Dealmakers, investors and employees of Salem-based Sunwest Management say they have learned from the company’s collapse. Lesson number one: Don’t get greedy.
Investors, residents and employees who were involved with Salem-based Sunset Management say there are lessons to be learned from the company’s multi-billion dollar liquidation.
Sunwest’s 1,200 investors lost $750 million.
Sunwest financed its rapid expansion by taking on $1 billion in debt. At the same time, the company told thousands of investors to expect double-digit returns. The strategy proved to be too much, too fast.
The lesson of the Sunwest story is: “Don’t get greedy,” [turnaround specialist Clyde] Hamstreet said. “That applies to investors who thought they were going to get 10 or 12 percent returns — and the people who took their money to build an empire.”
Read more at The Register-Guard.
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