As someone who has worked in the financial services industry since I was 21 (26 years ago), I have struggled with its value proposition. To me, its customers generally pay too much for what they get. To be sure, not all the blame should lie with the providers of investment management, as the customers must shoulder some of the responsibility for accepting mediocre results while paying for superior performance.
This week, I was reminded just how different the experience can be for those who turn to professionals to manage their investments. On the one hand, I sat down with the consultant from a big global firm based in one of the local offices in the city of a not-for-profit on which I serve as a member of its "Investment Committee". On the other hand, I participated in the annual client conference of a firm where I provide investment research. In the discussion that follows (seven minutes), you can hear the sharp contrast. Hopefully, if you are entrusting an outsider to manage your money, you will learn from what I share.
I ran a screen designed to identify Tech stocks that appear to be quietly building momentum, with seven that made the cut, including two on my watchlist. One stock appears to be a reincarnation, written off for dead but suddenly with a bright future. Jim Cramer jumped on the idea but made a mistake in giving up a month later.
Since the end of 2008, I have been sharing my entire Top 20 Model Portfolio once a year on Seeking Alpha. Of course, prospective subscribers always can get a free 30-day look anytime they choose. Here is how the portfolio was positioned at year-end.