Warning Signs for Investors: How Companies Can Fool You
What to pay attention to when deciding where to invest
Companies cooking their books, inflating the number of customers, misrepresenting their activities, engaging in fraud… Over decades we have seen so many ways in which businesses in various sectors have attempted and succeeded in deceiving investors about how well they perform and how worthy they are of their investment. All around the world. If you are not vigilant, you might get fooled as well. But if you look closely and diligently, you will usually be able to see some clear warning signs that could alert you to such problems and help you avoid taking losses later when such schemes fall apart.
This post is for educational and information purposes only and expresses the author’s opinion. It is not intended as investment or financial advice. If you like this story, follow me here on Medium, on social media, or subscribe for free on my website: https://moneycraft.org.
When market euphoria is high and financial conditions are relatively loose, misallocation of capital can become rampant. In such situations, it becomes ever more important and at the same time, ever more difficult to spot which investments/businesses hide significant risks. Everybody just wants to jump on the bandwagon, deploy capital, and go…
