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Cramer Stewart saga goes on.
Madoff will go to jail, for life. He deserves it. Just thinking how many people (esp. the older people) lives turned upside down because of his ponzi scheme.
How many clothes-less emperors still out there?
Lesson for ordinary investors
Refer to John Bogle, 6 lessons for investors. Get self educated: get a little finance and psychology lessons, so that one knows more than Dow (S&P should be the real benchmark), compound annual return of 10% is not bad at all, fear and greed etc.
I also think there are 3 types of financial advisors in money management business.
1) Crooks like Madoff and Allen Stanely: this is minority.
2) Most people fell into this category, mediocre. I remember one of my colleagues told me last Sept. his broker told him buy GE at around $22, because he thinks that’s a bargain price for a blue chip like GE. Oh well, we all know how it worked. Most brokers are people who passed series 7 or 63 tests, but have not much idea of accounting and finance. They learned about stocks mostly from CNBC or something like that. How can an average investor beat the market by listening to those guys (or ladies)?
3) The heros. Buffett was one (he had a partnership before the Berkshire Hathaway, in a broad terms, his Berkshire is still in money management business). Peter Lynch. Bill Miller (before 2007).