Transcript
Intro
Welcome to The Investor Coaching Show, a podcast to help you get an insider’s view of the financial world and escape common investment traps. We look at the financial news of the day and help you make sense of it, so you can relax about money. And here’s your host: Paul Winkler.
Paul Winkler: And I’m back here on the investor coaching show, Paul Winkler talking about the world of money and investing and just using a piece of advice I was given many years ago, which gave me credibility. So if maybe you just kind of a little person that nobody listens to, but we do it all the time. Don’t we try to convince a friend of something and we go, Hey, man, I saw this in the news and you know, this person said this and you know, what are you doing?
Borrowing Credibility
You’re borrowing their credibility to try to convince your friend of some. Maybe there’s something that you really strongly believe in. You borrow somebody else’s credibility to actually make your point. We do it all the time. Don’t we? It’s just how we’re built because we realize that sometimes people listen to us going, Oh, it’s just old Suzie. She’s Always, he’s Always saying this and, or, you know, it’s hot, it’s Mike, you know, but you know, but Mike is bringing, you know, somebody dr. So-and-so, you know, to the table with, you know, when he’s giving him, when he’s telling you something, he’s saying, well, you know, dr. So-and-so said something is, well, wait, wait a minute. Okay, dr. So-and-so and then now that’s, that’s somebody, you know, I was watching a video and, and this lady was actually, she, I did this, I was on this show.
I was in this show. I was on this show. I was in this show and all these TV shows and I friend of mine had sent it to me. And I said, I see, you know, I, that just makes me actually doubt her, you know, because there are some sources of credibility that aren’t real sources of credibility in my humble opinion. And a lot of times it’s media. I mean, you know, isn’t this not a hot topic right now. You know, I was on this show, that show I’d always, you know, I was a guest on and you have these big TV shows and you’re using it for credibility, you know, as featured in, you know, so-and-so this, this magazine or that magazine.
I remember one time a magazine, you know, calling me up and saying that they wanted me to write an article. And I said, Oh man, I’m a talk show host on a radio station. And you know, one of the first in the market and blah, blah, blah, you know, you, you kind of go, wow, that’s pretty cool. Yeah. It wasn’t really that because I’ve never been that way. But, but it was funny because I said, well, you know, tell me more about the article that you want for your major magazine. And they told me, and, and I said, Oh, okay. So, you know, what are the details? Wouldn’t you? Well, you know, it’s $10,000. I was like, what? To write an article for your magazine.
I have to pay you $10,000. Well, yeah, it’s exposure. I was like, wow, okay. Now I get out of the game. And he does the same thing. You’ve got the media, you’re watching these shows and these people are guests on the shows. And you wonder, how did they end up on there? So, well, sometimes they just hire a PR firm and that’s it. That’s all you need just hire a PR firm and you are on, and then yeah. Sometimes they’re paid, you know, there are things that people pay to get on these types of things. Well, you pay at the pipe PR firm, you know, to, to get you onto these shows because they go out there and work with the various, you know, the contacts that they have in the industry. This person had sent me, someone, this person, and this lady had been on all these different shows.
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We Are Being Marketed To
And I said, you know, automatically I kind of discount it just because I’ve been in that world. And you know, I’ve done a lot of that stuff before. And I kinda know a little bit about how that whole industry works. And quite frankly, that is not where I used to borrow credibility, and then we’ve seen it. So, I mean, you think about it when we’re looking at, you know, the past good grief, you know, several years and decades look at, you know, the type of things that we see in the media and the news and, and, you know, just the various outlets, you know, online and so on and so forth.
And when you really start to dig into it, you realize, wow, we are being marketed to all the time. We are being marketed to all the time. And I think this is why it’s so important that you cognitively understand a little bit about investing. You don’t have to know everything that I know or everything that any of my people know, but I think it’s so important that you understand it and don’t abdicate your responsibility. As soon as I read something, I was literally, before I pulled a book off my bookshelf and it was my money, happiness. I can’t remember exactly the title of the book, but I hold it out.
And I opened it randomly to a page before I came in here to do the show. And what was interesting, it was talking about delegation, delegation in essence is a good thing, unless you have accountability and then it’s abdication. And I thought, Whoa, that’s a really good line. You know, if I delegate the management of an investment portfolio that’s fine. I mean, there are a lot of things that go into the management of a portfolio, you know, understanding, you know, when to trade, how to trade, how to rebalance, which asset categories to hold, how to determine whether a fund is really capturing the asset class return, how to make sure that the fund is staying on track and changes that they make inside of the fund.
If there’s style drift going on inside of the fund, you know, tax implications, you know, all these, these things are all important, but if I just go in delegated and I have no clue or no way of knowing what’s going on, or I really don’t understand things, that’s, that’s abdication. And I learned that early on and this client of mine, and he’s still still a client. And, and just, just a really neat guy. And he came in and we got into conversation with each other. And I said, and he’s asking me lots of questions. And engineers got a lot of clients that are very analytical that way, you know, go figure.
But I, you know, he was asking me questions. I said, well, you know, don’t worry about that. It was something, I don’t even remember what it was, but he says, you know, don’t worry about it. I said, don’t worry about that. And he goes, no, he says, I got to stop you there. He says, I’ve got to worry about it. It’s my job. It’s my job. As you know, in my family, that is who I am looked to as the person that gets the details and gets them right. And he says, I can’t give that responsibility to you. And I never forgot it. I’m telling you, this is a conversation 19 years ago, 19 years ago, this conversation took place. I will never forget it, but that’s really what it gets down to is because so much of what is happening when we’re listening to the media, we’re listening to, you know, talking heads on TV, the financial people, or, you know, radio and, and you know, these, and, and even, you know, when you’re listening to my show, that’s why I always make sure I want you to get it because the more you get it, then you’re not blindly trusting.
Don’t Blindly Trust
And that’s where people get in trouble is when they’re just blindly trusting. You know, if you, and this is stuff you can understand. He was a finance major and we got into conversation. He asked what I did and, and I told him, and later on was funny because when he saw my name, he went, Oh yeah, yeah. I’ve heard of you in that pub, you know, heard your, heard your stuff before a little bit. But I just had never really listened to the show much or anything like that. So I started explaining something to him and he goes, he goes, man, you ought to be a teacher.
And I said, I’ve done a, you know, a bit of that, you know, sometimes at various schools around town and he goes, you explain this way better than our professors do. And I said, well, thanks. I’ve been doing it a long time, but here’s the thing is I come at this from a perspective that a, it can be understood by just about anybody. And that is that’s critical. A lot of times what happens. I remember being in school and I remember taking economics classes and I had to study books from books that were written by my professors, you know, graduate level courses. And this stuff was, you know, I was studying from books that were written by the professors and going, Oh my gosh, this is terrible.
And always thinking if anybody is going, if I ever teach anything ever, it’s going to be made where people can actually get it. And a lot of times where it comes down to is analogies and, and you know, parallels. So anytime you’re teaching, think of this, whatever, you’re trying to teach somebody, whatever it is, realize that there’s probably something from their world that works like what you are teaching. You’re listening to the investor coaching show, Paul Winkler.
Schedule a Call
Do you have any questions about today’s episode of how our approach can help you? We’d love to talk to you. You can schedule a call by going to paulwinkler.com/call, or you can simply click on the link in the show notes.
Hope you enjoyed today’s edition of The Investor Coaching Show. You want to learn more about what we do go to our website, paulwinkler.com. You can watch some of the videos there, and if you’re not already a client, you can set up a free initial consultation until next time. I’m Paul Winkler reminding you that I believe that more educated investors are more competent investors and confident investors are more successful investors. Have a great one.
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