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Friday, December 26, 2008

A Slightly Different Take...

I came across this article by the Tax Prof Blog, edited by Professor Beyer. It relates to Nancy Silverton, who previously sold her restaruant in Los Angeles, La Brea Bakery, for $5 million. But she then lost all of it after she gave it to Bernard Madoff for investment. Madoff is alleged to have swindled investors to the tune to the total of $50 billion.

Of course, the primary lesson here is that she should have diversified her investments instead of simply giving it all to him. She didn't do this, and lost all of her retirement funds and also her childrens' college funds.

The secondary lesson here (for me) is her attitude. At the age of 54, she might be tempted to curl up into a ball and to give up. But here are her comments:

"I was silly and I learned a lot," said Silverton, 54, who is an owner of Pizzeria Mozza and its neighboring Osteria Mozza in Hollywood. "I will never not diversify."
Here is some even more interesting reaction:

"I need to reinvent my life," said Silverton, who co-founded the landmark Campanile restaurant and La Brea Bakery with her ex-husband, Mark Peel, and another partner. "To think you have a chunk of money is very comforting. Now, I'm just like 99% of the world. If I had to retire tomorrow, I could not."

She also needs to "build something" again for her three children, ages 15, 23 and 26. "They don't have any of that savings."
I love (and could learn a lot from) her attitude. I'll bet that she does "build something" else.

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