Wealth creator versus wealth manager
Ngiam Tong Dow has spoken of the need to have more wealth creators instead of wealth managers. One is creating wealth and the other is just managing the wealth. He made a false assumption that wealth managers are there to manage the wealth, ie to ensure that the wealth will be there or at least not depreciating. This assumption has proven to be drastically and painfully wrong if we look at the bigger picture especially those coming out from the US.
Many wealth managers are basically gamblers. They are just placing chips everywhere and hoping that there will be more winners than losers. If only their books were to be opened, many owners do not know the truth until the hole is too big to fill.
In reality, many wealth managers are actually wealth destroyers. Yes wealth destroyers. The first thing they do is to demand to be paid a ransom. And whether they deliver or not is not guaranteed. Most will try their best to do a good job. And when the chips are down, when the losses piled up, they take bigger bets and bigger bets, hoping that lady luck will smile on them for once. If not, just too bad. It is other people’s money on the table. They do not guarantee any winnings. The only thing that is guaranteed is the ransom that they will be paid.
Wealth creators, wealth managers and…wealth destroyers. The first is real. The latter two are interchangeable.