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You can do little about it but you should write down the lessons and pass it down to the family. Those will be more valuable to the family than mourning over the spilled milk. Books written by Daniel Kahneman (Thinking, Fast and slow) and Richard Thaler (Misbahving) have mentioned Illusion of Validity of the fund manager and investment adviser. Never ...


Your mother was not swindled. She was just the recipient of bad advice and bad money management. The broker made money from the commission or from an annual money management fee. He made nothing from the actual trade. Out of curiosity, was your mother informed about this potential trade and she gave assent to go short? As a managed account, did the ...


This happened in the not-distant past, with Volkswagen. Porsche owned almost 75% of the VW stock (counting call options they intended to exercise), and a German state government another 20%, leaving fewer shares outstanding than the number of shares shorted.

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