Avoiding Financial Pitfalls: A Case Study Of Sam Bankman- Fried
Hello lions and lioness of leofinance community, I hope you all are having an awesome day in preparation for the new year to come.
I will like to share some pitfalls to avoid when it comes to finance management especially the case of the CEO of FTX.
Should in case you don’t know about him he is by name Sam Bankman-fried, one of the American crypto investors who owns the FTX crypto recently involved in a crash.
What this paints in the mind of young crypto investors and yet to be investors is that crypto may likely be a scam because they believed for such amount of people’s money he loosed in a wrong business deal will get the attention of people where the money flew to.
If really he was in custody of it, or could robbers or hackers attacked him. These are questions people could ask if they don't understand crypto.
Well I am not perfect and not here to throw blames at him but it is important to consider the following when it comes to financial investment.
Be a financial analyst
Very important people who will guide you in financial decision making process are the financial analyst.
Some people refer to them as data analyst well the data to be analyzed is just finance and how to manage it. It helps to highlight with the use of data better steps towards financial management.
Have a record of your finance
This doesn’t apply to SBF alone but everyone who may want to venture into finance management in the later future as passion.
One of the means to a successful management is record keeping. This is what analyst use for decision making.
This implies every financial record of your firm should be taken into account because financial analyst makes use of your financial records of the past to predict for future pitfalls and how to overcome. This job cannot be handled by one person alone but group of financial experts.
I am very sure he might have some but one thing with data inference is that if the data is not trust worthy, valid or correct, it seems to give a fake result which may result into terrible of huge losses afterwards.
Diversify Investment in real life activity
One of the principles of money is that it doesn’t stays in the hands of the managers for long, it has the tendency of developing wings to fly if consideration is not been put into maximum and effective use.
Diversifying your investment will guarantee you hope even if one fails instead of putting all eggs into a basket. Other Investments like agriculture, technology e.t.c are profitable.
Other pitfalls
When it comes to managing the finance of group of people it is necessary to avoid love affairs with the opposite sex, get me right I am not saying he took people’s money for prostitution rather am I saying he is single but when it comes to managing finance, if you are strong on the other side which I know you understand what I mean (money is correlated with spirituality), people from the other world will build wings into the finance you manage and fly with it at the slightest mistake you’ve made. But honestly he looked like one who made an expensive mistake he shouldn't have done from his appearance after the crash.
Thanks for visiting my blog, I wish you all a beautiful weekend.
