It is fascinating that well-intended fiduciaries continue to rely on investment advice that is encumbered by serious conflicts of interests.
The most sophisticated, successful investors in the world rely on the decision-making of full-time employees inside their own independent investment offices. Why? Because the structure of the independent multibillion-dollar investment office eliminates all material conflicts of interests and provides access to the best specialist investment talent in the world at wholesale rates. That, not surprisingly, means better returns, net of all costs, on average, over time.
The traditional investment industry grew up in simpler times and is riddled with conflicts of interest. "Buyer-beware" remains the watch phrase in that product-sales model. But in those simpler times it was easier to spot and avoid conflicts. Today, globalization and an explosion in the number of investment choices means complexity has skyrocketed and serious investors cannot logically rely on advice from a conflicted model.
What are the most egregious conflicts that confound decision-making and destroy value daily?