Today we’d like to introduce you to Dave Sather.
Hi Dave, thanks for joining us today. We’d love for you to start by introducing yourself.
I first landed in south Texas after working in the oil and gas business in Houston. I was getting married and my fiancée had family obligations that redirected me.
As such, I started looking for new opportunities.
When I was in college at Texas Lutheran University in Seguin, I waited tables to earn some cash. An executive with Shearson Lehman told me that I would do well in the investment business.
I didn’t really understand why since I had never taken an investments class. However, he realized that my personality allowed me to connect with people. Although I didn’t realize it, the investment business is very much influenced by people and relationships.
Eventually, I landed a job with PaineWebber–now part of UBS. During this time, I learned I loved the investment business, but hated selling on commission. It was also at this time that I was introduced to Warren Buffett. His analytical, yet commonsense approach just resonated with me. As such, I started consuming everything I could about Buffett and Berkshire. This mindset continues to be the foundation for our investing strategy.
After 3 1/2 years, the oldest bank in Texas hired me at age 28 to oversee the investments for their trust department and establish their brokerage operation. This was a time of rapid growth and lots of baptism by fire.
The bank opened a lot of doors and allowed me to mature professionally. However, I didn’t quite fit their culture. As such, in April of 1999 I left to start a “fee-only and fiduciary” registered investment advisor (RIA).
For nearly 27 years, we have operated with no advertising and no sales staff. Our growth has all come from referrals and investment growth.
Today, we manage a bit more than $2.2 billion. As of the end of 2024 we were the fourth largest RIA in the state of Texas. In October, CNBC listed us as one of the Top 100 Financial Advisors in the nation and in November, Newsweek named us a Top Financial Advisor nationally.
Today, there are 12 of us that work together on every relationship. This offers greater cohesiveness and service.
In addition to providing depth of expertise on the strategy and planning side, we are also unique that we do all of the research that goes into client portfolios. As such, instead of outsourcing to a fund company, we are the ones who do the analysis and critical thinking as to why something should be in a portfolio or not.
I think this brings up an important point. There are many exceptional professionals in the investment community outside of New York. This talent pool, and a very business friendly state, are why the major investment firms all have a significant presence in Texas. This is also why the new Texas Stock Exchange is being created.
I’m sure it wasn’t obstacle-free, but would you say the journey has been fairly smooth so far?
The investment world is like playing three-dimensional chess. Not only are you trying to think several steps ahead, but you have to effectively combine logic and discipline with the emotion and psychology that goes into managing money for real people. For every move, there are several counter moves that must be considered.
When I first started in the business, I was the one with the vast majority of the information. Now the script has flipped and the average person is overwhelmed by the amount of information available.
However, with the flood of information, you still have to be able to determine what is useful or just a waste of time. Much of the information investors are faced with is really just noise.
The good times are relatively easy. However, you also have to be able to help people navigate the downturns like we experienced in 2000 and again in 2007-2008. If people don’t understand how and why their portfolios are built, they will jump ship. This requires a steady hand and consistent communication about what is happening and whether or not it will impact their portfolios.
There is nothing more intimate to discuss with a stranger than their money and what it represents.
When I started in the investment business, I thought it was all about logic and discipline that had quantifiable outcomes. In reality, the discipline and logic of math remain a reality. But the behavioral finance aspects are significant. You really have to be a great listener to help clients solve problems.
Although every day presents new challenges, it is a highly rewarding business.
Thanks for sharing that. So, maybe next you can tell us a bit more about your business?
We run a $2.2 billion registered investment advisor. We are a bit surprised that our firm is the fourth largest in Texas despite the fact that we do no advertising and have no sales staff. It is all about taking care of others. I think the fact that we have been able to grow to this size, without marketing, tells us we are doing something right.
Additionally, although investing is the common thread that brings us together, we have never met a wealthy person who only has these needs. As such, we go out of our way to help coordinate risk management, estate planning, tax planning, retirement planning and another bucket called “big purchases.” Whatever has a large price tag with it requires analysis to allow our clients to make better decisions.
Additionally, I teach at my alma mater, Texas Lutheran University in Seguin.
Teaching allows me to be a better professional.
And being a practicing professional allows me to be much more competent in the classroom.
The program I teach at TLU is called Bulldog Investment Company. It teaches students how to analyze and manage investments in the manner with which Warren Buffett manages Berkshire Hathaway. The students manage a portfolio of $2.3 million which has grown in excess of 16% per year since inception more than sixteen years ago. As such, it is not a simulation.
The program has won the Texas Investment Portfolio Symposium’s Manager Competition the last three years in a row. Additionally, last year they were recognized as the top student led business program (out of more than 1,200) overseen by the Accreditation Council For Business Schools & Programs.
This reinforces in my mind that you don’t have to go to Wall Street to have legitimate finance skills or to have a meaningful career. There are so many really strong students in our state, if you are willing to look.
The longer I am in this industry, the more I realize how the research in the books The Millionaire Next Door and The Millionaire Mind are so accurate.
Accumulating wealth is not about winning the lottery. Wealth in our nation is typically accumulated by people who are first generation entrepreneurs. They work incredibly hard and manage their money very carefully. Real wealth is the opposite of what you see from social media influencers. Texas epitomizes the independent, driven work ethic that has made capitalism the tide that lifts all boats.
I don’t think we do anything that particularly spectacular. However, there are some common themes. We are big believers in the thought that “if you put the needs of others first, everything else has a way of working out.”
Although that is rather basic, it requires a longer time frame for it to work. You have to be very consistent and hard working. If you do that for decades, great things will happen.
How can people work with you, collaborate with you or support you?
We always enjoy working with new clients. And we are always looking for entrepreneurs or C-Suite professionals to speak at Texas Lutheran.
Pricing:
- 1% on the first $1 million with a $1 million minimum
Contact Info:
- Website: www.SatherFinancial.com
- Linkedin: https://www.linkedin.com/in/dave-sather-512a7b2/
Image Credits
The teaching photo was taken by Terry Price. The photo taken at the 2025 Berkshire Hathaway Global Investors Dinner was taken by Catherine Duan.
