Numbers Do Not Lie

“We were in some helicopters. What we didn’t know is we were north of the invasion… Two of our four helicopters were hit by ground fire, including the one I was in, R.P.G. and AK-47.”

NBC anchor Brian Williams told that story two years ago on the Late Show with David Letterman.

A couple weeks ago, Williams reiterated the story on NBC Nightly News, but with a new twist:

“The story actually started with a terrible moment a dozen years back during the invasion of Iraq when the helicopter we were traveling in was forced down after being hit by an R.P.G. [rocket-propelled grenade]… Our traveling NBC News team was rescued, surrounded and kept alive by an armor mechanized platoon from the U.S. Army 3rd Infantry.”

This time around, Mr. Williams actually took one of the men who allegedly protected him and his news crew from harm in Iraq to a New York Rangers hockey game. While at the game, the Rangers held a brief tribute to the retiring military man, once again repeating that he and his platoon had helped protect Brian Williams.

It was this appearance that set off the controversy that has essentially cost Brian Williams his career.

We now know that Williams was never actually on the helicopter that really did get shot down. He wasn’t even part of the helicopter formation that took fire. He arrived on the scene 30 minutes to an hour later.

When Mr. Williams recounted the story yet again at that Rangers game, it was too much for the Army pilot who was flying the helicopter that was hit: Army pilot Joe Summerlin.

Summerlin posted on Facebook that the story was not true. This got picked up by Stars and Stripes, and the rest is, as they say, history.

We Are Appalled

As Americans, we are all appalled by the blatant lying of a trusted public figure. After all, we trusted — and actually liked — Brian Williams. It’s like getting screwed over by a close friend.

And if you’re ever skeptical that we get the whole story from the media and the government, well, this doesn’t help.

But we shouldn’t be completely surprised. Money certainly has the power to corrupt…

In the same way performance-enhancing drugs helped marginal baseball players get multi-million dollar deals and helped a great player like Barry Bonds break one of the game’s most hallowed records, Brian Williams’ lies probably did help his career.

What network executive wouldn’t want a battle-hardened correspondent sitting in the anchor chair every night?

And what aspiring reporter doesn’t dream about that anchor chair and the $10 million salary that comes with it?

Which of us wouldn’t stretch the truth or break the rules in some way to get the prestige, the adoration, and, yes, the big, fat paycheck?

On a personal level, we’re not sure we can answer that question, um, honestly. On the one hand, we take integrity and honesty very seriously. On the other hand, $10 million is a LOT of money…

But as investors, we simply cannot lie about our bottom line. You either make money or you don’t. A trade either worked or it didn’t.

We could tell you we bought Apple at a split-adjusted $10 a share back in 2006, but if we don’t have the 1,140% profit, we really haven’t benefited…

But seriously, for most of us, lying or cheating to advance our careers isn’t even an option. The Wealth Advisory portfolio is what it is. We go public every month with our recommendations, entry prices, targets, and analyses.

When we are wrong, it’s right there for everyone to see. There’s no sugarcoating it, no “massaging the numbers.”

The Liar’s Club

This may be the saddest truth of all when talking about this level of deceit. It’s not much different than with Bernie Madoff, who stole billions from investors with complete lies about his track record and trading activity: people knew.

Investors knew something wasn’t right about Madoff’s scheme. His track record was too good, too consistent. Some thought he was insider trading — and they wanted in. We suppose the joke was on them…

But what about all the people who aided and abetted Madoff? Perhaps Madoff was a sociopath, but his wife, too? Kids? Secretary? People that worked at JP Morgan and handled his “accounts”?

How big was the conspiracy to perpetuate Brian Williams’ lies?

As The New Yorker asked:

The networks have a stake in promoting their anchors as God-like figures. By showing them in war zones, with Obama or Putin, buffeted by hurricanes, and comforting victims, they are telling viewers that their anchors are truth-tellers who have been everywhere and seen everything and have experience you can trust. On his helicopter in Iraq, Williams was accompanied by an NBC crew. Did they not speak up to correct the record for fear of undermining the powerful anchor?

At some level, NBC executives had to know Brian Williams was making it all up as he went along. Heck, even the retiring Army man who was honored at the Rangers game, waving to the crowd with Mr. Williams’ arm around his shoulders, knew the story was a fake…

It’s clear to us that there was more going on with Williams’ story. Just like with Madoff, the lies didn’t stop with the man. They went further up the ladder. And we can be pretty sure that it was the money that offset any guilty feelings that may have come up. They pretty much sold their souls.

Yeah, come to think of it, we can answer the question honestly: We would not lie or otherwise bend the rules to advance our careers. In fact, it would be pretty difficult. Every month, our investment recommendations and analyses are published in The Wealth Advisory newsletter for thousands of paying subscribers to see. 

And you can be darn sure they won’t let anything slide… as it should be.

I’ve been in the newsletter biz for over 15 years. At this point, I’m pretty satisfied with who I am and the track record I’ve put up. Besides, I’m pretty confident I can make my way in this world based on what I’ve learned from some truly great mentors, my skill, and my instincts.

Perfect? No, not by a long shot. Sure, I can recount some of my recent successes, like recommending Starbucks at $45 a couple years ago. My readers have a solid 102% gain there. We’ve also have a 151.33% gain on Boeing. 

But I can’t brag about those without also acknowledging that stupid Brazilian steel and iron ore company I recommended whose share price has been cut in half in six months, %$#%#%@!! (We clearly underestimated the weakness in emerging market economies. But we stuck with it because of the 9% dividend.)

On balance, I will take the good with the bad.

Because I can look at myself in the mirror with no guilt in the morning. And perhaps more importantly, I will never have to see the crestfallen look on my children’s faces when they find out their parent is not who they thought he was.

And that really is priceless.

Until next time,

Until next time,

Briton Ryle

@BritonRyle on Twitter

The Wealth Advisory on Youtube

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A 21-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He is also the managing editor of the Wealth Daily e-letter. To learn more about Briton, click here.