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"If your adviser talks to you about double-digit
returns from equities," he writes, "explain this math to him - not that it
will faze him. ... Beware the glib helper who fills your head with fantasies
while he fills his pockets with fees."
Buffett adds that the presence of "layers of consultants and high-priced
managers," or "helpers," at financial advisers and mutual funds is another
factor pulling down returns for individual investors as well as pension
plans.
This is a great quote from a recent interview. Almost every client we have has been
told about the high returns that the pinstripe crowd would obtain. Everyone trusts them--
why wouldn't you, with their air of authority and prior success. But this important quote is
about the real direction of concern--the huge fees that eat up reasonable returns. Watch out
