Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)


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I’d be remiss if I didn’t weigh in on the Madoff scandal.  Here’s the big picture:  

  • Madoff’s Ponzi scheme is a minor league game of marbles compared to the inter-generational theft of the Social Security welfare program. 
  • As a most excellent boss told me: “Capital Loss Equal Memory Loss”.  If people lose money on an investment, they forget all the cautions, warnings, and yellow and red flags that were raised at the inception or offering documents.
  • It’s an axiom in accounting that even a proper audit cannot be relied on to discover collusion. 
  • You should always seek a legal fiduciary relationship with those that invest money on your behalf.  As an investment advisor (and a CPA) I am always required to act in my client’s best interests. Stock brokers and insurance salesmen do not offer that level of duty.  
  • Understand your SIPC or FDIC coverage levels and get reassurance from your broker in writing. 
  • “It’s not a loss until you sell it” is a bald-faced lie. Get up and leave or hang up if your broker ever says that. 
  • They don’t call it a “correction” for nothing. Now that the credit bubble is deflating, we’re seeing who was swimming naked at high tide. 

Written by heyercapital

December 16, 2008 at 10:01 am

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