There are several lessons to be learned from the Bernie Madoff Ponzi scheme. One lesson to be learned is due diligence which are the reasonable steps taken by a person in order to satisfy a legal requirement, especially in buying or selling something. This means examining the investment closely to make sure you understand its risk and performance profile and to confirm that it fits your investment goals.
It is important to study the historical returns versus the benchmark indices or group assets and be wary of any major deviations. Another lesson which is common sense that if something sounds too good to be true then it probably is. With low risk, high gain the outcomes are extremely low probability. As an investor you should ask yourself
It is important to study the historical returns versus the benchmark indices or group assets and be wary of any major deviations. Another lesson which is common sense that if something sounds too good to be true then it probably is. With low risk, high gain the outcomes are extremely low probability. As an investor you should ask yourself