One word, GREED......
They all knew the ROI being represented was drastically higher than any other fund yet they continued to invest with Madoff and didn't ask questions. The market was tanking and he was still showing 12%... They just wanted to ride the wave and got the impression they were getting richer and richer... all the while he was just stealing ...
Here's an interesting quote from a blog I read;
"Madoff's hardest hit "investors", those who lost everything including the roofs over their heads, appear to be what I would call the naive rich - people living under the illusion that wealth can somehow be safely preserved without effort."
"These are naive people who trusted a man with their whole net worth based on herd instincts, without understanding what he does, without scrutinizing his investment strategy. Either put your eggs in many baskets, or, as Warren Buffett says: put them all in one basket, then watch it closely.
These people did neither. Wealth cannot be preserved this way. "
http://denisbider.blogspot.com/2009/03/madoff-victims.html
So to get the thread back on track...... Is LDD like Madov and is PS the Naive investor??? :leaving: