Fraud Central- Don’t invest with skinny dippers

I am fond of quoting Warren Buffett, so get used to it. He once said something you have probably read here in the past that goes “You only find out who is swimming naked when the tide goes out”. By this he is referring to business models that can’t swim when the water gets rough. It also applies to frauds. As we discussed at length, Madoff’s scheme unfolded when too many people wanted their money at the same time.