Simon English: Paid expert's top tip - ignore shares advice
Thursday 12 July 2012
Outlook On the subject of City analysts, I ask my very favourite one, just in passing, what he does for a pension.
He's skipped employers quite a lot and I assumed, rightly, that he arranges it himself, what with his being such a financial genius.
Bear in mind that this man's job is to advise the Square Mile's grandest, most important, most powerful institutional investors which shares are worth buying and which should be avoided.
As such, the pensions of millions of the rest of us partly depend on how good his advice later proves to be.
It turns out that not only does he not take his own advice, he doesn't take anyone else's either. His entire retirement money is invested in an index-tracking fund, one that will go up only if the market does.
It doesn't try to select winners and losers on the basis that there's no point. Its starting assumption is that expert recommendations are over priced at best and actively wealth-reducing at worst.
And that's where he puts a fifth of his salary every month, because he doesn't trust City folk with his retirement plans.
Stock picking, says my analyst, is a mugs game.
Geoffrey Macnab does not like the comedian's big screen debut
Look beyond the usual shows for the best festive telly
The battle for control of Stieg Larsson's £30m legacy
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
The unluckiest people of the year 2013
Two PAs cleared of fraud - and Nigella Lawson left reeling at 'ridiculous sideshow' of drug allegations and public dissection of her marriage to Charles Saatchi
Burglar steals video tapes of child abuse, hands them into police
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 #Teamnigella: It’s the only side to be on
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Burglar steals video tapes of child abuse, hands them into police
- < Previous
- Next >
iJobs Money & Business
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...
£120000 - £150000 per annum: Cornwallis Elt : Programme Manager, Strategy Lead...