What do you think?
Do you sincerely want to be rich?: Bernard Cornfeld and I.O.S.: an international swindle
In the fall of 1955, Bernard Cornfeld arrived in Paris with scant money in his pocket and a tenuous relationship with a New York firm to sell mutual funds overseas. Cornfeld, a former psychologist and social worker, knew how to make friends fast and soon targeted two groups of people who could help him fulfill his economic American expatriates who were looking to build their own fortunes and servicemen abroad who loved to live high-rolling lives and spend money. Using the first group as door-to-door salesmen and the second group as his gullible target, Cornfeld built a multi-billion-dollar and multi-national company, famous for its salesmen’s winning one-line “Do you sincerely want to be rich?” In this eye-opening yet entertaining book, an award-winning “Insight” team of the London Sunday Times examines Cornfeld’s impressive scheme, a classic example of good, old-fashioned American business gumption and guile.
464 pages, Hardcover
First published January 1, 1971
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 3 of 3 reviews
July 17, 2017
Generally well-written and remains relevant today (cough, I am looking at you Primerica). Investors Overseas Services (IOS) proffered much to its clients, but gave more to its salesmen and executives. IOS was rotten to a core, and the poorly informed customers fell prey to the aggressive sales force hungry for rich commissions. These same customers then were locked into what eventually proved to be a relatively illiquid and fraudulent investment vehicle. To top it all off, the customers were penalized with sub-par performance.
Key IOS offerings below:
1) Ticket into diversified stock market -- IOS operated overseas, first targeting US ex-pats living abroad, and then targeting the local well-to-do who did not want to confine their wealth to local currency or assets (read, money laundering). To be fair, people living in societies where capital movement is severely restricted deserve more choice. IOS provided that service, but did so illegally, and made sure to fleece its customers with fees. As for US ex-pats, and those living in more developed markets; well, they paid dearly in fees to be taken for a stock market ride... People are more gullible than one might suppose.
2) Money management -- IOS ran a fund of funds but also controlled some of the funds and investments directly or de facto. It appears that on average, IOS investments/fund managers did not outperform their peers. Worse, to register healthier NAV, the company had to resort to accounting chicanery, insider dealings, and inflated valuations in speculative ventures, such as oil and gas drilling rights in the Canadian Arctic!
3) Self-enrichment and fraud -- in this regard Ed Cowett and Bernie Cornfeld were the top two scumbags. People who made a killing were the senior executives and top sales reps. Commissions were rewarding, and eventual IPO of the IOS stock allowed some cashing out for insiders, though not to the extent they hoped, as the business began to sputter and run out of cash when the stock market slowed down/declined.
The book was published in 1971, and since then, IOS story has had a few more updates (thanks to google and NY Times obituaries). Most notably, in 1973 Robert L. Vesco (the purported savior of IOS) was accused of stealing $220 mm from IOS and became a fugitive. Bernie Cornfeld went to jail in 1973, but spent only 11 months there, and was later acquitted of charges. He died in 1995 at the age of 67, rich but defeated. Ed Cowett died of a heart attack in 1974 at the age of 44. It blows my mind that these greedy white collar criminals never properly paid for their crimes, other than with reputation loss and diminished riches.
My takeaways... be careful who you trust and understand their underlying motives. Avaricious people in any profession usually spell trouble.
Key IOS offerings below:
1) Ticket into diversified stock market -- IOS operated overseas, first targeting US ex-pats living abroad, and then targeting the local well-to-do who did not want to confine their wealth to local currency or assets (read, money laundering). To be fair, people living in societies where capital movement is severely restricted deserve more choice. IOS provided that service, but did so illegally, and made sure to fleece its customers with fees. As for US ex-pats, and those living in more developed markets; well, they paid dearly in fees to be taken for a stock market ride... People are more gullible than one might suppose.
2) Money management -- IOS ran a fund of funds but also controlled some of the funds and investments directly or de facto. It appears that on average, IOS investments/fund managers did not outperform their peers. Worse, to register healthier NAV, the company had to resort to accounting chicanery, insider dealings, and inflated valuations in speculative ventures, such as oil and gas drilling rights in the Canadian Arctic!
3) Self-enrichment and fraud -- in this regard Ed Cowett and Bernie Cornfeld were the top two scumbags. People who made a killing were the senior executives and top sales reps. Commissions were rewarding, and eventual IPO of the IOS stock allowed some cashing out for insiders, though not to the extent they hoped, as the business began to sputter and run out of cash when the stock market slowed down/declined.
The book was published in 1971, and since then, IOS story has had a few more updates (thanks to google and NY Times obituaries). Most notably, in 1973 Robert L. Vesco (the purported savior of IOS) was accused of stealing $220 mm from IOS and became a fugitive. Bernie Cornfeld went to jail in 1973, but spent only 11 months there, and was later acquitted of charges. He died in 1995 at the age of 67, rich but defeated. Ed Cowett died of a heart attack in 1974 at the age of 44. It blows my mind that these greedy white collar criminals never properly paid for their crimes, other than with reputation loss and diminished riches.
My takeaways... be careful who you trust and understand their underlying motives. Avaricious people in any profession usually spell trouble.
July 18, 2022
Do You Sincerely Want to Be Bored? Try this one. I bought my copy about a decade ago and it sat on my shelf. In May, I told myself that it was now or never and took the plunge. Well, that was a bad idea.
Bernard Cornfeld and IOS are a good story. Authors Charles Raw, Bruce Page, and Godfrey Hodgson have the goods on Bernie and his cronies, but they can’t make the story very interesting. Do You Sincerely Want to Be Rich? goes into mind-numbing detail on IOS’s shady operations in country after country. It’s dull and detailed to a degree that will “grab” only those with a deep interest in finance and accounting.
To be fair, there are some good stories. In the authors’ telling, Cornfeld was a charming con artist. And Cornfeld wasn’t the only larger-than-life character involved in the IOS swindle. President Franklin Roosevelt’s son, James, worked for IOS and Bernard Cornfeld’s girlfriend at the time was a soon-to-be-famous actress named “Vicky” Principal. It’s unfortunate that the authors didn’t see that people - not numbers - keep the pages turning.
At 459 pages, this one definitely needed editing. (300 pages would have been better). Too bad, Mr. Raw and his co-authors didn’t hire a wordsmith to tell the sordid tale of IOS. My copy is headed straight to the Salvation Army.
Bernard Cornfeld and IOS are a good story. Authors Charles Raw, Bruce Page, and Godfrey Hodgson have the goods on Bernie and his cronies, but they can’t make the story very interesting. Do You Sincerely Want to Be Rich? goes into mind-numbing detail on IOS’s shady operations in country after country. It’s dull and detailed to a degree that will “grab” only those with a deep interest in finance and accounting.
To be fair, there are some good stories. In the authors’ telling, Cornfeld was a charming con artist. And Cornfeld wasn’t the only larger-than-life character involved in the IOS swindle. President Franklin Roosevelt’s son, James, worked for IOS and Bernard Cornfeld’s girlfriend at the time was a soon-to-be-famous actress named “Vicky” Principal. It’s unfortunate that the authors didn’t see that people - not numbers - keep the pages turning.
At 459 pages, this one definitely needed editing. (300 pages would have been better). Too bad, Mr. Raw and his co-authors didn’t hire a wordsmith to tell the sordid tale of IOS. My copy is headed straight to the Salvation Army.
October 31, 2016
An exceptional story of the times. As one who was marginally involved in the actual saga then (and rereading it again 30 years later) it was an excellent intro the real - barely believable - business world. Nothing has changed, except for the vastly larger sums involved today. It still is a good textbook and a good story, especially for those of you who aren't caught up in the real world outside of your alma mater.
Displaying 1 - 3 of 3 reviews