A Role Model
Last week, Tom James publicly announced he would step down from the Board of Directors of Raymond James after serving in this role for the past 48 years, including forty years as CEO. Yes, I said 48 years. Tom’s remarkable length of service to the company co-founded by his father, Bob James, is a testament to his work ethic and commitment to our company. As a means of saying “thank you, Tom James,” I’d like to share with you certain character traits of our widely respected leader.
A Strong Work Ethic: When I took Liza and Grace on their Raymond James recruiting trip about five years ago, we met with a senior executive for breakfast at headquarters at 7:30am. As we sat down to chat about Raymond James, I noticed that Tom James was seated at an adjacent booth in deep conversation with two other gentlemen. When I asked our hard-working host about it later, he replied “Tom usually beats me in to work”. I thought to myself, “how many 76 year old men have that kind of energy and drive?” It was impressive. I was reminded recently that Tom has a favorite life phrase “Work, work, play.” Work is repeated twice, but he reminds us that it is vital to play and enjoy life.
Consistency & Discipline: as an advisor, I really value these two characteristics. Under Tom’s leadership our company has been a consistent grower, not falling prey to the surges and cutbacks associated with our cyclical business. And over time, Tom has been disciplined in spending shareholder capital, and as a shareholder this makes me smile. 143 consecutive quarters of profitability is the proof statement. In a different way, we observe Tom’s discipline with respect to the types of businesses Raymond James underwrites. This last item, underwriting discipline, is not a common Wall Street trait. Tom James’ discipline, his ability to say “NO,” has kept our company and our clients out of trouble more often than we might recognize.
A Long Term View: making investments in people, expanding into new regions of the country, and offering a greater array of financial services requires a long term approach. When I see the length of service of the average RJ employee as well as senior leaders, coupled with the low turnover of advisors, I know that careful long term planning took place. The power of compounding occurs over many years yet it is a very, very powerful force, the “eighth wonder of the world,” as a certain Sage from Omaha has said many times. Tom’s long held and timeless values have generated good results. Values endure.
Last but not least, and in my view the most defining characteristic, Tom James’ actions have shown to this observer that he values people more than money. His strong relationships with others helped him identify our next leader, Paul Reilly. Tom James’ care, compassion and dedication to serve others is also demonstrated by a firm-wide commitment: “Raymond James Cares” represents a six-decade commitment to investing time, talent, and money into the communities where we do business. I have worked at other very respectable investment firms, but none demonstrate this type of sustained, deep, and broad commitment to helping others. And this is very good for the soul.
When we analyze these defining characteristics, it is evident that they apply also to financial planning and investment portfolios as well. We know from experience that financial planning takes time and effort. This hard work leads to good results when it is performed well. Consistency and discipline are the bedrock of investing, for without them we are more likely to fall prey to a dangerous investment trap -- following the crowd. Being able to say NO to a tempting investment is an important skill. Long term thinking on Wall Street is a non sequitur. But without thinking long term, and letting the power of compounding work for you, we will not reach our long term objectives. One must THINK and ACT long term to improve the chances of success in the investing arena. And as I have heard many times since joining Raymond James, “we are in a noble business serving others who need our guidance.” People matter more than profits.
Thank you, Tom James. You have been a tremendous role model for our company and for investors. Your “model of leading” helps all of us.
Ralph McDevitt December 11, 2023
Any opinions are those of Ralph McDevitt and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance is not indicative of future results. Raymond James & Associates, Inc., member New York Stock Exchange/SIPC.
