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I had “sucker” painted all over my face the day I sold the business. I hadn’t a clue how to invest my hard-won gains. Obligingly, the snake oil salesmen came out of the woodwork.<\/p>\n
Most of the stuff they sold me went 100% kaput. But not all. But none<\/strong> did as well as their previous funds, ventures, etc.<\/p>\n This weekend I mulled on which salesmen were the worst? And, more importantly, how to recognize them when they come calling — which they still do. Had one call this morning!<\/p>\n All snake oil salesmen speak and dress well (see photo above). That alone will help you pick them out of a crowd.<\/p>\n They also manage to weasel their way to meet you through something that’s dear to your heart — your family, your religion, tennis, golf, etc.<\/p>\n A few come to you through your friends. They’re usually the worst since your friends know even less about investing than you do. Trust me on that.<\/p>\n Above all, snake oil salesmen make you feel privileged to be getting in on something special. They tell you how their previous ventures\/funds had gone.<\/p>\n Of course, they’ve always gone through the roof — with over 30% per year returns. 30% is the magic number that makes all investors (including me) salivate.<\/p>\n Of course, you’ll never beat the old returns. Nor can you match them or even get close And I never did.<\/p>\n Snake oil salesmen have absolutely “no skin in the game.” They have no money invested in what they’re selling. Or, if they do, it’s so minuscule that its only purpose is to say “Look, I’m investing along with you.”<\/p>\n They often push investments in hot areas — snake oil elixirs, biotech cancer cure pills, crypto-currencies, marijuana derivatives, miracle new energy supplies. I know nothing about any of these areas.\u00a0 If I did know something, I’d know enough to ask the right questions. That would poke gaping holes in the deal. No salesman wants a knowledgeable client.<\/p>\n If you do invest something, know several things:<\/p>\n + You’ll never hear from the salesman again.<\/p>\n + You’ll never be able to contact the salesman. He’s disappeared off the face of the earth.<\/p>\n + You’ll most likely never hear from the company or fund he got you to invest in. The SEC regulates only a tiny percentage — perhaps 0.00001% — of the companies, funds and ventures out there.\u00a0The rest are the Wild West. No rules. No regulations. No reports. Kiss your money Good Bye the moment you write a check.<\/p>\n When the snake oilers come calling, say the hardest word in the English language — NO.<\/strong><\/p>\n All this is harsh. There are exceptions:<\/p>\n + Your best investment is your own business.<\/p>\n + There are honest people out there who have major skin in the investment they’re pitching and will let you in for a logical reason — like they want to grow their business faster.<\/p>\n Working with people is a many-year venture. It’s hard work to find them. It’s hard work to learn how they work. It’s hard work to work with them.<\/p>\n I have a handful of great investment partners. I stick with them. I cherish them.<\/p>\n Oh, did I tell you about my friend the extraordinarily successful investment banker? He got entranced with biotech and started a biotech fund.<\/p>\n The fund went completely broke. I lost $1 million. When I queried him about my misfortune, I was told: Be happy. Your famous investment banker lost $10 million!<\/p>\n Remember that word “NO<\/strong>.”<\/p>\n Not losing money should be your primary investment objective.<\/p>\n Isn’t that one of Buffett’s most important rules?<\/p>\n The above is the second part of my personal experiences with investing.<\/p>\n The first part is the most popular piece I’ve ever written — based on the many nice emails I’ve received in the last few days. Click here.<\/strong><\/a><\/p>\n CD Rates are slipping<\/strong><\/span><\/p>\n No one is sanguine for an early end to Trump’s Trade War with China.<\/em><\/p>\n The forecast is for continued uncertainty, rattling markets and rattling business.<\/p>\n Hence you need more money than usual in cash. No one can predict anything in this uncertain world.<\/p>\n These are today’s CD rates from BankRate.\u00a0 You may get a higher rate from your bank — if you beg.<\/p>\n It’s possible stocks will get much cheaper. Hence, put in some limit buy orders at support levels way below where we are now.<\/p>\n Brands I really like<\/strong><\/span><\/p>\n + Eagle Creek. Best luggage. Unlimited guaranty.<\/p>\n + Lenovo. ThinkPad laptops. I like the X1 Carbon.<\/p>\n + Apple. Thoughtful software to keep loving your family — no matter where they are.<\/p>\n + Subaru. The most reliable full service cars.<\/p>\n + Anker. Well designed stuff to make your new laptops work better.<\/p>\n + Fidelity. The best trading platform. The best customer service.<\/p>\n + Samsung. Super TVs. Super cellphones.<\/p>\n + Google. Constant amazement at what I can ask and what I learn.<\/p>\n![\"\"](\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2019\/09\/CDRatesSeptember3.jpg\")
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