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Matthias Reinhart is co-founder, majority shareholder and chairman of the board of directors of the VZ Group. A few weeks ago, he told VZ News about the acquaintance. He is said to have explained to him what he valued in private banking. His bank at the best address is impressive from the outside, the setting is majestic and adorned with valuable works of art. He is regularly invited to fashion events and dinners and chats with his advisor about anything and everything.

Here’s how Matthias Reinhart describes it in his “My Advice” column. It is said that he pointed out to a friend “that he paid dearly for this glamour.” The cost of such amenities got stuck in fees and lowered bottom line. “Advice does not improve—quite the contrary,” Reinhart writes.

Nothing against bean counters. But didn’t Matthias Reinhart’s acquaintance – if that person even exists – say outright how much he enjoys being regularly invited to stylish events and dinners?

There are such people. For them, it is important to exchange views with the banker about what is happening in the market. In addition, people who can identify themselves with the circle of acquaintances of the founder, co-owner and top boss of the OT should not depend on super profitability in any case. Returns are not always important. Well-being is sometimes just as important.

I also know an elderly gentleman who is in constant contact with a private banker and is likely to pay high fees for this. From time to time I see him in a country pub where I start the day with coffee and a newspaper. I never asked him if he talked to his adviser about anything. But I know that he is invited to glamorous events because he tells me about it. It is also certain that he talks weekly with his advisor about individual stock investments. He told me about it and wants to know my opinion.

I tell him that Swissair hurt me and I don’t believe in individual stocks. I swear by listed mutual funds. Namely, passively managed ones that display a 1:1 index do not use an army of analysts and therefore have low commissions.

He finds it boring. When I then chat about risk/reward and fees, he just shakes his head in disbelief. He is simply interested in companies, their strategies, their chances of success, their respective earnings expectations, and their dividend policies.

“Bersele” is also a game for pensioners, to some extent a hobby. Why not? As far as I know, he doesn’t play golf. This would possibly be more expensive and, at least in my experience, could be no less disappointing than losing price on a supposed gem of a stock.

Source: Blick