Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (20546)	3/18/2000 3:47:00 AM
From: Dr. Id	Respond to of 54805

His broker strongly advised him not to sell his old blue chip, and not to buy the stocks I had suggested because their "PE's were too high and they had run up too much already". I suggested my cousin invest in Qcom last summer. His broker strongly felt it had run it's course for exactly the same reasons. My cousin finally got in around November, but he was not amused. Why do brokers seem to feel the height of investing sophistication involves finding non-performing stocks in a bull market? Is it simply the appeal of the non-obvious solution? - Fred Fred, I imagine that with many brokers it's an ego thing. They don't like that "amateurs" come up with picks that their research department may not be following (or recommending). Also, their client is usually selling their recommended stock to buy the stock that we recommend, which in itself acknowledges their failure (and they look even worse if the stock that we recommend does well). So, they have a strong vested interest in keeping their clients in their own recommendations. Remember, brokers are primarily salesmen (not that I have anything against salesmen...some of the best people I know were salesmen!). I read a book a while back called "A Fool and His Money" by John Rothschild (great book, by the way). In one section, he writes about going to brokers school, and the gist of it is that almost all of the time was spent on sales techniques, with almost no time allocated to finance or evaluating companies. Everyone needs to "separate" from their brokers in their own time. It took me a while, and for some reason I felt really guilty leaving the services of a guy who didn't do that well for me. Well, my portfolio has almost quadrupled since I went "on my own". However, I had to reach a point where I felt comfortable doing so. Threads such as this (with lots of support and consensus) help a great deal in that regard. Dr. Id