Which matters more in finance: ethics or returns

For me, the answer has always been clear. If I sense someone is unethical, the relationship ends. As a trader, my word was everything—deals were often sealed verbally long before paperwork followed.

I believe ethics can’t be taught. Some unusual cases may be learned, but a truly ethical person already knows what is right.

This is where the challenge for financial advisors begins. Most don’t have many products that consistently outperform the S&P. Recommending “just buy the S&P” is tough—because an investor doesn’t need them to do that.

And this is where the ethical dilemma shows up. When an advisor says, “I don’t make money until you make money,” what should that mean? To me, it should mean the client earns more than they would with the S&P. Simply saying “your portfolio went up” isn’t good enough—because anyone could achieve that by tracking the index.

Some argue you need a license to voice financial opinions. I’m not licensed, but I believe I have the right to speak truth. The numbers tell a story, and too often they reveal how many widely held financial beliefs are simply wrong.

In a world where truth is hard to come by, numbers remain a reliable source. But without ethics, even the best numbers lose meaning.

So I’ll ask again: Which matters more—ethics or returns?