Friday nights at RedQuarters were reserved for Wall Street Week with Louis Rukeyser™. This program ran on PBS from 1970-2002, and featured discussions about current events, financial matters, stocks and bonds, and other things. Louis Rukeyser was low key, began with a little humor and (usually) a few terrible puns, and then the panel would take up the discussion. The panel included stock brokers, bond people, corporate financial specialists, the occasional economist, and sometimes historians and Mr. Rukeyser senior. The elder gent had been a financial reporter who covered the stock market in 1928-1970s and brought a very long-term view to the program.
One of the points repeated over and over on the program was that short-term investments are not everything. Investing for the very long term is the smarter way to go. Mr. Rukeyser and his associates looked five to ten years down the road. What did the company produce? Was it something people could use? What was the price to earnings ratio? Dull, pedestrian companies that made goods or provided services that everyone needed (like light bulbs, or lawnmowers, or basic groceries) would be better than the stock-of-the-moment.
I also remember this: https://www.youtube.com/watch?v=XFn1G2goDQw
Part II: https://www.youtube.com/watch?v=Lm_4j-_Dnwc
And part III: https://www.youtube.com/watch?v=o_fxEoF8Vl8
It is the opening monologue after the Monday market tumble in 1987. “It’s just your money, not your life.” His guests included two of the most important men then working on Wall Street, and a retired power in the market. Rukeyser’s observations as to the purported causes of the Crash sound rather familiar. His calmness was a refreshing reminder that there are more important things than the folly of the week.
That incident introduced me to the concept of “bottom fishing,” where long-term investors buy stocks of steady, producing companies after the crash. At the time, this was before day-traders and personal computer-based investing, so it tended to be regional—Midwestern investors bottom-fished after the East Coast gurus panicked and dumped solid stocks at fire-sale prices.
I miss the calm, mature voice of reason in financial news. Today it feels as if the entire purpose of shares, bonds, and so on has vanished into the past, and nothing exists but gambling. I know part of that is how trading has developed, with personal investing and the federal governments requirements for all sorts of things. Some of those requirements are good. As we can see with certain personnel at Silicon Valley Bank, some of those requirements led to less-than-ideal people in certain positions. The days of John Templeton, Louis Rukeyser, and that generation are gone.
Still, I wish Louis was still around to give a bit of calming, gentle humor and steady perspective to the events of the day, week, and year.