Lars,
Actually, it was I who used Microsoft. I was merely using it as an example--I could have easily substituted Intel or any other stock that has done wonderful in the past seven years. I didn't know that Brinker had rec'd Microsoft in 1990. I don't dispute that he did. My point was that, I've heard several callers tell, or rather 'brag' to Bob about how they have used his shark attack sermons to turn away brokers that have called them (the callers). I thought it would be funny if someone called him and said that they used the shark repellant scenario a few years ago, only to discover that the stock that was recommended to them by this 'shark' turned out to be a huge winner--had they listened, rather than break out the shark repellant, they might have made some big bucks.
I hear it all the time from people I call on. You know the scenario, "Oh what, you expect me to listen to some broker...I know better...why would I listen to you..." Of course, some of these people are just responding like that because they have unfortunately been burned by sleezy brokers. Others are responding based on what they have heard Bob say on his show. In any event, it is silly for someone to give a blanket-like shark repellant reply to any broker they speak to. My position has always been, "Look, if nothing else, watch this stock I'm telling you about. In six months, if it didn't go anywhere, you can call me a jerk. BUT, if the stock ends up doing what I am telling you I think it will do, then you will have some reference as to the fact that I can pick winners, and you'll listen to my advice the next time I call you with a tout."
Here's a true story that backs up my point: There was one guy I remember about 4 years ago who I had talked to and prospected, on and off, over a period of six months. Upon calling him, he told me that he made all of his own picks and bought them through Waterhouse for the discounted commissions. I told him, "look, I don't expect you to go out and buy the first thing I recommend. What I ask is that you monitor my pick(s). If my picks work, then we can take our "relationship" to the next level. If my picks suck, well, it didn't cost you anything." As luck would have it, the three stocks I ended up showing him all performed like champions--don't think that all of my picks turn out like this, because they don't, and I have rec'd stocks that didn't work in the past--luckily this time, I happened to be on a roll. The first stock I showed him went from $3 to $10 in less than two months. The second stock I showed him went from $ 3 5/8 to $15 in three months. The third stock I showed him went from $8 1/2 to $14 in three days. After the third stock hit $14, I called him back and said, "Look I think its pretty obvious, based on the three stocks I've shown you, that I am a worthy stockbroker. Here is what I think you should buy now..." Before I could spit out the rest of my sentence, the guy told me, "Look, I'm going to be honest with you, I listen to some guy on the radio named Brinker on Saturdays and he claims that all brokers are sharks. By buying one of your stocks, I would be exposing myself to a (shark attack)." Now that's what I'm talking about. By the way, the 4th stock I told him to buy went from $23 to $52 in three months. Did this guy benefit from Brinker's self-described shark repellants?
That's my whole point. Brinker may not have ever come out and said, verbatim, "All brokers are crooks, stay away from all brokers..." but if you listen to his show, that's the idea you would get--that is the message that people are hearing. What I was saying earlier is that I'd love it if some caller told Bob, "Look, I followed you shark repellant script to the 'T', and look where it got me--you're telling me to bend over and pick up pennies when I have dollar bills flying over my head."
FWIW, if Brinker has had a strong buy on 'Soft since 1990, he is to be commended for it. At some point in time, had I owned it at pre-split $ 7 1/2, I am sure I would have been tempted to reign in some profits at some point in time before now. See, I'm not saying he's a bad guy, I'm sure he has some well-thought-out ideas like 'Soft--I'm just saying that some parts of his rhetoric are questionable.
Gary |
