Beware of Biggies!!

 During our investment journey we also come across ostentatious company managements who boast about their company's stock market performance and also charitable work they do for the society. As a investor we tend to fall into their trap by witnessing their good work . To day I have to introduce a person by name SIR ALLEN STANFORD , most of the Americans they don't require any introduction . Robert Allen Stanford born on March 24,1950 was a prominent financier, philanthropist ,celebrity for Americans and Chairman for wholly owned Stanford financial group of companies based at Houston , USA . He was sponsor of number of sporting teams across the globe including T20 world cup teams. He was recipient of 2006 Excellence in Leadership Award from American Economic council . Former United States President Mr.George Bush praised him as Inspiring personality for future generations .Why I am explaining about this is , once a company starts growing at a faster pace in a irrational way and the entire media focuses on such developments. One need to look into the true colours of the Managements and company operations . Allen Stanford started his own bank in a country by name Antigua and Barbuda, a Island nation with a population less than one lac , this nation is a tax heaven and starting  bank in this Island is very easy . With the tax treaties Antigua and Barbuda enjoys with USA, Allen Stanford got offshore banking license to start his Stanford international bank branches across USA and started accepting well known Certificate of Deposits (C.DS) from public offering very attractive interest rates ranging from 6 % to up to 15% when others were offering at less than 3 % ,with the help of media and from his ostentatious life style he mobilised nearly 50 billion US Dollar from public by offering unusual interest rates. To sustain to pay the interest rate he started inflating his book of accounts and tarnished the balance sheets. He diverted money from banks to buy mansions ,costly cruises and private jets and to gain the fame, some portion to charity works to the land of Antigua where he got the dual citizenship. Allen Stanford donated millions of dollars to university of Stanford just it is on his name .
For every investment there will be rational returns in correlation to the fundamentals of the respective investment avenue , including so called safe heaven GOLD . If you come across any such opportunity which gives unusual returns without a fundamental shift , you need to consider as unsystematic risk and look for the immediate exit ways without any further delay, you need to be vigilant and cautious about such unusual returns . Thanks to Securities Exchange Commission (SEC) which controls the financial activities of financial institutions in USA at least realising after 8 billions dollars flown from the books of Stanford international bank.
At WealthMills my sincere appeal to the investors is beware of such unusual returns, it can be in USA or in India. In our investment journey we will come across these sort of illusive investment avenues, One need to be aware of this kind of hypes , to be successful in your investment journey. People like Allen Stanford are there every corner of the country, we can't stop them , but we can avoid them.