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Using our brains is best way to invest

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Why you can trust SCMP
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'Acting on good advice from experienced, well-informed investment advisers (IAs) can help expand your wealth and become financially more secure. But as an investor, do you know how do you make the most out of your IA?'

Securities and Futures Commission bulletin

They make it sound like going to see the doctor - acting on the good advice of an experienced medical adviser can help expand your health and become physically more secure. But as a patient, do you know how do you make the most out of your physician?

Why yes, Mr Regulator, I do. It is to follow his advice even if that takes some of the dearest joys out of life. I don't know much about medical matters. He does. Therefore, I should do what he tells me to do to stay in good health.

Unfortunately, this sage principle does not migrate well to the investment business. It contravenes Jake's No1 Rule of Financial Interactions - Money Does Not Grow on Trees.

Let's say that my financial adviser was experienced and well informed to such a degree that he really could reliably expand my wealth more than just blind investment would do. In my experience this would probably put him in contravention of the SFC's own No1 Rule of financial interactions - Thou shalt not deal on inside information.

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