Bernie Madoff, the infamous mastermind behind the largest Ponzi scheme in US history, died at 82 years old, while serving a 150-year sentence in Federal Prison.

Madoff hit the headlines after conning his investors out of $65 billion and staying undetected for decades.

In his long list of victims were celebrities such as Larry King and Steven Spielberg as well as many large banking institutions like HSBC.

The scheme eventually collapsed in 2008 after the financial crisis exposed Madoff’s fraudulent activities.

So, what are the lessons learned from Bernie Madoff’s swindle? Here are a few:

1. Too good to be true? If something looks too good to be true, it probably is.

2. Know what you own. You probably shouldn’t invest in anything you don't understand.

3. Calculate all possible risks. Think of how much financial loss you’re ready to take.

One thing is clear, investors choosing to make a risky bet should always consider having a diversified portfolio that will include safer, more stable assets which will help reducing risk and volatility and protect their wealth.

 

Photo credit: adiamond626

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