Without a doubt, the Gowex scam will go down in the black history of the Spanish stock market. For those of you who are not familiar with what has happened, I recommend my compilation of recommended articles on the Gowex case. Now the important thing is to stop complaining and try to draw fair conclusions to minimize the chances of this happening to us again. In this article I leave you the 8 lessons we should learn from the Gowex scam.
The importance of diversifying
Gowex was a company that turned many of its investors into true fan-boys. Some well-known investors in the MAB field, such as Nacho Royo or Juan Sainz de los Terreros, continued to defend the company despite the the KISS principle.
The unreliability of the account auditors
It is true that in this case the company that audited Gowex's accounts was a complete stranger. This fact should, at the very least, have raised suspicions. But even large auditing companies have proven unreliable. Let's not forget that Enron's auditing company was the giant Artur Andersen, who ended up condemned to his disappearance after starring in one of the biggest scandals in world stock market history.
The importance of knowing how to recognize an honest management team
In this section I also have to admit that they have strained me. Jenaro García seemed to me an honest person. Gowex seemed like an example in business communication. Needless to say, how wrong I was.
The first step has been to acknowledge my difficulties in recognizing an honest management team. My intention is to try to improve in this aspect soon. I accept suggestions to help me in this regard. 😉
The stock market ends up putting each company in its place
Already said Benjamin Graham:
"In the short term the stock market is a voting machine, while in the long term it is a weighing machine."
It is possible that for a time, which may even last several years, the stock market is overvaluing or undervaluing a company. The important thing is that in the end the markets end up putting each one in its place. In the end, the business reality is what ends up imposing on the opinions and feelings of investors and speculators.
More lessons on the Gowex scam?
These are the 8 conclusions that I have been able to draw clean about the Gowex scam. If you can think of any more, I await your comments. 😉