Dinner with Goldman Sachs cost him $34 million
- Thread starter RedDuke
- Start date
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If a banker were ever to come to my house to persuade me to trade, I would understand that the cost of his time and his bonus would have to come out of my winnings (if any). If a banker sat down with me and assured me that the Brazilian real was guaranteed to rise against the Japanese yen, I would ask him why he wasnât simply buying reals, and shorting yen, with his own money. Why would he even be wasting time talking to me if it was such a good deal?
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That's true!
If a banker were ever to come to my house to persuade me to trade, I would understand that the cost of his time and his bonus would have to come out of my winnings (if any). If a banker sat down with me and assured me that the Brazilian real was guaranteed to rise against the Japanese yen, I would ask him why he wasnât simply buying reals, and shorting yen, with his own money. Why would he even be wasting time talking to me if it was such a good deal?
"
That's true!
+1.
It would have been his idea and he would have been a genius.
That being said, investment bank traders generally view private bank clients as the rubber ducks in the shooting gallery at the carnival.
These high net worth guys are interesting. They obviously have some sort of edge in whatever business they are in (to make their money in the first place).
Then they think they need to get in with IB's like GS or hedge funds in order to "beat the market" or "juice their returns".
This guy is worth a minimum of $34m via his tech company and he's trying to make money playing the Real?
What a joke.
He should read a handful of books on asset allocation and protecting money, and not be concerned with investing in derivatives that have a 90% failure rate.
Build a portfolio of stocks, bonds, cash with some RE, gold and commodities sprinkled in for an inflation hedge and call it a night.
Rebalance yearly (or whatever frequency) and dabble in start up tech companies if he likes to gamble. At least in that scenario he's the shark and not the meal.
Then they think they need to get in with IB's like GS or hedge funds in order to "beat the market" or "juice their returns".
This guy is worth a minimum of $34m via his tech company and he's trying to make money playing the Real?
What a joke.
He should read a handful of books on asset allocation and protecting money, and not be concerned with investing in derivatives that have a 90% failure rate.
Build a portfolio of stocks, bonds, cash with some RE, gold and commodities sprinkled in for an inflation hedge and call it a night.
Rebalance yearly (or whatever frequency) and dabble in start up tech companies if he likes to gamble. At least in that scenario he's the shark and not the meal.
:eek: 