Owning a growing company is a wonderful investment, so I have no doubt that even semi-ownership (LP) has been as EJ has grown from 300 to 9000 brokers in the last 25 years.  I was merely pointing out that return difference is not as simple as "22 vs. 11."

But more importantly, for the newer EJ broker--and statistically speaking the vast majority ARE junior in the biz--whose end of the rainbow is just over the horizon, I'd remember this little saying I came up with:  past performance is no guarantee of future results.

If you want to look backwards, give me Calamos Growth or Vanguard Health Care funds (and their corresponding 15 year total returns).  Because someone happened to fall into the best investment of their life, doesn't mean luck and skill have become the same thing.

However, I DO NOT begrudge the presumably phenomenal returns a real EJ partner received, because he/she took risk when it wasn't clear that Jones would grow to the size they are now...I say presumably because I can only guess that their incomes are substantial for the nice size incomes they give up, not to mention having to move to St Louis.  However, past performance blah blah blah...and it's harder to become a partner when you've got 5000 other junior folks competing for it vs. 200 back in the day.  This is why the "pyramid scheme" comparison comes in--many new Jonesers are sold on the story of the guy who signed up in '82, but I can ALMOST guarantee that the '03 hire will NOT experience the same financial success (as an owner of a fast growing firm) that the '82 did.  Aint gonna happen...but good (I'm sorry--probably lucky) for the '82 guy.

Giddyup!

If the market decling 40% and a $75 Million dollar settlement won’t stop Edward Jones, what will Cowboy93?

The law of diminishing returns.

So you see the growth of the financial services industry slowing over the coming years?

I dont know about that, but I think that growing a firm with 10,000 brokers is alot different than growing one with 1000.  With larger scale managment becomes more challenging.  The flat IR growth of the last couple years would probably look diff if Jones was smaller.  This will get more challenging as the firm gets bigger.  Also, with size comes more attention, both good and bad.  I think we've seen a little of that lately too.  I dont think keepin up the past rate of growth is impossible, but it will certainly be more challenging.  Time will tell if the firm and it's management are up to it.

Ex,



You’d be suprised how strong Edward Jones management team is. And they realize that the managing partners of the past have had to much power and responsibility. This is changing as Jim is taking over.



You are correct it will be more difficult to grow the firm as fast as it has grown in the past. No doubt. Jones is the only non independent to grow over the past five years however. Once CA is done (may be awhile) and future partnerships come out this will help immensely. I believe there will be a partnership this year. I know you non Jones people are rooting against it. Sorta like when the Yankees are in the World Series and if you are not a Yankee fan, rooting against them. It’s just fun to root against the Yankees. They are certainly a dynasty. This is why folks like to root against Edward Jones as well. Damon a Yankee, that must have pissed some people off!



BPD

[quote=unsunghero]

BPD,

Are you still trying to figure out Cowboys math on you Jones terminal.  Here's a hint: Use your Putnam sliding calculator(shows 10k growing at diff rates over diff lengths of time), that's a better tool than most of the tech your firm provides.

Noggin,

Captain Obvious?  Here's a question with a less than obvious answer: Why are you still at Jones?

[/quote]

Because I don't have 40M AUM yet.

[quote=SonnyClips]You know comparing Jones to the Yankees just cries out for a rebuke. Besides guess who is second only to the Yankees winning the pennant... thats right the Cardinals. Lets say all these haters are like Cubs fans and we're the Cardinals. Fcuk the Yankees... and all those bandwagon riding idiots who where those goddam Red Sox hats... not the team just assholes who ran right out and bought one after they finally won a World Series.[/quote]

comparing Jones to ANY team of MAJOR LEAGUE professionals deserves a rebuke if you ask me....

They're more like the P.R. Winter League teams......fellas who might move up to 'the bigs" one day...

[quote=noggin][quote=unsunghero] 

Noggin,

Captain Obvious?  Here's a question with a less than obvious answer: Why are you still at Jones?

[/quote]

Because I don't have 40M AUM yet.

[/quote]

I'll give you credit for using your "noggin" on that one.  Those who take their time and build their business as they plan their exit are in a much better position to succeed when they make the move.  Take extra good care of your A-list clients and spend at least six months planning your exit if/when you decide to make the move...

...and in the meantime, stay away fom that Kool-Aid!!!