Innate conflict of interest

When others' interests are out of sync with yours, be wary of their views.

Since I've now seen FY30E on an analyst note, it felt pertinent to point out a truism.

Those well-dressed fellows who peddle IPOs - higher the price, more money they make.

Those well-spoken blokes who peddle stocks - more their clients trade, more money they make.

This may not be apparent in a brave new world, but higher price and higher trading are, perhaps, inversely correlated with higher returns.

I know many of the folks I allude to and they're nice people who I'd be glad to share a strong beverage with. But, my well-being and theirs are more than a tad misaligned.

I have no idea what's the right call in any specific context, but be discerning about others' calls. They're watching out for their interests. Just as you should watch out for yours.

(Before you point out my own hypocrisy, let me spin it as: no better expert on conflict of interest than someone taking a cut out of others' money)