Here’s a limerick written by a hotshot asset management company boss that I met recently, which he emailed to his prospective clients
As markets continue to sink,
The end could be here in a blink,
All I ask you, is to stop and think
Do your portfolio managers stink?
Quite relevant, don’t you think? Sometimes having the right portfolio manager, handling your money is probably the best medicine to ensure that you have wonderful night of sleep, but sadly most of the times they just seem to stink.
Here’s a couple of half baked common man questions to test your portfolio manager’s intelligence:
-->Portfolio manager tells me to invest in Gold, but am wondering why he is not investing in Platinum, since its rarer than Gold and has more industrial/ commercial use. Is it because Fort Knox has stocked up Gold that I should also be holding Gold instead of Platinum. Ask your portfolio manager for a convincing answer and see if he doest freeze in front of these headlights.
-->Portfolio Manager explains to me how important asset allocation into Emerging markets is; however can you explain to me why you have not invested any part of my money into rice or wheat futures. With almost 7 Billion in population, am sure feeding them something would be the most valuable commodity in the world ultimately, unless of course you have an explanation that now we’re going to start wheat and rice farms on the moon?
-->The Portfolio Manager told me in the late 80s to buy and hold for long term “Motorola”, Result-Kaput! then in the early nineties you asked me to buy “Nokia” , Result – Kaput! in the turn of the new century he asked me to buy RIM – Result – Kaput! Should I trust him on his Apple stock hold decision or should I sell it?
-->Explain to me why I should not invest in Oil? When the Libyan Oil went away from the market Oil spiked, How long will we have Iran (the second largest supplier of Oil available in the market) before they go the Kim Jong ll route or the Iraq route? Unless you think Obama is going to ask back publicly for his spy drone from Iran/ Syria/ China/ Putin&Co.
-->Portfolio manager tells me to invest in Gold, but am wondering why he is not investing in Platinum, since its rarer than Gold and has more industrial/ commercial use. Is it because Fort Knox has stocked up Gold that I should also be holding Gold instead of Platinum. Ask your portfolio manager for a convincing answer and see if he doest freeze in front of these headlights.
-->Portfolio Manager explains to me how important asset allocation into Emerging markets is; however can you explain to me why you have not invested any part of my money into rice or wheat futures. With almost 7 Billion in population, am sure feeding them something would be the most valuable commodity in the world ultimately, unless of course you have an explanation that now we’re going to start wheat and rice farms on the moon?
-->The Portfolio Manager told me in the late 80s to buy and hold for long term “Motorola”, Result-Kaput! then in the early nineties you asked me to buy “Nokia” , Result – Kaput! in the turn of the new century he asked me to buy RIM – Result – Kaput! Should I trust him on his Apple stock hold decision or should I sell it?
-->Explain to me why I should not invest in Oil? When the Libyan Oil went away from the market Oil spiked, How long will we have Iran (the second largest supplier of Oil available in the market) before they go the Kim Jong ll route or the Iraq route? Unless you think Obama is going to ask back publicly for his spy drone from Iran/ Syria/ China/ Putin&Co.
Preserving wealth is not all Fun,
Who knows what’s in store in the long run,
Tomorrow there may be a Bank Run,
And then all you’ll need is a Gun!!!!
Happy 2012 everyone! :)
