He was my coworker. I know him at work for years. It is unlikely he take money and run away.

He ask me a loan to scale up his business, promised to pay 15% annually.

His work is in manufactures industry, maybe B2B. He said he his business don’t depend on number of customer available. I don’t know. I am a salary man. I know nothing about business and investment.

I haven’t ask him into the detail yet. I know nothing about this type of business. He seem confident, but I feel the 15% is so unlikely that will come with (hidden) risk. Maybe my friend is also a victim of another scam, or he just overconfident.

People of Lemmy, I ask you, those who are investor and business owner: is >= 15% annually ROI possible ?

  • AlmightySnoo 🐢🇮🇱🇺🇦
    17•8 months ago

    When it’s 50% more than the historical yearly average return of the S&P 500, you’re right to be concerned.

    I don’t know. I am a salary man. I know nothing about business and investment.

    I’ll join the “don’t” crowd then but will also suggest that you should urgently get some financial literacy to avoid “scams” like these. If you really want to invest money into something, your best bet would be an index fund or an ETF tracking an index like the S&P 500 which historically returned on average (very important to highlight the “on average”, because not only does it mean that it can be less but it also means it should be a long-term investment for the law of large numbers to be in your favor, not mentioning that holding for long periods has tax advantages depending on where you live) 10.15% per year since 1957: https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

    Avoid stock picking, options, cryptos etc… (unless you really, really know what you’re doing) and instead trust when people like Warren Buffett tell you to look at index funds or index ETFs instead and to let compounding do its magic over the years: https://www.cnbc.com/2022/10/03/billionaire-warren-buffett-swears-by-this-inexpensive-investing-strategy-that-anyone-can-try.html

    I’d suggest you buy a book like “The Psychology of Money” by Morgan Housel (very good one) and to read it before you make any investment decisions.