However, there are two things that stand out for me. The first is, in my experience, if someone makes money from a “black box”, if there is some special formula printing money, to multiply money, beating yields, that’s is a red flag. I have too often seen such “boxes”. Remember, if you make an investment, if you invest something, or when you buy a car, you kick the car’s tyres. If you make an investment, you need to know where the physical underlying asset that grows is. If it’s a cow, it can calve. If it’s a building, there are tenants. If it’s a company, you can drive past Woolies and see there are people. You can kick the tyres. But if it’s a black box, you have no idea what’s going on inside. If it’s a secret formula, a black box, red flag!
Secondly, 8% to 10% a month – if you can achieve that, you will be the first person in the history of the world of investments to manage to do so.
I am extremely concerned when one talks of those types of yield. They simply do not exist, and when they do it means there is a massive risk attached – and you have no idea what the risk is. So when it exists that means there is a massive risk attached, and you don’t know what it is. In this case, the question is: 8-10% a month – does that reward the risk? I’m not so sure, simply because I don’t know where I can kick its tyres
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