From Hal Felman: “Your column was right on about what the little guy gets from the brokerage house. A couple of years ago I was persuaded to switch my account from a discount house to a larger New York brokerage when my account exec moved from the discount brokerage to the new firm. I was promised great results based on the superior research at the new firm for which (I was told) large institutions paid big bucks. I questioned the research I would get for free when somebody else was paying huge sums for it. I can’t remember how I was convinced, but I fell for it. Without going into details, I was given recommendations to buy or sell six or seven stocks, not all of which I followed. Of three I bought, I am still in the hole despite the rising market. Two I was told to buy, but didn’t, have gone South. The recommendation to sell, which I didn’t follow, has gone up another 10 points. So much for ‘advice’ from brokers.”
Hal is being too harsh! In my experience, brokers are right about half the time. And they give you someone to blame when you do badly.
Isn’t that worth paying five or ten times as much commission?
Quote of the Day
On the day of the 1983 economic summit, James A. Baker 3rd, then chief of staff, realized Mr. Reagan had not read his briefing book. When Mr. Baker asked why, Mr. Reagan responded, 'Well, Jim, The Sound of Music was on last night.'~Professor Herbert S. Parmet reviewing President Reagan: The Role of a Lifetime
Request email delivery
- Mar 26:
iPhone Tips And The KGB
- Mar 25:
Of Deficits And That Mechanical Swan
- Mar 22:
Pins And Groats — Be It Ever Thus
- Mar 21:
Demand Your Carbon Dividend
- Mar 20:
Success! Why Do New York’s Mayor And City Council Resist It?
- Mar 19:
The Other Kind Of Bankruptcy
- Mar 18:
- Mar 15:
Pete Buttigieg And John Delaney
- Mar 14:
The Fifth Risk
- Mar 13:
Reader Feedback: How About A Stock Update?
- Mar 26: