Tuesday, August 23, 2005

2 down 4 to go

Continuing with the one book per week challenge, I recently completed: The Naked Investor by John Lawrence Reynolds.

Anybody who:
  • Holds or is planning on holding RRSPs/RRIFs
  • Is planning to or currently works with a financial advisor, planner, broker, mutual fund sales person
Should run and buy this book.

It basically throws a spotlight on the Canadian investment industry by providing deep insight into the inner workings and infrastructure.

The writer argues that although there are good and bad apples in every profession, the investment industry is structured in a way to look after the investment industry's needs first and needs of clients second. As he writes, if you win, they win. If you lose, they still win.

Regarding mutual funds, things to watch out/ask about: DSC (deferred sales charges), MER (management expense ratio) cost, and trailer fees.

People he mentions trying to make a difference: Joe Killoran, Glorianne Stromberg, and John De Goey.

Some mutual fund companies he says are quite good, but are never heard of because they don't offer commissions or pay trailer fees, examples include: Altamira, McLean Budden, Saxon, and Phillips, Hager & North.

To summarize, compares management of RRSPs/RRIFs to a coast-to-coast road trip. Should you take the main highway (risks are still possible) or should you pay attention to billboards, try to take shortcuts and invite greater risk?

This is my first book I've read of his, and will not be my last. Thinking of checking out this one: Free Rider : How A Bay Street Whiz Kid Stole and Spent $20 Million.

That is, after I finish the remaining four of course. Must... maintain... discipline...


Anonymous J. L. Reynolds said...

Came upon your website and wanted to thank you for the kind words about THE NAKED INVESTOR. (Incidentally, it's in its fifth printing, and I'll start working on a much-revised Second Edition soon.) Hope you have a chance to read FREE RIDER and look forward to your review.

Thanks again,

John Lawrence Reynolds

1:41 PM  

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