The part that really baffles me on this Madoff scandal is that one of the fundamental rules in investing is that you need to:
D-I-V-E-R-S-I-F-Y
This is a SIMPLE move to protect your ass from losing everything. Now you are talking about multi-millionaires who lost everything because they did not diversify. Even if they would of had 50% of their holdings into Madoff, they still would be a millionaire.
The way I look at this is that I do my own homework and make my own investment decision. If I were to put some skin in the game and if I got a lot of it, I will definitely do my homework and know what the hell I am buying into. It just makes sense. Period. If I am too lazy or incompetent to do it, then I would be better sticking to a CD's, Savings, or some kind of low risk index fund.
Duh...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment