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Chapter 10: The Investor and His Advisers (The Intelligent Investor)

Most investors are novices and make many mistakes. Drawdowns, high fees and expense ratios, and improper diversification are all common problems they face.

Advisors should be hired only if they are proficient and conservative. A lot of bad advice is given for free.

Investors should expect to pay a fee, but the advisor should never be incentivized to engage in risky behavior. Never pay more than 1 percent of your investment assets as advisory fees.

The advisor should want to save you from yourself, they will help you keep your emotions in check, especially when it matters most. Don’t panic sell, buy when prices have fallen. Don’t follow the crowd, find better value.

"Silence is the best expression of scorn" - G.B. Shaw

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