Small Investors

January 11th, 2013 by nathan Leave a reply »

In the year 2006 I read in the Spanish media about the alleged scam in two philatelic entities. Again I remembered my Professor, D. Manuel De Haro Solano, born in Ronda, Senior Executive of Banco de Bilbao, Censor accountant, Doctor in economic sciences and Professor of the fifth of business financial management course. Twenty-five works of the present analysis made us write this good man in your subject (thanks to my group colleague by the exquisite and laborious work of documentation). One of the studies was indirectly connected with the helplessness of small investors before the bags of fraud and corruption. Their classes were practices, harsh and metallic (had to speak with a special microphone near his throat) serve this post as a tribute to your memory, Manuel. I have also cooled the course on productivity and economic growth, organized by the savings banks Foundation and directed by D.

Victorio Valley, taught in Malaga in September last year. In particular, a presentation on the new entities of financing online and alleged risks that small investors could run. To a specific question from a participant, the Rapporteur replied that, when in doubt, we invest only the sum of money that a few bad, to repay the guarantee fund that the Administration has for these purposes. Finally, I present some of the recent and important financial fiascoes to consumers and investors who came to public light (Gescartera, Opening, etc.). Donald D. Rugg (recognized expert in investment funds and other financial products), told us already in 1986 that there are nine reasons why investors and especially small, frequently take unwise decisions: 1.

not able to develop a successful strategy; 2 they assume risks excessive or insufficient; 3 make a poor selection of their investments; 4. do not single the opportune moment to act; 5. the diversification of its investment is not suitable; 6 they pay high transaction costs; 7 they have bad advisers; 8 they cannot control their emotions, especially the greed and fear; 9 they pay too many taxes. Almost twenty-five years later, most of these reasons are still rabid today. The typical small investor does not have the knowledge, time or desire to avoid falling into such errors. My aunt, my brother, my mother-in-law, my brother-in-law, etc. has a few dollars and it is believed the story of the multiplication of the loaves and fishes and easy revenue I’ve told (or emotionally chantajeo to my older people). I, the know-it-all apprentice financial (Economist, or administrative, or control intermediate, commercial, etc.) in my social sphere of action I manage or advise collaterally, without liability and without preparation (or with a very hard side), enormous capital; This may be one of the many ways of initiating the pyramid history. And there we have that tremendous bag of alleged scammers do more of 400,000? do so many stamps had?, does the guarantee fund cover this situation? History can be repeated once more (and in this case would be multiplied by ten gescartera). Finances also have their cycles in his dark face much reason had Manuel!

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