Today, I read an article in Groww (trading platform) on due diligence. I thought of writing it here in our blog:
Due diligence is essentially doing your homework before making decisions, especially in high-stakes situations. It's about digging deeper, verifying claims, and ensuring everything adds up. You can't just take someone's word for it, no matter how convincing they seem or how impressive their credentials are.
Take Anthony Gignac’s case as a prime example. He portrayed himself as a Saudi prince, living a life of luxury with fancy cars, penthouses, and expensive jewelry. On the surface, everything about him screamed wealth and royalty. He even convinced American Express to give him a credit card with a $200 million limit—no questions asked. But appearances can be deceiving.
It wasn’t until someone decided to conduct due diligence that his entire charade unraveled. A billionaire investor’s team began investigating Gignac's claims. What they found was that he didn’t own the luxury apartments he bragged about; he was simply renting one. His jewelry was often fake or constantly being bought and sold, and even his diplomatic plates and badges were fabricated. The entire persona he had built over nearly 30 years was a massive scam. And yet, so many people fell for it, because they trusted what they saw on the surface.
This is exactly why due diligence is so important. It’s about not blindly trusting what’s presented to you. It means verifying claims, checking the facts, and understanding the risks before making any moves. In Gignac's case, this simple process of fact-checking saved the billionaire investor from potentially catastrophic losses.
At the end of the day, due diligence is the difference between falling for a scam and making a sound, informed decision. No matter how convincing someone is, trust must always be backed by verification. In business, in investments, or even in everyday dealings, due diligence is what protects you from being misled. It's not just a formality—it's essential for ensuring you know exactly what you're getting into.
Post by
No comments:
Post a Comment