If there is anything to learn about the art and science of investing, it has to be that YOU the investor need to be able to make your own decisions as often as possible.
It can be difficult to make the right decisions at the best of times, but if someone else is making your decisions, that must be potentially problematic.
Something to remember is that any company with which you do not have an existing financial relationship probably should not be calling you and trying to sell you something. Your existing broker and adviser can call, but strangers probably should not be.
In today's clips, we see some scenes from the movie 'Boiler Room' which was based on the illegal investment scams of Jordan Belfort, now known as the 'Wolf of Wall Street'. This is an excellent movie and every investor ought to watch it.
Simply put, it will help to into clear perspective why any private investor ought to behave with extreme caution and scepticism when an investment broker calls unexpectedly. It may also put you off being on the other side of the telephone to such hard sell people.
Obviously, not every broker is a fraudster as was the case in this movie, but some are, and the investor ought to act with real care. Ultimately, those brokers with poor quality advice or bad intentions could end up costing you a LOT of money.
Apologies in advance for the profanity in these clips. I am presuming that anyone that has seen a Hollywood movie in the last 20 years has already heard these words before...
A sale being made: