Lessons in Money

A $20 Million Loss ? !  –  One of the stories going around last year was that Tim Duncan, the now-retired Power Forward for the San Antonio Spurs pro basketball team had a Financial Adviser who lost 20 million dollars of Duncan’s money and Duncan was suing him for recovery.

Usually,  this happens through some form of a “Cocktail Party” style investment, where the”adviser” is steering money toward something that is hard to quantify but has plenty of “sex appeal” as an idea to own.  Duncan has said he had been positioned in hotels, sports merchandising and wineries – and he lost $20 million dollars!

Let me quickly give you a simple antidote to mistakenly choosing this style of investment: only,and I mean only, invest in something which has its price quoted every day in the newspaper.  Accept nothing less.

Now you can see your values every day, and should you need to have some of your money; a brokerage firm will sell a portion to get funds back to you in three days.  That is Liquidity, people.