My entry:
Thanks @achim03 and @project.hope for this contest. This is my true life story that suits as my worst investment experience.
How I wanted to be the "lazy Investor"
On a Friday, 28th February, 2014, a friend told me of a Multi-Level Marketing (MLM) Business that was going to payback as much as 105% of my investment as interest in Six months. The business needed a minimum investment of $1750 (as at 2014).
Meanwhile, I was in my incubating days of my Research Consultancy Business. The ROI of the MLM sounded so real and I could imagine having that much invested to my business in six months time. I went for a hard loan ($2000 then) with 30% Interest rate per annum from a friend and invested into the MLM.
The terms of the business was to buy a product worth my investment sum and give to the merchant who will sell the product and give me my profit. I had virtually nothing to contribute to the work. Just to go sleep while my money worked for me.
My Fails
I did no feasibility study on the MLM business as per sustainability and didn't count the risk of buying money to invest.
The Outcome
I received the first month bonus of $312 and was hopeful. Sadly, after three months, everything sublimed. The Office of the merchant was closed and everything resulted to a Financial Fraud case.
- I suffered emotional trauma on how to repay loan which was actually paid back after 2 years with accumulated interest..
- I lost interest in building my business;
- The MLM returns neither the invested sum ever came again till today.
Lessons
- Always do your research and count the cost before making an investment.
- Never want to be a lazy investor.
Word Count: 299
RE: Project.Hope contest: Your worst investment experience