The Goldman attitude is making me puke.
My reaction to it is similar to that of Louis de Funes in this link.
Numbers make the world go round. The human being will do anything to bring home the right numbers.
Investment banks, normal banks, brokers…are lining up for your account. So that their company’s balance sheets look presentable, they have one thing in mind – brokerage generation. Your prospereity is no longer their foremost thought.
So, to be fair, it’s not exactly a “Goldman attitude” only, it’s fairly universal. Lately, it’s gotten publicity after an ex-Goldman employee spilled the beans.
The thing is, where does that leave you? You used to depend upon sound advice from your trusted broker, right?
Well, not happening anymore. You’re in this on your own. Sink, or swim.
The thing with successful business over the long-term is that it needs to be practised with a “win-win”
ideology. If one party loses, one time too many, it then rightly backs off from the business. Brokers and investment bankers worldwide are noticing this backlash.
Why should I be someone who grudges a broker his or her brokerage?
Nope, I’m not such a person. A broker can make all the brokerage he or she wants as long as business remains ethical. The line for me gets drawn when lousy, synthetic, losing investments start to get touted.
And now we come to the public. Frankly and ultimately, it’s the public’s fault. People want to invest their money, but many don’t know the first thing about investing. That’s when they start throwing their hard-earned money at Mrs. Market, and that’s when they make big mistakes.
How long does it take a brain-surgeon to master his or her art? A good 10 – 12 years, right? Similarly, playing the markets successfully over the long term also takes a long time to master. Markets are complicated too. The difference between brain-surgery and Mrs. Market is, that anyone can take a pot-shot at Mrs. Market without the least bit of preparation. This anyone still has a coin-flip (50:50) chance of success. Early, unqualified, lucky success lures this unfortunate person into huge and back-breaking losses later.
When we’ve decided to do something, why can’t we do it well? And, why can’t we take the time to do it ourselves?
Too busy, you say?
Well, there’s no excuse for lack of that minimum threshold involvement in an investment, even if it’s being handled for you by your bankers or brokers.
Let’s say someone really close to you is receiving critical medical treatment. Don’t you get involved? As in, surf the net, find the best doctor, hospital, clinic, keep yourself updated about the progress of the treatment etc. etc. Why do you not behave in the same manner when your own money goes out to earn?
What makes you hand it over to a third party blindly?
Enough said already.
The thing with the “Goldman attitude” is, that it is a wake-up call.
For all of us.
To get our act together.