“Friends don’t let friends drink and drive.” We have all been exposed to this public service advertisement since it was first broadcast in 1983. This simple slogan has been embedded in our collective consciousness, and research has proven that its impact has saved thousands of lives. It really works.
If you read my blogs regularly, I’d wager that you are probably the most sophisticated investor in your friend group. With that comes a similar responsibility to look out for your friends. This is in part what motivated me to begin teaching investors over twenty years ago. Perhaps a comparable handle might be to say “Friends don’t let friends invest wildly or blindly” – use whatever synonym you feel is appropriate. I’d even go so far as saying that perhaps potential investors should be treated like immigrants and your role being that of a customs official.