The Annoying Thing About Potential Frauds in the News.
By Investment Moats  •  January 24, 2023
Ted Seides, founder of the Capital Allocators podcast, and founder, president and co-CIO of Protégé Partners LLC, shared with us why it is so challenging to detect fraud. There are a few main challenges:
  1. Usually, we spend 99% of our time assessing the merits of an opportunity but 1% of our time thinking if what we see is real. The fraudster spends 100% of their time staying two steps ahead of you.
  2. Not all frauds started that way. Some became frauds to cover up losses.
Recently, there have been more frauds because, in the start-up world, the environment encourages that. We often say that periods of significant challenges are also periods of grand opportunities. This means that if there are great investments that potentially give outsized returns, the attributes also lead to fluff and overpromised ideas. Ted then shared with us how he could not detect certain frauds and suffered through them as well:...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...

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