In regards to how wealthy people's investments are managed...

"Laymen think that [they are managed well]. I don’t. The main thing in managing an investment is stock picking. That is impossible to do well on purpose. It’s a crap shoot. If anybody ever figured it out, he would not need to work—for the wealthy or anyone else. There have been numerous studies proving this, most notably the classic book, a Random Walk Down Wall Street by Burton G. Malkiel. The wealthy do get good advice on legal implications of their portfolios, but not on how to earn a high return. The notion that anyone gets good advice on how to earn a high return in securities is a laymen’s myth." 

-- John T. Reed, Real Estate Investor

While I agree with the assessment that the wealthy do not have somebody picking stocks for them, I tend to disagree with the assessment that you cannot pick good stocks.  I think the lesson I take from this quote is that you should not rely on others to do your due diligence for you.

9:53:34 AM  #  

The problem with "Rich Dad, Poor Dad." A real estate investor takes a swing at Robert Kyosaki and his bestselling financial advise books.
9:35:36 AM  #