About ValueSide
EF Hutton & Company
On May 1, 1972, I began my career as a Stockbroker with the old-line firm of EF Hutton & Company. This was investing as it had been for the past two centuries. Hutton was a Partnership, just transitioning to a Public corporation. It meant a significant infusion of capital and the opportunity for the firm's partners, many of whom had lived through the Great Depression, and a few had experienced the 1929 Stock Market Crash.
Hutton was one of the first investment firms to embrace modern media advertising. If you're of a certain age, you may remember this television ad:
May Day
Precisely three years into my career, the Securities & Exchange Commission announced the end of the fixed rate commission schedule that had marked brokerage commissions since its beginning in 1789. An enterprising young man in San Francisco named Charles Schwab was one of the first to see the benefits of offering a significant discount on his commissions. By the end of the decade, I was working for him.
Charles Schwab & Company
After helping Schwab open a couple of offices, I was able to go independent. With the backing of a couple of Venture Capitalists, I formed First Los Angeles Discount Securities in Encino, California.
By the end of the 1980s, some of the large, money-centered Commercial banks were looking to get into the investment business, something that had been prohibited since the 1930s (the Glass-Steagall Act). To make a long story short, when one of those banks offered to buy the firm, I took their offer.
Fidelity Investments
In the 1990s, things would come full circle, as Fidelity Investments started a new Clearing and Execution Firm, primarily aimed at capturing the new Bank Section 20 business. Under Section 20 of the SEC Act, Commercial Banks could now offer Investment Banking services, and Fidelity was going to become the major provider of back-office services for those Section 20 Subsidiaries. It was a wonderful decade; as the West Coast Representative, I would gain many Savings and Commercial Banks as customers.
Regrettably, two of those banks are no longer with us.
For the past two decades, I have served as a consultant to a major money market fund and a mortgage REIT and have also operated my own Investment Advisor Firm.
Today, my mission is to bring to your attention the often subtle and deceptive ways in which some individuals and institutions may exploit investors and savers. If I am overly cautious, it's to ensure that you fully understand any risks associated with your financial dealings.
Some of my recent articles on this are:
David Reavill
David Reavill
David Reavill