Bernie Madoff: Invest in Index Funds

Last Updated Mar 19, 2010 2:56 PM EDT

Index funds certainly don't lack for noteworthy endorsements, but they picked up a rather infamous one this week.

Buried in the Wall Street Journal's article describing the beating Bernie Madoff received in prison was a quote from a fellow inmate who received investment advice from the disgraced advisor. Now, you might question the wisdom of seeking the counsel of the man who was jailed for running the world's largest Ponzi scheme. But Bernie has apparently found religion, so to speak. He advised his fellow inmate to give up day trading and invest in an S&P 500 index fund. According to the Journal's article:

Mr. Madoff advised him to diversify, saying he should invest in funds that track the S&P 500 index of stocks "where my money would be on all the stocks instead of putting my eggs into one basket," the former inmate said.
What's next? An investment book deal?
  • Nathan Hale

    View all articles by Nathan Hale on CBS MoneyWatch »
    Nathan Hale has spent decades working in the financial services industry, during which he has researched and written extensively about personal investing, the mutual fund industry, and financial services. In this role, he uses a nom de plume because many of his opinions about the mutual fund industry and its practices would not endear him to its participants.