10 Rules To Escape Investing Fraud (Accounting & More...)

How to avoid fraud when investing is a common question among investors. We have already discussed in depth the accounting fraud part and how to cook the books, but here I want to discuss more the applicable part for investors.

0:00 Investing Fraud
1:20 Accounting
2:56 The Devil
7:06 It is YOU
13:24 Incentive
15:06 Invert
15:56 Small Fraud
17:12 Great Business
17:58 Hearing
19:05 Follow The Cash
21:46 Investigate
22:28 Trust

Here is the accounting part in the free stock market investing course:

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Always keep in mind: “Investing involves risk of loss”

[fredwinslow]

My guess is that with the large reality check of the recent tech and growth collapse. Your value investing approach as a theme for your channel is about to grow again in subscription base and views. However with many “investors “ disappearing for a while. It will never be like the boom The numbers will be more loyal and persistent as viewers

[eMJeF]

I've been watching your vids for a few years, and this is by far one, if not the best video, you have made. Thank you for all your hard work. May you live 1, 000 years and have 10, 000 children.

[vladimirstadnyk]

Such a good content! Most boring channel on YouTube, but most useful!

[beauchampfrancois]

I will watch this again and again. So far all I did, since getting my butt kicked by two local small cap companies that ended up frauding investors, was to turn to blue chips investments. Thank you! Appreciated.

[pongop]

You were right about the over-hyped plant based stocks. I still invested because I wanted to, even though I watched your videos and acknowledged that you were probably right. You were definitely right. One or two of the current businesses may survive and emerge successful in the long-term, but it's unknown and risky, like you said. I'm holding them all still. It will be interesting to see what happens in the plant based space. Thank you for always rationally pointing out the risks and rewards of investing.

[kirkclements]

2 quick checks from the notes to the annual report:
Self dealing - loans from the company to the Directors and C-suite to see if management is using the company as their private piggy bank;
Legal Actions - most companies will have lawsuits against them from doing business but try to understand the nature of the law suits regarding fraudulent activities rather than just transactional activities.

[levimachado]

I always loved your radical candor, Sven... great job.

[abhinavdutta]

Lesson for me is - Don't try to be very intelligent, just avoid the clear red flags.

[MyDreamside]

11: 53 haha, we need more of this interludes

[BaydreamR]

Good stuff Sven. Live and learn = wisdom.

[richardb]

Thanks Sven, nice video. Beware - people don’t like being told they are being ripped off!
I must admit over time I have become an expert on fraud. I guess that’s what happens when you share a cell for 12 years with Bernie Madoff. Three things Bernie taught me:
1) don’t bend over to pick up the soap
2) it’s always, always about the numbers

[ed]

I was too stupid to invest in Russia. Luckily I started my portfolio not so long time ago and the sums were not so big and maybe I'll get my money back once. A big % of my portfolio is allocated in China also risky, but not as risky as keeping cash.
I got a good lesson that I believe will help me in the future. Thanks for the video!

[eh]

Thanks Sven. These kind of videos are really educating and worth far more than all the stock XYZ is screaming buy huge bull/bear market ist going to come etc. videos out there on YouTube.
Highly appreciated!

[Brandon_Will]

Great Valuable Video and Amazing Report on the Investment Platform

[leswhynin]

Great video. If the business model isn't fully transparent or the promised returns are top good to be true - stay away.

[CarloCampus]

Someone once said that the first rule of investing is not to lose money..so don't deal with the devil!

[linusjacobsson]

That slide down is gold 😂. I remember it in the original video and your editors comment is a 10/10

[AndreaBoost]

Bank of China and other Chinse banks have all so good balance sheets and pay high dividends. How to know if this numbers are fraud?

[umbertotedeschi]

Hey sven! Thanks for this content, what do you Think of Malibu boats? Look really underrated

[musicloveranthony]

Fantastic video. Thank you!! I’ll definitely want to add these considerations to my investment plans. I have made some risky investments (China and trendy tech) and in the future I don’t want my greed to outweigh logic