In the world of finance and investing, you’d be hard-pressed to find someone more infamous than Bernie Madoff. “Madoff defrauded thousands of investors out of tens of billions of dollars over the course of nearly two decades”, writes NPR’s Rachel Teisman.

Madoff was found guilty of eleven felony charges that included securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, and more. When Madoff passed away at age 82, he was serving a 150-year sentence in federal prison.

In his recent book, “The Psychology of Money,” Morgan Housel uses Bernie Madoff as an example of what can happen when one can’t find a sense of enough.

Housel writes, “Before the Ponzi Scheme that made Madoff famous, he was a wildly successful and legitimate businessman. Madoff was a market maker, a job that matches buyers and sellers of stocks. He was very good at it.”

Housel goes on, “A former staffer said the market-making arm of Madoff’s business made between $25 million and $50 million per year. Bernie Madoff’s legitimate, non-fraudulent business was by any measure a huge success. It made him hugely—and legitimately—wealthy.”

Madoff was already legitimately wealthy before his Ponzi Scheme, which naturally leaves one to wonder, why?

Housel offers a simple explanation: Madoff had no sense of enough.

No matter the level of wealth he achieved, he always wanted more. His ambition outpaced his achievements, which led him to create a fraudulent investment scheme,…

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