Some good investment advice

Sir Alan Sugar, one of Britain's most successful businessmen, has some cogent advice for today's investors, based on his own hard-won experience.

Why is it that successful business people, who accumulated their fortune from expertise in their field, tend to look outside of their comfort zone at the other man's grass and rely upon so-called experts to invest their money in other sectors?

Why is it that these people who enjoyed success from their business nous or gut instinct rely upon others to deal with their wealth? Let's face it, in their area of expertise they never allowed a so-called 'expert' to tell them what to do, they did it all themselves. They backed their own judgment.

In these turbulent times, I come across a lot of clever business people who moan to me about how their outside investments have gone to pot. How fund managers, brokers and bankers have lost them a fortune, how they got caught by investing in financial instruments that appeared to offer returns far greater than common sense says should be possible.

. . .

Since [some early bad experiences], I have never allowed any so-called expert to advise me what to do with my money. Trust me when I tell you they know naff-all. If they did have some magic way of making money legally they wouldn't be dealing with you, they would be off making it for themselves.

Getting back to the sensible businessmen, why didn't they ask themselves this: if placing money in a bank, which up to recent times was deemed to be secure, only gave them, say, four per cent yield, why is it that the eminent firm of Tosser, Pillock and Wally are telling them they can deliver ten per cent?

. . .

The good news is, for sure the boom times will return again. The same mistakes will be made, a new wave of graduates now 20 years old will get jobs in five years' time completely oblivious to the recent financial disasters and will dream up new instruments and coups representing their West End and City firms. The punters will fall for it all over again. If you do get sucked in again, make sure you deal with that top City firm WeeNoeff All.

There's lots more at the link, including examples of mistakes Sir Alan made, and from which he learned. Recommended reading.

Peter