April 4, 2014
Bernie Madoff was a crook who ruined many lives. What can we learn from that horrible situation?
Bernie Madoff was a crook who ruined many lives. What can we learn from that horrible situation?
You need to know the signs of a scam when someone offers you something to good to be true believe me it is. If someone promises you a double diget garentied return thats a red flag. If they dont actually tell you what they are investing in that is also a red flag. If someone focuses more on who all is invested with them and not why they are thats a red flag too. Madoff couldnt have mad off with all of those peoples money if they had not given it to him in the first place, people need to keep their greed and emotions in check when investing, stick with what you know and watch it grow. Even smart people can fall victim to a scam but learn from their mistakes so you dont make the same ones. You could be the best investor and still lose it all in a scam.
Outstanding answer, Garrett! Let’s review.
Bernie Madoff ran a ponzi scheme that took in vast amounts of money from some very smart people. He promised double digit returns every year and kept delivering (took new money to pay old money) each year until the whole thing collapsed under its own weight. Bernie was a crook and deserves to rot in prison, but let’s not forget the mistakes those investors made.
They looked the other way when Bernie promised those double digit returns that could not be promised by any ethical and honest investment firm. Bernie could only ruin people’s lives if those people were willing participants. Don’t be that person!