If You Ever See a Chart Like This, Run Away Fast

We've all heard how Bernie Madoff's returns sounded too smooth and consistent to be true.  In picture form, however, the returns are even more eyebrow raising.  The chart below shows the cumulative returns of $1 invested in the hedge fund Fairfield Sentry Limited, which was a fund run by Fairfield Greenwich Group that essentially directed all of its assets to the stewardship of Bernie Madoff.  As shown, $1 invested in Madoff back in 1990 was supposed to be worth $6.75 today.  NPB Bank, out of Zurich, even offered a version of this fund with three times the leverage. Talk about too good to be true.

 

Comments

[dj]

Looks like a Canadian gold mining stock,but really if you didn't double down an play it like the "brother's of Costa Rica (best ponzi ever)over 5yrs of pulling cash out your golden

[Charlie Sorrel]

Is it too late to invest in Madoff's fund?

[dfree]

i think bernie madoff should register as a bank holding company so he can qualify for TARP money for his legal defense.

[Frank Mont]

Check out Vanguards GNMA fund total return, looks just like that!

[asuave]

Now that is unbelievable 37 percent a year in return? Ok lets talk about Mr.Birkshire for a minute in which is supposed to return 20 percent a year. BRK this year is just going straight down in the abyss and this guy is supposed to be smart. I know there’s more guys to follow the Maydoff guy because when they’re not raking in steady then there’s gonna be a disturbance.. easy math!

[Jack Burns]

Frank Mont.....your math is a bit off. It's just slightly over 11% compounding.

[jon]

actually, 10.61% continuously compounded for 18 years. e^(0.1061*18)

[buy aion kinah]

i think bernie madoff should register as a bank holding company so he can qualify for TARP money for his legal defense.