Summary of an article by Kliment Robev
In brief
Kliment Robev warns against promises of “easy money” and the pyramid schemes that thrive in the age of social media, and recalls the basic principles of sensible investing.
Key points
- Social media creates false expectations and a feeling that we keep missing out — the perfect environment for the next pyramid scheme.
- Four warning signs: promises of big, fast profits; vague or complicated explanations (if you can’t understand how the money is made within two minutes, don’t invest); a sense of urgency; and no registration or licence from local financial regulators.
- For Robev, the foundations of investing start with clear financial goals and understanding the risk taken: an annual return above 10% usually means higher risk — “annual, not monthly, as the dream sellers promise”.
- Those with a long-term horizon win: time and compounding overcome temporary declines, while emotions — fear and greed — are the investor’s enemy.
- Instead of “easy money”: skills, discipline and a long-term strategy.
Context
Published on 23 December 2024, in the holiday season, when — in the author’s words — promises of easy money become ever more tempting.
Views reflect his position at the date of publication and are not investment advice. Regulatory information
