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"Investment Advice Is Like Dining Out"
Jan.
20, 2009
It is a special occasion and
you and your spouse want to celebrate. You have reservations for
Friday night at a new, popular restaurant. You have not eaten at
this restaurant before, but have heard good things about it and
are looking forward to an enjoyable dining experience.
There are four possible outcomes:
- Pleasant dining experience…good food and attentive service…at
an expensive price
- Pleasant dining experience at an economical price
- Unpleasant dining experience at an expensive price
- Unpleasant dining experience at an economical price.
We hope for the second outcome…excellent dining at an economical
price. But we all know it does not always work out that way.
Investment advice is a lot like dining out.
When you try a new restaurant, you never know if it’s any good
until AFTER you have eaten. Similarly, you never know if
investment advice is any good until after you have either made
or lost money.
So, double the odds by eliminating the expensive price. If you
only pay an economical price for investment advice, you increase
your chances of a desired outcome by 100%.
Don’t pay me or anyone else very much for financial advice. It
simply is not necessary.
Jack Bogle, the founder and owner of Vanguard Group, built his
entire business on this single principal. He offered people,
like you and me, low cost investment options.
You will know soon enough if Panhandle Portfolios is worth what
you pay. And I have reduced the risk further by charging
monthly. You can subscribe or cancel anytime and you only pay
for what you get.
Live long and prosper,
Mike Williams, CFA
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