The wealthy are not immune to investment mistakes. One of the biggest is not paying attention to investments, the reports and the strategy the advisor is implementing. This can result in misunderstandings, lost opportunity and worst of all misrepresentations by an advisor. This article describes how an advisor lost $50 to $60M of a wealthy family’s fortune.
- Over the last 10 years US public companies bought back nearly $4Trillion of their own stock while investors in equity funds and ETF’s purchased less than $100billion. Do these businesses know something about the value of their stock that investors do not? (source Haver Analytics and Citi Research)
- US worker productivity is up 10% from pre-recession levels
- US Corporate profits are up 50% from pre-recession levels.
- US household total liabilities divided by total assets has decline more than 25% since early 2009
- US real per capita net worth has exceeded the 2006 peak – which confirms a broad based increase in wealth
“Wealth is what you accumulate, not what you spend.”
— Thomas J. Stanley, Ph.D., 1944–2015