How do I avoid scams by thinking about long run averages

R3ciprocity.com - Prof David Maslach: Innovation; Research Life; Striving Towards Happiness · Jan 25, 2023 · 9m

An important aspect of making wise financial choices is thanking about long run averages. If something is relatively proven, you should think about the long range average return that you’re going to expect. For example, on average, most publicly traded companies, make a return of summer around 10% per year based on looking at the stock market. So your expectation should be that it should make summer around 10% on every $100 that you’re putting in. If somebody is promising to make more than 10%, you should be very leery of what they’re actually saying. If it’s an unproven venture, your…