"Dave, most are salespeople. That's it. Instead of selling shoes or beds, they're selling stocks. They spend all day on the phone talking to clients, reading research reports, looking at indecipherable financial statements. In the five years I was a broker, only one guy in our office turned a profit in his personal trading account. One!"
"You?"
"Me? I was the worst! I thought I was a hotshot because I was driving a fancy car, eating at pricey restaurants, and taking home a hefty check. Unfortunately, I couldn't have consistently picked winning stocks if my life had depended on it.
"After seven years, I got disgusted and quit. My com-missions were great but my clients' investment performance was dismal. It hit me hard when I realized it's all a game. You know what still bothers me? Most of my clients were really happy with me. I gave excellent service, was nice on the phone, threw good cocktail parties, and knew all the right things to say. I know I could have remained a prosperous broker for years, losing people's money the whole time.
"One guy in our office was nearing retirement when I came aboard. He'd been a broker for thirty years and was very well thought of. When he retired to his summer home and yacht, his accounts were divvied up. I got ninety of them, some very good. I started examining what he had been doing for the clients so I'd be well informed when I called to introduce myself. I'll never forget it. Of ninety accounts only seven were up money over the years, and only one of those was up dramatically."
"Why do people stay with their brokers if they con-stantly lose money?" Cathy inquired.