The “Stock Jockeys”-These investors typically
get most of their advice or investment ideas from a stockbroker, usually
affiliated with a large Wall St. brokerage firm. Most “Stock Jockeys”
have 2 or more brokers that they work with and are mostly invested in
individual stocks and bonds. The investment recommendations usually come
from the broker’s research department that may have an investment
banking relationship with the recommended security,
The Professionally Money Management-We believe that using professional money management gives the best chance of long term financial success. These professionals and their organizations spend hundreds of millions of dollars each year on research looking for the best investments that fit their style of management. They have unemotional, disciplined investment strategies that most individuals would be hard to duplicate. In addition, the breadth and scale of the money that is being managed allows individual to access their management for relatively low fees.
The Professionally Money Management-We believe that using professional money management gives the best chance of long term financial success. These professionals and their organizations spend hundreds of millions of dollars each year on research looking for the best investments that fit their style of management. They have unemotional, disciplined investment strategies that most individuals would be hard to duplicate. In addition, the breadth and scale of the money that is being managed allows individual to access their management for relatively low fees.
W
hen it comes to investing money people mostly fall into one of three categories:
The “Do it Yourselfers” (DIY)- DIY make their own decisions on which individual stock, bond, or mutual fund security to invest in. DIY put heavy emphasis on using low costs, and low fee securities. Information and research used to make their investment decisions is usually gathered from periodicals such as financial magazines, family, friends, and the internet. We find that most DIY tend to do well, sometimes outperforming the professionals during up markets. There is a tendency to become more heavily weighted in the areas that have done well recently. Conversely, during down markets, DIY have a propensity for larger then average losses. We think that this is based on the fact that most DIY do not have a disciplined buy/sell strategy. They tend to invest emotionally, getting caught up in either the euphoria or “doom and gloom” that the media perpetuate. This does not bode well for long term investing success.