1# Rule of Investing

1# Investing rule
I never rely on the advice from someone who earns a comission on the transaction he/she recommends


2# Investing rule
I never rely on the advice from someone who earns a comission on the transaction he/she recommends especially if it's at a seminar
 
Hi BBG.

So are you saying you don't attend seminars? If you do, how do you like to pay for them?

Is this attitude from some personal bad experiences? If so, care to name them?



:)
 
Not my bad experiences, I've seen enough of others to learn.

You can learn by your own mistakes, or from others mistakes. After making some of my own I decided to learn from others mistakes.

I don't attend seminars, a few many years ago was more than enough.

merry xmas
bbg2003
 
I suppose the key word here is 'rely'.

Personally I would not take anyones comments as gospel, i'd try and do a bit of research on the side escpecially if they had a interest in my money.

However I wouldn't close the doors to all seminars or comments made by people who earn a commision on what they recommend......

I would remain sceptical until i felt comfortable that they are not a crank and engage if i felt the advice or deal viable.

Perhaps these days there are so many self appointed investing gurus running seminars that will change your life and empty your wallet that it is hard not for bbg2003 to become disheartend.

Marco
 
BBG..you forgot to mention Rule #3..
RULE #3 When in doubt, refer to rule #1.

Jokes aside, you are basically right. But as long as you are aware of the nature of self interest, I find I can take and usually use some thing I either did not know or had not thought off from a lot of different sources ( seminars included ) .

Anyhow...to those people who come here have a wonderful Christmas and I hope you too have someone to Hug and take care of.
 
Originally posted by Marco
However I wouldn't close the doors to all seminars or comments made by people who earn a commision on what they recommend......Marco

Actually, Marco, very few people would earn a commission from recommending only!

The customer would have had to make the decision to 'buy' and that sale be settled, before an introducer would earn any commission at all!

We rely on other people's information, suggestions and recommendations all through life. When you go to the Dentist, and it is recommended that the molar be filled, how do you know the tooth is damaged, and the dentist is not just filling teeth to fill his/her bank account?

What about your accountant? When they recommend you put all your assets in a trust, which means you now have to pay audit fees, annual return fees, and more accounting fees to him/her, are they not profiting from their 'advice' to you?

When I had a retail business, everything crossing the counter 'made' a margin for the business, and thus for me, and I could either adopt a 'buy it if you want it' attitude, or I could help the customer select the best book, gift, jewellry etc for them. In five years I only experienced about five returns, so the customers must have really wanted that help to assist them in making the appropriate purchase.

Every interaction we have with a third party will involve some sort of self interest on their behalf. The baker must sell bread, the banker must sell investments, the mortgage broker must sell loans (aah! but are they selling loans to the customers or are they selling the customers to the lenders??), even the seminar presenters must sell bums on seats.

You, too, are serving self interest in seeking out the best advice for you. That advice may have no relevance to your brother or best friend, but may be the best and most advantageous advice you ever receive.

As you commented, the key word is 'rely'.

There are many people who want someone else to take responsibility for them, hence the guru of the moment being created out of very ordinary people.

There is an old saying

'No Man is your Enemy
No Man is your Friend
but Each Man is your Teacher'.

We must each seek our own truth, but in doing so must not begrudge that other people have had to pay to learn what we think they will teach us for free.

cheers

Kristine
 
Well said Kristine.


To put it more distinctly...

I never rely SOLEY on the advice from someone who earns a comission on the transaction he/she recommends

Each person is in a job for a reason. Some people genuinely want to help. Some want to make a lot of money from you. Both need to be paid to eat.....

Landluber said it well - beware the vested interest.

Due Dilligence is the key.

I had an experience with a 'propery guru' selling inner city properties. Short story - I was nervous buying $360 - $500k properties where vacancies would kill me. I wasn't in a situation to wear it, and they were the types of properties that people would give up when things got hard.

Now, he showed me one that did interest me. $235K for one bedder few K's out, opposite Optus Oval in Melb.

Went back to look at the place again and saw the developer - who assured me the price was reasonable at $190k.

Yep, he was trying to make $45K out of a recommendation.

Not from this puppy. However, I did find out his mortgage broker and used her for some transactions....:D :D :D

Always check the information - if it checks out - go fot it. NEVER sign for something on the night / visit / whatever.


Regards,

Simon.
 
bbg2003

I think the three quotes rule is similar, get information form multiple sources and you make the decision.

Do you pay to have someone manage your investments or do you learn and manage your own investments?

YOU YOU YOU YOU .... Take responsibility.

my 2c
quoll
 
bbg2003

Read "Ordinary millionaires" by Jim Mcknight.

Ch8 has a story about a young couple who had a set of investing rules.

They are summarised (too much for someone to completely type like I do at 3wpm on a good day)

1. Make your own deals
2. never hesitate to ask someone else for an opinion
3. use professional negotiators
4. higher use ( ie making money from older buidings)
5. The look
6. Creative financing

I think No1 was their most interesting point for this thread. The deal has to be good for you so you go out and find the deal.

Then use your team of professionals to complete the deal. The rest of the book is a great read as well. I think it may have been discussed in previous threads.

Regards and seasons greetings
 
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