chiangmai
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Post by chiangmai on Dec 29, 2020 7:26:04 GMT 7
But can the average investor differentiate between paid for puff pieces and any attempt at independent advice? Clearly the answer must be no otherwise the paid for pieces wouldn't thrive.
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AyG
Crazy Mango Extraordinaire
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Post by AyG on Dec 29, 2020 11:10:21 GMT 7
^^^ Not sure about that. Doubtless the investment trusts believe they can't, or at least, are influenced to buy based upon the puff pieces.
What irks me is that the cost of these articles is paid by the investment trust investors, so reducing returns.
I was however influenced by the way that Witan used to have a full page advertisement, usually on the back cover, in Private Eye. I decided I wouldn't invest in that trust given the way it was spending shareholders' money.
As an aside, I was recently reading The Investment Trusts Handbook (2021 edition). I was quite taken aback by the frequency with which some trusts issue new shares - pretty much monthly in some cases. This rather takes away from the benefits of a closed structure, making them much more like unit trusts. Of course, the trusts simply want to grow in size so they can rake in more fees. Clearly the boards don't always act in the best interests of shareholders.
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Post by rgs2001uk on Dec 29, 2020 16:29:38 GMT 7
But can the average investor differentiate between paid for puff pieces and any attempt at independent advice? Clearly the answer must be no otherwise the paid for pieces wouldn't thrive. I believe they are called advertorials and are written by influencers, I ignore them, can get better advice on here.
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chiangmai
Crazy Mango Extraordinaire
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Post by chiangmai on Dec 29, 2020 17:27:08 GMT 7
Sure there are blatant advertorials which almost anyone can spot but I think AyG is referring to something more subtle which is far harder to spot.
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