The — the economy before the — the pandemic was fundamentally quite strong, a period of low interest rates, a period of very high employment, a period that fundamentally was very healthy for the economy, lots of people working, and in our country lots of people spending money. How has — over the past century, how has that changed to what Edward Jones is today? Edward Jones has something like 13,000 branches. I think the five or six highest growth stocks are up, you know, 40 percent over the past six months or so. part is now more than ever and will continue to be a hallmark of what really great financial advisors do. And fundamentally, what we’re talking about is having our investment portfolios reflect our values as — as individuals, whatever those may be, but lining up our — our portfolios with our values. What — what makes for a good financial advisor? We are not post-pandemic, I’m not saying that, but we have begun a rebound in the economy, and we believe that that’s going to continue. part of this, a lifelong learner, someone who is really interested in — in continuing to dial up their own skills from an expertise standpoint, but also from — from — from an empathy and E.Q. In her free time, Pennington like to get out and about in nature, citing her favorite activities as hiking (especially in the Grand Canyon), cycling, and enjoying the many parks and recreational resources St Louis has to offer. Regulation was a part of that. The point is that fixed income and stocks, equities and bonds form the basis of a diversified portfolio. PENNINGTON: Well, broadly what I would say, Barry, is that retirement security and helping investors have an experience that is — that is more helpful to them is a nonpartisan topic. RITHOLTZ: So let’s talk about a couple more recent investing themes that have come along. My father, who was an executive at a publicly-traded firm in Nashville, who started in — on the factory floor quite literally and retired as the CEO of that organization. We work with clients who are serious long-term individual investors. PENNINGTON: Yeah, you bet. We do believe that we’re going to see more fiscal stimulus. And if you’re — if you like contemporary art, that’s — I’m going to make that recommendation because it was pretty fascinating discussion of how his art evolved into what it eventually became. Others of have I never met Mr. Jones Senior and Ted Jones, the founders of our firm. Let me share with you what are statistics are. And the — the — the goodness of the human relationship, financial advisor to client and prospective clients is it’s the financial advisor’s job to understand that, to find out what’s important to that next generation, what their values are, what motivates them and to help form a bridge between the values of the — of the previous generation and the next generation. And back to my earlier point about the I.Q. PENNINGTON: So following in those footsteps is — is an incredible responsibility, a great opportunity because what I learned from studying those former managing partners, they all looked forward boldly to the needs of millions of investors who we weren’t serving yet and took some — some — some pretty distinctive steps in order to serve them differentially. It wasn’t open to the public, but you had people going into those offices and turning on the lights. That means they value relationship. PENNINGTON: … it taught me a lot about — about decision-making during crisis. When folks are — are dealing with emotional and complex tradeoffs, among things like, you know, how do I save for — for college for my child or grandchild and have a comfortable retirement at the same time? You have over 17,000 financial advisors. RITHOLTZ: Quite interesting. What are your thoughts on automated investing and those sort of software-driven advisors? That’s the vast majority of the industry. Penni Pennington. And I’m reading a book by David Brooks. We could distance …. Brother of John Willis (Bill); Etta Irene; Nettie Marie; Charles Ralph; George Franklin Pennington and 4 others. And so the advice that I would give to — to those recent college graduates is look at this industry as one that has and will continue to be very meaningful in our country and in society that it can intersect with who you are as a person. We know you’re there for us.”. And I’d tell you it was — I — I have a mantra, do something every day that — that terrifies you just a little bit. Despite our own personal anxiety, all of us have had to deal with all kinds of disruptions in our own lives, but we get out of bed every morning thinking about our clients and helping them reduce the anxiety in their lives. Penny Pennington, who was tapped yesterday to lead Edward Jones, will be the first managing partner who did not know the firm’s founding family. Technically, her title is Managing Partner. Before I get to my favorite questions that I ask all my guests, let me throw a curveball at you. For the vitality of our economy for the different ways that capital can be created and companies can be formed and scaled and grown, I think that that’s a very healthy thing. Most of the data I’ve seen about what happens when a client passes away and the next-generation inherits the wealth is that they tend not to stick with the existing advisor. So the robo-advisor, as a way to do that, we know it is appropriate for some investors. Tell us what the great financial crisis was like, what we’re clients calling and — and worrying about, and then how does this version compare. So helping them with their employee retirement plans, their 401(k), their simple-step IRAs, all the different ways that they can support their employees for their retirement planning, we do that for businesses and business owners. Penny graduated from Mount Gilead High School in the class of 1985. PENNINGTON: Yeah. Why was the downturn in February and March six weeks as opposed to ’08-’09 where it was 18 months, which by itself was relatively short? We talk about growth, Barry, in terms of growth of impact. What are your thoughts on environmental, social and governments investing — ESG investing? RITHOLTZ: Quite interesting. On and on down the road, what — what sort of questions have you been getting from clients about the election? What we do expect is that the economy will continue to rebound. And so, you know, that — that place is — is open to all, is eager to serve a diversified marketplace and are — the market place is becoming more and more diversified, less homogeneous every single day. And so just getting their — their quick interviews and — and getting a window into those folks — I read one of those interviews at night — is — is really inspiring as well. I’m a white guy in my 50’s. Today, we work with about seven million clients. Penny Pennington is currently. And since two-thirds of our economy is driven by consumer spending and demand, when people spend money, stocks are doing well and — and the — the market is fairly sanguine. There are different ways to get to that. We’ll see the size or — or — or focus of that depending on the administration. Well, they also have one of the most unusual fund raisers every year, and that’s called Dancing with the Saint Louis Stars. So, Penny, let’s talk a little bit about financial advisors. The best result we found for your search is Penny K Pennington age 80+ in South Pasadena, FL in the Pasadena on The Gulf neighborhood. She was born in Urbana, OH, on December 15, 1966, to the late Arthur Pennington and Wilma F. (Campbell) Pennington-Ball. In fact, the ability to do a transaction in the financial markets is nearly a free good today with zero commissions on trading and that sort of thing. So within a matter of about 10 days, we went from 15,000 remote connections available across our firm to 50,000 remote connections. How do you translate that army of advisors into one? Penny was the son of Pennington and Julia Wray of Wake Forest- Lenoir County, North Carolina. PENNINGTON: Yeah. Recognizing that listening to another human being about what their hopes are, about what their fears are, and how those are changing over time, how they’re impacted — especially now by current events — really generously listening to that on the part of another human being. How do you manage that from — from the perspective of, hey, everything we’ve talked about is long-term, but — but you’re in and out of stocks every other day. It comes from the Old English pening, which means a penny and refers to the rent on the land, and tun, for farm or settlement. How do you manage that? RITHOLTZ: So full disclosure, we’re recording this a few days after the election, but before the outcome is announced. What does it mean for my taxes? VOICE-OVER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. PENNINGTON: We have to be relevant to the next generation. And then — then my predecessors as — as managing partners here, I’m a student of them. In my office, before the election, that’s all any client asked. Hi, I'm Penny. There is lifelong learning associated with that. So I’m looking at all data. What does that do to people who are looking for income from bonds? Jim was the Managing Partner who came in in 2006, and that year invited me to become a General Partner in our firm and moved to Saint Louis into home office leadership. And the image that was sent to me was a client standing outside the branch with their hand pressed up against the window of the branch. What I think we have to be really thoughtful about as long-term investors is that the public market affords a kind of transparency into companies and access to — to those companies and owning shares in those companies that results in liquidity, that results in ways to verify the — the financials of those companies, that all results in a kind of transparency and reliability that is a really important part of capitalism and about the public nature of our stock markets. So all 15,000 branches were opened and actually operating lights on during — during the entire …. It is diversified. RITHOLTZ: Quite interesting. There’s a little bit of it that’s kind of inside baseball, and — and I’ll let you guys in a secret. View Penny Pennington’s profile on LinkedIn, the world's largest professional community. RITHOLTZ: This week on the podcast. Also featured was a memorial to Dora Caroline Pile, one of our most dedicated workers. part, with the intelligence quotient. It was sent to — sent to me back the beginning of April from a branch in Florida where the branches were closed to the public, but our financial advisors and BOAs are in the branch. It was this — it was a convergence of love, of taking care of each other, of being in it together, of knowing why we’re here, and that is to relieve the anxiety of our clients and keep them focused on the long-term. What — what’s keeping you busy under lockdown, either Netflix or Amazon or — or any podcast you’re watching? It is not all math and numbers. I would be remiss if I did not thank the crack staff that helps put these conversations together each week. Penny Pennington poses for a portrait in the lobby of the Edwards Jones on Wednesday, May 9, 2018. PENNINGTON: Yeah. They were all …, RITHOLTZ: Fifteen thousand. PENNINGTON: Yeah. And so everything in moderation and recognizing that broad diversification and asset allocation across a number of asset classes is what has reliably grown wealth over time. That’s a common misconception about the financial services industry. We know that our clients want to feel understood about what’s most important to them, informed about how to achieve that financially and how they are progressing toward that. And what’s inspiring to me about that is they’re making sense of the world. I am the first Managing Partner who never met them. Penny Pennington is the managing partner of Edward Jones, a Fortune 500 financial services firm. I mean, you — you — you read a lot and see a lot and maybe it’s your own personal experience that you’re buying today according to your values. 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