The Omaha Group at Morgan Stanley Smith Barney A distinctive approach to building and preserving wealth
13625 California Street Suite 400, Omaha, Nebraska 68154 402-548-3422 / Main 800-228-3309 / Toll-Free 402-399-6336 / fax fa.smithbarney.com/omahagroup
The Omaha Group at Morgan Stanley Smith Barney What qualities do you value most when selecting a team to manage your wealth? We believe most clients want a team that can help provide both proven investment results and strong wealth management credentials. They look for people they can trust, who put the client s interest first. They want a simple investment approach that gives them confidence. At The Omaha Group, we provide comprehensive wealth management solutions with a distinctive investment approach. True to our hometown roots, we follow many of the common-sense principles espoused by local investing legends Warren Buffett and Charlie Munger. Guided by these principles, we personally manage each client s portfolio in-house rather than the popular trend of farming it out to institutional money managers. Perhaps most instructive, we practice what we preach we adhere to these same principles when investing our own money. In summary, our value proposition to you is us. We are experienced professionals with integrity, knowledge and a passion for helping people build and preserve wealth. The Omaha Group 3
Meet the Professionals Left to right: Nate Farmer, Nick Bedlan, Pat DiBiase, Michelle Mayo, John Dahir, Carmon Erickson 4 Morgan Stanley Smith Barney
John A. Dahir Portfolio Management Director First Vice President Financial Advisor Patrick J. DiBiase Financial Planning Specialist Senior Vice President Financial Advisor Nathan P. Farmer, CFP Portfolio Manager Financial Advisor John began his investment career in 1980 with Chiles Heider Co., a regional investment firm that was acquired in 1983 and later merged with several other major Wall Street companies to become Morgan Stanley Smith Barney. He is a member of Morgan Stanley Smith Barney s President s Council and a recipient of the 25 Year Dedicated & Loyal Service Award. After graduating from Creighton Prep in 1973, John earned a B.S. in Business Administration and was a four-year letterman in swimming at the University of Nebraska-Lincoln. As a licensed investment professional for more than 29 years, John implements wealth management strategies for clients by concentrating primarily on portfolio management. He specializes in equity research and portfolio construction. John is still an avid swimmer and his passions include reading (mostly annual reports), modern art, occasional travel, and spending time at the gym. He and his wife Melissa also enjoy spending time with their two daughters, Jaime, who attends Marian High School, and Isabella, who attends Elkhorn Elementary. Pat also began his investment career at Charles Heider Co. in 1982. The majority of his career has been at Morgan Stanley. He is a member of Morgan Stanley Smith Barney s President s Council. Upon graduation from Westside High School in 1973, Pat earned a B.S. in education, was a member of the prestigious Innocents Society, and was a Big Eight Champion while swimming at the University of Nebraska-Lincoln. In 1994 he completed the Morgan Stanley Financial Advisor program at the Wharton School of Business. As a 28 year veteran of the investment business, Pat focuses on Wealth Planning, Municipal Bonds and Risk Management. In his spare time Pat previously was the head swimming coach at Marian High School winning 8 straight state titles, and being named the Omaha World Herald s Coach of the Year in 2005. Pat is a past board member of the Omaha Chapter of the American Red Cross and Project Harmony, a child protection organization. Pat has been married to Sharon for 29 years, has a daughter Libby, and a grandson Cruz. Upon graduation from Nebraska Wesleyan University with a B.A. in Accounting and Finance in 2000, Nate spent three years as a Certified Public Accountant (CPA) with Seim, Johnson, Sestak & Quist, LLP, an Omaha-based accounting firm. Nate has been with Morgan Stanley Smith Barney and its predecessors since December of 2006 and holds his Series 7, 65, 63 and Life registrations. Although he is no longer a practicing CPA at Morgan Stanley Smith Barney, Nate s prior career as a CPA provides him with an extensive knowledge-base in the areas of retirement, business, and tax planning. He also focuses on employer-based retirement plans, such as 401ks. Nate listens carefully to clients goals, values, aspirations, and concerns then, based on this input, he designs a financial plan that can help them achieve their financial objectives. The Omaha Group 5
Nicholas J. Bedlan, CFP, CIMA Portfolio Manager Financial Advisor Carmon Erickson Registered Client Service Associate Michelle Mayo Senior Client Services Associate Nick s prior professional experience and training has allowed him to focus his talents on serving the investment needs of wealthy individuals and family offices. Prior to joining the team in 2008, Nick was a Financial Analyst for Merrill Lynch s Private Banking & Investments Group in Los Angeles, which caters to client accounts of $10 million or more. During his five years at Merrill Lynch, most recently in La Jolla, California, Nick gained valuable experience in helping clients with substantial wealth deal with complex issues such as concentrated positions in illiquid securities, tax issues, and the formation of foundations. Nick began his investment career in 2001 after graduating from Nebraska Wesleyan University. He is also a credentialed Certified Investment Management Analyst (CIMA ). Outside the office, Nick belongs to several clubs and organizations in Omaha, including Rotary. His primary passion is his young family. He and his wife Ashley live in Elkhorn and they have two daughters; Anabel and Birdie. Carmon joined the team in 2006 bringing with her over 10 years of experience in retail banking and client service including seven years with Wells Fargo as a Personal Banker. Carmon overseas the day-to-day handling of client requests, including banking products and services, and supports the team s efforts in meeting client service expectations. She also assists in planning client events. In her spare time she loves reading, playing softball, and running in charity races and half marathons with her husband Brent. Now, Carmon and Brent enjoy focusing their time on their newborn son Rylan. Michelle brings over 20 years of brokerage experience to the team. She primarily focuses on administrative matters such as account maintenance and service requests. She also supports the team s client communications. In her spare time she loves to run, work out and travel. She also volunteers with Bulldog Rescue and the Nebraska Humane Society. She has a 22 year old daughter, Brittany, who is currently in the dental program. 6 Morgan Stanley Smith Barney
Our Investment Philosophy Investing is most intelligent when it is most businesslike. - Benjamin Graham Search for value. We practice old-fashioned, fundamental value investing using only the traditional asset classes of common stocks, bonds, and cash. Our goal is simple: identify securities that sell for considerably less than their value to a private owner. If there are no securities that meet our stringent criteria, we are content to hold cash. A business approach. We encourage our clients to think and act like business owners rather than stock market participants. We do not distinguish between analyzing a business and analyzing a stock. The two are linked because the value of a stock is simply the value of the business divided by the number of outstanding shares. We focus on two things: price and value. We search for discrepancies between the value of a business and the price of small pieces of that business in the market. Our goal is to invest in a handful of terrific businesses that we fully understand, but only when we can purchase them at a discounted price. Even a fantastic business can prove a poor investment if the price paid is too high. Quality and price. In general we compare the quality and prices of various businesses that we understand to the other investment options available to our clients. The easiest comparison available to us is government bonds. In our opinion, a security can be determined a bargain to the extent that it can produce a return larger than the yield on government bonds. The larger the spread, the more interested we will be. If we cannot find such circumstances, we are content to hold cash or purchase bonds. Growth. Our equity portfolios tend to be focused, generally holding between 10 and 20 companies. We think it makes little sense to put money into your 40th favorite idea when you could just buy more shares of your 3rd or 4th favorite idea. Income. We use fixed income securities to help build portfolios that can potentially provide clients with more income and less volatility than those constructed solely of common stocks. For some of our clients, these objectives are paramount, and we manage portfolios consisting entirely of fixed-income instruments for those clients. Growth & Income. Finally, many clients prefer a combination of growth and income. In these circumstances, we build them a balanced portfolio consisting of a customized mix of common stocks, bonds, and cash. Nothing focuses the mind more on researching companies than having one s own money on the line. -Shelby M.C. Davis 8 Morgan Stanley Smith Barney
For Life s Most Important Goals With an experienced professional and the right resources, reaching your most important goals can be less challenging and more rewarding. We are ready to help you meet your goals, by combining our insight into your needs with the resources of Morgan Stanley Smith Barney. Setting a confident course Thorough, thoughtful planning planning that analyzes where you are as well as where you want to go is the most important step in establishing a path to your goals. We will work with you to explore and define your objectives and needs, and then structure a plan that is uniquely your own. Balance sheet analysis Retirement planning Education planning Estate planning Multigenerational planning Shaping your retirement Together, we can work to make decisions that could help you move toward the retirement you expect. Whether you are building retirement wealth or making the transition to generating income from your assets, we can help you develop and implement a strategy based on your vision of retirement. IRAs: Traditional Roth IRA rollovers Roth conversions Building a unique legacy Estate planning typically brings together the dimensions of life: personal, family,
financial and charitable. We will work with you to understand the connections between your life and legacy goals, and work with your accountant and attorney to help you develop a strategy to position your portfolio appropriately. Educating new generations Helping to meet the education costs of children and grandchildren may be one of the most attractive and personally fulfilling investment opportunities available to you. We can help you access appropriate investment vehicles 529 plans and custodial accounts. Giving back through philanthropy Many successful individuals seek opportunities to support cultural and educational institutions, and nonprofit organizations and activities. Properly undertaken, charitable giving can provide planning flexibility and benefits for you. We can help you analyze and implement a strategy that rewards you while it benefits causes you care about. Charitable lead and remainder trusts Family foundations Donor advised funds Strengthening your business The links between business ownership and personal wealth are many and complex. Whether your objective is to grow your business, realize its value through a succession strategy or sale, or maintain family ownership by the next generation, we can examine your alternatives in light of both business and personal objectives. And, should circumstance require it, we can use the access to banking services of Morgan Stanley Smith Barney. Cash management Retirement plans Strategic consulting and transactions Succession planning Protecting your wealth Insurance can play a critical role in virtually any comprehensive financial strategy, helping you to protect the value of your assets, protect your income and your family s financial security even perform important functions in a business succession or estate plan. We can help you analyze your current insurance portfolio and work to update your coverages to fulfill personal and strategic goals. Life and disability income insurance Life insurance trusts Key-person insurance Meeting current liquidity and banking needs Managing personal cash and securing liquidity for personal needs and opportunities are the day-to-day aspects of implementing a financial strategy. We can help you meet your personal cash management and borrowing needs while thinking strategically about how approaches may affect current and longterm costs and taxes. Lending services Securities-backed loans The Omaha Group 11
Risk Management The ups and downs of the markets is just one kind of risk but so is not protecting my assets and my family. How do I protect what I care about most? Retirement When I retire, it will affect just about everything that matters: my lifestyle, my company, my family. Is there a way to plan for retirement that takes it all into account? Integrated Planning Decisions about both assets and liabilities need to be made in the framework of important life goals. What steps are also the most tax efficient? How can a strategic approach to banking and lending simplify my financial life and maximize the value of what I own? Education Funding Will I be able to pay for a good education for my children and my grandchildren? Business Strategies How do I manage my personal wealth with so much tied up in my company? Investment Management I have so many goals and priorities. How can one investment strategy balance them all? Liquidity I can predict some expenses, but others I know I can t. How can I plan to have the cash I need? You Benefit From a Profound Understanding of the Full Range of Wealth Management Needs Estate Planning Making sure my estate goes to the people and organizations I care about is a priority. How do I transform my assets into a legacy? Charitable Pursuits The charities I support are like extended family. How do I maximize the good I can accomplish? 12
A CULTURE of EXCELLENCE OvER ThE years, you have made many financial decisions. OnE in particular is LikELy TO have A LAsTing impact On your well being And ThAT Of your family: ThE ChOiCE Of A financial AdvisOR. Investors who choose Morgan Stanley Smith Barney often tell us that their reasoning is simple. They choose a Financial Advisor and a firm that mirrors the values propelling their own success: a commitment to perform at the highest level for their clients, with no shortcuts, compromises or excuses. a strong, steady force in a changing industry CEO and senior team with deep wealth management experience 130 years of combined experience 900 global locations 18,000 financial advisors 7 million client accounts $1.5 trillion client assets Unparalleled e xperience. Drawing on many years of experience, Morgan Stanley Smith Barney understands the importance of shaping relationships that reflect client needs, preferences and aspirations. Our firm and Financial Advisors have an in-depth understanding of virtually all the challenges, goals, preferences, styles and strategies that distinguish wealthy investors. Additionally, as a truly global financial institution, we have an equally acute knowledge of financial opportunities and the potential risks. This combination positions us to develop, structure and execute solutions for your most important financial needs, from accumulating wealth to investing for income, from solidifying retirement security to devising a distribution approach that meets your lifestyle and legacy goals. investment insight without limits. As a client, you have access to the strategic and tactical views of some of the world s most seasoned and respected investment professionals. The members of our Global Investment Committee develop strategies that guide the management of advisory accounts and help to inform the decisions of clients across Morgan Stanley Smith Barney. The team is currently supported by the work of 350 analysts at two of the world s largest investment banks, Morgan Stanley and Citi, who cover key geographic and economic sectors, as well as 3,000 individual equity securities. You also benefit from a premier trading and execution platform. Think of our 225 capital markets professionals as experienced, highly responsive and knowledgeable partners. performance that meets your measure. Among the most important skills of our Financial Advisors is the ability to listen: to thoroughly understand your financial needs and then align the resources to meet them. Your Financial Advisor can help you evaluate immediate concerns and plan for long-term goals, be a sounding board for your investment ideas, assist you in developing and executing a strategy that is precisely your own and help deliver performance results that meet your needs. Your Financial Advisor is your advocate within our firm, an intelligent editor who selects and aligns the many capabilities of Morgan Stanley Smith Barney for you, delivering the right resources to you in the way that is most appropriate for how you invest and what you want to achieve. one of the world s strongest investment organizations stands Behind your financial advisor Financial Advisors have access to top-flight research from both Morgan Stanley and Citi. Combined, they analyze and track the progress of more than 3,000 companies all over the world. Please read important disclosures on the back cover of this brochure Morgan Stanley SMith Barney 13
Morgan Stanley Smith Barney strives to offer clients the finest in financial thinking, products and execution to help them meet their individual needs and achieve their personal financial goals. When we work together, you ll benefit from personalized advice, objective guidance and dedication to your success as an investor. With access to Morgan Stanley Smith Barney s renowned global resources and investment opportunities, we can help you develop and maintain an optimal investment strategy. Our wealth management strategy will address key areas of your financial life beyond traditional investments and may incorporate diverse recommendations for building and protecting your wealth. 14 Morgan Stanley Smith Barney
Morgan Stanley Smith Barney offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please contact us to understand these differences. The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Smith Barney or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their personal tax or legal advisors to understand the tax and related consequences of any actions or investments described herein. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor s individual circumstances and objectives. Portfolio Management is an advisory program in which the client s Financial Advisor invests the client s assets on a discretionary basis in a wide range of securities. This material is intended for use only in Morgan Stanley Smith Barney s Advisory Program. The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor s individual circumstances and objectives. Diversification does not guarantee a profit or protect against a loss. Morgan Stanley Smith Barney LLC ( Morgan Stanley Smith Barney ) is a registered broker-dealer, not a bank. Where appropriate, Morgan Stanley Smith Barney has entered into arrangements with banks and other third parties to assist in offering certain banking-related products and services. Unless otherwise specifically disclosed to you in writing, investments and services offered through Morgan Stanley Smith Barney, member SIPC, are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, banks and involve investment risks, including possible loss of principal amount invested. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. 2011 Morgan Stanley Smith Barney LLC. Member SIPC. 6929936 10/11