554: You Need A Healthy Dose Of Skepticism. Verify, Then Trust

When evaluating opportunities to invest in, it’s natural to trust the person you’re investing with, especially if you know the person, or were referred. It’s critical, however, to understand all the different components of what you’re investing in, otherwise you take on undue risk. Regardless of who you’re investing with, they need to make the investment look enticing enough to attract investors, and they have numerous levers to manipulate t. the numbers, which results in an inherent conflict of interest, even with the best of intentions. Aleksey Chernobelskiy, a consultant for Limited Partners and prolific content provider, helps Limited Partners avoid the pitfalls of investing that can result in loss of hard-earned principal.