"Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar."
In the previous chapters, you learned how to save money (The 1st Cure) and how to invest it (The 3rd Cure). But as soon as you start accumulating wealth, something dangerous happens.
You become a target.
Scammers, bad relatives, and "Get Rich Quick" schemes start circling you like vultures. One bad decision can wipe out years of hard work. This brings us to the Fourth Cure: Guard Thy Treasures From Loss.
1. The Costly Mistake of Arkad
When Arkad was young, he saved his first bag of gold. He wanted to make it grow fast. So, he gave his money to a brickmaker named Azmur.
Why? Because Azmur was traveling to distant seas and promised to buy rare jewels cheaply and sell them back in Babylon for a huge profit.
The Result? Azmur was cheated. The "jewels" he bought were just bits of colored glass. Arkad lost 100% of his savings.
The Lesson: Why would you trust a brickmaker to buy jewels? He knows about bricks, not gems! Would you go to a baker to ask about the stars? No, you would go to an astronomer.
2. The "25 Din Mein Paisa Double" Trap
In India, we all remember the "Laxmi Chit Fund" from the movie Phir Hera Pheri. It sounds funny in a movie, but in real life, it is tragic.
Today, the brickmakers are different, but the scam is the same:
- Telegram Tips: Strangers promising you "Sure Shot" stock tips if you join their premium group.
- Crypto Scams: Influencers telling you to buy a new "Meme Coin" that will go 1000x.
- Relative's Business: An uncle asking for a loan for a "guaranteed" business idea.
If you invest in these without knowledge, you are repeating Arkad's mistake. You are giving gold to a brickmaker.
3. Protect Your Principal
The legendary investor Warren Buffett has two rules for investing:
- Rule No. 1: Never lose money.
- Rule No. 2: Never forget Rule No. 1.
The first goal of investing is Principal Protection. Before you ask "How much profit will I make?", ask "Is my original money safe?"
It is better to earn a small, safe return (like 12% in Mutual Funds) than to risk everything for a 50% return in a gamble.
4. Consult with Wise Men
Arkad advises: "Consult with wise men. Seek the advice of those who handle money daily."
In 2026, this means:
- Listen to SEBI Registered Investment Advisors, not random YouTubers.
- Read books written by proven experts.
- If you don't understand an investment (like F&O or Crypto), DO NOT INVEST in it.
Key Takeaways
- If it sounds too good to be true, it is. High returns always come with High Risk. There is no free lunch.
- Know Your Circle of Competence: Only invest in things you understand. If you don't understand it, keep your money in the bank.
- Don't Be Greedy: Greed blinds you to risk. Be patient. Slow wealth is safe wealth.
Frequently Asked Questions (FAQ)
Q1: How do I spot a Ponzi Scheme?
A: If anyone guarantees "Risk-Free" high returns (e.g., 20% per month) and asks you to bring more members, run away. It's a scam.
Q2: Is Crypto safe?
A: Crypto is highly volatile and unregulated. It is not "safe" like a Fixed Deposit. Invest only money you can afford to lose.
Q3: Who should I trust for advice?
A: Trust data, verified track records, and regulated advisors. Never trust screenshots of profits on social media.
Up next: Part 7 – The 5th Cure (Make of Thy Dwelling a Profitable Investment).
📚 Credit & Disclaimer:
This post is a summary based on the classic bestseller "The Richest Man in Babylon" by George S. Clason.
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