Becoming a parent marks a profound personal transformation and introduces considerable financial obligations. With college expenses escalating significantly, families face increasing pressure to secure their children's financial future. This journey can appear daunting, but adopting a well-thought-out investment strategy can make a substantial difference in easing this burden and building lasting prosperity for your household.
\nSuccess in financial planning for your family doesn't demand expertise; rather, it hinges on initiating the process. According to Jared Tanimoto, founder of Sedai Wealth, the initial step is the most challenging, from which all subsequent progress flows. Prioritizing consistent saving is fundamental. By meticulously reviewing your budget and automating transfers to a dedicated investment account, you ensure that a portion of your income is allocated for future wealth accumulation before daily expenditures consume it. This methodical approach establishes a strong financial foundation.
\nWhen selecting investment vehicles, simplicity and cost-effectiveness are paramount. Broad-market index funds offer a straightforward and economical avenue for market exposure. These funds, along with mutual funds, are highly suitable for long-term objectives, providing diversification and historically robust returns with minimal active management. For those preferring a hands-off approach, robo-advisors present an excellent alternative, automatically managing investments based on pre-defined goals and risk tolerance, thus simplifying the investment journey.
\nA critical pitfall to avoid is investment inertia. Tanimoto cautions against the common mistake of holding money in cash or overly conservative accounts for extended periods. Such inaction allows inflation to erode purchasing power, undermining the very purpose of long-term savings. For funds earmarked for the distant future, active market engagement is essential to ensure they grow effectively and combat inflationary pressures.
\nUtilizing tax-advantaged accounts offers significant benefits for family savings. 529 College Savings Plans allow tax-free growth and withdrawals for qualified educational expenses, making them a popular choice for college funding. Additionally, Roth IRAs for children with earned income provide a tax-free growth avenue, with penalty-free withdrawals for education or a first home. Custodial accounts, such as UGMA/UTMA, also enable parents to invest on behalf of their children, with assets transferring to the child upon reaching adulthood. These accounts, coupled with newer governmental initiatives like the proposed 'Trump accounts' from the One Big Beautiful Bill Act, which could offer federal contributions and tax-deferred investment options for new parents, provide diverse pathways for financially securing a child's future. The emphasis remains on starting early, maintaining consistency, and allowing the power of compounding to amplify your efforts.
\nFor new parents, achieving financial stability doesn't necessitate complex strategies. By automating savings, opting for low-cost index funds or robo-advisors, and strategically using tax-advantaged vehicles like 529 plans and Roth IRAs, families can build a robust financial future. The crucial elements are consistent action and a long-term perspective, enabling investments to flourish alongside your growing family.
UnitedHealth Group (UNH) has recently seen its stock price climb significantly, a trend that began after a period of downward correction. While Warren Buffett's notable investment in the company has drawn considerable attention, the stock's robust performance appears to be rooted in a combination of strategic corporate decisions and broader investor interest. The company's management is diligently working to refine its business model, with a particular focus on enhancing profitability across its diverse service lines. This proactive approach, coupled with a favorable market sentiment, positions UNH for sustained growth.
Management's aggressive strategies for 2026 involve a comprehensive repricing of all business lines. This includes shedding over 600,000 unprofitable members and shifting focus towards higher-margin products. Such moves are crucial in navigating the current landscape of escalating medical costs. This strategic realignment aims to bolster the company's financial health and optimize its operational efficiency.
The current trading valuation of UNH, hovering around 15 times forward earnings, is reminiscent of its 2020 levels. This valuation suggests a potential for significant appreciation, especially when considering its projected earnings per share (EPS) growth of 11-12%. This scenario mirrors past recoveries where similar growth trajectories led to substantial gains for shareholders.
Beyond the well-publicized investment by Warren Buffett's Berkshire Hathaway, other prominent investors such as Michael Burry, Renaissance Technologies, and even former President Trump have reportedly acquired positions in UnitedHealth. This broad institutional interest underscores a collective belief in the company's recovery prospects and its undervalued status in the market. It suggests a widespread recognition that UNH was oversold and now presents a compelling investment opportunity.
Looking ahead, UnitedHealth's guidance of at least $16 EPS for 2025 and an 11% revenue growth target paint a promising picture. Market consensus anticipates a meaningful acceleration in earnings during 2026-2027. This positive outlook is a key driver behind the stock's current momentum, reinforcing confidence in its long-term financial trajectory.
UnitedHealth's resilience and strategic initiatives are paving the way for a continued upward trend. The combination of internal restructuring, strong earnings projections, and diverse institutional backing creates a compelling narrative for its ongoing market rally.
Unlocking Value: The FMI All Cap Equity Approach to Market Dynamics
Investment Philosophy: Adopting a Business Owner's Mindset
At the core of our investment strategy is the belief in approaching every opportunity with the meticulousness of a business owner. This means undertaking exhaustive research into the financial underpinnings of target companies and thoroughly assessing the caliber of their leadership teams. Our due diligence aims to uncover intrinsic value, rather than merely tracking market fluctuations.
Strategic Focus: Valuing Assets for Long-Term Growth
A cornerstone of our methodology is a strong emphasis on low absolute and relative valuations. This disciplined focus on identifying undervalued assets is critical to the execution of our investment framework. We believe that securing positions in businesses trading below their true worth provides a significant margin of safety and potential for substantial long-term returns.
Recent Portfolio Additions: Expanding Strategic Holdings
In line with our active management philosophy, a 1.5% stake in Gates Industrial Corp. was strategically acquired in June 2025. This addition reflects our ongoing commitment to identifying and investing in companies that align with our rigorous valuation criteria and growth expectations, further diversifying the fund's holdings.
Performance Overview: A Look at Recent Returns
The FMI All Cap Equity Fund has demonstrated consistent performance across various timeframes. For the most recent quarter, the fund achieved a gross return of 4.22%, with a year-to-date return of 5.15%. Over longer horizons, the fund has delivered robust results: 9.90% over one year, 14.54% over three years, and 14.07% over five years, underscoring the effectiveness of our long-term investment strategy.
Long-Term Trajectory: Sustained Value Creation
Reflecting on a decade of operations, the fund has maintained an impressive 10-year gross return of 10.58%. Since its inception, the fund's gross return stands at 10.30%, a testament to its enduring commitment to value-oriented investing and its ability to generate significant returns for investors over extended periods. These figures highlight the fund's capacity for sustained capital appreciation.