Lately, there has been a lot of buzz on the MMM investment scheme. A lot of people have been asking my views about MMM, I have even received 11 emails from different people asking if MMM is an investment option and general advice about the scheme.
I did not plan to do a post on MMM but I changed my mind after a client asked me to help re-assess her investment portfolio and I saw that she liquidated her mutual fund and moved the funds to MMM. To be honest I was shocked as the scheme clearly states that one should trade with their free money.
Getting involved in MMM is a personal choice, I will not advice for or against it. It is a Ponzi scheme and not an investment option. Yes, I have heard lots of testimonials on the high return but the truth remains that they are simply robbing Peter to pay Paul, so If you have the mind to invest in MMM, good luck to you. But know that as with all Ponzi schemes, there is no real investment as no commodity/service is being traded hence it has no business model and will crash one day. Returns are paid from other people’s invested sum.
MMM is also not a penny stock as assumed by one of my friends. Penny stocks are shares of small , growing companies with limited resources and liquidity. Such stocks present a high risk for investors, who are often lured by the hope of large and quick profits. Penny stocks are even safer than MMM as they regulated and the companies at least have a business model unlike the case of MMM which is not regulated, neither does it have a clear business model.
I will not judge people that invest in MMM, but I will advise that they do so with great caution. Do not liquidate/sell your existing assets and channel the funds to MMM. MMM is not a long term investment option, it is not regulated/registered by any professional body/firm. MMM should not even form part of your investment portfolio. It is not a stock, neither is it a mutual fund, or treasury bill or property or bank. I sincerely wish the best to every MMM investor, but please tread with caution.
So what are your views on Ponzi schemes, do share in the comment section.