITION
Page 5
5 PRACTICAL TIPS TO
MANAGE FINANCIAL
STRESS IN 2024
Many business owners in the US are
currently experiencing the challenges of
navigating through tight financial waters.
This period can often present significant
cash flow hurdles for business owners
alike.
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. Prioritize 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,
emphasizing upfront payments to cover
staf and material costs. Minimize covering
staf wages before receiving customer
payments.
4. SET ASIDE FUNDS FOR TAXES
Insufcient funds to pay taxes 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
US EDITION
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
US EDITION
Page 7
US EDITION
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 favorite 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. RECOGNIZE 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,
characterized by its scientific complexity
and necessitating specialized 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, emphasizing 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.
US EDITION
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
US EDITION
THE CASE FOR ALTERNATIVES:
DIVERSIFYING PORTFOLIO ASSET
ALLOCATION
In the realm of investment, the age-
old adage ‘don’t put all your eggs in
one basket’ holds true, emphasizing
the importance of diversification. While
traditional asset classes like stocks and
bonds have long been the cornerstone
of investment portfolios, the landscape is
evolving, with investors increasingly
turning to alternatives to enhance
diversification and potentially boost
returns. This paradigm shift is evident
not only in the portfolios of institutional
investors but also in the strategies of
individual investors seeking to fortify their
financial future.
In Wealth Management, Alternative
Investments refer to asset classes besides
the traditional equities, fixed income
and cash. These may include real estate,
private credit, private equity, hedge funds,
and other non-traditional assets. The
appeal of alternatives lies in their potential
to generate returns that are less correlated
with traditional markets, thus providing
diversification benefits and potentially
enhancing risk-adjusted returns. Despite
these benefits, it is often the case that most
individual or family groups have an under-
allocation to alternatives compared with
their institutional counterparts.
One notable segment where alternatives
have been extensively utilized with
remarkable success is in the investment
Page 10
Global Pension Assets, Study
2016, Willis Towers Watson:
National Association of College
and University Business Ofcers
2016 Study (Equal-weighted
Average); Money Management
Institute, ‘Disruption of Alternative
Investments through Wirehouses,’
2016.
INSTITUTIONS VS. INDIVIDUALS
AVERAGE ALLOCATION TO ALTERNATIVES
27%
29%
5%
Large gap
for individual
investors
Pensions
Endowments
Individual Investors
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28