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Four qualities the wealthy look for when seeking out advisers - The Globe and Mail
| SPECIAL TO THE GLOBE AND MAIL | ANDREW MARSH, Andrew Marsh is president and chief executive officer of independent wealth-management firm Richardson GMP Ltd.

6 HOURS AGO

They look for these four essential qualities in their advisers – and you should, too:

Ability to challenge assumptions

There's a common misconception that wealthy people seek out "yes men" who simply agree with their opinions. Not in my experience. HNW investors value professionals who challenge assumptions and push back (hard) on long-held client beliefs – someone who isn't afraid to ask pointed, difficult questions about risk.

This kind of valued, trusted, sometimes contrary second opinion is a big reason why HNW investors work with professionals in the first place.

Belief in 'road maps'

Risk is often a reactive experience: It becomes an issue only when "stuff happens." That's not the way HNW investors think about it.

Instead, they're looking for advisers who can create a "risk road map" that anticipates the "stuff" that might come up, and outlines an appropriate asset allocation. The ultimate goal is to optimize the portfolio and align it with the risk needed to achieve specific financial goals – why aim for 12-per-cent returns if 7 per cent is all you need?

A 'wise counsellor'

Financial planner, portfolio manager, coach, confidant – advisers take on many roles with their clients. But the one that matters most to HNW individuals is that of counsellor: the calm voice of reason in times of uncertainty.

The best advisers I know have an extraordinary ability to be the "cool hand" when market noise is at its peak. They talk clients through anxieties and worries, and hold clients to long-term plans when the temptation to deviate arises (such as right now).

Understands the limits

Finally, great advisers understand their clients' risk limits. They ask clients difficult questions about risk tolerance, and they probe clients constantly to understand the boundaries of their financial comfort.

Great advisers work hard to ensure the advice they're giving to clients aligns with the information they're getting from clients – both the words and the unarticulated feelings behind those words. They understand that the best way to manage risk is to never allow their client to be in a situation that feels risky.
advice  anticipation  asset_allocation  assumptions  contrarians  financial_advisors  high_net_worth  investment_advice  risk-tolerance  roadmaps  unarticulated_desires  uncertainty  wisdom 
august 2017 by jerryking
Hedge Funds’ Idea Man - WSJ
By JULIET CHUNG
Jan. 4, 2016

The 54-year-old Brazilian immigrant is part of a larger ecosystem of consultants who sell their investment beliefs to hedge funds. The funds, hungry for returns or cheap hedges for their portfolios, get fresh ideas that comprise or inform their wagers. The consultants, in exchange, often expect to share in gains tied to their ideas, they and their clients said.....The ideas don’t always result in profits. ...Such arrangements make some veteran investors in hedge funds uneasy.

“If your manager’s renting a lot of ideas, you have to question the value-add they bring to the partnership,” said Chuck Bryceland of New York-based Bessemer Trust, which advises wealthy families and individuals on investments, including in hedge funds. “We want our people generating primary trade ideas and doing the primary work themselves.”
investment_advice  investment_research  ideas  Wall_Street  money_management  private_banking  hedge_funds  shareholder_activism  traders  exclusivity  idea_generation  value_added  financial_advisors  high_net_worth  Bessemer  Bessemer_Trust 
january 2016 by jerryking
How to Buy Art: A Beginner’s Cheat Sheet - NYTimes.com
MAY 7, 2015 | NYT| By WILLIAM GRIMES and ROBIN POGREBIN.

EDUCATE YOUR EYE Go see as much as you can — at galleries, museums and art fairs and by trolling online. The more art you see, the more you will develop clear judgment. Knowledge can help put things in context, but expertise isn’t a prerequisite. Marc Glimcher, president of Pace Gallery, says: “Go to a museum first and see what speaks to you. Identify which thread of art history is meaningful to you before heading to the galleries or the auction.”

Photo

THE LONG VIEW Budding collectors shouldn’t just buy what initially captivates them. “Ask yourself how something might look when you know more, how something might look over time,” said Amy Cappellazzo, co-founder of Art Agency, Partners, an art advisory firm. “The best thing to do is put yourself in a position where the first purchase actually challenges you a little — you’re not sure you like something, but you can’t stop looking at it. Imagine your smarter self looking at it in five years.”
auctions  art  artwork  art_galleries  museums  howto  self-education  judgment  Colleges_&_Universities  art_schools  students  contextual  long-term  collectors  collectibles  investing  investment_advice  pitfalls  mistakes 
may 2015 by jerryking
Incognito
October 2003 | Report on Business Magazine | by Doug Steiner.

"...He always seemed a step ahead, and he did it by working harder, thinking harder and trading harder—and in ways that the competition couldn't quite grasp."

Steiner's 10 rules for making serious money:

1. Economists say investing is a zero-sum game It isn't. Money moves to smart hands quickly, and lazy investors pay a price. Tiger Woods became the been golfer by practising a lot. How many prospectuses have you read in bed after the news?
2. Really good investors rarely crow. If there is $5 to be made from a trade, there will be loss than $2.50 after you've blabbed about how smart you are. There are traders who quietly take home $10 million a year. They live beside you in a modest house and drive a beat-up Nissan.
3. The best follow rules and they‘re patient. They may not invest for months. One great trader I know wanted to buy a house in a fancy neighbourhood. He spent more than a week in the registry office on his vacation, searching the title on each property in the neighbourhood to find what buyers paid and how much of that was mortgaged, going back 20 wars. He got a good deal. He does the same amount of homework investing.
4. Sharp traders never add to losing positions. Too many headaches.
5. Smart investors. when puzzled about when to sell. wonder if they should buy more. If they don’t think they should buy more,they sell.
6. The most information wins. If you like a company, phone some people who work there. Apply for a job. Try their products. Phone the shipping dock to find out if they're busy.
7. Get a Bloomberg terminal. Bloombergs have more information in them than you can use, but smart people use a lot of it.
8. Following really smart traders around the market is hard. Most have more money to invest in a position than the arbitrage or opportunity can handle. They leave few tracks.
9. Great investors an: like great athletes—they see opportunities that others don’t. Often you don't realize that what they've made the most money on is even fungible.
10. If you can't do it yourself, find someone who likes the foldouts in annual reports more than anything. Their management fees are usually worth it. And they usually don't have slick marketing brochures.
absorptive_capacity  arbitrage  Bay_Street  Bloomberg  dedication  Doug_Steiner  hard_work  hedge_funds  humility  idea_generation  investment_advice  investing  investors  money_management  obscurity  opportunities  overlooked_opportunities  patience  perception  primary_field_research  prospectuses  rules_of_the_game  self-discipline  sleuthing  slight_edge  smart_people  traders  training  unfair_advantages  zero-sum_games 
december 2013 by jerryking
Tired of being dumb money? Here’s how to get smart fast
Mar. 29 2013 | The Globe and Mail | DAVID BERMAN.
First, ignore the herd. Retail investors get into trouble because they like to follow the market. They love stocks when they’re expensive and bull markets are in full swing, and loathe stocks when they’re cheap and the bear is growling. Do the opposite: As the saying goes, buy when there is blood in the streets.

Second, accept that you are not Mr. Buffett. Over-confident investors get themselves into trouble because they take on too much risk in the hope of scoring spectacular gains. Instead, diversify and aim for the unspectacular, perhaps with low-cost exchange-traded funds that track a basket of stocks.

Third, think long-term. Retail investors are prone to expect their investments to pay off in a big way immediately – and when they don’t, these investors switch tactics, often with dismal results.
investment_advice  personal_finance  contrarians  long-term  patience  Warren_Buffett  overconfidence  individual_initiative  smart_people  independent_viewpoints  bull_markets  ETFs  low-cost 
march 2013 by jerryking
Three Mistakes Novice Art Investors Fall Prey To - WSJ.com
February 25, 2013 | WSJ | By DANIEL GRANT.

(1) Buying what's in vogue.
(2) Shooting for the quick profit.
(3) Going it alone.

As art investing has gotten more popular, advisers have sprung up to offer guidance to would-be collectors, weighing the relative quality and importance of an artwork, researching provenance and sales history, and appraising current value.

Advisers, for instance, can help steer you away from second-rate pieces.
collectibles  collectors  art  art_advisory  investing  investment_advice  pitfalls  mistakes  artwork  provenance  second-rate  art_appraisals 
february 2013 by jerryking
Larry Fink: “We need confidence back”
Jan. 24 2013 | The Globe and Mail |

BlackRock is huge. Are you getting opportunities that individual investors are not?

That's such an open-ended question that it's kind of meaningless. Is the sky blue? I have offices worldwide. I talk to clients worldwide. That's information, but it's not inside information. It's knowledge from being an active participant. We are serving our clients better by doing that. Do I have a better understanding of what's going on in the markets than an individual? I would hope so.

What were the biggest lessons investors should have learned from the financial crisis?

There were many of them. There was way too much leverage in the system, and this is one reason that economies still are not fully out of their doldrums. Institutions really didn't have a good handle on their risk in 2008, either. You could argue that, rather than too big to fail, some of them were too big to understand, too big to manage. Also, when all that leverage was sucked out at once, the whole world became correlated. That aggravated things. Hedges that people thought would minimize their exposures did not. It took a lot of liquidity and capital supplied by central banks to steady things.

Look, from an equity investor's perspective, the beauty of the world right now, and the negative, is that there's so much uncertainty, such a lack of confidence.

How would you invest $100,000 right now?

It depends on your age. If you're 22 years old, I'd put all of that into stocks. But that's me. Before I'd even answer that question, I'd ask: Tell me, how neurotic are you? Can you live with short-term losses? Can you accept the need to hold? Is your holding period 10 years, 20 years? Are you frightened of volatility? It's a cardinal sin if we think that one size fits all. And if you're looking at your mobile device every day to see what the markets are doing, to see if your $100,000 is up or down, that's not good.
Laurence_Fink  BlackRock  investing  investment_advice  liquidity  market_intelligence  questions  cash_reserves  lessons_learned  mistakes  idle_funds  confidence  problem_definition  unfair_advantages 
january 2013 by jerryking
A Road to the Rich
February 1998 | Financial Planning | Russ Alan Prince & Karen Maru File,
Gary Rathbun, president of Private Wealth Consultants in Toledo, Ohio, is profiled. One of Rathbun‘s most successful marketing strategies has been to work through intermediaries. Rathbun has created a niche for his investment advisory business by effectively positioning Private Wealth Consultants as a financial advisory firm with expertise in assisting wealthy individuals make charitable gifts. Private Wealth Consultants engages in 4 steps to creating relationships with nonprofits: 1. Demonstrate an ability to work with wealth donors. 2. Demonstrate expertise with charitable giving techniques. 3. Describe how to promote planned giving strategies to prospective donors. 4. Explain how the financial planner will profit from the arrangement.
financial_advisors  wealth_management  high_net_worth  charities  nonprofit  niches  investment_advice 
august 2012 by jerryking
Crisis fails to dampen art service demand at banks
Oct 17, 2008 | Reuters | By Jo Winterbottom.

The art advisory service belongs to the overall wealth management offer. I don't think it will be cut back," said Karl Schweizer, head of art banking and numismatics at UBS.
high_net_worth  private_banking  collectibles  collectors  wealth_management  art  art_advisory  precious_metals  valuations  auctions  affluence  investment_advice  banks 
august 2012 by jerryking
Money Advice for Boomer Women: Get an Adviser - WSJ.com
SEPTEMBER 7, 2006 | WSJ | By VICTORIA KNIGHT. Many Could Reap Benefits From Professional Help With Financial Issues.

In addition to holding a growing slice of the U.S.'s wealth, women are generous with referrals and, though they are less willing to take risks than men when it comes to investing, women are more likely to stick to their decisions, advisers say. Studies by OppenheimerFunds, Prudential Life and Allianz Life, among others, back up the anecdotal evidence.
women  financial_advisors  baby_boomers  investment_advice  anecdotal 
october 2011 by jerryking
Three Core Questions
OCTOBER 27, 2006 | SmartMoney.com | By DONALD LUSKIN.

Canadian economists Dan Ciuriak and John Curtis argue in a provocative new study that maybe we have “everything all wrong” about how the global economy works. They’ve identified a series of anomalies that “call into question the basic understanding of economics that underpins policy formulation today,” in their paper, What If Everything We Know About Economic Policy is Wrong?
personal_finance  Ken_Fisher  investment_advice  economists  anomalies  questions  pretense_of_knowledge  think_threes  global_economy 
october 2011 by jerryking
Hedge funds in Texas: Stetsons and spreadsheets | The Economist
Jul 30th 2011 | The Economist | FOR a state more closely
associated with cattle and cowboys, Texas is home to a surprisingly big
herd of hedge funds. They manage around $40 billion, making Texas the
fifth-largest US state for hedge-fund assets (after NY, CT, MA and
CA),...Many Texans like to trace the industry’s vibrancy to the state’s
risk-taking traditions. ...More important than the idea that there is
something entrepreneurial in the water is the state’s tremendous wealth,
much of which comes from oil and gas. Around 10% of Americans worth
over $30m are in Texas, according to WealthX, which tracks rich
investors. The Bass brothers in Fort Worth were among the first to
invest in hedge funds—in the 1970s, after they inherited some of the
family fortune—and to bring talented managers down to run arbitrage
strategies. Texans today also prefer investing in trusted local
managers.
Texas  hedge_funds  asset_management  arbitrage  financial_services  investment_advice  oil_industry  Bass_brothers 
july 2011 by jerryking
Fooling some of the people all of the time : a long short story
Fooling some of the people all of the time : a long short story
by Einhorn, David. Year/Format: 2008, 332.62097 EIN
In 2002, Einhorn spoke publicly about Allied Capital--a leader in the
private finance industry--presenting it as an excellent short
opportunity. Einhorn describes the incredible events that followed his
speech and how Allied and the investment community attacked him to
protect the company--and its stock price. Informative and intriguing,
"Fooling Some of the People All of the Time" details how the current
environment on Wall Street--and the world of hedge funds in particular--
not only allows for such behavior, but how it protects the companies
and attacks those who attempt to uncover them.
David_Einhorn  short_selling  TPL  books  investing  investment_advice  investment_research  Wall_Street  hedge_funds  stockmarkets 
march 2011 by jerryking
HOW TO MAKE MONEY NOW ProQuest
David Berman, Dawn Calleja, John Daly, Derek Decloet, et al. Report on Business Magazine. Jan 2011. pg. 25
ProQuest  investment_advice  howto  wealth_creation  investors  investing 
march 2011 by jerryking
Well-off investors a determined lot
Oct. 06, 2010 The Globe and Mail MARLENE HABIB. pegging the
personality of each client isn’t straightforward, notes Hamish Angus,
managing director of ScotiaMcLeod.

“If you put four HNW clients in a room, you will get four different sets
of needs. The key is to provide highly personalized and tailored advice
with a collaborative approach, to bring together a team of financial
experts at the table with the clients’ other professional advisers, such
as tax accountants and lawyers, to provide creative and customized
solutions on an ongoing basis and give clients alternative solutions.”
bespoke  financial_advisors  generating_strategic_options  high_net_worth  investment_advice  investors  personalization  wealth_management 
october 2010 by jerryking
Where Billionaires Are Putting Money
September 15, 2010 | The Wealth Report - WSJ | By Robert
Frank. What was being served up this year? Gloom, doom and complaints
about the Obama administration. Mr. Wien writes in his market
commentary that: “the group was gloomy on the outlook despite the
comfort of the surroundings. They saw the United States in a long-term
slow growth environment with the near-term risk of recession quite real.
The Obama administration was viewed as hostile to business and that
discouraged both hiring and investment.”... " What was surprising about
the lunch was where the attendees are putting their money. Topping the
list were vacant office buildings, farmland and Africa. Stocks look
attractive, but the attendees pointed out that no one has made money
investing in the indexes for 12 years. “Few were enthusiastic on gold.
Many liked Brazil and some favored India.” "
high_net_worth  Robert_Frank  TIGER21  investment_advice  obama  farmland  Africa  Brazil  wealth_creation  slow_growth 
september 2010 by jerryking
No salesman will call
March 31, 2006 | Report on Business Magazine | DOUG STEINER.
Yes, you can get free on-line investment advice that's solid and has no
strings attached...."Selhi's website focuses on advice about investing,
which is very different from investment advice. In recent years, he and
several other volunteer sages and coaches have been regulars on several
websites, and have got to know one another. Many of them are also
self-taught. Others are industry professionals who are retired or
disillusioned by the lack of truth about investing costs.

Together, this group has built a new website,
http://www.financialwebring.com, that is a forum for a low-cost
investing community. Through blogs, links and chat rooms, the site helps
everyone through every step and unspoken nuance of the investing
process. When I asked Selhi why he does all this, he responded with a
question: "Why do people volunteer?" He doesn't make money from his
work. The satisfaction comes from helping others. "
Doug_Steiner  investment_advice  free  DIY  advice  equity_research  disillusioned  investing  investors 
august 2010 by jerryking
Based on nothing
December 2005 | Report on Business Magazine | by Fabrice Taylor
Fabrice_Taylor  U.S.  investing  investment_advice 
february 2010 by jerryking
Agent of Change
November/December 2006 | Departures | By Robin Pogrebin. Art
advisor Lucille Blair is bridging the gap between African American
collectors and the blue-chip art world. For Ken M. From a marketing
perspective, can he make use of social media and event marketing to do
what Blair does more effectively? As we emerge from recession, now is
the time to position a business like a new art advisory service.

By Robin Pogrebin
African-Americans  art_galleries  art  collectors  investing  investment_advice  high_net_worth  collectibles  women  blue-chips  art_advisory 
january 2010 by jerryking
Cool it. Slow down. Don't buy the rhetoric
November 21, 2009 | globeandmail.com | by AVNER MANDELMAN.
The formal art of convincing others is called rhetoric. The Greek and
Romans used to teach it, as did the Jesuits, British law schools of old
and certain colleges in France. There is a variety of rhetorical styles -
Roman, Greek (which includes oratory), British, French, German - but
all are meant to do one thing: convince you and push you into action.
That topic of this column - a warning against letting yourself be
convinced without checking things yourself--due diligence.
Slow_Movement  rhetoric  logic_&_reasoning  Avner_Mandelman  investment_advice  due_diligence  persuasion  Greek  Romans  self-delusions 
november 2009 by jerryking
Deal or no deal?
Feb. 21, 2008 | Globe Investor Magazine | By Andrew Willis.
Mergers are usually dangerous for shareholders, but here are five ways to assess if you want to be part of the purchase
Andrew_Willis  investment_advice  mergers_&_acquisitions 
november 2009 by jerryking
Follow successful investment managers, you'll learn from them
August 13, 2005 | Globe & Mail ROB pg B7 | by Ira Gluskin.
"The first question that you should ask is why does anyone in the
investment industry want to be interviewed or quoted?...A tip to
facilitate your newspaper reading productivity... The most important
articles to read are by, or about successful investment managers.
Articles by or about investment executives and corporate executives come
next. Research analysts should be read afterwards. The last experts to
rely on are economists, with one notable exception. Jeffrey Rubin of
CIBC.".......Avoid all the articles interviewing Mr. and Mrs. Average Canadian who want to share their investment expertise with us. Certainly there are many astute investors out there in the real world, but the real world is full of experts on sports, movies and politics as well. However, the editors of these sections do not choose to air these amateur views like they do in the financial section. I repeat that I recognize that there are brilliant investors out there, but they don't have the discipline of achieving reported performance numbers like myself. This lack of discipline prevents the reader from knowing whether they are dealing with lucky or smart people.
Ira_Gluskin  investment_advice  in_the_real_world  Jeffrey_Rubin  Gluskin_Sheff  money_management  wealth_management  high_net_worth  Toronto  Bay_Street  reading  productivity  howto  economists  investment_research  equity_research  research_analysts  worthiness  discernment  smart_people  luck  investors  self-discipline 
october 2009 by jerryking
When you're drowning in knowledge, it's experience that counts
Aug. 20, 2009 | Globe & Mail | by Dan Richards. The key
to success today is no longer knowledge and information alone; more than
ever it's the discipline, experience, perspective and insight to know
what to do with that information, something that only comes from the
battle scars earned working through multiple market cycles....The bottom line is simple: If knowledge alone drives success, then years of experience may be less critical than intellect and analytical prowess. But in a time of market uncertainty such as we see today, intellect and knowledge alone aren't enough. Financial advisers and money managers also need the acumen that only years of hard-won experience can bring.
business_acumen  commoditization_of_information  Dan_Richards  discernment  experience  financial_advisors  information_overload  insights  investment_advice  money_management  pattern_recognition  uncertainty  wisdom  self-discipline  judgment  perspectives 
august 2009 by jerryking
Tom Almighty
September 2005 | The Globe and Mail | CHARLES DAVIES.
Inspired by his heroes' ideas on value investing— the maxim to stay
spiritual, above all —Tom Stanley has created the continent's
best-performing mutual fund
investing  investment_advice  mutual_funds 
may 2009 by jerryking
An avalanche of cash is set to slide
May 1, 2009 | The Globe & Mail | by THANE STENNER
HIGH-NET-WORTH INVESTORS
An avalanche of cash is set to slide
high_net_worth  contrarians  investment_advice  emotions  Thane_Stenner 
may 2009 by jerryking

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