b&b32 Why We Believed the $72mm Lie Pt1
Mohammed Islam was named in NY Magazine’s annual “Things We Love About New York” issue for claiming to make $72 million in the stock market. He said he started trading penny stocks at the age of 8 or 9 and that his net worth was in the 8 figures.
Of course, a few days later, experienced investors called BS, including some producers at CNBC, and Mohammed’s lie unraveled.
Here’s the real question though – why were we so quick to believe him? From the NY Mag reporters, fact checkers, and editors, to the news channels who did pick up the story, what about this story made it easy for us to swallow?
This is Part 1 of a two-part show. In this show, we explore how investing and trading can seem like magic or a mystery and breaks down the red flags to look for next time.
In Part 2, we talk about the myth of the American Dream – this kid’s story was believable because we’ve all heard this rags to riches story before. How much of a reality is this for most Americans?