Read? Scrutinise financial investment seminars too
invest, thesundaytimes, Sep 29
Lessons from fallen financial idols
From Bernie Madoff, mastermind of the biggest Ponzi scheme in history, which cost investors at least US$18 billions in losses when the law finally caught up with him.
Some advice he offered to investors on how to avoid getting scammed boils down to common senses.
Madoff said: "Wall street is not that complicated. If you ask an average hedge fund or investment firm how they make money, they won't tell you. If you don't understand something, then don't invest in it."
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And he noted that if an investment sounds too good to be true, it is. He had offered his clients a consistent 11 % to 12% year after year which made no sense, yet nobody questioned him about it and he was able to continue with his scam for along time.
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