Financial Advisors who Fire their Clients

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
Nightshade
Posts: 1
Joined: Sun Apr 20, 2008 12:05 am

Financial Advisors who Fire their Clients

Post by Nightshade » Sun Apr 20, 2008 12:08 am

Hello all!

I was quite interested by the start of an article I saw somewhat recently that talked about advisors who would help clients with their AA and passively invested portfolios, then, when their portfolios were fixed, would "fire" the clients, since there's no more need for advice for the client by definition.

I haven't been able to re-locate this article for review - does anybody have a link? I seem to recall it talked about some advisors in the San Francisco Bay Area (Sausalito?).

Thanks!

User avatar
Ducks
Posts: 515
Joined: Sun Apr 20, 2008 5:01 pm

Post by Ducks » Sun Apr 20, 2008 6:51 pm

I can't post links because I am new ... but if you type "The Best Investment Advice You'll Never Get" into your Google search bar, you may come up with what you were looking for.

I hope that helps.
Getting our Ducks in a row since 2008.

User avatar
Ariel
Posts: 1361
Joined: Sat Mar 10, 2007 8:17 am

Post by Ariel » Sun Apr 20, 2008 7:02 pm

Ducks wrote:I can't post links because I am new ... but if you type "The Best Investment Advice You'll Never Get" into your Google search bar, you may come up with what you were looking for.

I hope that helps.
Here's the link:

http://www.sanfranmag.com/story/best-in ... #story_top

Thanks for the very nice article, Ducks.
Do what you will, the capital is at hazard ... - Justice Samuel Putnam (1830), as quoted by John Bogle (1994)

Benign Neglect
Posts: 31
Joined: Sun Feb 10, 2008 4:27 pm
Location: New Jersey

Post by Benign Neglect » Sun Apr 20, 2008 8:00 pm

Great article. I particularly liked Sharpe's comment that if index funds became too prevalent, market efficiency would suffer.

As an aside, my father passed away five years ago and every week since then my mother calls me about some fantastic investment opportunity some broker pitched to her over the phone (how do they know she's a widow with insurance money?). High returns, no risk. Thankfully, she calls me first before writing a check. Thieves.

User avatar
Ducks
Posts: 515
Joined: Sun Apr 20, 2008 5:01 pm

Post by Ducks » Sun Apr 20, 2008 8:05 pm

No problem. That article started me down the path I'm on now. I thought it was very smart and forward-thinking of Google to educate their employees like that. If only all employers were so protective of their employees' interests!
Getting our Ducks in a row since 2008.

schwarm
Posts: 709
Joined: Sun Oct 28, 2007 1:17 pm
Location: Lower Alabama

Post by schwarm » Sun Apr 20, 2008 8:50 pm

From the article:

"Eventually the department at Wells that handled index­ing merged with Nikko Securities and was later bought by Barclays Bank, which created the San Francisco subsidiary Barclays Global Investors. Its CEO, Patricia Dunn, the scandal-tinged former chairman of Hewlett-Packard who had worked for 20 years at Wells Fargo, had been heavily influenced by indexing. Running Barclays, she became the world’s largest manager of index funds."

So does Barclays have a lot of index funds?

I think they have a lot of ETF's but I don't associate them with index funds.

dbr
Posts: 31328
Joined: Sun Mar 04, 2007 9:50 am

Post by dbr » Mon Apr 21, 2008 8:58 am

schwarm wrote:From the article:

"Eventually the department at Wells that handled index­ing merged with Nikko Securities and was later bought by Barclays Bank, which created the San Francisco subsidiary Barclays Global Investors. Its CEO, Patricia Dunn, the scandal-tinged former chairman of Hewlett-Packard who had worked for 20 years at Wells Fargo, had been heavily influenced by indexing. Running Barclays, she became the world’s largest manager of index funds."

So does Barclays have a lot of index funds?

I think they have a lot of ETF's but I don't associate them with index funds.
For starters Barclay's Global Investors are the fund managers for the US Gov't Thrift Savings Plan index funds.

retiredjg
Posts: 39038
Joined: Thu Jan 10, 2008 12:56 pm

Post by retiredjg » Mon Apr 21, 2008 10:24 am

Thanks for the link. That's a great article! jg

InvestingMom
Posts: 503
Joined: Mon Aug 20, 2007 2:45 pm

Post by InvestingMom » Mon Apr 21, 2008 12:45 pm

Excellent article. The history was very interesting. Thanks for bringing this up and providing the link.

Post Reply