36 ms·
Just wrt Madoff, a lot of people who were smart enough to make real money in their lives were taken by him. Some may not be too bright, but that would be a long
by simtel20 6y ago
Just wrt Madoff, a lot of people who were smart enough to make real money in their lives were taken by him. Some may not be too bright, but that would be a long tail and there were surely some at the other end of the curved too. I asked a bigwig at a legit hedge fund once how they never spotted that he was a fraud, and his answer was that they couldn't reproduce his returns, so they figured he was smarter than them.
- bluecalm 6y agoIt might have not been obvious it's a fraud but it was obvious not to put significant % of your net worth in his fund. It's basic risk management. Maybe I am biased coming from a gambling world where it's the very first lesson you get. Betting more than a few % of your net worth on one horse is just a judgement blunder.