A Reflection

As I read about Bernard Madoff’s problems, I reflected on my own response to the challenging economic conditions. In case you have not read about it, this link will fill you in Madoff’s woes.


My main business is to run a private, closed, limited partnership fund with a 3-year lockout period. I vet my investors carefully:

  • I look for investors with similar attitudes to risk and
  • Who are investing risk capital and
  • Who have realistic expectations about the returns I can deliver.
  • I won’t accept US citizens or US based entities.
  • I won’t accept investors who are unsure if the investment is right for them.

In short, I am building a family of investors who’ll share both good and bad times with me. I recognize that given my approach, and given where I am living, I am unlikely to manage billions of dollars.

But that is OK – I am very clear about the outcomes I want and how I’ll go about achieving them. My aim is to help like-valued investors achieve their financial goals.

In my view, our success is dependent on having a clear vision of what success means to us. This is true of all endeavours and is especially true of success in the markets. This is why the Habits of Success seminar is a relatively inexpensive 2-day seminar that focuses on the ‘soft’ elements of trading success. I believe that the achievement of winning psychology, a risk management plan and a written trading strategy is founded on a clear idea of the success that is founded on the awareness of our values and is in alignment with those values.

In our quest for market success, we sometimes forget the importance of our values to the achievement of our dreams.

5 thoughts on “A Reflection”

  1. Ray

    It is hard to explain this irony:

    Quote: Madoff also made charitable donations to other Jewish organizations, including the 92nd Street Y, where he and his wife were listed as “Benefactors” having given a gift of between $2,500 and $4,999 to the 2006-2007 annual campaign. He had also chaired a gala fundraiser on behalf of Gift of Life, a Jewish bone marrow registry and cord blood bank. Unquote

    The Madoff Wall Street fraud now threatens with immediate consequences in the Jewish philanthropic world.

    Cross ref: http://awanginvest.com/?p=1002#comment-7416comment-7416

  2. Hi Ray, On the subject of habits,i was wondering,with your experience and travels,have you noticed any correlation between people who save and trading. The thought occured to me that saving for a rainy day is a form of risk management. Some people i know were totally max’d on their credit cards in the boom times are now blaming the global meltdown for their current woes. Nobody seems to accept responsibility for their own actions these days. My other question is why no US citizens? Is it their sense of humour or the loud shirts? 🙂 cheers baz

  3. Hi Baz

    Thanks for the comment.

    I haven’t noticed a correlation between saving and trading,

    No US entities because the IRS regulations are a large pain.

  4. Baz

    If you see there is a correlation between saving and trading, with saving as risk management, I can see where you are coming from.

    We have been told never to trade with money we cannot afford to lose, but if we have a big nest-egg, then learning to trade with a percentage of the saving, would be kind of a risk control.

    Perhaps, Ray can comment on this aspect of risk control correlation?

  5. Hi Ana

    Well trading capital has to come from savings.

    Part of our savings need to be in more high-yielding investments to produce a satisfactory return – especially in times like these when rates are nominal at best.

Leave a Reply

Your email address will not be published. Required fields are marked *