Stockbrokers: who's agenda? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Stockbrokers: who's agenda?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: JAMES BORECKI who wrote (14)	7/22/1997 9:21:00 PM
From: Leon Herrell	of 16

JimBo To return to your original theme I was at a financial seminar the other night and the president of a mutual fund company was giving his company's philosophy - Warren Buffett - buy good companies and hold onto them. He posted several charts highlighting the difference in returns if you had bought shares in Trimark/Templeton etc rather than if you bought their biggest funds RSP Equity/Growth etc. The difference was quite staggering with the shares far outperforming the funds. With this advice he wanted us to buy his mutual funds. Bit of an oxymoron I would say. Anyway, here's a thought for you. Having bought shares you continually have to monitor the company to ensure it is still on the right path and worth your investment. With good companies you hold them long term and watch your money grow. Not much return for the broker after the initial purchase of the shares especially if he has to periodically update you on the company's situation. He has to do work for no return if the advice is to hold (usually the party line from the brokerage house). Mutual funds are an entirely different thing. These are designed for the long term with the fund manager doing the research and trading. You just sit back and not bother your broker therefore the broker sits back and does nothing. Unlike shares mutual funds are continually being assessed management fees. Does any of the management fee find its way back to the brokerage house and hence into the broker's pocket? If it does is it not a thing of beauty for the broker? Get your clients to buy mutual funds and sit back and collect commissions for ever and ever. Beats one off commissions for share purchases anyday. Can anybody tell me if I am right or wrong. Could this be the broker's agenda? Leon H.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next