WARNING: Cannot modify header information - headers already sent by (output started at /usr/www/users/connelly/camp/newsletters/salesideas_070321/index.php:9)
in line 4 of file mainnav.php
Camp Connelly is designed specifically for you - the Financial Advisor. With more than forty years in the business Don Connelly has done it all. Now, he’s sharing his wisdom, insight and experience with you. Learn to overcome objections, stay motivated and win clients efficiently and effectively.
March 2007 Sales Ideas: The Power of Diversification The power of Diversification. To diversify is to produce variety. To fail to diversify is to court disaster.
In too many cases, clients do not or will not appreciate that sentiment.
Don't put all your eggs in one basket. I have met on many occasions people who work for a public company and own primarily that one stock in their retirement plan or non-qualified account. These people may have always worked for that company and bought their company's stock faithfully over the years, feeling they were keeping an eye on things by being there every day. Even after retirement they continued to buy the stock or hold the stock because they like and trust the young people who work there.
The reality. I ask them a question. "Mr. and Mrs. Client, let's suppose you came to me with a beautifully balanced and diversified portfolio. You want to know what I think and I say that I think you should liquidate 80% of this portfolio and put the proceeds in one stock. What would you tell me? You would tell me I was crazy. And I would say to you that's exactly what you have done for yourself."
I cannot even recall all of the once-fabulous companies that have come and gone during my career. Some names that come to mind are Prime Computer, Digital Equipment, Wang and W. T. Grant. Once-great companies like these get eclipsed with alarming regularity...
Please Log In To Continue Reading
Sign in to read a great example that demonstrates the strength of diversification...
Now Available as RSS Feed
