This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fire Your Money Manager Now! Wall Street's Rules, Part 6

Stocks in this article: FB SIRI RIMM AAPL

NEW YORK ( TheStreet) -- One of the things that I enjoy the most about the financial markets is that there are few "gray" areas. More than any other business, what you see is usually what you get.

You can look at debt on one side and equity (if you're lucky) on the other. On one page there is either a profit or a loss. The financial scale will always favor one side over the other -- that's why it's called a balance sheet.

Hip-hop king, Jay-Z once said, "Women lie, men lie, but numbers don't" -- it can't get any more fundamental than that. So why is it that those whom we trust to manage our money are always looking for justifications for their losses?

I will argue that you should fire any financial expert who finds a way to justify a poor portfolio performance. Don't give it a second thought.

Today it is popular to blame the IPO underwriters or Facebook's (FB) management for losses incurred in that stock. I guarantee you plenty of managers will blame both at the end of the year.

Before the recent improvement in Sirius XM's (SIRI) stock price, managers were quick to blame the stock's poor performance on writers like me, short-sellers, daytraders, hedge funds and anyone else that had anything negative to say.

It's always been easier to pass the buck during the bad times, but managers want to be considered celebrities when the good times roll.

Not so fast.

In the first part of this series, I talked about the importance of making investment decisions more about the bottom line and less about the sometimes unspoken myths that yield little in the way of results.

In the second part, we looked at the myths surrounding portfolio diversification.

Part 3 reminded us that there's a sucker born every minute, while part 4 noted that valuation often means nothing when assessing a potential investment.

Because part 5 discussed the myths associated with the so-called "smart money,", I have decided to now look at those whom we have entrusted to manage our finances: those whom we think are smarter than us but are often quick to justify why they performed so poorly.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs