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Just as honey attracts
bees, wealth attracts investment schemes. These schemes
are often complex and outside the knowledge base of the
investor. Wealthy people tend to have many demands on
their time and may lack time to subject the opportunity
to the proper degree of scrutiny. These opportunities
are often quite sophisticated and some are deceptive and
dangerous. In these situations, the long experience of
Sweetwater can be very useful to investors.
Not just complex
investment types require scrutiny. Mainstream
investments such as mutual funds hold risks of which
many investors are unaware. Lack of independent
oversight, high operating expenses, style drift, use of
borrowed funds and misleading performance claims make
normal investments more risky than advertised.
The larger number of
investment choices means that more investigation is
necessary to find the best option for each investor.
Even the most popular public informational sources do
not provide information on all the risks posed by the
investment. Proper due diligence can only occur from
the standpoint of great market knowledge and with a
large base of external resources.
Volatile markets
destroy wealth very quickly but increase wealth much
more slowly. It is impossible to make money if you are
losing it. In performing our due diligence, we attempt
to reduce risk, preserve capital and provide the
investor with a better understanding of the investment.
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