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Aug 14, 2009 5:53 pm

Here is a conspiracy theory for you…!   I think BigCheese is Windy…now…follow me here…if he were smart (which we know he is not)…Windy knows that five minutes after starting to post, we all know who he is…the best way to avert that would be to attack Spiffy, since we know that Spiff was his only champion!   

  And we can take it one step further.  Maybe he let Spiff know in a PM that he will be doing this to get himself back on the forum without suspicion...i'm just sayin ;)
Aug 14, 2009 5:59 pm

Spiff-

  As for your question regarding a model built for bad markets. Simply put, that's a model that allows you flexibility. Flexibility is described many ways, but in a nutshell taking advantage of long/short positions, or non-traded REITS, or managed futures or other asset classes that don't correlate to the stock/bond markets. Or how about SBA loan pools that are backed by the government (ratings are typically AAA) that are not interest rate sensitive. I could go on and on.   It's not just a fee-based plan with mutual funds.   All of these opportunities and I am sure many more aren't yet available to you and probably never will be. The street knows your limitations, and someday if you ever look outside the Jones box, you will see an incredible opportunity that you missed.   Spiff- For years I have been relatively patient offering some realistic pros/cons about Jones. I have more experience with Jones as an FA than you, I have independent experience prior to and after my 9 years with Jones.   You just haven't a clue.
Aug 14, 2009 6:03 pm

BigCheese came clean when I started.

  I am footsoldier. Now think for a moment originally a footsoldier working for the man to...The Man aka Big Cheese.   A Disclaimer...I had to change ID's because of computer problems. It was just easier and at my age I prefer not having to tax my mind...unless I have had a Maker's and Coke or two!
Aug 14, 2009 6:12 pm

[quote=BigCheese]BigCheese came clean when I started.

  I am footsoldier. Now think for a moment originally a footsoldier working for the man to...The Man aka Big Cheese.   A Disclaimer...I had to change ID's because of computer problems. It was just easier and at my age I prefer not having to tax my mind...unless I have had a Maker's and Coke or two![/quote]   I know you aren't Windy...I was just playin...a sad attempt at humor, since we don't have DJ to mess with anymore
Aug 14, 2009 7:00 pm

Oh, I see.  The validity of my posts is in direct correlation with my production.  OK.  So, if I told you I grossed $275K last year, I’d have more validity than if I grossed $250K?  How much validity would I have if I grossed $425K?  See, how can I take you seriously if you’re going to only judge me based on my production.  I didn’t do that to you.  I called you an idiot well before I knew anything at all about your production.  And I still don’t care about your production numbers.  I could say something like, if you tell me yours I’ll tell you mine, but then I’d doubt that your numbers are real and then I’d lie about mine because I’d figure that you would too, and we’d be back at square one.  I’d rather just have a debate with you and leave production out of it. 

  The WSJ has written an article about the flaws in the EDJ system?  I remember the revenue sharing stuff from a few years ago, but I'm evidently oblivious to the numerous other articles they have written about why Jones is bad and that everyone else is good.  Same thing with Forbes or the STL Biz Journal.  You're going to have to give me some assistance on this one.  I searched the websites of all three of the publications you mentioned and didn't find a single article about the flaws in the EDJ business model.   If you've seen one that discusses the flaws in the management of EDJ and their business model, I'd love to see it.      I think I understand why you believe that there are flaws in the model, however.  It was a misunderstanding on my part of what we were talking about.  You were talking about the performance expectations of the clients and the tools you utilize to acheive them.  Thus your comments about futures, SBA loans, and other non correlating asset classes.  You are under the impression that because I don't have the ability to utilize different INVESTMENTS, that the entire business model that EDJ uses is flawed.  So, you have a difference in opinion with the way Jones manages money, as if that has anything at all to do with the way we grow our business, manage our relationships, or work with our clients.    You believe that the average investor out there should be utilizing a covered call strategy or buying non traded reits.  See, I'm more concerned they're leaving their cash sitting in the bank earning them .01% than if they can cover a loss on BAC stock with a covering option.  But that's evidently the way you want to run your business.  That's fine.  I don't.  But that has nothing to do with EDJ.  I happen to like the simplistic approach that EDJ uses.  So do my clients.  They have a difficult time understand a UIT or an ETF, much less a non traded REIT.  I just want them to understand that they need to earn better than what they can on a CD so they can retire on time or pay their bills 10 years from now.  I want them to understand that having 100% of their money in one local utility stock is a bad idea.  I'll let guys like you worry about educating them on the virtues of short selling.  And I'm OK with knowing that I'm not the guy for them if they want to do that with their money.    Of course the street knows my limitations.  Good thing my clients don't.  I can't tell you how many times a client has called and asked me to take a short position in a stock.  Oh, wait.  Yes I can.  ZERO.  However, here on this forum, I'm told every day that my options at Jones are limited.  That's not news to me.         
Aug 15, 2009 9:30 pm

I would like to see “Big Cheese” post links to these articles that he is

referring to.

Aug 15, 2009 11:01 pm

The American Funds wholesaler (aka big EJ producer) was Tom Bartow.

Aug 15, 2009 11:58 pm

Tom Bartow is an idiot.  He pulled his sorry-ass Napolean act on me.  I called him out man to man in a hotel lobby during my time at Jones and left him speechless.  He was about 2 seconds away from getting knocked out when he smartened up.  I didn’t give a damn that I was 20 years the guy’s junior and towered over him by almost a foot.  He just needed to have his ass kicked.  I have zero respect for such a poser.

  David Lane took over the office in 1989-90.  Look at a chart of the S&P from that time until 2000.  If you were smart enough to get your car started every morning it grew to $300 million easy.  He's not half the genius he's made out to be in the EDJ world.   Wann Robinson is a megalomanial sociopath.  (Spiff runs to get dictionary!)  Try losing a chin or two, you fool!     
Aug 16, 2009 7:09 am

Google David Lane for an appeal review on Lane’s divorce settlement. Some interesting reading about prenups, the value of GP, and the purported burnout rate of GP/RL’s. 

Aug 16, 2009 7:12 am

I read John Wooden’s book again recently and realized Bartow’s presentations from the mid 00’s was a bunch of recycled stuff he probably read in the same book. I know he is allegedly “friends” with Wooden, but I don’t know to what extent.

Aug 17, 2009 1:19 pm

[quote=Soothsayer]Tom Bartow is an idiot.  He pulled his sorry-ass Napolean act on me.  I called him out man to man in a hotel lobby during my time at Jones and left him speechless.  He was about 2 seconds away from getting knocked out when he smartened up.  I didn’t give a damn that I was 20 years the guy’s junior and towered over him by almost a foot.  He just needed to have his ass kicked.  I have zero respect for such a poser.

  David Lane took over the office in 1989-90.  Look at a chart of the S&P from that time until 2000.  If you were smart enough to get your car started every morning it grew to $300 million easy.  He's not half the genius he's made out to be in the EDJ world.   Wann Robinson is a megalomanial sociopath.  (Spiff runs to get dictionary!)  Try losing a chin or two, you fool!     [/quote]   What's the deal with Robinson?  I don't know anything about him, other than him being a pretty big producer.
Aug 17, 2009 1:21 pm
LuvIndy:

Google David Lane for an appeal review on Lane’s divorce settlement. Some interesting reading about prenups, the value of GP, and the purported burnout rate of GP/RL’s. 

  The content is blocked from our office PC's.
Aug 17, 2009 1:43 pm

You really should read the appeal review of David Lane's divorce settlement. Enlightening to say the least.....

Aug 17, 2009 1:54 pm

And funny… I bet his wife is hot, because why else would you marry someone with a high school degree working at the local hotel(maid). She is about to get a nice slap in the face of reality…



By the way according to court documents your GP isn’t worth what you think it is…

Aug 17, 2009 2:05 pm

[quote=tqspygame] And funny… I bet his wife is hot, because why else would you marry someone with a high school degree working at the local hotel(maid). She is about to get a nice slap in the face of reality…



By the way according to court documents your GP isn’t worth what you think it is…[/quote]



Old girl (Paula) got the shaft. Pre-nups (no matter how they are worded) are only supposed to cover income and assets at the beginning of the marriage. If there is a significant change (such as going from making $160k/yr to $1MM/yr), then that increase is considered marital.



$12k/ month for three years? $3k in child support? That’s crap. And the GP value seems a little low.



Aug 17, 2009 2:09 pm

The GP is either worth what Lane’s lawyer said it is which makes LP worth almost nothing because GP isn’t owth much or it is worth a lot more and Lane is really a good family man.

  Once again, a legend in the firm.......
Aug 17, 2009 2:20 pm

Why does it matter what they SAY it’s worth?  All that matters is what it’s paying you.  The lawyer could argue that it’s worth 12 bucks, but if it’s paying you 40-60% returns every year, who cares?

LP worth almost nothing?  There is really very little basis in that comment.  The lowest return on LP shares in the past 30 years is like 15% (in 1988), with the average being about 20%, and a guarantee of 7.5%.  Although 2009 may go on record as the lowest ever (currently 12.5%).  My assumption is that their claim is that the GP shares are not worth as much as what they are paying, since (like most private partnerships) to be a General Partner, you must be an active manager of the firm.  Therefore a portion of that return is really "earned income", not simply returns on an investment.  I can't see the document, so it's tough to comment, but I am sure he has a good lawyer that specializes in this kind of stuff. But to say GP isn't worth much, and LP is almost worthless is just a silly, inflammatory comment.
Aug 17, 2009 3:53 pm

[quote=B24]Why does it matter what they SAY it’s worth?  All that matters is what it’s paying you.  The lawyer could argue that it’s worth 12 bucks, but if it’s paying you 40-60% returns every year, who cares?

LP worth almost nothing?  There is really very little basis in that comment.  The lowest return on LP shares in the past 30 years is like 15% (in 1988), with the average being about 20%, and a guarantee of 7.5%.  Although 2009 may go on record as the lowest ever (currently 12.5%).  My assumption is that their claim is that the GP shares are not worth as much as what they are paying, since (like most private partnerships) to be a General Partner, you must be an active manager of the firm.  Therefore a portion of that return is really "earned income", not simply returns on an investment.  I can't see the document, so it's tough to comment, but I am sure he has a good lawyer that specializes in this kind of stuff. But to say GP isn't worth much, and LP is almost worthless is just a silly, inflammatory comment.[/quote]   Ease up bro. Tonight google the info and read it and then respond tomorrow. Let me know if you think differently after you read the appeal, fair?
Aug 17, 2009 4:44 pm

Spiff-

  I am an idiot for continuing to converse with you, that's for sure. You can't produce, only talk about it. I grossed 308K and netted 210K. I am not a huge producer but I didn't have to gross 500K to net it so maybe I might be a notch above an idiot. You can articulate well and often, if I were your manager I would recommend a few more outbound calls so you don't go in the red, again.   You can have your 20K LP netting you 20% (4 f___ grand) and I'll take my 25% higher payout (last year I kept 75K I would have given the almighty GP that you would have paid if you grossed the same)and keep it for me and my family. And if I choose I will grow my company, not put huge dollars in GP's pockets. Oh and I can and frequently do offer clients the ability to hedge their losses. And I see absolutely nothing wrong with them taking a portion of their profits if they so choose.  My compliance officer seems to agree that it's important to be able to offer clients choice. Can you do this Spiff? You can only offer what Jones feels is appropriate? Doesn't it challenge you not to be able to determine what is right/suitable for your clients?   The reason I left Jones was because of management. I didn't trust them to look out for my clients interest first. I found they were most concerned about themselves and they cared little about the client and even less about the advisor.    
Aug 17, 2009 4:45 pm
I read the appeal.  The GP estimation is low, IMHO.  I don't have any accounting basis for that, so it is simply my educated guess.    Lawyers, absent a forensic accountant, don't have a clue as to what stuff is worth.  My LP is worth exactly what I put into it.  If I have $50,000 in LP and I decided to cash out or leave Jones, they'd cut me a check for $50,000.  I would assume that GP would work the same way.  Since there aren't any supporting documents in the PDF to see how they got to the $270K figure, I would have to assume that there is more to the story than some attorney randomly assigning the value of his GP to such a low figure.      With that said,  I agree with B24.  The comment about GP not being worth much and LP being almost worthless is one of the more ludicrous statements I've ever seen here.  It's not even a logical statement to make.  GP's have to sell out of their partnership at a certain age or when they leave the firm.  Why would any of them invest in something that could be worth substantially less than what you've put it at any given time?  It's not a stock, so the value doesn't fluctuate like stock.  It's not even a bond whose value fluctuates with the change of interest rates.  There is no supply and demand curve.  It is what it is.  Jones says you want $X in partnership,  you're going to pay $X to get it.  Like I said, there's more to the story than what you read in that opinion.