“A fool and his money are soon parted.” - Thomas Tusser
The purpose of this blog is to give you a few vital tools so that you keep your hard-earned or inherited money in actual, solid investments. The focus is on smaller, private investments, not the technology of picking publicly traded stocks or bonds.
Don’t be fooled by all the nonsense that passes as investments – 99.9% of them are junk.However, there is a way to find the one deal that might have a chance. It requires rolling up your sleeves and doing some research. This blog tells you where to look and what to ask
In the 30+ years I have been in the financial industry, it’s amazing to me that despite much history about financial scams and bad investments, people still fall for the same old garbage investments year in and year out. And it’s not just people who lack any real education in the field of investing. People with considerable education and experience in business and life get bamboozled regularly.
I know dozens of stories about people who have watched as their hard-earned money was “invested” and never to be seen again. I’m talking about hundreds of millions of dollars just in my little corner of the market.
The big world of investing gave us such icons as Bernie Madoff, Reed Slatkin, and everyone involved in selling the Credit Default Swaps which handed out losses in the trillions of dollars. On a smaller scale, I have seen speculative real estate deals, phony gold mines, fantastic inventions that “couldn’t lose,” currency deals, high-tech ideas, Internet startups, and more.
While these losses are far less than Bernie Madoff-size losses, the pain from losing your life savings is just as bad. Not to mention all the conflicts these bad investments spawn when they fail, which can cost fortunes in legal fees and tear up old friendships. Broken relationships between friends and family, lawsuits and arbitrations and financial hardship are very common when some “sure thing” falls apart.
People, in most cases, worked hard and were diligent in saving up money. Then one day – Pfffft!– it’s gone? And they get nothing but sad excuses and justifications to explain why the deal fell apart. How can that be? It was a sure winner! Who is to blame? Could anything have been done to prevent it? Fortunately, there are many things you can do to prevent these losses if you will take a little time to do them. To be continued….
Learn more about what you can do to make sure you aren’t getting blinded by a too good to be true investment opportunity by subscribing to our blogs at www.wiseman-burke.com !
Coming up next week in The Due Diligence Series is “Key Factors to Be Aware of When Considering an Investment Deal”. Make sure you don’t miss this! Subscribe our website and follow us on Instagram to get updates! @wiseman_and_burke
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