I'm not sure if I get targeted by various investment firms because I'm the president of Cate Enterprises (which consists of only myself) or if everyone gets these phone calls, but I get a lot of phone calls from various firms who want me to invest through them. They've recommended oil right before it did a spike, right before it dropped from $150, gold is undervalued, gold is overvalued, and various other investments which haven't done well. So far I've politely refused, but I'm getting annoyed with the phone calls. They want to "establish a relationship" or "do a handshake" by doing some "small" starting investment of $2-3,000.
I figured out why they want this.
Either way, they get a commission out of me.
They'd prefer the investment go up because then they'll likely get to do another investment for me, getting more commissions. But even if the company goes broke, they at least got that first commission out of me. So they have a 50% chance of getting their investment right, getting to do a new investment for me. And if they get it wrong, there is still a chance I'm lazy and won't get the money out from them.