HOW NOT TO BUY APPLES
June went to the market and bought 100 apples for $100. (I don’t know how much apples cost; I don’t eat them. But stay with me.)
Sally heard about an apple broker on TV who insisted it was better to buy apples from him instead of buying them in the market. So she gave him $100. He went to the same market June went to, bought 100 apples, and gave 95 of the apples to Sally. He kept two for himself, gave one to his boss, and gave the remaining two to the shareholders of his brokerage firm.
Sally immediately cried foul. She knew that he had gone to the same market (there’s only one) and that there was nothing special about his apples. They were the same as June’s. But he had taken a cut.
My point?
Why pay a sales rep at a bank or brokerage house to buy stocks and bonds for you when you can buy them yourself in the same market?
Here’s more on why you don’t need a sales rep to buy an apple:
https://www.lotusfinancialsvcs.com/files/90145/AS%20SEEN%20ON%20TV%21.pdf