I wrote a post detailing a memo from the junior partner in a financial advisory firm to one of their more well-off clients; here is the slightly cynical follow e-mail from his boss to that same client:
Our junior partner sent you his rules of investing, Mine are much better:
1. Only buy stocks that will go up. The others are a waste of time.
2. Give your broker a lot of business. By trading in and out he will become your best friend.
3. Pay attention to Wall Street research. The people who produce it are intelligent, honest, and really care about you.
4. Read the papers daily and the listen to TV financial reporting. Do exactly what they tell you.
5. Be nice to your barber – he’ll always have the best stock tips.
The first couple of points are an obvious barb about trading stocks, and timing the market – although, with online trading accounts offering trades at less than $10 each the second point is less of an issue than the first.
I don’t buy ANY financial newsletters of research (I do get the Tycoon Report … hell, it’s free) or read the financial press, or watch much – if any – TV (for news of any kind). I just skim the headlines when I want to understand a market move that has already occurred.
I like my barber … but, he ain’t rich … ’nuff said 🙂