Comments

The main thing I wish to convey in this month’s comments is that I am making a major change in the way I will report to you going forward.

A MAJOR CHANGE IN MY REPORTING

For the past 15 months my health has been deteriorating. I am 83 years old. I am thankful to still be around, and as far as I know I am not in any kind of terminal stage with the immune system muscle disease I am suffering from (Polymyositis). But the disease is rare (only 1 in 10,000 people have it), and there are no studies on it. Treatment is experimental. My doctor is one of the best known and respected Rheumatologists in our area of the country. His clinic has treated me better than I could ever have expected and I believe they are making some progress with my case. One of the greatest risks with immune system diseases is the risk of infections. I have not had an infection of any kind for over a year now. All I can say is I am thankful to God for this. I know He is doing what is best, and I am at peace with what He decides to do from here. I know that some of you are praying for me. I am deeply grateful for that. Please ask God to give wisdom to my doctors, and pray that I will respond properly to what He is doing in my life.

I have felt for some time that I should reduce my workload to a level I can sustain at my age and current health condition. That’s what I am doing this month. Here is a brief description of the changes.

1. As you know, in the past each month’s report began with a chart of key statistics, 52 of them in all. These require considerable time and effort to calculate. This chart will be replaced by a much smaller and simpler paragraph which will contain the most important information needed to follow my portfolio. I realize there are a few of you who look forward to this larger chart and enjoy studying it. Perhaps things will change, or someone might take over this part. We’ll see.

2. I will discontinue reporting individual transactions (buys and sells). You might wonder why I would do that. It’s actually one of the most important changes, so let me explain it. Mary Ann and I have reached a stage in our lives where we are more interested in transferring assets out of our estate than seeking to enhance the value of those assets through investments. If we sold an asset it could easily mislead the reader into thinking we considered the asset overpriced when in reality just the opposite might be the truth. I assure you that if I sold some silver in order to raise cash, for example, I would be just as bullish on silver as I have ever been. I will try to make my opinion on each asset clear regardless of any other factors affecting the portfolio.

3. It has been my practice to write one or more articles each month. I have decided to suspend that commitment. But I would not hesitate to write something I felt deserved your attention. The commitment would change to one with no set dates or frequency. I can say in all honesty as I write this that I have nothing of importance to add to last month’s article entitled, A Simple Explanation of My Portfolio Allocation. If you have not read that article, I recommend it. If you have, I recommend re-reading it.

4. There is one thing I do not want to discontinue, and in fact hope to improve; that is, answering questions for those requiring one-on-one help with their investments. Obviously, I can continue this service only so long as the Lord gives me the strength of mind and body to do so. Again I request that you submit your question in writing. My mind is slowing down and that gives me an opportunity to think about the issues, do some research, and pray about my answer. Once the initial contact is made, a phone call will sometimes be needed, and I am glad to oblige. My favorite way of communicating is by email. But if you do not have email, a written note will be fine (E. Jay O’Keefe, PO Box 15248, Amarillo, TX 79105).

5. I plan to continue reporting what’s in my portfolio and how it is allocated between the different asset classes. This should be of some value as at any point in time it will tell you what I consider most important to hold. For example, as you can see from the first paragraph above, I am 64.3% in gold and silver. For several years I have been more than half in gold and silver, which makes it easy to understand why the average gain on the portfolio over the years has been near that of gold and silver.

I’m sure there will be ways to improve the new reporting procedure. Your suggestions will be welcomed. The main objective is to reduce my work load to a more manageable level which will make it easier for Mary Ann and I to attend to some of our higher priorities at this stage of our lives. It has been a privilege to serve those of you who have used it. Perhaps in His Providence, God will give us a little more time to be of service.

Blessings to each of you,

Jay