Money from investments or money from you?
When I see the advertisements for Investing Courses and “How you can invest like Warren Buffett”, I can’t help but suspect the speakers make more money from you attending their courses than from their own investments. Fortunately, there is a very simple way to sniff out a scammer.
Using the Warren Buffett test
The legendary value investor Warren Buffett is regarded as the best investor in the world. During his time at Berkshire Hathaway, he managed an annual compounded rate of return of 22.3%.
When I see advertisements or even author’s biography stating they made 25% or more in a year, I immediately raise my red flag. If someone is making more money than Warren Buffett, he will not even need to be selling courses to you!
So the simple litmus test is this: did the investor make a rate of return …