NOTE: This post is part of an ongoing education series. This information is for educational purposes only. This information does not constitute investment advice. Please consult with your financial advisor before taking any action. For planning advice contact Polaris Financial Planning.
A couple of years ago a family friend came to me and declared, “I Bought A Stock”!
“Just one?” I asked.
“10,000 shares in one company,” was the reply.
They just bought 10,000 shares for $0.50 each ($5,000). This was the only stock they owned and it was the first investment they ever made. My regular readers (listeners – SkepticMoney On Air) have heard me talk about the 5% rule. Generally, you should not have more than 5% of you portfolio in and one company. (learn about diversification here)
They knew it was a good investment because someone in their church sold it to them. They were told it was worth $1.00 per share and they were getting a deal at $0.50. Let’s look at the company they “invested” in.
The company is called SEFE and text was on their website (when they had a website). (FYI… The photo above right was also on the site before it disappeared)
SEFE has developed a proprietary technology to harvest the constant and powerful static electricity that is continually formed in the earth’s atmosphere.
Through a series of patent-pending devices,
A series of devices? Patent-pending – anyone can apply for a patent.
The system employs an airborne carrier, which can be a high-altitude weather balloon or blimp, to send a conductive cable into the atmosphere, where it is suspended and tethered in constant contact with a ground unit.
To my knowledge the only time there is a big difference is charge is during a storm. What could go wrong?
The electricity is sent down the conductive cable to a power generator….
Uh, if you captured electricity, you don’t need a power generator.
There are many more claims but you get the idea! Now a few years later the shares are worth $0.005 each.
This is there promotional video!