We’ve discussed the altruistic character that is John McGrath previously, and how his track record is very clearly to create wealth for people called John McGrath whilst absolutely destroying value for those who invest in his company or, indeed, listen to his advice on the trends in the real estate market.
In fact, without wishing to say, “I told you so”, I will have to say, “I told you so”. As I wrote just under 12 months ago in response to McGrath’s advice for property owners to hold their nerve and not sell as the market will definitely recover quickly:
If you really want to become a millionaire, take 6 million dollars and invest it in whatever John McGrath tells you to.
A cynic might suggest John would like you all to not flood the market with your firesales until he’s finished the conveyancing on his.
What a difference a year makes.
One can accuse John McGrath of many things; share market con artist, pathologically-addicted gambler on horse races, double-faced spruiker, etc., but he definitely knows more than most about the Australian property market.
Whether he needed to cash in his assets for reasons of expediency due to crippling gambling debts or not, we might never know, but there’s a big flashing sign for anyone who believes the personal stock trading of company directors is a good indication of whether or not to buy their shares.
In the meantime, this is yet another example of the delta between expressed and revealed preferences.