Become a Sophisticated Investor: Essential Tips and Strategies
Ah, how we envy that class of folk known as sophisticated investors – the ones who can get in on investment deals that we mere mortals never see, thanks to their net worth or income.
But don’t confuse being “sophisticated” with being “smart” — education is crucial. There are countless cases of sophisticated investors being misled. Just ask those who, back in 2007, invested in a synthetic collateralized debt obligation (CDO) offered by Goldman Sachs (GS) – and collectively lost about $1 billion on it, when the subprime meltdown occurred.
Although Goldman later admitted it failed to disclose some vital information about the investment (like the fact that the major hedge fund that helped pick the securities for it took a short…
