Page 17 - THE SCAM OF RICHES

Chapter 6

Investment formula

So investing is very important, and we need to invest wisely.

We, however, need to understand that with all investments comes a measure of risk.
Generally, the more the expected gain (Returns on Investment - ROI), the higher the risk
of loss of initial investment.

The less the expected gain (ROI), the lower the risk of loss of initial investment.

This means that if an investment opportunity promises to give a 100% ROI, then it is
likely to be a high-risk investment, and there is a high probability that you may well lose
your money.

But an investment opportunity of 5% ROI is likely to be a low risk investment and hence
it’s safer, and the chances of your getting both the return of your investment and the ROI
are relatively high.

In most cases, investments that are legit only promise between 1-10% ROI per annum.

On the other hand, many scams out there promise to double, triple or even quadruple
your investment in hours or days!

Please note that such promises are completely unrealistic and fraudulent. No legitimate

business turns over that much profit that fast. Do not fall for such scams. They are
everywhere, especially on the internet, and they are there to dupe the ignorant and
defraud naïve folk of their hard-earned money.

I once invested in an advertised business opportunity that promised to quadruple my
money in just 30 days. I was much younger and very gullible, so I eagerly put in my
money and waited. To my greatest joy, I was paid! I got the expected money in my

account. Wow, I was so excited, that I invested all my earnings again, hoping to get quite
a windfall at the end of the next month.

But alas, it was not to be so.

I lost everything and the company promptly went under.

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