“The greatest education in the world is watching the
masters at work.” - Michael Jackson
Let’s face it … the quickest way to become great at
something is by learning from the best and if you want to be a ‘Professional’,
you need to do what the Pro’s do. In investing
that means learning from the Institutional Investors.
Pension Funds and Hedge Fund of Funds consistently
outperform the market year after year, while our own ‘local’ financial advisors
and brokers consistently do the opposite.
I’ve often wondered why is that? Why do the “big boys” who handle billions of
dollars outperform while the local Merrill Lynch, LPL Financial, Transamerica
advisors consistently perform worse than if you were to just take a buy and
hold approach?
In my line of work I'm fortunate to work with both types
of investor. I literally take part in
hundreds of calls a month with potential clients from all walks, and am
continuously amazed at how different these two types of investors approach an
opportunity.
It’s obvious … retail
investors, we have a lot to learn from the big boys …
Generally the difference I see is in the due diligence and
investigative process that the two groups partake in.
Remember, the goal here is to make good investment
decisions that will grow your net worth during healthy markets and protect it
during uncertain times … to refine your decision making process so that you do
not end up like most retail investors that end up making little to nothing
while their Investment Advisor/Financial Planner/Broker gets paid for making
bad decisions that ultimately cost you future profits.
In my next post, I will share a few examples, which show
the stark difference between the Retail investor and Institutional. Hopefully through this, it will help you improve
your own due diligence process.
click here to read part 2 of this post
Similar questions this post answers:
what is a financial advisor?
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what is a financial advisor in Denver, CO?
Difference between a financial advisor and investment advisor?
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click here to read part 2 of this post
Similar questions this post answers:
what is a financial advisor?
what is a financial adviser?
what is a financial advisor in Denver, CO?
Difference between a financial advisor and investment advisor?
Difference between a financial adviser and investment adviser in Highlands Ranch, Denver CO?
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