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Investing Ideas Greed is Good?
Investing Ideas Greed is Good? 
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By Andrew Gordon Dear Reader, One of these days, if thing continue like they are, China and the rest of Asia won’t need us as much. They’ll find other markets for their exports. And the Middle East won’t need us as much either. It will spend their billions of petro-dollars elsewhere. |
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| Greed is Good? |
| Friday, 28 December 2007 | ||||||||
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Dear Reader, Would you give me a hundred dollars if I promised to destroy your wealth? If you did, you’d either be far too rich or the dumbest person in the world. In fact, I’d expect a punch in the face for bringing up such a ridiculous thought. Ah, what it’s like to use logic. Sadly, logic isn’t what drives most investors. If it did, maybe they wouldn’t give away billions of dollars in exchange for losses that would make even the most optimistic turn woefully depressed. Some may argue that the fund managers and “quant” funds on Wall Street deserve the pay they make. And for some managers, this is definitely true. But how about the managers who effectively bankrupted subprime hedge funds? Why do they still get a handsome payout? So far this year, shareholders have lost an estimated $74 billion. And according to Bloomberg, Wall Street plans on shelling out more than $38 billion in bonuses! Bloomberg really put that into context when they noted that those bonuses are larger than the gross domestic products of Sri Lanka or Lebanon. And the average $201,500 bonus is more than four times the $48,201 median household income in the U.S. last year, according to U.S. Census Bureau statistics. Now again, a fund manager who made money for his or her clients should certainly be entitled to a portion. But if the fund manager is in charge of bankrupting a hedge fund, why should they receive anything? In any normal company – you know, the kind everyday people work at – you get fired for destroying a line of business. And you wouldn’t receive a tidy retirement package either. Hell, you’d be lucky to leave with the stapler on your desk. But on Wall Street, where money is king and logic takes a backseat to greed, you get paid for doing a bad job. And you get paid no matter how many retirements you may have destroyed. It’s obvious the system is backward. But will it ever get better? Probably not. As Andrew Gordon mentioned a few weeks ago, even corporate CEOs are getting paid handsomely for nearly destroying the companies they run. That’s why it’s so important to educate yourself and learn about the things you want to invest in.
Looking to jump into Apple? Well, I hope you know how their business is run. Looking for a nice ethanol play? Then find out all the ethanol companies out there and do some research. Sure it takes time, but you’ll know that your money isn’t going to a fund manager who cares less about your dreams and what you want to do with your nest egg. And if you don’t have the time to do the research, then know that we will always be here for you. We don’t ask for two percent of your vested funds. And we won’t take 20 percent of your profits. We’ll let the greedy hedge fund managers get away with that. Instead, we give you the power to spot the opportunities the market presents and the power to choose whether to invest in that opportunity. Good trading, Charles Delvalle [Ed. Note: Three weeks ago, Charles told subscribers of IDEs Global Profits Hotline to capture a gain of 202 percent. To find out how to get these recommendations, [click here ]
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