Profile: Robert Stimpson
Meet Robert Stimpson. Co-CIO & Portfolio Manager for Oak Associates, ltd.
Name: Robert Stimpson
Job: Co-CIO & Portfolio Manager for Oak Associates, ltd.
City: Akron
Hometown: Greenwich, CT
Q: What does your organization do?
Oak Associates is a nationally-recognized investment management firm located in Akron, OH. Founded in 1985, Oak has spent decades focused on U.S equities and uncovering quality growth companies that can rise above market expectations. The investment philosophy at Oak Associates centers on these core tenets: invest for the long-term, concentrate in our best ideas and remain fully invested. Oak has always been a passionate believer in the technology sector – From our days as a large Cisco shareholder in the 1980s and 1990s to our current technology-specific investment strategies.
Q: What’s a problem you're working to solve?
Technological innovation has impacted financial markets just as it has other sectors of the economy. It has enhanced transparency, improved the flow of information and decreased transaction costs which are all positives for investors.
However, an unintended consequence has been increased risk and volatility in the markets resulting from complex new financial products and high-frequency trading. Experience has taught us that a primary tenet of successful investing is patience with a focus on the long term.
The biggest challenge we face is educating clients and potential investors on the pitfalls of market timing which grows more difficult with the always-on nature of news flow today.
Q: What’s a lesson you’ve learned that's shaped your work?
Newton’s third law states that for every action, there is an equal and opposite reaction. Yet, in financial markets, reaction is often the wrong response. As humans, emotions can impact how we respond to situations, but as investors, seeking to avoid emotional responses to events in financial markets is often the more prudent action. This is not always easy. Yet, being patient, unemotional, and diligent when making long-term investments is crucial to wealth creation.
Q: What’s a trend in technology or innovation that doesn’t get enough attention?
Technological innovation and trends tend to get a lot of attention, often too much. However, the redeployment of human and investment capital that occurs when a new technological innovation develops is often overlooked. When software, automation, smart devices, or machine learning unburden human and financial capital, creativity and entrepreneurship thrive, often seeding the next intellectual and cultural revolutions. Too often the derivative attention is on businesses that are struggling to compete or the job losses a new technology creates, yet while change may be difficult, it tends to fuel additional innovation.
Q: What’s one moonshot idea that could help make Ohio a world leader in technology and innovation?
The US educational system has not kept pace with progress made in the rest of the world or the needs of a modern global economy. One idea, while unorthodox, would be to move Ohio’s public education system to full-day, full-year school, on a trimester system with 2-3 weeks off between trimesters.
Too many students loose ground over long summer breaks while parents struggle with balancing work, child care and supplemental instruction. Structuring the school year around the harvest no longer makes sense, nor does a part-time instructional model.
A full court educational press could increase the productivity of learners and lead to higher outcomes. The increased time in school (full 9-5) and fewer weeks needed to “review” prior material could allow more exposure to the skills needed in a twenty-first century economy, such as computers, automation, robotics, and STEM. Unburdening parents from juggling child care, activities and long breaks could also enhance productivity for Ohio’s employers.
As a professional investor, I also believe high school students desperately need financial education in order to understand the implications of interest rates, credit cards and debt, as well as a basic understanding of insurance, investments and taxation.
By the time these student reach college, they have already made important financial decisions about educational loans, cars debt, and often have predatory credit cards.
Q: What’s a recent book, podcast or news story that you found interesting?
The Checklist Manifesto: How to Get Things Right by Atul Gawande. The author is a doctor that analyzed the practice of following defined procedural steps in an effort to improve outcomes in medicine.
The airline industry and others have done so for years, medicine has recognized its benefits, yet in reality, many other industries can improve outcomes, reduce mistakes, and enhance financial results.
It’s a simple idea, but one that can offer universal benefits for many businesses.
Q: What's your favorite place in Ohio?
It is kind of hard to choose. I enjoy biking the towpath in the fall when leaves are changing, the Molte Bella Auto Show each fall is awesome, and hiking one of the numerous metro parks throughout the Cuyahoga Valley National Park.
Q: What makes Ohio special to you?
Before settling in NE Ohio some 20 years ago, I had lived in a lot of different places (CT, NJ, GA, London, Spain), but I discovered that one of the greatest, under appreciated benefits of Ohio is the easy commute. No longer having to spend 2-3 hours in the car just getting to and from work is a game changer for work/life balance, quality time with the family and hobbies.
Connect with Robert on LinkedIn.