To have said nothing when my friend was making a bad investment?

[livingintheNL]

My friend invested in something a while ago, I was 95% sure it was a terrible idea. I just bit my lip and said nothing, she didn't ever really ask me what I thought of it so didn't want to just break into bad news.

9 months later, its been an awful decision, virtually has written off all she has earnt in 9 months and is pretty upset.

I'm starting to feel a bit guilty, I was pretty sure it was a bad idea, but said nothing. Should i feel guilty?

Honestly don't worry about it. These types of scams schemes work because they are unbelievably manipulative, they really brainwash people. So if you'd said how you felt about it she may well have hated you for raining on her parade.

The only excepting being if as a PP said, you were a financial advisor or some other kind of expert in the field, and she asked you to review it for her or something.

I would have said something. She was ploughing £30k into a product that you honestly didn't think would sell. I'd at least have suggested she seek another opinion.

Hindsight is all well and good, but would she have thanked you at the time for saying anything, further more would she have taken a blind bit of notice.

Next time ask "do you want my opinion?" No point dwelling on friend's mistake, unless she did ask your opinion and you were too wet to give it.

I'm not sure why you said "you've got to do what's right for you" if you thought it was a bad idea though as that makes it sound as though you didn't have an opinion on it. You'd have been better saying nothing than saying that. If I thought a friend was wasting 30k then I'd tell them. If they want to ignore me fine.

If it was a close friend and I was 95% sure the investment was doomed to failure well yes I'd definitely have said something.

thanks for all your replies, I'm just being there for her now its gone belly up and giving a sympathetic ear.

LeaLeander - wow seems like you've been through it alot, i feel for you.

If it was the firm you mention, it might be a good idea to read the current thread on MN's Money Matters board. - which references previous threads on the topic of network selling. Her knowledge and experience would be very welcome there.

In fact, if anyone has friends, relatives, acquaintance who ask their opinion on possible 'investments' and home working 'opportunities', it might be a good idea to steer them towards those threads. By the time they've asked for your opinion, it may be too late - but here's hoping.

Don't feel guilty... If she was so convinced by the idea that she was prepared to invest £30k, there is little chance she would have listened to you anyway.

My former best mate invested a humongous amount in a new technology project and wanted me to invest as well. When I refused, she asked why and I said it wasn't a great idea and I couldn't see it making money.
We had a bit of a fall out over it, but 18 months later, she had lost the lot.
Friendship never really recovered because she was convinced she was going to make a fortune from this - she used to send me articles about Google buying start ups for $500m as proof she was going to make a killing on this...

if i mentioned to you that i was thinking about investing in such and such, i wd be hoping for your advise, but not directly asking as it wd seem cheeky .