Forum Archive Index - July 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Jim,
 
>
>
>Thankyou Snoopy.     But what do you gain from paying this high rate
>of brokerage?
> 
>

High?  I think 1.5% and/or a $35 minimum charge is pretty good for a 
full service broker.  So your question is, why use a full service 
broker?  Being a long term investor, the broker charge is not of 
incredible concern to me as it amortises out over several years.

I try to do a lot of my own homework, but I can't cover everything.  

As a specific example,  I might decide I should up my exposure to 
the retail sector.  I do sufficient homework and decide what I think 
I should buy.

Then I ask my broker: 
"If I wanted to buy into the retail sector what shares would you 
recommend?"

I don't give him any hints what share I am thinking about, as I don't 
want a 'yes man' answer.  Then I do an evaluation on his best pick 
and see how it stacks up against what I was thinking of doing.

Remember the old adage 'never fall in love with your shares?'

Well, this is my way of not falling into that trap.  I always like to 
line up what I have in mind against a recommendation by 
somebody else outside of my own thought stream.  That's my solution 
to the 'share love' dilemma, and I don't think a discount broker will 
provide that service for you.

SNOOPY






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