In fact, I had never heard of these terms, and did not think it was necessary to carry out such activities. Consequently, as you can imagine, I lost all my money from that experience. Fortunately, my parents were still financially supporting me, and I wasn’t responsible for a wife and children, car payments, or rent, etc. I was grateful that I still had a roof over my head, but I felt like a complete fool. I vowed then and there not to let that happen to me again.
I learned some very important lessons from the above-mentioned debacle, especially about greed. Slow, steady earnings that keep pace with your life are just fine. Investments that yield higher profits more quickly are nice but they are also inherently risky. Using the Madoff scandal as a model of what not to do as an investor, I know now that diversification of assets is essential. Putting all your eggs in one basket so to say is never a wise practice in the world of investment. There are just too many uncontrollable and uncertain variables that could take down any one company or industry.
I learned from my failures in investing. With a long career ahead of me, I can afford to take some risks, but should also focus on building a stable, long-term portfolio. On a much larger scale, this is the best time to be studying the failures of our economic systems and how we can build stronger, more secure ones for the future. It is clear that having a comprehensive knowledge of the law is as important as studying business alone.
It is also important to do business with trustworthy institutions, and to do extensive preliminary research, such as through examining the company’s own as well as independent reports. In the past, we could rely on reputable brokerage firms, stockbrokers, and the advice of successful friends, but this is no longer an option, and calls for greater international regulatory and enforcement agencies have been