Joined
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87 Posts
It seems almost fashionable to be part of one these days? And the bigger the losses, the more sensational, but it's got me thinking. Just how much have people actually lost? Are they counting only the original investment, or do they grow bigger because people think they've lost money on the gains they never had?
Ex: I invest 100K with Mr. Can't Lose. He's driving a Ferrari with my money from day one (ok maybe he's using my cash to lure in other suckers, but you know what I mean - my 100K was never invested in anything), but he sends me statements for 10 years saying my investments have grown to 500K. I haven't put anymore money in, I'm just stoked to see above average regular returns year over year.
Have I lost 100K or 500K?
Ex: I invest 100K with Mr. Can't Lose. He's driving a Ferrari with my money from day one (ok maybe he's using my cash to lure in other suckers, but you know what I mean - my 100K was never invested in anything), but he sends me statements for 10 years saying my investments have grown to 500K. I haven't put anymore money in, I'm just stoked to see above average regular returns year over year.
Have I lost 100K or 500K?