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Cost analysis

If you really want to know the extent of the hidden cost robbery, check out the list below of fees and other expenses that weigh down on your mutual fund contributions.

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List of fees

1. General costs. This article is always listed in large print on investment fund prospectuses because they want you to focus on it. But this is just the tip of the iceberg. According to the Morningstar agency, the average cost of participating in US mutual funds is 1.31 percent of the value of the deposit. It includes payment for managerial, operational, marketing and administrative services, as well as the cost of mailing materials. Many large funds understand that an announcement of a total cost of approximately 1 percent is a good lure for clients, and brokers tell them just that.

2. Transaction costs. This category covers a wide range of costs, which include brokerage commissions, market mechanism costs (caused by price fluctuations in the market when funds buy or sell large volumes of securities), spread costs (caused by the difference between bid and ask, buy and sell prices). A 2006 study by business school professors Roger Idelen, Richard Evans, and Gregory Kadlec found that transaction costs in American investment funds average 1.44 percent per year. This makes them arguably the most significant expense item, but funds tend to hide them and do not list them in their promotional brochures.

Many people enjoy the 401(k) tax exemption or tax deferral, but in most cases they are offset by additional planning and administration costs, which, according to the General Accounting Office, average 1.13 percent per year! By comparison, if your investment account is taxed, the tax burden ranges from 1.0 percent to 1.2 percent, according to Morningstar.

4. Fee for using the "soft dollar" system in settlements. This system provides for a quid pro quo arrangement. Fund managers prefer to overcharge the trading services of attracted firms so that they later return part of the funds paid to the fund. This is a kind of encouragement for using the services of specific companies, reminiscent of the preferential miles program for air carriers. This allows the manager to use additional services, in particular research and information, for which otherwise he would have to pay himself. In this case, it turns out that you and I pay for them! It's just a well-disguised fund income. It is not reported anywhere, and it is almost impossible to determine its value, so we do not include it in our calculations, but there is no doubt that these costs are present.

5. Fee for withdrawal of funds from the account. Investment funds are required to have a certain amount of cash in order to provide liquidity for day-to-day operations and to be able to pay out the money to clients who leave the fund. If the amount of cash decreases, the fund's income decreases. As a result, funds charge clients withdrawal fees that have averaged 0.83 percent per year over the past ten years (according to a study by William O'Reilly and Michael Prisano). These costs are not considered direct commission costs, but they do reduce your income.

6. Fee for withdrawal from the fund. If you decide to stop using the fund, you will be charged a fee, which, according to the order of the Securities and Exchange Commission, should not exceed 2 percent. Thus, we are dealing with the most expensive ATM in the world, which takes 2,000 for every 100 thousand dollars.

7. Fund change fee. Some managers take money to move from one fund to another, even if they belong to the same financial company.

8. Fee for opening an account. In some funds, you even have to pay for the very fact of opening an investment account.

9. Trading costs. This item of expenditure is a net fee (not to be confused with a fund entry fee) charged on each purchase or sale of assets.

10. Brokerage fee for joining and leaving the fund. Paid directly to the broker and reduces the amount that can be used to purchase assets from the outset.

Myth #3 “Our income? They are completely transparent."

Surprisingly, the returns reported by investment funds do not match the returns received by clients.

Jack Bogle, founder of Vanguard

Most people are familiar with the clause in contracts that states that past performance cannot guarantee future performance. But few realize that even past performance data can be misleading.

“How Funds Legally Manipulate the Numbers” (Wall Street Journal, March 31, 2013)

Pig in lipstick

In 2002, Charles Schwab launched a funny TV show ads, in which the head of the fund gives a morning message to his employees: “Tell clients that they will not have such a great opportunity again! We must act immediately! Just don't mention fundamentals - they're useless." At the end of his speech, he gives the best broker tickets for the Knicks basketball game and, addressing those present, says: "Let's put lipstick on the pig."

Get to know me well

In 1954, Darrell Huff wrote a book called How to Lie with Statistics. It says that "countless tricks are used to not inform, but to fool people." Today's investment fund industry also uses a number of tricks to publicize its returns, which, according to Jack Bogle, don't reach investors. But before exposing this “magic of numbers”, we must first understand what is meant by average returns.

The chart below shows a hypothetical rollercoaster market situation. The exchange rate first rises by 50 percent, then falls by 50 percent, rises again by 50 percent, and then falls by 50 percent again. You will probably come to the conclusion that the result will be zero profitability and you will not incur losses. This is a big misconception.

As you can see from the graph, if you have a certain initial amount (let's say $100,000), then after four years you will be in the red by $43,750, that is, by 43.75 percent! You thought you were on your own, but in fact you lost 43.75 percent! Could you imagine such an outcome? Now that you have become an insider, you must constantly be on the lookout! When it comes to average returns, factors come into play that don't really exist.

MARKET STATUS

In his article "Debunking the Yield Myth" published in Fox Business, Eric Krom explains why there are such discrepancies in the real world: "Let's analyze the Dow Jones index since 1930. If you add up all the numbers and divide by 81 (number of years), the average return is 6.31 percent. If we perform all mathematical operations step by step, then the true return will be 4.31 percent. Why is it so important to understand this? If you had invested a thousand dollars in 1930 at 6.31 percent per annum, today you would have 142 thousand dollars, and if at 4.31 percent, then only 30 thousand.

Cunning weighing

Now that you've realized that the average return doesn't reflect what you're actually getting, sit back and relax, because we haven't gotten to the main illusion yet. Wall Street mathematicians manage to embellish their numbers even more. How?

In short, the returns advertised in investment fund promotional materials, according to Jack Bogle, "doesn't quite reflect reality." Why? Because the figures indicated in the brochure are time-weighted average. At first glance, it sounds too abstruse, but it is not (by the way, you can show off your erudition at the next party if you say this expression in a circle of friends).

If we had $1 in our account at the start of the year and $1.2 by the end of the year, the fund manager claims a 20 percent return. In this case, he gets the marketing department up and running to put the news on all the promotional materials. However, in reality, it rarely happens that the entire amount of the investment is already in the fund on the first day of the year. Typically, contributions are made in installments throughout the year in the form of pension contributions from each salary. And if you invest more when the fund performs well, and reduce contributions when things go down (as is usually done), then the end result will diverge even more from what is indicated in the advertisement. Thus, in order to understand how much we really earned (or lost), we must sit down and calculate day by day how much and when we deposited and withdrawn from the account. This will be the true return cash-weighted. It is very different from the one that investment fund managers tell us about.

Jack Bogle is constantly advocating for change. He is sure that investors want to know exactly how much they have actually earned (or lost). It would seem that it is a completely legitimate requirement, dictated by common sense, but the funds resist it in every possible way. Bogle explains, "We compared the money-weighted returns earned by mutual fund investors and the time-weighted average returns reported by the funds, and the result was that investors lagged the funds by 3 percent." Wow! The fund in the advertisement claims a return of 6 percent, while investors receive about 3 percent.

Way out

The average return is reminiscent of the photos we post on dating sites. She embellishes reality.

You should also keep in mind that when funds announce their return, they are referring to some hypothetical client who deposits the entire amount on the first day, but in reality this is rarely the case, so glossy advertising brochures can lead us to the wrong conclusion that the indicated in their profitability - this is what we will get our hands on as a result.

The path is open

No one says that climbing a mountain is an easy task. But it becomes much easier if you have the machete of truth in your hands, with which you can cut through the thickets of lies and look at the path ahead. Once you become an insider, you will no longer go blind.

Now you know that actively managed mutual funds can't beat the market for long periods of time (especially when you factor in all the fees and taxes).

You already know that the size of the fees paid to the fund matters. By lowering this figure, you can recover up to 60-70 percent of future profits. Do you understand the impact this could have on your future?

Finally, you know that the average return advertised by the fund is not true. You should be interested in real profit. And now you have simple tools to help you calculate it.

You have already taken the first steps towards financial freedom. You have chosen your path, and the knowledge gained will forever separate you from those who move in obedience to the herd instinct.

solo flight

Telling all this to people, I often notice that distrust of others wakes up in them. Realizing reality and assimilating real the rules of the game, they begin to feel cheated. They come to the conclusion that it is necessary to isolate themselves from everyone and take everything into their own hands, because you can’t trust anyone. But it's not. There are many financial professionals who sincerely wish their clients a better future. I have a wonderful advisor whom I trust unconditionally to manage my investments, as I am sure that he acts solely in my interests. Like you, I'm constantly busy. I do not have the time or inclination to spend whole days on a detailed analysis of my investment portfolio. In practice, it is enough to review your investments once a quarter or half a year, check with your goals and, if necessary, change the structure of the portfolio.

How to determine with whom you are dealing: with a seller or a faithful adviser? With a broker or guide? By debunking Myth #4, you can quickly figure out what kind of person is sitting on the other side of the table and decide whether he works for you or for his company. As the anonymous source behind the Watergate scandal said, “Always follow the money. Go where the money points."

Myth #4: “I am your broker and I want to help you”

It is difficult to get a person to understand something if his salary depends precisely on the fact that he does not understand.

Upton Sinclair

Let me be frank

Let's briefly summarize.

Mutual funds charge astronomical commissions and fees that can cut my future earnings by 70 percent.

Ninety-six percent of actively managed funds fail to achieve average market returns over time.

Mutual funds take 10 to 30 times more from me in all sorts of fees than index funds that reflect market movements.

The returns advertised by mutual funds are usually far inflated compared to what I can get from them because they use time-weighted averages rather than dollar returns in their calculations. Monetary-weighted returns are what we actually get, while time-weighted returns are only used in promotional materials.

And to top it off, the broker looks at you with honest eyes, assuring that he is acting solely in your interests. It is possible that he sincerely wants to help you, but does not understand the essence of all of the above. It just wasn't taught to him. It is even possible that he, in his own financial affairs, follows the same advice that he gives you.

Blow by blow

But why is it that the vast majority of Americans voluntarily subject themselves to the execution of a thousand cuts, instead of rebelling, voting with their wallets and giving their hard-earned money to other hands? The thing is, they've been kept in the dark for decades. Most of those I have spoken to are highly suspicious of the financial services in general and her desire to "help" us succeed. They already got burned on it. However, when we are bombarded with conflicting information and advertising in addition to everyday needs and worries, it is easy to become confused. Many have translated their financial activity on autopilot and volunteered to be part of the herd. Their strategy can be summarized in one word - hope.

There is something comforting about knowing you are not alone. All this reminds me of movies about wild nature on the Discovery Channel, where a wild animal carefully approaches a crocodile-infested pool to drink, although it saw that just a couple of minutes ago the jaws of a crocodile closed on its relative! Is this animal really that stupid? No! It simply knows that it will die without water under the scorching African sun, so it takes a calculated risk. We do the same for the most part. We know that we cannot afford to sit on the bank and do nothing, because inflation will destroy our savings. Therefore, overpowering the trembling, we head together with our neighbors and colleagues to the water. And at the moment when we least expect it, suddenly - grab! "Black Monday", a soap bubble of the Internet companies, any regular 2008.

At the same time, the brokerage firm that we have entrusted with our family's lives is risk-free and is making record profits year after year.

As of early 2014, the market continues to grow. From 2009 to the end of 2013, it rose by 131 percent (including dividend reinvestment). This is the fifth most intense period of growth in history. People see that their accounts are replenished, and peace of mind returns to them. Mutual funds take advantage of this. But crocodiles still want to eat.

Protection from whom?

In late 2009, Congressmen Barney Frank and Chris Dodd introduced a bill to reform Wall Street and protect consumer rights (the so-called Dodd-Frank Act) in the House of Representatives. A year later, after strong lobbying from the financial services industry, this law was passed, although it turned out to be much more toothless than the original version. But no one ever asked the question: “From whom, in fact, do we need protection?”

From those to whom we trust our financial future? From brokers who foist expensive mutual funds on us? From the managers of these funds who play dubious games to line their pockets? From high-frequency traders who "run ahead of the market" and snatch one cent from every trade millions of times per second? In the last couple of years alone, we have repeatedly witnessed how dishonest traders brought banks multibillion-dollar losses, how large financial firms like MF Global misused clients' money and then declared bankruptcy, as employees of one of the largest hedge funds in the world filed criminal charges of using insider information for personal purposes, as bank traders found themselves in the dock for manipulating the London interbank LIBOR rate, which is a benchmark for many short-term transactions.

"With my brains and your money, we have nothing to lose except your money."

The chef does not eat what he has cooked himself

We are constantly bombarded with advice like “Do as I say, not as I do.” A very sobering 2009 Morningstar report analyzing 4,300 actively managed mutual funds shows that 49 percent of managers do not own shares of the funds they manage. They are like a cook who does not eat what he himself has prepared.

Most of the remaining 51 percent of managers put a very small portion of their income into their funds. And we must remember that their earnings amount to millions, and even tens of millions of dollars.

● 2126 managers do not invest in their funds;

● 159 managers invested from $1 to $10,000;

● 393 managers - from 10,001 to 50,000 dollars;

● 285 managers - from $50,001 to $100,000;

● 679 managers - from $100,001 to $500,000;

● 197 managers - from $500,001 to $999,999;

● 413 managers - over a million dollars.

But then it's interesting: if the people who run the fund do not invest in it themselves, what is the use of this fund? Good question!

The chef does not eat what he has prepared himself, in cases where the dish contains low-quality ingredients or when he knows too well under what conditions the food is cooked. Fund managers are intelligent people and know how to protect themselves.

Where are the clients' yachts?

Fred Shwed Jr. was a professional trader but left Wall Street after losing his b O most of his money during the stock market crash of 1929. In 1940, he wrote the classic investment book Where Are the Clients' Yachts? (“Where Are the Customers’ Yachts?”). The anecdote behind this name has been told over the years in a variety of ways, but here's what it sounds like in Shved's version. A successful Wall Street broker, William Travers, was strolling around Newport during his vacation and saw many beautiful yachts at the pier. He began to ask who their owners were, and it turned out that they were all brokers, bankers or traders. “Where are the yachts of their clients?” - he asked.

It's been almost 75 years since this story was first published, but it feels like it happened just yesterday!

Attention! This is an introductory section of the book.

If you liked the beginning of the book, then full version can be purchased from our partner - a distributor of legal content LLC "LitRes".

Donald Trump (1987)

45 weeks on the bestseller list scientific literature according to the New York Times; sold over 3 million copies since publication.

"Call Me Ted" (Call Me Ted)

Ted Turner (2008)

Four weeks on the New York Times list. Sold 322 copies, 117 of them in the first year.

"What I know for sure" (What I Know for Sure)

Oprah Winfrey (2014)

Behind Lately Winfrey has sold 31,256 copies, keeping her on the New York Times list for two weeks since the book's publication in September.

Authors with the highest income

Bestselling Factory by James Patterson is back at the top of our list of highest earning authors after languishing in second place for a year. Patterson made $90 million from 13 books published in 2013, a staggering 221% more than runner-up Dan Brown.

This year the list is full of regular heroes. This is Daniela Steel, Stephen King, JK Rowling. The most notable newcomer is 26-year-old Veronica Roth, a young adult fiction star whose Divergent trilogy has earned $17 million (the film adaptation of the same name, released in March this year, grossed $151 million in the US).

Most conspicuously missing from the list is the one who swept Patterson from number one last year, Erica Leonarda James, whose Fifty Shades of Gray trilogy sold 1.8 million copies in 2013. This is significantly less when compared with more than 29 million sold a year earlier. The writer's income has dropped from $95 million to $10 million, which is apparently still enough to keep herself handcuffed and silk scarves.

Buffett Book Club

In his annual address to Berkshire Hathaway shareholders, Warren Buffett noted a slight decline in the company's performance and, in this regard, made recommendations on the literature to top management.

2001: "Jack. My years in GE (Jack: Straight from the Gut)

Jack Welch

"Get a copy!.. Joe (Brandon, later CEO of General Reinsurance Corp.) is a lot like Jack."

2006: "Where are the clients' yachts?" (Where Are the Customers' Yachts?)

Fred Shwed

"The funniest book ever written about investing."

2006: Poor Charlie's Almanack: The Witand Wisdom of Charles T. Munger

“An unfortunate soul asked Charlie (Munger, vice chairman of Berkshire) what she should do if she did not enjoy reading the book. Munger advised, "Not a problem—just give it to someone smarter."

17 books about business and investment that billionaire Warren Buffett mentioned in his interviews, articles or letters to shareholders.

According to Pulse, when Warren Buffett was just beginning his career as an investor, he read between 600 and 1,000 pages a day. Now famous businessman spends up to 80% of his time reading. “My job is essentially to put together a lot of facts and data to see how they interact,” Buffett himself said in an interview.

The editors of Pulse have studied Buffett's interviews over the past 20 years and identified 17 books that the entrepreneur recommended reading during these conversations.

1. The Smart Investor, Benjamin Graham

Buffett read this book when he was 19 years old. According to the entrepreneur, the work helped him build "an intellectual platform for further development as an investor." To be successful in business, Buffett says, you need an intellectual basis for making decisions. This is exactly what the book gave him.

2. “Securities Analysis”, Benjamin Graham

According to Warren Buffett, one more work of Graham actually helped him to create the "map" of investments, which he has been following for 57 years. As the entrepreneur notes, Benjamin Graham is the second most influential figure for him after Buffett's father. "Ben was a great teacher," says the billionaire.

3. Common Stocks and Extraordinary Earnings by Philip Fisher

Philip Fisher specializes in investing in innovative companies. Despite the fact that he does not occupy the same place in Buffett's life as Benjamin Graham, the entrepreneur highly appreciates his work. "I'm willing to read whatever Phil wants to say with his books, and I encourage you to do the same," he says.

In "Common Stocks and Extraordinary Earnings," Fisher explains why it's important to not only look at a company's financial statements, but also learn about the management principles that its management employs.

4. Stress Test: Reflections on the Financial Crisis by Timothy Geithner

Warren Buffett believes that every manager should read this book from the former US Treasury Secretary on the financial crisis.

“Many books have been written about how to manage a business in difficult times. But this book describes the strategy of managing an entire state in difficult times - and moreover, it was written by someone who himself was engaged in this.

5. "The Essays of Warren Buffett" by Warren Buffett

"If you want to understand how Warren Buffett thinks, you should read Warren Buffett's own book," writes the Pulse editor. One of the thoughts from this book: “What can be more profitable than to have in an intellectual competition (whether it be chess or trading in securities) an opponent who is convinced that thinking is a waste of time?”

6. “Jack. My Years at GE by Jack Welch

Warren Buffett mentions this book in a letter to the shareholders of his company, written in 2001. Jack Welch - a former top manager of General Electric Corporation - Buffett describes as an intelligent and energetic person.

According to Bloomberg, Welch's experience will be useful to any leader - he has had such a big impact on the modern business environment. Buffett strongly recommends a copy of his book.

7. The Rules of the Best SEOs by William Thorndike

Buffett also mentioned the work of Thorndike in one of his letters to shareholders - already in 2012. The billionaire notes that this book is "a wonderful story about managers who excelled in a particularly prudent distribution of capital." One of the chapters of the book is dedicated to entrepreneur Tom Murphy - Buffett calls him the best manager he knew.

8. "Investors vs Speculators" by John Bogle

John Bogle - founder of a major American investment company Vanguard Group, which manages over $3 trillion in assets. In his book, he reveals the idea that long-term investment in the world market has replaced short-term speculation - giving both theoretical and practical examples and evidence.

In addition, Bogle gives some valuable advice to novice and experienced investors - for example, he urges you to always remember that what is in fashion today will not necessarily be as popular tomorrow.

9. “Business adventure. 12 Classic Wall Street Stories by John Brooks

In 1991, writes Pulse, Microsoft founder Bill Gates asked Buffett to talk about his favorite book. In response, the billionaire sent Gates his copy of Business Adventures.

According to Bill Gates, this book serves as a reminder to him that no matter what happens, the principles of building a business always remain the same. The founder of Microsoft writes: “On the one hand, in any business there is human factor. But it doesn't matter if you have a great product, a plan for its development and a verified marketing strategy. True, you still need good people to carry out these plans.

10. "", Fred Shved

In his 2006 letter to shareholders, Buffett called the book "the funniest investment story ever written." “She conveys a lot of really important messages to the reader in an easy manner,” writes the billionaire.

11. "Essays In Persuasion" by John Maynard Keynes

“Even though this collected writings from the legendary economist were published over a century ago, it is still one of the must-read books for financiers,” writes Pulse. One of Keynes' famous writings is Economic Opportunity for Our Grandchildren, in which he suggested that today's generation could only work 15 hours a week.

Buffett believes that Keynes's essay can really help to understand the structure of the securities market.

12. The Smart Investor's Guide by Jack Bogle

In a letter to shareholders written in 2014, Buffett suggests that anyone seeking financial advice should read Bogle's The Smart Investor's Guide instead. In the book, the author, based on his own experience with clients, tries to help readers use index investing to build wealth.

Fans of the book note that it is not boring at all, and the graphics and statistics in it are diluted with jokes and practical advice.

13. Poor Charlie's Almanac by Peter Kaufman

A collection of speeches and articles by Charlie Munger, an American lawyer, economist and professional investor. In a letter to shareholders in 2004, Buffett wrote: “The professional community has been trying for too long to find out if Charlie is the reincarnation of Ben Franklin. The answer to this question is contained in this book.

One of the most interesting articles included in the book is the discussion “The Psychology of Human Error”, in which the author describes the cognitive traps that investors often face.

14. "The Most Important Thing" by Howard Marks

According to the billionaire, this book is very useful for the investor, which "is a rarity." In his work, the founder of Oak Tree Capital, Howard Marks, told what mistakes he made on the way of the investor, how he coped with them and what he learned for himself.

15. "Dream Big", Christian Correa

In the book, Correa describes the history of the three Brazilian entrepreneurs and investors who founded 3G Capital and the style of their management of the firm. Buffett recommended this work in his letter to the company's shareholders in 2014.

16. "Start with a Dream" by Jim Clayton and Bill Rutherford

Jim Clayton grew up in a sharecropping family in Tennessee, and when he grew up, he founded his own company Clayton Homes - today one of the largest manufacturers of mobile and modular homes.

Many people dream of owning their own snow-white yacht, but, alas, not everyone can afford it. Nevertheless, the number of lucky people who have a “cottage with a motor” on the water somewhere in a reservoir near Moscow or in a Montenegrin marina continues to grow. The correspondent went to the British port city of Plymouth to the Princess shipyard to see firsthand what the production of luxury motor yachts looks like.

city ​​accepted

Plymouth has been linked to the sea for centuries. From here, the famous Admiral Drake set off on his dashing campaigns, the pilgrims who laid the foundations of the American colonies climbed aboard the Mayflower, and the naval base to this day serves as one of the main objects of the Royal Navy. Once upon a time, warships were also built here with might and main; today, however, the largest shipyard in Plymouth is engaged in a purely civilian fleet - luxury motor yachts. For more than half a century, Princess has been launching her boats, recognized by industry experts as one of the best in the class.

Work is underway at five sites scattered throughout the city. In one huge workshop, parts of plastic hulls are stamped, in another, flybridges are assembled; a separate room is reserved for the installation of a variety of wiring (it is several kilometers in an average yacht). The special pride of the company is its own furniture production. By the way, many designers are working on the interiors. famous brands- the shipyard belongs to the leading luxury holding LVMH, which affects both prices and clientele. The Princess yacht will cost the customer at least half a million pounds. Some may prefer the cheaper offerings of aggressive newcomers from Turkey and China, but in the case of buying one of the world's most luxurious vehicles, the savings are redundant. “Turkish and Chinese shipyards are not competitors for us. When a customer wants real quality, they turn to us or to the Italians,” comments sales manager Simon Colebrook, who leads the tour of the workshops.

Owning a yacht is the ultimate, unsurpassed epitome of luxury, says Princess Yachts marketing director Kiran Haslam - and it's hard to disagree. Therefore, the attitude towards the creation of each yacht is reverent: despite the widespread use of advanced technologies, a lot is done by hand, with precise adjustment to the micron. Princess Yachts launches about 300 hulls a year, but the construction of each yacht takes at least three months (for the largest, 40-meter Princess 40M - up to two years). Of course, for their money - and waiting time - customers expect only the best. And to fulfill their whims regarding appearance: according to Colebrook, “customer can order any color of the hull. It seems that the most extravagant was the color of the sea wave, but for some reason no one ordered a pink yacht yet.

At the request of the client, the shipyard also installs third-party equipment: from lighting ordered from leading European companies to media centers. “The audio and video system installed on our yachts is usually Naim, Harman Kardon or JL Audio. The last word, of course, is up to the client - on large boats, the cost of custom entertainment center can go over half a million pounds,” Colebrook explains. You can immediately order "water toys" like the popular underwater vehicle Seabob, reminiscent of a gadget from the arsenal.

Industry and nature

Princess yachts are bought by clients all over the world, but Russian market has always been one of the most important for the shipyard. Last year, the Russians purchased several dozen yachts of various lengths, flybridge models are especially popular. For the convenience of customers, the official Russian dealer of the shipyard, Nordmarine, operates not only in Moscow, but also in the Principality of Monaco - for obvious reasons (primarily climatic), many prefer to keep the yacht in the Mediterranean. By the way, unlike other segments of the luxury industry, yachts remain the bastion of the stronger sex. “Most of the clients are still men. But the woman's opinion is often decisive when choosing options,” says Colebrook.

A special pride of the shipyard is a special room where full-size models of yacht interiors are built. “Here we can really test whether it is comfortable to sit at the helm on the flybridge, whether something obstructs the passage to the bed in the owner's cabin, whether the stairs are comfortable,” Colebrook explains. According to the company's management, not every shipyard can afford such a "pilot production" - it occupies a considerable area. By the way, the building that houses the model room is also not quite ordinary. This is an old military fort that once protected the approaches to the city from the sea. It also contained barracks and a prison for the sailors of His Majesty's fleet. The shipyard bought the buildings from the state, but, since they are classified as cultural heritage sites, it is obliged to preserve them in their original form. And not only outside - behind a small door next to the mock-up there is a chamber in which death sentences were carried out. The scaffold is still in place, as is the crossbar on which the hangman's noose was fixed. “We have morning meetings here sometimes,” Colebrook jokes, pointing to the grim legacy of the past.

However, Princess cares not only about the past, but also about the future. The shipyard actively cooperates with the British Marine Conservation Society. In particular, the firm finances research and work to preserve the unique marine fauna and flora in the Eddystone lighthouse area, located 20 kilometers from Plymouth on the high seas. The lighthouse was built three centuries ago to warn ships of the dangerous reef on which it rests. “We are very proud to be the first yacht brand to partner with the Marine Conservation Society and we are 100 percent committed to this project. The ocean is ours playground and a concern for the entire Princess community. Not only the company itself and our customers are involved, but also distributors. I especially want to note the financial assistance from Nordmarine, our distributor in Russia,” emphasizes Kiran Haslam.

In addition, the shipyard has provided funds for the ringing of sea turtles in the Caribbean - this allows you to track the migration of animals and often saves them from falling into tourists' plates as a local delicacy. “It may seem strange to some that we are concerned about the problem of turtles on some distant islands. But that's where our clients spend a lot of time on our yachts - and we can't stay away,” says Haslam.

The final part of the tour of the shipyard (stretched, by the way, for two days - total area is almost three hectares) is dedicated to the novelty - flybridge Princess 55 with huge portholes and a spacious master cabin, as well as yachts preparing to be launched. They stand on mobile slipways, with huge wheels the height of a man, and so far seem to be giant sea monsters thrown onto land by the will of the waves. But as soon as the yachts slide down to the mooring wall and find themselves in their natural element, they seem to be transformed, taking on the proud look of independent beauties familiar to every yachting fan. However, they still have the final finishing of the interior and cabins ahead of them, after which they will be sent on a journey to their home base.

Fred Schwed's 1940 book Where Are the Clients' Yachts? (Where Are the Customer's Yachts?) is considered a classic investment work. Its name was born from a once-popular joke about Wall Street: a guide showing a visitor to New York's financial district draws his attention to several beautiful ships anchored off "Look," the guide says, "these are the yachts of brokers and bankers." To which the naive visitor says, "Where are the client yachts?" Swede's book, based on his own experience, takes a satirical look at Wall Street in the spirit of Twain She also gives some insightful philosophical definitions, for example: "Investment and speculation are considered two different things, and the prudent person is advised to pursue the former and avoid the latter. It's like explaining to a troubled teenager that Love and Passion are two different things."

He was born in New York, and his acquaintance with the machinations of Wall Street began early - his father was a member of the New York Curb Exchange (New York Curb Exchange - the former name of the American Stock Exchange - American Stock Exchange). The Swede studied at Princeton, but he was kicked out of his senior year - at night he was caught in a dorm room with a girl. He completed higher education at Columbia University. After graduating, he worked as a reporter for The New York Times and then The Wall Street Journal before working on client accounts at a stock brokerage firm. Obviously, he did not have a very high opinion of his work, judging by what he said about the sellers of mutual funds: "They are quite comparable to the sellers of life insurance policies. Remember how these life insurers work: at first they cause little irritated, then become nauseous, and then push the policy right down your throat."

The Swede also dabbled in trading, but claimed he didn't get rich as a trader because he listened to a cynical Irish colleague: "Why were securities? the Irishman said. "They're made to be sold, so sell them." This cynicism is, of course, demonstrated in " ", for the Swede ridicules a Wall Streeter who considers himself a prophet, a scientist and a magician of money.