I don't know where to ask this and found this forum to be relatable since it is Malaysian. Throwaway for obvious reasons.
My dad was from a wealthy family. Few years ago, his parents passed away and the sale of his parents' house together with fixed deposits gave him around RM4 mil cash to invest.
He already spent RM1m. With remaining RM3m, he put RM1.5m into monthly fixed deposits.
He used the RM1.5m to invest into stockss. However, the stocks he picked are extremely risky.
I did not know about what he did until I peeked at his files.
He was holding RM800k in a single stock (do not wish to mention here), RM50k in another, RM120k in some stupid cheap worthless stocks (I believe he already lost RM350k buying these).
My mother does not know anything about finance. She just listens to his 'stock' advice and buys without even understanding a single thing.
In the past, his father (my grandfather) has lost a lot of money during the financial crisis too.
Unfortunately, he did not learn from his father and did not diversify.
I'm afraid he will lose more because:
I had constantly told him to diversify. He argued that no need diversify.
He accused me that I lost a bit of money in stocks (around 10%) when he personally lost up to 70%. He also decided to conceal this from our family.
He has made money in 2002 whereby several stocks he picked went up a lot (due to recession). However, his gains were unable to cover his loss today.
I wanted to confront him about it but he will likely get defensive and argue that it's his money so his choice. I know people will say it's not my concern because it's his money but at least he should leave something for the next generation.
He lied to his family that he did not buy any stocks last year when he was sitting at a 70% loss.
What I''m concern is that the RM800k he put into a single stock is extremely risky. He does not cut loss if it falls further and plans to average down. Right now, his investment in this RM800k stock is a positive 2% but I fear that it will be a loss if he holds further.
He boasts about how good and experience he is in the share market. He does not have any qualification or knowledge about financial statements. Sometimes I feel he buys because of feeling.
Maybe the RM300k+ loss is small to him. I would say his net assets is around RM9 million to RM10 million consisting of property, shares, fixed deposits.
He does not have a full time job and collects rental from properties.
I do believe that he does not ever cut loss because of ego and because it is admitting he made a mistake. I just got to know that he was still holding 100,000 units of a delisted stock in 2010.
Note: I peeked at his personal documents. If I were to confront him, he will know I did not respect his privacy.
Does anyone have similar experiences and know how to handle people like these? What do you think I should do?
Stock market gambling addiction, Need advice..