If the Investment is Being Advertised on TV, Best You Stay Away

By Jason Fittler

We often have people call us and discuss investments which have been advertised on TV, we have seen a lot of these types of investments such as Westpoint and Fincorp go belly up.

A good rule of thumb is that if the investment is being advertised on TV, then it is something which the professional’s broking houses have already passed on.   As such it is most likely not a great deal. Before you invest in any of these investments make sure you speak to a professional who deals in these sorts of investments on a regular basis.

Generally this would need to be a full service stock broker as they are the only ones who deal in a variety of investments during the course of their business. Normally they will not charge to look at the investment for you but if they do, do not be afraid to pay as in the long run it will save you money.

Warning

NIB Holdings was the first health insurance company to list on the ASX, as all policy holders were given shares there are a lot of shareholders with little experience in the market which unfortunately means the fraudsters are out again.

The fraud is simple, they are writing to shareholders offering 61 cents per share, they are currently trading at $1.12 and as such the criminals are buying them at a big discount.

The moral of the story is, if you are contacted via a cold call, being over the phone or through the mail check with your local broker before doing anything.