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Rank: Member Joined: 12/21/2009 Posts: 602
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Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. I can see this being possible in some forms of venture capital infusion, but I do not know of any venture capitalist who wants his/her money used to pay (high) returns to other investors... Unless.... I am misunderstanding or it is a Madoff-like venture. ________ How Madoff made it happen
Rich families placed money with wealth managers, hedge funds and private banks
After careful vetting, these professionals chose specialist fund managers. As a consistent performer over decades, Madoff was a favourite choice
Madoff’s popularity lead to specialist funds being set up to raise money to feed directly into Madoff in return for a fee
Although he told them he was investing the money, Madoff used the inflows to pay 'profits’ back to clients
The financial crisis hit inflows and caused clients to ask for their money back. With no money to pay out, the fraud was exposed
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Rank: Member Joined: 12/21/2009 Posts: 602
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nyakosh wrote:CMS is not their KPI but rather designed primarily to tap in diaspora market. These are the guys who came up with this CMS idea when they were still in Britam. Would love to hear the mechanics/details of how this works...
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Stop quoting madoff if u dont understand how the madoff ponzi worked he was very influential in the investing community for decades. He gave out pretty average results to avoid being flagged. Please get ur facts right first before coming out with stellar assumptions. Dahatre wrote:Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. I can see this being possible in some forms of venture capital infusion, but I do not know of any venture capitalist who wants his/her money used to pay (high) returns to other investors... Unless.... I am misunderstanding or it is a Madoff-like venture. ________ How Madoff made it happen
Rich families placed money with wealth managers, hedge funds and private banks
After careful vetting, these professionals chose specialist fund managers. As a consistent performer over decades, Madoff was a favourite choice
Madoff’s popularity lead to specialist funds being set up to raise money to feed directly into Madoff in return for a fee
Although he told them he was investing the money, Madoff used the inflows to pay 'profits’ back to clients
The financial crisis hit inflows and caused clients to ask for their money back. With no money to pay out, the fraud was exposed
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Ponzi ponzi ponzi Business opportunities are like buses,there's always another one coming
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Rank: Member Joined: 12/21/2009 Posts: 602
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Horton wrote:Stop quoting madoff if u dont understand how the madoff ponzi worked he was very influential in the investing community for decades. He gave out pretty average results to avoid being flagged. Please get ur facts right first before coming out with stellar assumptions.
So I misunderstood-my bad. Labda you explain to a non-financial person like me how the capital in the CMS is generated/invested?
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Rank: Elder Joined: 8/4/2008 Posts: 2,849 Location: Rupi
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Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. WORD! Lord, thank you!
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Rank: Elder Joined: 10/3/2008 Posts: 4,058 Location: Gwitu
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Euge wrote:Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. WORD! What would be the cost of borrowing from banks? Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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kaka2za wrote:Euge wrote:Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. WORD! What would be the cost of borrowing from banks? 14% p.a. Mark 12:29
Deuteronomy 4:16
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Rank: Elder Joined: 10/3/2008 Posts: 4,058 Location: Gwitu
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guru267 wrote:kaka2za wrote:Euge wrote:Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. WORD! What would be the cost of borrowing from banks? 14% p.a. Add the hidden costs such as insurance,valuation.appraisal and the true cost should be around 18% Truth forever on the scaffold
Wrong forever on the throne
(James Russell Rowell)
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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kaka2za wrote:guru267 wrote:kaka2za wrote:Euge wrote:Mike Ock wrote:That CMS is an obvious ticking time bomb. If they are giving 18% annual interest, that means they are somehow getting 20% and above annual returns on whatever they invest in. Any smart investor knows that consistent 20% and above annual returns is the preserve of the best of the best investors. Furthermore, to guarantee such returns is the mark of a con or someone who doesn't really know what they're doing. The more plausible explanation is that they are using the CMS to fundraise for their projects, in which case, it's still a ticking time bomb because it's such an expensive way of raising funds. Their profits on the projects will be severely eroded. No matter how you look at it, this thing stinks. WORD! What would be the cost of borrowing from banks? 14% p.a. Add the hidden costs such as insurance,valuation.appraisal and the true cost should be around 18% Add another cost for the stress
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