It is not wise to jump into a situation before thinking about it completely and knowing exactly what you are getting yourself into. Whether it’s a business or a relationship, you need to take the time to do your own due diligence before making a big move – especially if that move could have severe consequences if it doesn’t work out.
In 2009, Bernie Madoff pleaded guilty to operating the largest private Ponzi scheme in history. From the early 1970s to late 2008, Madoff defrauded more than 40,000 people in 125 countries over the span of four decades. When the financial crisis hit in 2008, many of his clients wanted to withdraw their funds, but they couldn’t because Madoff had been using the deposits from them to pay off other investors.
Many celebrities lost millions of dollars in the process. And perhaps they trusted Bernie Madoff because he was renowned on Wall Street as a huge money manager. He was brilliant and founded his own firm at age 22. He is credited with helping develop some of the systems and market structures that moved the stock market beyond the trading floor and gave rise to modern, electronic trading. But at the end of the day, they jumped in with Madoff with both feet.
There is nothing wrong with taking the time to think through a major decision or asking questions that might feel uncomfortable. If you are about to make a big move, you need to know what you are getting yourself into.
