Ken Fisher in his book, ‘How to Smell a Rat’, shares some valuable insights for investors –

“The regulators didn’t catch these swindlers earlier is a pretty good indication that you cant count on them to protect you. Only, ‘YOU’, can protect you.” – Buyer Beware, Investor Beware.

“Friends make nice dinner companions & give a good shoulder to cry on. But a tip from a friend – no matter how smart or sophisticated that friend – is never sufficient due diligence. Friends, don’t let friends in the middle of decision making.” -Do your due diligence before drawing conclusions.

“Fancy offices, expensive toys, and corporate & personal binds are a red flag. If they aren’t meant to distract you, at the very least they distract the adviser.” – Differentiate between what is needed & what is an appendix.

“Exclusivity might make sense for a social club, but it doesn’t for financial advisers. Be suspicious of claims on ‘exclusivity’ from your money manager.” – Simple solutions lead to exclusive results & not vice versa.

“Having reasonable expectations helps set a proper strategy, but also helps you identify & avoid potential financial fraud.” – Too good to be true is definitely a red flag.

“A strategy isn’t a collection of tools or product. You may have the world’s best saw & power sander, but without a Blueprint, you won’t get anything significant built.” – A nice blueprint shows the way for a better execution & an even better result.

"Everyone wants great returns with no downside. But the truth is, big returns with no down years aren’t possible.” – Time, Time & Time in the market only counts.

Happy Money Life J