Alexander Dillon on the 5 Warning Signs Every Investor Should Be Aware Of Right Now

1. Making Unattainable Promises

Perhaps the most important red flag that every investor should be aware of, in my opinion, is also one of the most obvious. If someone promises returns that appear far too high and yields that seem far too low, it’s easy to conclude that “this sounds too good to be true.” Trust your instincts because they will be correct in most cases.

2. “Partners” who can’t prove they’re as experienced as they claim

This is yet another red flag that is all too common in investing. Someone will claim to have years of experience and to have navigated countless successful deals over the years, but when you ask for even a small amount of documentation to back that up, they suddenly can’t find any.

3. Investment Opportunities That Fall Into Your lap

You should always look for investment opportunities for the best results. Waiting for them to come to you, or worse, fully embracing those who do come to you without due diligence, is a recipe for disaster.

4. Increasing the Pressure

Another major red flag I’ve seen in my career as an investor is when someone comes to you with an offer and immediately turns up the pressure if you don’t act enthusiastic.

5. A lack of comprehension

While many of the previous items on this list dealt with red flags relating to the people you’re dealing with, the final one deals with how you conduct yourself.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Alexander Dillon

Alexander Dillon

A company called GenCap Management was started in 2021. Alexander Dillon is one of the co-founders of the company.