Bernie Madoff Lesson: Diversify

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When I have heard about this heist and I watched a story of a family on CNN who lost everything, my first thought was, they they were either stupid, or so incredibly greedy that they forgot to play safely and acted stupid anyway. They deserved their loss. I am sorry to say it, but it is what I think about this issue.
I wrote my ideas on diversification in regards to this scam on my blog: http://hellosuckers.net/?p=102

Martin of CO 2:00AM January 03, 2009

Diversification merely reduces volatility. However, there is more to risk than mere volatility. The basic rule of investing is: Know what you are buying.

Early Retirement Extreme of CA 4:21PM December 18, 2008

There has been much written about the stupidity and greed of people who have invested in Madoff's fund, as we called it. This particular investment paid above average returns to me and members of my family for over 30 years. It was hard not to be caught up in the scheme. We would send back funds on a regular basis to grow our principal and get back a little more the next time a check was due, although it didn't necessarily happen. Diversification in today's market would have brought with it diminishing returns and loss of principal. You could say we were asleep at the wheel, trusting a man who my great uncle put on the stock exchange in 1960. Never in a million years would we even think this investment was tainted and ripe for eventual doom. People are saying it was an honor to be invested with Bernie and his legions... well, it was for a time but now it is the kiss of death for many who trusted this two-faced piece of garbage. May he rot in jail and hell for what he has perpetrated to innocent people and organizations.

Elliott Marshall of FL 2:03AM December 18, 2008

From New York to Geneva, corruption is rampant and complex on Wall Street.
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http://pacificgatepost.blogspot.com/2008/12/is-madoff-really-anomaly.html
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MADOFF IS NOT SO UNIQUE

PacificGatePost of WA 8:28PM December 17, 2008