Sid Shupack has a lifelong love of finance and history
From a corned beef concession to stock market success, Sid Shupack shares the story of his life and career.
Sid Shupack in his office at First State Investment Advisors
Sid Shupack is a self-admitted entrepreneur at heart, with a deep-seated fondness for finance and a penchant for making money.
From starting a corned beef sandwich concession business in college to founding First State Investment Advisors Inc. to heading his investment management firm, he says his priority has always been customer service.
Shupack earned his bachelor’s degree in business administration at the University of Oklahoma and studied postgraduate law at the University of Tulsa. He started his career at Walston, a brokerage firm, in 1959 and later worked at A.G. Edwards and Sons and Merrill Lynch before starting First State in 1971, where he currently serves as president and chairman.
How did your college corned beef concession come about? Living in the fraternity house at OU, I thought of ways to make money. Of course, all the kids would get hungry at night. I asked our housemother if I could use the refrigerator. I would buy the corned beef and bread, then make the sandwiches, add a dill pickle and chips and charge them a buck. I made some good money.
At First State you have developed an investment strategy called “The Gold Chip Standard.” How would you describe it? It’s our proprietary investment strategy where we target primarily high-quality, large-cap stocks that exhibit strong, long-term industry growth, led by outstanding management and with a dividend payout ratio of at least 20 percent. We have developed our own proprietary software to aid our research.
What do you think accounted for the stock market’s remarkable rise in 2017? Coming into office, President (Donald) Trump promised to do the most important thing that would impact the stock market; that is, to lower taxes. Previously corporations paid a 35 percent tax rate. The laws changed it to 21 percent. That has a huge impact on earnings. Plus, the market likes fewer regulations. Cutting red tape is a big plus for businesses and thus a big plus for the market.
What’s your outlook for 2018? We experienced a 10 percent market correction in early February, which rallied to about a 5 percent correction. It’s a cautious time to invest. The public needs much more education on why they need to buy or not buy a particular stock or mutual fund and why a stock price goes up and down. People need to understand what they are paying for.
You keep busy in various charitable organizations and pursuing several hobbies. I’ve always been involved some way with the Tulsa Area United Way by being a member of the Alexis de Tocqueville Society. I served on the board with the Tulsa Zoo Friends for years. I was in Rotary Club of Tulsa for many years. I enjoy traveling with my wife, Susan, taking cruises. I am an avid reader. I enjoy reading history and anything about the presidents. I have over a thousand books at home, with over 300 on the presidents. I’m always reading something on economics and finance. I played tournament racquetball for 25 years. It kept me in shape.