Ricky Gervais – “The next time a journalist asks me how much a pint of milk is worth, I’ll give them a grand and say “run and get me one”.
If you are used to filling up your car with petrol and it’s £100, you’ll be shocked if the new price is £350. You buy a loaf of bread which now costs £10. You’ll be shocked.
You have a means of comparison. You can compare what you usually pay against what you are asked to pay today. This information helps you decide if you are prepared to pay that price or take your business elsewhere.
In the world of investing, it is not simple to know whether you are overpaying or not. Why? Costs are not clear and transparent. There are so many hidden costs that investors never appreciate. There are very few triggers to help you check out costs simply because over time your investments rise in value.
The key for investors is to introduce a process that audits performance. An Audit gives you peace of mind you are doing the right thing, or it identifies a problem you can solve today.
There is a difference between ‘thinking’ your investments are okay and knowing they are okay. It is why all investors need an audit.