scorecardresearchInvestment lessons one can draw from ‘The Wolf of Wall Street’

Investment lessons one can draw from ‘The Wolf of Wall Street’

Updated: 28 Feb 2022, 05:46 PM IST
TL;DR.

Financial scams are undoubtedly ubiquitous and aplenty, there are some which are notorious enough to be made into full-length movies. The story of The Wolf of Wall Street narrates one such scam, but also offers a number of valuable lessons for small investors 

Don’t trust any absurd claim made by a white collar professional: In the movie, the protagonist Jordan Belfort tells his staff to introduce themselves as senior vice presidents of Stratton Oakmont when they call prospective investors. This was a deliberate tactic to portray the callers as educated professionals. But just because someone holds a fancy designation in a brokerage house doesn’t make him trustworthy.

Don’t trust any absurd claim made by a white collar professional: In the movie, the protagonist Jordan Belfort tells his staff to introduce themselves as senior vice presidents of Stratton Oakmont when they call prospective investors. This was a deliberate tactic to portray the callers as educated professionals. But just because someone holds a fancy designation in a brokerage house doesn’t make him trustworthy.

Do research the stocks you buy: Just because you get a call from a brokerage house, giving you a number of reasons for buying a particular stock, you should not get carried away. And you should buy a stock only based on your own research, if it indicates strong fundamentals of the company.

Do research the stocks you buy: Just because you get a call from a brokerage house, giving you a number of reasons for buying a particular stock, you should not get carried away. And you should buy a stock only based on your own research, if it indicates strong fundamentals of the company.

Don’t put too much money in risky stocks: The victims of Jordan Belfort risked their life savings in the stocks based on promises made by Stratton Oakmont, causing great financial and mental agony. No matter how good the stock appears, one must not invest all their disposable money in one or two stocks.

Don’t put too much money in risky stocks: The victims of Jordan Belfort risked their life savings in the stocks based on promises made by Stratton Oakmont, causing great financial and mental agony. No matter how good the stock appears, one must not invest all their disposable money in one or two stocks.

Advice from experts is not always bad: One is likely to view every broker with suspicion after watching the movie. But just because of some fraudsters, one shouldn’t mistrust the entire clan of stock brokers. There are a number of SEBI certified financial advisors. In case of doubt, one can also look for advice from more than one broker.

Advice from experts is not always bad: One is likely to view every broker with suspicion after watching the movie. But just because of some fraudsters, one shouldn’t mistrust the entire clan of stock brokers. There are a number of SEBI certified financial advisors. In case of doubt, one can also look for advice from more than one broker.

Don’t pay heed to the hype: Oftentimes, stock brokers convince the investors to part with the money because they are foraying into a new paradigm of sorts, or a new market wave as they sometimes call it.

Don’t pay heed to the hype: Oftentimes, stock brokers convince the investors to part with the money because they are foraying into a new paradigm of sorts, or a new market wave as they sometimes call it.

The Wolf of Wall Street teaches these money lessons. 

The Wolf of Wall Street teaches these money lessons. 

First Published: 28 Feb 2022, 05:43 PM IST