An Important Investing Rule



There are lots and lots of investment rules I follow or have followed in my lifetime. But I want to share one of the most important ones I have to the beginning to average investor:

Do not listen to ANYONE who tries to tells you how you should invest your money.

So many times I see people write about what you do now with your money/investments. How many of them actually care about your well-being? How many of these people are right?

Examples: "How to make money in a bear market." "Why this stock is going to outperform. " "The stock market is going to crash, get out."  "These are the best stocks to buy right now. "

The list goes on and on.

Don't listen to them. They are only trying to make money for themselves. Believe me, I know from my professional experience as an ultra high net worth manager. My former investment banking firm would do and say anything to win more clients to gain more assets under management. They did not care about the customer is most cases, they cared about the customer's money that they could earn a quarterly fee from.

Beginning and novice and even average investors are always trying to get information on where to put their money. And hence, they are most vulnerable to these marketing tactics. So be careful.

There is no shortage of people giving investment advice out there
Most of them are trying to sell you on something .
Don't listen to them.

I don't care if its the richest man in the world giving advice. Just because he was successful, does not mean you will follow in his footsteps. Don't listen.

You should also keep in mind who is doing the talking.

Is it the money blogger who wants more hits which = more money for THEM?

Is it someone on TV who is talking up their investment picks to increase TV ratings which = more money for THEM?

Is it a financial company that wants you to subscribe to their services or open a new account which = more money for them?

Is it the investment professional who will say anything to win your business which = more money for them?

Do what you feel is best for you. Make your own decisions.  Do not listen to the noise. If you do happen upon these marketing campaigns, consider them to be for entertainment purposes.

After all, it's YOUR money. Not THEIRS.

Comments