Back in 2006, I read a lot more columns on investing. Garth Turner was an expert then, but he got the Nortel thing very wrong. Always take this kind of advice with a large grain of salt. He was also a former Minister in charge of the CRA as well.
“If you own Nortel, or a mutual fund holding it, don’t bail out now… If you do not own Nortel, then this is the time to start accumulating it.”
– Garth Turner November 27th 2000
So Garth Turner is a respected Canadian Financial person, and he got it so wrong, it hurts, so remember that when someone gives you a “sure-fire” stock tip. There are no sure-fire stock tips (yes, from me too).
Oh, and in case you were wondering what other exciting things Garth has said:
“I am constantly amazed at the assumption people make that they can manage their own finances… most people can’t. They don’t have a clue how to pick stocks.”
– Garth Turner in a 2002 personal investment column regarding those unfortunate enough to have lost on Nortel
Just remember that anyone can TELL you what to do with your money (including me), but eventually, you have to live with the decisions, so you had better be doing some research of your own!
Of course, there is the “legend” of J.P. Morgan:
Legend has it that when the elevator operator in Baruch’s office building started asking him for stock tips in August 1929, the financier knew it was time to get out of the market. He was dead right!
I found these quotes on Rick Mercer’s Blog, a great blog with lots of interesting information (I think).
If these guys knew all they claimed to know, they wouldn’t need to work at all because they would be happily retired and living off the proceeds of their heightened intellect.
Garth Turner has always been a self-agrandizing turd. He should fit in well on Parliament Hill.
The JP Morgan story is interesting either way. I think as a parable it works, sort of like, when your tatoo artist offers to take out your gall bladder for an extra $25, it might not be the best idea.
And to think, I have the recent honour of Mr. Turner’s representation in Parliament.
[looks up at sky shaking head]
J.P. Morgan died in 1913, so it wasn’t him.
A similar story has been attributed to Joseph Kennedy, grandfather of JFK. Apparently a shoe shiner tried to give him stock tips. That was when he realized it was time to get out of the market.
Here’s part of his bio from wikipedia.org:
“Kennedy got out of the market in 1928, long before the Crash, locking in multi-million dollar profits. Indeed when the 1929 crash did come, he made money due to his short positions.”
I’m not sure if I believe either the elevator or the shoe shine salesman story. Most likely just urban legend.
Garth use to have forum site, when people started to mention him about Nortel stocks, he just … closed the %^^*&^*& forum. Rigth way to go, MP.