👍🏻_老虎社区_美港股上老虎

6683ba3c
2021-04-15

👍🏻

What Bernie Madoff Taught Every Investor<blockquote>伯尼·麦道夫教给每个投资者的东西</blockquote>

You didn't need to lose money because of the convicted felon's schemes in order to learn valuable le

What Bernie Madoff Taught Every Investor<blockquote>伯尼·麦道夫教给每个投资者的东西</blockquote>

免责声明：上述内容仅代表发帖人个人观点，不构成本平台的任何投资建议。

推荐
最新

暂无评论

热议股票

{"i18n":{"language":"zh_CN"},"data":{"magic":2,"id":347903586,"tweetId":"347903586","gmtCreate":1618453363845,"gmtModify":1634292837830,"author":{"id":3581502570461437,"idStr":"3581502570461437","authorId":3581502570461437,"authorIdStr":"3581502570461437","name":"6683ba3c","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>👍🏻</body></html>","htmlText":"<html><head></head><body>👍🏻</body></html>","text":"👍🏻","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/347903586","repostId":1187373535,"repostType":4,"repost":{"id":"1187373535","kind":"news","pubTimestamp":1618452535,"share":"https://www.laohu8.com/m/news/1187373535?lang=zh_CN&edition=full","pubTime":"2021-04-15 10:08","market":"us","language":"en","title":"What Bernie Madoff Taught Every Investor<blockquote>伯尼·麦道夫教给每个投资者的东西</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1187373535","media":"Motley Fool","summary":"You didn't need to lose money because of the convicted felon's schemes in order to learn valuable le","content":"You didn't need to lose money because of the convicted felon's schemes in order to learn valuable lessons.<blockquote>你不需要因为被定罪的重罪犯的计划而赔钱来吸取宝贵的教训。</blockquote> Bernie Madoff&nbsp;died&nbsp;Wednesday&nbsp;at the age of 82. Convicted of fraud against a massive group of investors in a Ponzi scheme involving tens of billions of dollars, Madoff remained in prison until his death.<blockquote>伯尼·麦道夫于周三去世，享年82岁。麦道夫被判在涉及数百亿美元的庞氏骗局中欺诈一大群投资者，他一直呆在监狱里直到去世。</blockquote> Madoff's story&nbsp;involves a professional investor who had had a successful career before taking things one step too far. Unable to live up to the commitments he had made to the many investors who turned to him for help, Madoff successfully covered up his activities for years. It was only when the financial crisis brought things to a head that the full extent of Madoff's fraud became evident, leading to his arrest, trial, conviction, and 150-year sentence.<blockquote>麦道夫的故事涉及一位职业投资者，他在走得太远之前曾拥有成功的职业生涯。由于无法兑现他对许多向他寻求帮助的投资者做出的承诺，麦道夫多年来成功地掩盖了自己的活动。直到金融危机爆发到了紧要关头，麦道夫的欺诈行为才被揭露出来，导致他被捕、受审、定罪并被判处150年徒刑。</blockquote> As painful as the Madoff episode was for the many investors snared by his scheme, it holds some valuable lessons that every investor can learn from. Perhaps the most important is that even after Madoff's death, the risk of securities fraud remains alive and well.<blockquote>尽管麦道夫的事件对许多陷入他的计划的投资者来说是痛苦的，但它提供了一些每个投资者都可以从中吸取的宝贵教训。也许最重要的是，即使在麦道夫去世后，证券欺诈的风险仍然存在。</blockquote> <img src=\"https://static.tigerbbs.com/e089fb5884c8e42dea5f8abf0496e305\" tg-width=\"2000\" tg-height=\"1901\">IMAGE SOURCE: GETTY IMAGES.<blockquote>图片来源：盖蒂图片社。</blockquote> 1. It's easy to follow the bandwagon over the cliff<blockquote>1、容易跟风过悬崖</blockquote> One reason why Madoff was able to sustain his Ponzi scheme as long as he did was that it was easy for new investors to think that they were getting in on a great investment. Early on, Madoff attracted high-profile investors, including prominent charitable institutions. He didn't advertise his business, instead relying on word of mouth from existing clients to bring in new money. By cultivating an air of exclusivity and success, Madoff could largely just sit back and wait for customers to come to him.<blockquote>麦道夫能够维持他的庞氏骗局这么久的一个原因是，新投资者很容易认为他们正在进行一项伟大的投资。早期，麦道夫吸引了知名投资者，包括著名的慈善机构。他没有为自己的业务做广告，而是依靠现有客户的口碑来带来新的资金。通过营造一种独特和成功的氛围，麦道夫在很大程度上可以坐以待毙，等待客户来找他。</blockquote> Investors need to do their own due diligence to decide if an investment is suitable for them. Relying on friends or business associates for help is common, but it's only the start. If the only reason you invested in something is because somebody else made the same investment, you won't know what to do when things go wrong -- and you risk jeopardizing your relationships as well as losing money.<blockquote>投资者需要自己进行尽职调查，以决定一项投资是否适合他们。依赖朋友或商业伙伴的帮助很常见，但这只是开始。如果你投资某样东西的唯一原因是因为其他人也做了同样的投资，那么当事情出错时，你将不知道该怎么做——你可能会危及你的人际关系并赔钱。</blockquote> 2. Know what you're investing in<blockquote>2.知道你在投资什么</blockquote> Most investors in Madoff's investment scheme had little or no idea how his purported investment strategy was supposed to work. Few cared. As long as the returns seemed to be coming in -- at least on paper -- many investors were satisfied at what they saw as a job well done. It therefore came as a total shock when they found out exactly what Madoff was doing with their money and why it went wrong.<blockquote>麦道夫投资计划中的大多数投资者很少或根本不知道他所谓的投资策略应该如何运作。很少有人在乎。只要回报似乎正在到来——至少在纸面上——许多投资者就会对他们认为出色的工作感到满意。因此，当他们发现麦道夫到底在用他们的钱做什么以及为什么会出错时，他们感到非常震惊。</blockquote> There are still many investments that are crafted with complex provisions that aren't easy to understand. Even with simple stocks, the businesses that companies are engaged in can be almost impossible for someone outside the field to grasp. You don't necessarily have to become an expert in every industry in which you invest, but you do need to know how you'll make money and what risks there are. Only then can you accurately assess whether you're making a smart calculated risk with that investment.<blockquote>仍然有许多投资都有复杂的条款，不容易理解。即使是简单的股票，公司所从事的业务也几乎不可能让该领域之外的人掌握。你不一定要成为你投资的每个行业的专家，但你确实需要知道你将如何赚钱以及有什么风险。只有这样，您才能准确评估您的投资是否明智地计算了风险。</blockquote> 3. Diversify<blockquote>3.多元化</blockquote> When you have a great investment idea, it's tempting to put all your money into it. That's exactly what many of Madoff's clients did, feeling that they'd never be able to match the performance that his investments were generating. That proved to be catastrophic in many instances, as institutions found themselves with huge losses that endangered their entire operations.<blockquote>当你有一个伟大的投资想法时，很容易把你所有的钱都投入进去。这正是麦道夫的许多客户所做的，他们觉得他们永远无法与他的投资产生的业绩相媲美。在许多情况下，这被证明是灾难性的，因为机构发现自己面临巨大损失，危及其整个业务。</blockquote> No matter whether you're talking about a fraudulent scheme like Madoff's or a completely legitimate yet misguided investment strategy like the doomed&nbsp;Long Term Capital Management&nbsp;experiment, no investment is free of risk. Unless losing everything is an option you're willing to accept, it's always worth it to find a second-best, third-best, and even tenth-best investment idea to go along with your top investment. That way, if things go catastrophically wrong, your losses won't be quite as severe.<blockquote>无论你谈论的是像麦道夫这样的欺诈计划，还是像注定要失败的长期资本管理实验这样完全合法但被误导的投资策略，没有一项投资是没有风险的。除非你愿意接受失去一切，否则找到第二好、第三好甚至第十好的投资理念来配合你的顶级投资总是值得的。这样，如果事情出了灾难性的问题，你的损失就不会那么严重。</blockquote> A road paved with good intentions<blockquote>一条用心良苦铺就的路</blockquote> Madoff's death will feel like justice for what many have seen as evil deeds motivated by greed. Yet as Diana Henriques, author of&nbsp;The Wizard of Lies: Bernie Madoff and the Death of Trust,told the Fool's Mac Greer in 2017, neither Madoff nor his clients were as greedy as some believed. In the video clip below, Henriques argues that clients wanted security for their money, while Madoff wanted the adulation and fame of helping prominent charities and other institutions.<blockquote>麦道夫的死会让人感觉像是对许多人认为是出于贪婪的邪恶行为的正义。然而正如戴安娜·恩里克斯(Diana Henriques)谎言的巫师：伯尼·麦道夫和信任的死亡，2017年，麦道夫告诉《傻瓜》杂志的麦克·格里尔，麦道夫和他的客户都不像一些人认为的那样贪婪。在下面的视频剪辑中，恩里克斯认为客户希望他们的钱有保障，而麦道夫则希望通过帮助著名慈善机构和其他机构而获得奉承和名声。</blockquote> Unfortunately, even after Madoff's death, there are still plenty of people out there seeking to take advantage of investors, both through fraud and by more legitimate means. No one can protect your money as effectively as you can, and the Madoff scheme is a good reminder that you have to be constantly vigilant to avoid investments that end up being too good to be true.<blockquote>不幸的是，即使在麦道夫去世后，仍然有很多人试图通过欺诈和更合法的手段来利用投资者。没有人能像你一样有效地保护你的钱，麦道夫计划很好地提醒你，你必须时刻保持警惕，避免最终好得令人难以置信的投资。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Bernie Madoff Taught Every Investor<blockquote>伯尼·麦道夫教给每个投资者的东西</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Bernie Madoff Taught Every Investor<blockquote>伯尼·麦道夫教给每个投资者的东西</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nMotley Fool2021-04-15 10:08\n\n</h4>\n</header>\n<article>\nYou didn't need to lose money because of the convicted felon's schemes in order to learn valuable lessons.<blockquote>你不需要因为被定罪的重罪犯的计划而赔钱来吸取宝贵的教训。</blockquote> Bernie Madoff&nbsp;died&nbsp;Wednesday&nbsp;at the age of 82. Convicted of fraud against a massive group of investors in a Ponzi scheme involving tens of billions of dollars, Madoff remained in prison until his death.<blockquote>伯尼·麦道夫于周三去世，享年82岁。麦道夫被判在涉及数百亿美元的庞氏骗局中欺诈一大群投资者，他一直呆在监狱里直到去世。</blockquote> Madoff's story&nbsp;involves a professional investor who had had a successful career before taking things one step too far. Unable to live up to the commitments he had made to the many investors who turned to him for help, Madoff successfully covered up his activities for years. It was only when the financial crisis brought things to a head that the full extent of Madoff's fraud became evident, leading to his arrest, trial, conviction, and 150-year sentence.<blockquote>麦道夫的故事涉及一位职业投资者，他在走得太远之前曾拥有成功的职业生涯。由于无法兑现他对许多向他寻求帮助的投资者做出的承诺，麦道夫多年来成功地掩盖了自己的活动。直到金融危机爆发到了紧要关头，麦道夫的欺诈行为才被揭露出来，导致他被捕、受审、定罪并被判处150年徒刑。</blockquote> As painful as the Madoff episode was for the many investors snared by his scheme, it holds some valuable lessons that every investor can learn from. Perhaps the most important is that even after Madoff's death, the risk of securities fraud remains alive and well.<blockquote>尽管麦道夫的事件对许多陷入他的计划的投资者来说是痛苦的，但它提供了一些每个投资者都可以从中吸取的宝贵教训。也许最重要的是，即使在麦道夫去世后，证券欺诈的风险仍然存在。</blockquote> <img src=\"https://static.tigerbbs.com/e089fb5884c8e42dea5f8abf0496e305\" tg-width=\"2000\" tg-height=\"1901\">IMAGE SOURCE: GETTY IMAGES.<blockquote>图片来源：盖蒂图片社。</blockquote> 1. It's easy to follow the bandwagon over the cliff<blockquote>1、容易跟风过悬崖</blockquote> One reason why Madoff was able to sustain his Ponzi scheme as long as he did was that it was easy for new investors to think that they were getting in on a great investment. Early on, Madoff attracted high-profile investors, including prominent charitable institutions. He didn't advertise his business, instead relying on word of mouth from existing clients to bring in new money. By cultivating an air of exclusivity and success, Madoff could largely just sit back and wait for customers to come to him.<blockquote>麦道夫能够维持他的庞氏骗局这么久的一个原因是，新投资者很容易认为他们正在进行一项伟大的投资。早期，麦道夫吸引了知名投资者，包括著名的慈善机构。他没有为自己的业务做广告，而是依靠现有客户的口碑来带来新的资金。通过营造一种独特和成功的氛围，麦道夫在很大程度上可以坐以待毙，等待客户来找他。</blockquote> Investors need to do their own due diligence to decide if an investment is suitable for them. Relying on friends or business associates for help is common, but it's only the start. If the only reason you invested in something is because somebody else made the same investment, you won't know what to do when things go wrong -- and you risk jeopardizing your relationships as well as losing money.<blockquote>投资者需要自己进行尽职调查，以决定一项投资是否适合他们。依赖朋友或商业伙伴的帮助很常见，但这只是开始。如果你投资某样东西的唯一原因是因为其他人也做了同样的投资，那么当事情出错时，你将不知道该怎么做——你可能会危及你的人际关系并赔钱。</blockquote> 2. Know what you're investing in<blockquote>2.知道你在投资什么</blockquote> Most investors in Madoff's investment scheme had little or no idea how his purported investment strategy was supposed to work. Few cared. As long as the returns seemed to be coming in -- at least on paper -- many investors were satisfied at what they saw as a job well done. It therefore came as a total shock when they found out exactly what Madoff was doing with their money and why it went wrong.<blockquote>麦道夫投资计划中的大多数投资者很少或根本不知道他所谓的投资策略应该如何运作。很少有人在乎。只要回报似乎正在到来——至少在纸面上——许多投资者就会对他们认为出色的工作感到满意。因此，当他们发现麦道夫到底在用他们的钱做什么以及为什么会出错时，他们感到非常震惊。</blockquote> There are still many investments that are crafted with complex provisions that aren't easy to understand. Even with simple stocks, the businesses that companies are engaged in can be almost impossible for someone outside the field to grasp. You don't necessarily have to become an expert in every industry in which you invest, but you do need to know how you'll make money and what risks there are. Only then can you accurately assess whether you're making a smart calculated risk with that investment.<blockquote>仍然有许多投资都有复杂的条款，不容易理解。即使是简单的股票，公司所从事的业务也几乎不可能让该领域之外的人掌握。你不一定要成为你投资的每个行业的专家，但你确实需要知道你将如何赚钱以及有什么风险。只有这样，您才能准确评估您的投资是否明智地计算了风险。</blockquote> 3. Diversify<blockquote>3.多元化</blockquote> When you have a great investment idea, it's tempting to put all your money into it. That's exactly what many of Madoff's clients did, feeling that they'd never be able to match the performance that his investments were generating. That proved to be catastrophic in many instances, as institutions found themselves with huge losses that endangered their entire operations.<blockquote>当你有一个伟大的投资想法时，很容易把你所有的钱都投入进去。这正是麦道夫的许多客户所做的，他们觉得他们永远无法与他的投资产生的业绩相媲美。在许多情况下，这被证明是灾难性的，因为机构发现自己面临巨大损失，危及其整个业务。</blockquote> No matter whether you're talking about a fraudulent scheme like Madoff's or a completely legitimate yet misguided investment strategy like the doomed&nbsp;Long Term Capital Management&nbsp;experiment, no investment is free of risk. Unless losing everything is an option you're willing to accept, it's always worth it to find a second-best, third-best, and even tenth-best investment idea to go along with your top investment. That way, if things go catastrophically wrong, your losses won't be quite as severe.<blockquote>无论你谈论的是像麦道夫这样的欺诈计划，还是像注定要失败的长期资本管理实验这样完全合法但被误导的投资策略，没有一项投资是没有风险的。除非你愿意接受失去一切，否则找到第二好、第三好甚至第十好的投资理念来配合你的顶级投资总是值得的。这样，如果事情出了灾难性的问题，你的损失就不会那么严重。</blockquote> A road paved with good intentions<blockquote>一条用心良苦铺就的路</blockquote> Madoff's death will feel like justice for what many have seen as evil deeds motivated by greed. Yet as Diana Henriques, author of&nbsp;The Wizard of Lies: Bernie Madoff and the Death of Trust,told the Fool's Mac Greer in 2017, neither Madoff nor his clients were as greedy as some believed. In the video clip below, Henriques argues that clients wanted security for their money, while Madoff wanted the adulation and fame of helping prominent charities and other institutions.<blockquote>麦道夫的死会让人感觉像是对许多人认为是出于贪婪的邪恶行为的正义。然而正如戴安娜·恩里克斯(Diana Henriques)谎言的巫师：伯尼·麦道夫和信任的死亡，2017年，麦道夫告诉《傻瓜》杂志的麦克·格里尔，麦道夫和他的客户都不像一些人认为的那样贪婪。在下面的视频剪辑中，恩里克斯认为客户希望他们的钱有保障，而麦道夫则希望通过帮助著名慈善机构和其他机构而获得奉承和名声。</blockquote> Unfortunately, even after Madoff's death, there are still plenty of people out there seeking to take advantage of investors, both through fraud and by more legitimate means. No one can protect your money as effectively as you can, and the Madoff scheme is a good reminder that you have to be constantly vigilant to avoid investments that end up being too good to be true.<blockquote>不幸的是，即使在麦道夫去世后，仍然有很多人试图通过欺诈和更合法的手段来利用投资者。没有人能像你一样有效地保护你的钱，麦道夫计划很好地提醒你，你必须时刻保持警惕，避免最终好得令人难以置信的投资。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.fool.com/investing/2021/04/14/what-bernie-madoff-taught-every-investor/\">Motley Fool</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite"},"source_url":"https://www.fool.com/investing/2021/04/14/what-bernie-madoff-taught-every-investor/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1187373535","content_text":"You didn't need to lose money because of the convicted felon's schemes in order to learn valuable lessons.\nBernie Madoff died Wednesday at the age of 82. Convicted of fraud against a massive group of investors in a Ponzi scheme involving tens of billions of dollars, Madoff remained in prison until his death.\nMadoff's story involves a professional investor who had had a successful career before taking things one step too far. Unable to live up to the commitments he had made to the many investors who turned to him for help, Madoff successfully covered up his activities for years. It was only when the financial crisis brought things to a head that the full extent of Madoff's fraud became evident, leading to his arrest, trial, conviction, and 150-year sentence.\nAs painful as the Madoff episode was for the many investors snared by his scheme, it holds some valuable lessons that every investor can learn from. Perhaps the most important is that even after Madoff's death, the risk of securities fraud remains alive and well.\nIMAGE SOURCE: GETTY IMAGES.\n1. It's easy to follow the bandwagon over the cliff\nOne reason why Madoff was able to sustain his Ponzi scheme as long as he did was that it was easy for new investors to think that they were getting in on a great investment. Early on, Madoff attracted high-profile investors, including prominent charitable institutions. He didn't advertise his business, instead relying on word of mouth from existing clients to bring in new money. By cultivating an air of exclusivity and success, Madoff could largely just sit back and wait for customers to come to him.\nInvestors need to do their own due diligence to decide if an investment is suitable for them. Relying on friends or business associates for help is common, but it's only the start. If the only reason you invested in something is because somebody else made the same investment, you won't know what to do when things go wrong -- and you risk jeopardizing your relationships as well as losing money.\n2. Know what you're investing in\nMost investors in Madoff's investment scheme had little or no idea how his purported investment strategy was supposed to work. Few cared. As long as the returns seemed to be coming in -- at least on paper -- many investors were satisfied at what they saw as a job well done. It therefore came as a total shock when they found out exactly what Madoff was doing with their money and why it went wrong.\nThere are still many investments that are crafted with complex provisions that aren't easy to understand. Even with simple stocks, the businesses that companies are engaged in can be almost impossible for someone outside the field to grasp. You don't necessarily have to become an expert in every industry in which you invest, but you do need to know how you'll make money and what risks there are. Only then can you accurately assess whether you're making a smart calculated risk with that investment.\n3. Diversify\nWhen you have a great investment idea, it's tempting to put all your money into it. That's exactly what many of Madoff's clients did, feeling that they'd never be able to match the performance that his investments were generating. That proved to be catastrophic in many instances, as institutions found themselves with huge losses that endangered their entire operations.\nNo matter whether you're talking about a fraudulent scheme like Madoff's or a completely legitimate yet misguided investment strategy like the doomed Long Term Capital Management experiment, no investment is free of risk. Unless losing everything is an option you're willing to accept, it's always worth it to find a second-best, third-best, and even tenth-best investment idea to go along with your top investment. That way, if things go catastrophically wrong, your losses won't be quite as severe.\nA road paved with good intentions\nMadoff's death will feel like justice for what many have seen as evil deeds motivated by greed. Yet as Diana Henriques, author of The Wizard of Lies: Bernie Madoff and the Death of Trust,told the Fool's Mac Greer in 2017, neither Madoff nor his clients were as greedy as some believed. In the video clip below, Henriques argues that clients wanted security for their money, while Madoff wanted the adulation and fame of helping prominent charities and other institutions.\nUnfortunately, even after Madoff's death, there are still plenty of people out there seeking to take advantage of investors, both through fraud and by more legitimate means. No one can protect your money as effectively as you can, and the Madoff scheme is a good reminder that you have to be constantly vigilant to avoid investments that end up being too good to be true.","news_type":1,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9}},"isVote":1,"tweetType":1,"viewCount":1083,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":4,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}