Discussion in 'Investments' started by EF-Roger, Nov 5, 2015.
What Is the Worst Investment You've Ever Made?
Let's hear about it!
I would say that it was when I invested money for multi-level marketing business. It's quite popular in our country because unemployment is high and people would jump quickly to any offer of money making presented to them. The idea is decent as you will have products to sell and earn profit from them but some people who joined this business were luring everyone to join for their own benefit. Because every recruit would result to points that could be converted into cash, they would present you with figures that are unrealistic and would even show-off their cars to give you the idea that you will get rich when you join their team when they just took the car out of loan. Anyway, I was a student at that time and wanted to make an extra income but I still believe in hard work and not easy money.
May I ask you guys a simple questions. what do you think about investing monwy through Indiegogo campaign?? I explain it better. I fond a guy who is starting a business in Lithuania and he was looking for money on Indiegogo. I talked to him and then I asked he how much money could I get in retun of an investment of 5000$ into his business. He replied to me that I would give me 1300$ per month if I make the investment. My question is can I trust him?? what kind of tool do i hva eto defendo myself if he triies to cheat on me?? what would you guys do if you were in my shoes?? Thanks a lot
I'll never risk my money into a business that I'm not sure especially if I haven't meet the person offering it face to face. Lithuania seems far away from your home and you could never sue him if everything turned out as a fraud unless you go to Lithuania. But if you're really enthusiastic with the business, you could hire a lawyer to review the contract which his lawyer would also sign. But I strongly suggest that you wouldn't take part on a business in another country. Look for an investment that is within your reach.
The worst investment I ever made was trying to set up up a publishing house and publish a magazine. I was able to publish the first issue but could not manage to bring second issue. I made a huge financial loss.
I used to think that you can invest in forex and make a lot of profit. I never considered the risks involved so I started with $200. I followed some simple rules and signals which made me to make some profit. I later started trading carelessly thinking that I could make a lot of profits. Unfortunately I ended up losing all my money!
I'd say that a lot of people who first look at trying to earn a living online for example, will be the ones that have made the most poor investments.
There no end of scam sites these days, that are promising to turn your $500 into an income of $1000's over the space of a few weeks. PTC and MLM, and all the other ponzi schemes that are around are just some examples of how people lose out financially.
The worst investment I've ever made was as an angel investor to someone I knew. They borrowed thousands of dollars from me and then simply disappeared. I was able to track them down and they started crying because they thought I would do something to them and their family. I was like no, I'm not the mafia, but I do expect you to pay me back every penny and never do this again to me or anyone else. It isn't right - you know it isn't right, and I would never do that to you.
She wasn't the type of person that you would ever expect to intentionally make a personal or a business loan go bad. To this day, she hasn't paid me back what she owed even though I've given her many alternatives over the past 2 years to assist me with business projects or even answer telephone calls and send emails for me to repay some of it. It's getting to the point to where it still bothers me and I think I may have to do something about it. I'm not sure if I want to pursue the court thing since I really try to avoid that in situations like this, but I don't want to let the statue of limitations on the paperwork she signed run out either.
I'm on the fence with it between logic and morals, because my logic says she owes me and needs to pay it back no matter who the investor is. The moral part is that I used to be friends with her before this, and she has kids so I am trying to be kinder about it than not. Business is business, but in this case it's also partially personal. I still have reason to believe that her boyfriend whom she got back together with convinced her of this, just because of how she was before. When he left her with the kids, she was working 2 full-time jobs, but had a sense of direction and worked with me to complete her business plan and had a great head on her shoulders. When he came back, I'm not sure but it looked like there were signs that he was drinking or using drugs, and she may have become a willing or unwilling participant in that, and that may very well have been where the money went along with her aspirations and my trust in her for anything.
So I still have to figure out what I am going to do about this and how I intend to handle it. To this day, it's been my worst investment and set me back several thousands of dollars that I needed for both personal and business developments today.
Several years ago I thought I'd try my hand at selling a particular brand of soy candles. The candles were lovely and the different scents were completely mesmerizing. However, in order to make any kind of profit, I had to sell them for about $25 each. Now, in some areas, that might not seem like a big deal. But, in my small town where unemployment was high, this simply was not going to work. So, I ended up selling all the candles I had pre-purchased for less than what I paid for them just to get rid of them and get out of the business. Never again will I attempt to sell products that are way more expensive than they should be.
Did you sign a contract?That's why it's difficult to lend money to a friend or someone you know without signing a proper contract. Your intentions are clean and you wanted to help but some people take advantage of it. It's kind of you to let her work for you in exchange of the money she owes but I understand how it's unfair for you especially if you need the money and not service. I have this rule that I will never work with a friend in a business especially if I'm not familiar with their work ethics.
At the end of the day it's up to you, but business is business for me, and if they owe me, I will collect one way or another.
I know it sounds a bit harsh, but her kids and her way of life aren't your problem, and her not paying what she owes you is affecting your lifestyle and that shouldn't happen. Also, if her boyfriend did have something to do with it, I'd be thinking he's sat there laughing at you, thinking he's got away with conning you because your too soft.
Surely your not going to let that happen?
I think that just sounds like an unfortunate set of circumstances. If the people in your town could have afforded to pay that amount of money for candles then you would have been on to a winner, it's just unfortunate that times were hard and they couldn't at that particular time.
I think the most important thing is that we learn from our mistakes, we all make them, and we all move on.
The worst investment I ever made was buying shares. I didn't have enough knowledge of shares and commodities. I made some foolish investments and bought shares of the companies which went down too soon. I lost 50,000 rupees in share investments.
The worst investment I made was when I purchased a website without doing due diligence. The website was a raffle website, which helped nonprofits raise money; however, I was unaware that it would be illegal to operate in most states because I did not do my research. The person that I bought the website from would not return my money.
Yes she signed a legally binding contract. The other problem is that she has nothing that could be attached to settle the amount that she owes. I might end up spending court fees with no resolve, and end up having to pay that as well as being out the amount I loaned. Thank you for the sentiment; yes I really hoped that she would have agreed to work off all or at least some of what she owed, because I would have been able to make that help both of us and helped with minor expenses I still had to pay for other areas of the business. Even helping to keep things clean if nothing else, and she still declined even on that (she used to have a cleaning business before she had kids, so to not want to sweep or mop a very small office area was a red flag also). You're right that I do need the money back more than I would need the services. I wanted to give her the benefit of the doubt of just financial mismanagement, but I can't do so any longer. I'm almost positive that if I have to take her to court to try and recover any part of this, it will end the friendship. On that same note, I have to wonder on the value of the friendship considering what she's done with it.
Understood and agreed. Normally with others, I am polite but firm and don't let things like this happen. Others who've done business with me before and even some friends I've known for years are wondering what my deal with her is to allow this. It was just that I took a risk and believed in her desire to make something of herself, and as her friend I really wanted to see that happen. It was a very low return on purpose; I just wanted to do minimal business with her to get her acquainted with what she could expect if she developed her new business and sought funding later, just to get used to it. The interest rate was so small that it really wouldn't have given me much if any profit like it normally would with others. I just wanted to see her succeed, and she screwed me over on it. Worse, she screwed herself over in the process and destroyed my trust that took years to build since I don't give it easily. What was supposed to be a leg up for her business is bad for both parties now.
If the boyfriend is laughing, he'll be laughing in a prison cell soon if I have to take this to court. She knows (but he does not) that when we interacted before for getting her information to get all of her paperwork filed, I found out about how he cannot be on file for anything "on paper" because owes a significant amount in back child support to his exes as a dead beat dead. There's a warrant for him in another state, which has been verified. They will come get him and bring him back if they find out where he is because he skipped court and fled the state to be with her again. Also, he is still doing illegal activities while on probation (which I'm sure he violated in that state now that there is a warrant for him while he hides out with her) which would get him returned for between 2 to 5 years minimum if the right people knew. I could do that to him today and show him how hard I can be if he wants to push the issue...but her kids end up suffering for what he and she are doing if I do, so it's been weighing heavily on me and I have to make a decision about it soon. Business is business usually, but I made a mistake on this one. You can't let care be your downfall.
Mine has to be contemporary art. I bought into the idea of buying some art that would be leased off me and I would get a residual income. That's great while it's being leased out. Unfortunately that's stopped and I can't get it re-leased.
As for selling the art, well, it's not worth what I assumed it would be, let's just say. It's not as if the artists in question can't make a whole lot more either, so I can't benefit from a lack of supply. At least I've got two decent looking pieces of art though!
I hope you were not the person who bought a picture or two of a potato for over a million dollars recently.
Art is always risky. The value of it is in the eye of the beholder and the society that values it for reasons that often change. Great artistic work may be overlooked, while a potato or a steel rod on the floor is bought for thousands or millions of dollars. It's hard to get a lock on what is going to be valuable or not when it's 100% perception based and the need for it may be there or disappear at any time if the value is transfered to something else or away from the art in question.
If I had an art situation, I'd probably try to seek out an art director or museum owner, or make friends with the people who display art galleries to wealthy clients who frequent them. If it is something that they want, they will be happy to pay thousands or millions for a piece to place somewhere in the home or office that normally wouldn't sell elsewhere.
The boyfriend sounds like a right piece of work. Anyway, nobody can tell you what to do, and the fact you have given her a chance, many chances, and wanted to help her in the first place paints the true reflection of you, not what your going to have to do so don't feel too bad.
I am also trying to pursue Forex trading although right now I am in the study phase. I want to really understand it for like 6 months before I put real money into it. I know losing money in forex is inevitable but just like any other business, it is risky. Any advice since you've been there?
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