Where Are The Customers' Yachts?

A professional trader by the name of Fred Schwed wrote a book In 1955 called 'Where Are the Customers' Yachts?' The title came from a story about a brokerage firm customer when he was shown the collection of yachts owned by brokerage firm founders. After admiring yachts bought with money earned giving financial advice to customers, he wondered where the customers' yachts were. Of course, none of the customers could afford yachts, even though they dutifully followed the advice of their brokers.

 

The story goes on to explain that there is far more money in providing financial advice than there is in receiving financial advice. The title is as relevant today as it was back then. There are few industries that pay themselves so much for doing so little as financial services.

 

Warren Buffet, Michael Lewis, and Michael Bloomberg have all recommended this book. 


My recommendation is for investors to read this book, and to be aware of the fact that brokers, financial advisers, signal providers, software vendors, and copy/mirror trading services, are all earning fees while you are losing money. More importantly, is the advice or service coming from someone that is actually successful at making a living from trading. 

Robert Nash