Comments on: Fooled by Wall Street http://www.obliviousinvestor.com/fooled-by-wall-street/ Investing Blog: The Oblivious Investor Mon, 06 Feb 2012 20:02:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Miguel Gomez http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1447 Miguel Gomez Thu, 14 May 2009 18:45:41 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1447 Most financial advisors are sales people in disguise. From a bib brokerage firm "help wanted" ad: "You will acquire and deepen relationships with clients through comprehensive needs based selling of Investment products...." And continues: "The successful candidate will identify... prospective candidates, prepare presentations, close sales" I found the word "sales" 5 times in this single page, which tells me that at least this firm is looking for salesmen, not someone able to help people make prudent investment decisions. I could bet you that 99% of financial firms are looking for successful salesmen, not good advisors; and that they measure the success of their brokers based on the commissions they generate, not on the performance of their clients' accounts. Most financial advisors are sales people in disguise. From a bib brokerage firm “help wanted” ad:
“You will acquire and deepen relationships with clients through comprehensive needs based selling of Investment products….” And continues: “The successful candidate will identify… prospective candidates, prepare presentations, close sales”
I found the word “sales” 5 times in this single page, which tells me that at least this firm is looking for salesmen, not someone able to help people make prudent investment decisions.
I could bet you that 99% of financial firms are looking for successful salesmen, not good advisors; and that they measure the success of their brokers based on the commissions they generate, not on the performance of their clients’ accounts.

]]> By: KyleAAA http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1440 KyleAAA Wed, 13 May 2009 22:00:32 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1440 Well said! Wall Street has a vested interest in convincing us investing is harder than it really is. Dough Roller had a pretty fantastic rant on a somewhat similar topic today. Well said! Wall Street has a vested interest in convincing us investing is harder than it really is. Dough Roller had a pretty fantastic rant on a somewhat similar topic today.

]]> By: Rick Francis http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1439 Rick Francis Wed, 13 May 2009 21:56:59 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1439 Mike, I agree that if Wall Street’s profits were aligned with investors’ interests investing would be very different. But since that isn't the case investors really need voices that bring up these points. Blogs are one source, but financial advisors should be another. @Mark While not all people will realize the value of your advice and listen to it- some will! If some of your clients won't listen to you then are you doing yourself or them any good? Instead, couldn't you focus on finding those people that DO appreciate your advice and making them your clients? They then get the benefit of good advice, and because they value it you should be compensated fairly. -Rick Francis Mike,

I agree that if Wall Street’s profits were aligned with investors’ interests investing would be very different. But since that isn’t the case investors really need voices that bring up these points. Blogs are one source, but financial advisors should be another.

@Mark
While not all people will realize the value of your advice and listen to it- some will! If some of your clients won’t listen to you then are you doing yourself or them any good? Instead, couldn’t you focus on finding those people that DO appreciate your advice and making them your clients? They then get the benefit of good advice, and because they value it you should be compensated fairly.

-Rick Francis

]]> By: Mark Wolfinger http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1438 Mark Wolfinger Wed, 13 May 2009 18:43:21 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1438 When a salesperson can make a fat commission by getting a client to do something against his/her own best interests, money wins out and the salesperson convinces the trusting client to do the very thing that pays the commission. That's Wall Street. Sadly, there's little profit from educating the individual investor on better solutions for his/her investing dollars. For me, it teaching them to reduce the risk of investing with conservative option strategies. For you it's passive investing. But we earn zero commissions and you would think that would encourage investors to listen to our educational guidance - but it's not going to happen. The public prefers to take advice from those with a vested interest in making a sale. When a salesperson can make a fat commission by getting a client to do something against his/her own best interests, money wins out and the salesperson convinces the trusting client to do the very thing that pays the commission.

That’s Wall Street.

Sadly, there’s little profit from educating the individual investor on better solutions for his/her investing dollars.

For me, it teaching them to reduce the risk of investing with conservative option strategies. For you it’s passive investing. But we earn zero commissions and you would think that would encourage investors to listen to our educational guidance – but it’s not going to happen.

The public prefers to take advice from those with a vested interest in making a sale.

]]> By: Rob Bennett http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1436 Rob Bennett Wed, 13 May 2009 13:36:28 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1436 Most of the "expert" advice that I hear advocates <i>not</i> picking stocks and <i>not</i> timing the market. Rob Most of the “expert” advice that I hear advocates not picking stocks and not timing the market.

Rob

]]> By: Miranda http://www.obliviousinvestor.com/fooled-by-wall-street/comment-page-1/#comment-1435 Miranda Wed, 13 May 2009 12:54:14 +0000 http://www.obliviousinvestor.com/?p=4205#comment-1435 It's all about the money. And they want ours! It’s all about the money. And they want ours!

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