Wishing you had the means to invest with Goldman Sachs, the King of Wall Street, the firm that never seems to lose money in good times or bad.
You may want to rethink that?
I’ve written in the past about a famous mantra used by their traders, “Ripping Peoples Faces Off!” That was a phrase used as traders made good money on their trades. Remember, as they were raking in the bucks, someone had to be losing. Unfortunately, average investors were usually the ones on the other side of those trades.
Recently, a former Goldman Executive came forward with some stunning confessions right before he quit. Here are some highlights and quotes from his resignation letter:
- Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit (emphasis mine)
- “Hunt Elephants.” In other words, get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman
- ” I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them (emphasis mine). If you were an alien from Mars and sat in on one of these meetings, you would believe that a client’s success or progress was not part of the thought process at all”
- “It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail”
Having been a professional trader for over 10 years, these comments don’t surprise me. The “Wall Street Machine” is set up so that average investors don’t stand a chance. Stock brokers are basically salesmen. They make their money on commissions. They have no skin in the game with their clients.
I consider myself part of the “New Guard,” a breed of investment professionals who are sick and tired of making themselves and their companies rich AT THE EXPENSE OF THEIR CLIENTS!
I founded Ropay Asset Investors with a simple goal, Do Good and Make Money. We provide average and sophisticated investors alike access to an extremely profitable investment system. And we have “Skin in the game.” If our investors don’t make money we don’t make money…isn’t that how it should be?
Do Good and Make Money!