Hello friends, In this article, we discuss chapter 10 of the intelligent investor book. In this chapter, the author explains the relation between The investor and his Advisors. So let’s see chapter 10 of the intelligent investors.
Previous Chapter 9: Click here
Investor & his advisor:-intelligent investor: Chapter 10
In this chapter, when investors want to invest in the investment funds, they have to ask the same question for their safety of principle. This question asked by the investor to the Advisor. so they will as follows
The question asks to Advisor:
- Do you use technical analysis or market timings? If the answer is yes, then you have to leave this office as quick as and find the other investment funds. The reason behind this is the only that, if they use the technical analysis they are not focusing on the company. They only want to make money quickly by using our money. So we know that in short term market is the voting machine and in the longs term the market is the weighing machine. For this reason, you have to leave the office. If the answer is no then as the following questions. (intelligent investor: Chapter 10))
- What do you do when an investment does poorly? If the answer is to sell, then you don’t buy from investment funds. If the answer is we check the investment balance sheet and get the right answer why they do poorly. Then you can buy it from him.
- How many fees? This is an important question to ask. If the answer is more than 10% then don’t buy from him. If a minimum than 10% then asks the following further questions.
- Can I see an account statement and can you explain it? If the answer is yes, then you have to see the statement and as the profit sources and the why it comes, and it can regularly happen or some strategy will be changed. if the answer is no they don’t buy from him, because they are hiding something from you. (intelligent investor: Chapter 10)
- How much average annual statement and can you explain it? This question also helps you to get the real profit of funds. If they are helping us they are good for us. If you only ask the question and they don’t as the question about your financial goal, why you hire the advisor, what is your financial worst? this type of question then leaves the place. If they asking you then you hire them with his honesty.
- How much average annual return is feasible? this question asked by the advisor to the investors. And we have to explain our expectations to him.
- Ask for the resume form: If you ask this you get the exact answer this guy is good for the advisor or not. Without getting a referral don’t go the investment funds, ask a minimum of three people about him.
- Ask about complaints against him: If some complaints against him then see what is that and if they hurt your investment don’t buy from him. (Intelligent Investor: Chapter 10)
For this type of question, you have to ask the advisor, to make an investment in the funds for a good return.
This is all about chapter 10 of the intelligent investor book. In the next article, we see chapter 11.
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Laxman Sonale I am Laxman Sonale, I love reading books. My professional background is in biotechnology and now I am doing my m.sc in biotechnology, but I love the stock market and Common Sense and how people make lots of mistakes in financial life so I write this blog to help them people and become financially aware. so this is my mission and I need your help friends, to reach out to those, that don't know about the world of finance work, and how people get poor and rich get richer. So if you want to be a Smart guy in life, then you should have to learn about finance, whatever I know, I am trying to say in simple language if something is not clear to you, then leave the comment, I bring the answer.
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