Would You Fire An Investment Advisor Who Averaged 29 Percent Per Year?

One of my father’s friends is a Scottish immigrant named Bill.

He doesn’t have time for fools. “Could you talk to Bill about investing?” my father had asked. “He just fired his financial advisor.”

At the time, I was visiting my parents. After dinner, Bill dropped by. As Bill poured himself a beer he said, “I’ve had three different investment guys in the past five years. I fired the third guy last week.”

Bill runs a company that repairs heavy-duty machinery. If one of his mechanics isn’t performing, he knows right away.

“Investing is different,” I explained to Bill. “You’ll have to be more patient with your investments than you are with your mechanics. Even the world’s best investment strategy doesn’t win every year.”

I gave him a copy of my book, Millionaire Teacher and recommended a portfolio of low-cost index funds. That was three years ago. I wondered, at the time, whether Bill had the patience to manage a portfolio of index funds.

This week, I got my answer when my father brought me up to speed on Bill and his portfolio.

“He gave up on the index fund account after about a year,” he said. “He wasn’t happy with its performance. He met a guy who promised stronger returns if he invested everything in oil.”

Image from Pixabay

Read the rest of the story


wealthbar special deal for andrew hallam readers

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

You may also like...

Leave a Reply

By commenting you confirm you have read and that you agree to the conditions on the Legal Page; including the Privacy Policy, the Cookie Policy, and the Comments PolicyFor your privacy we strongly recommend you do not use your real name. While your email address will not be published, your email may reveal your photo or a recognizable image if it is associated with gravatar.com . It is strongly suggest you do not use a corporate or ISP email address. We reserve the right not to publish comments that do not meet guidelines. Published comments will not be deleted.