Every entrepreneur seeks to obtain reliable advice from trusted colleagues. However, most individuals offer bad advice for various reasons. Some do so in an effort to eliminate competition within a particular line of business. Others are influenced by profit making in an effort to ruin reputation of other brands.
Case Studies of Affected Firms
The Globe and Mail is an excellent example of bad advice offered by respected professionals. The media outlet prides itself as “Canada’s #1 national newspaper”. The newspaper recently published an article about three top stock picks. Paul Harris, a portfolio manager at Avenue Investment Management, selected the three stocks. Previous choices were made by experienced professionals such Jim Cramer.
Harris made intelligent justifications based on his knowledge. Investors were quick to follow his advice irrespective of consequences of doing so. Information obtained from Harris has been incorporated in current stock prices. However, no one can predict outcomes of such stocks.
Such a bold declaration clashes with the Company’s reputation of presenting award- winning journalism. Should it support Harris’s comments? Or should it attach a disclaimer on stock picking articles? Several gurus have questioned Harris’s choice of stocks in an effort to obtain clarity.
Bad investment advice has also affected the reputation of Laidlaw & Company. Aggrieved customers have filed complaints against Leonard Gallick. He has been accused of making unsuitable trades by several clients. The plaintiffs were compensated after Laidlaw lost cases in court.
About Laidlaw & Company
Laidlaw & Company is a brokerage and investment firm that provides diverse services to high net worth individuals and companies. The firm specializes in acquisition financing, public offerings, capital raising and divestitures.
Matthew Eitner is Laidlaw’s Chief Executive Officer, while James Ahern serves as Managing Partner. The two entrepreneurs are credited for the remarkable progress the company has made over the years. Sound advice should be the basis of any institution that plans to attract customers. Such advice is vital in establishing a good reputation. Laidlaw should not tolerate unscrupulous individuals at all.