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Investment Advice from Bernie Madoff

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  1. #1

    Join Date
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    Investment Advice from Bernie Madoff

    https://www.marketwatch.com/story/ma...3-06-05?page=1

    "The best chance for the average investor is to put money in an index fund. There are lower commission rates and more professional management with these types of firms. It’s the safest and least likely place to get scammed. If you want to hold money with brokerage firms, go with major public firms. Chances are they will go with proper procedures and proper compliance. If regulators were checking my firm, they would have caught me sooner. This way you can avoid the mistake of putting your money at risk. Or, put your money in mutual funds, which are large enough to protect investors."

  2. #2

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    Bernie Maddof - Dead..

    Not sure if there was an active thread about the scandal.

    He dead..

    https://www.msn.com/en-us/news/polit...on/ar-BB1fDY3a


  3. #3

  4. #4
    Imposing a 150-year sentence in 2009, judge Denny Chin called Madoff’s crimes “extraordinarily evil”.
    He only served 12 - cheat.
    hullexile and MABinPengChau like this.

  5. #5

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    Madoff ran his fraudulent scheme since the 90's (some say since the 80's), yet the regulators for some reason didn't noticed for years. Anyone who double checked the numbers realized there was no way for Madoff to deliver those returns. But the authorities looked the other way for a long time...

    Last edited by Coolboy; 15-04-2021 at 08:29 PM.

  6. #6
    Quote Originally Posted by Coolboy:
    Madoff ran his fraudulent scheme since the 90's (some say since the 80's), yet the regulators for some reason didn't noticed for years. Anyone who double checked the numbers realized there was no way for Madoff to deliver those returns. But the authorities looked the other way for a long time...
    Yes, what is amazing in hindsight is that the people involved where substantial rational thinking peeps. They worked with numbers, facts and lies of suspects all the time. Yet here they wanted to believe what they got presented to them, they wanted to believe there was a reputable respected man with a Midas touch.
    Either that or they were in on it too.
    Coolboy likes this.

  7. #7

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    Quote Originally Posted by PetravanderVegt:
    Either that or they were in on it too.
    Yup, I can't imagine how people didn't realized something doesn't add up with Madoff. Other financial analysts and fund managers have said on record they have done their own calculations on Madoff and they concluded the numbers just aren't right. It was simply impossible for Madoff to achieve the gains he claimed. And this was years before the scandal came to light.

    But the SEC ignored that. Only when the scheme became too blatant for the authorities to ignore, when the whole thing collapsed (as any Ponzi scheme is bound to), only then did they take action, whether they like to or not.

    In a way, it reminded me of a different fraud case, the Theranos scandal with Elizabeth Holmes. It's a fraud of a different nature and the facts are different of course, but I was struck by a certain similarity between the Theranos and Madoff cases. In both cases, the investors didn't do their due diligence and simply relied on the words of the fraudsters, a classic confidence game. Even when Holmes had nothing to show for her claims to produce a blood testing machine that can detect all sorts of maladies, investors still backed her up.

    So when it comes down to it, both Holmes and Madoff are con artists. Yet the sheer power of persuasion in the case of Holmes and the reputation of Madoff (who helped found Nasdaq) as a trusted adviser in securities trading made investors throw their logic and reason out the window.

    In the end, there is no substitute for investors doing their own homework, it seems.
    PetravanderVegt and snach like this.