What could you buy if you had an extra $6.5 billion?
I did a little research, and have a few suggestions:
- You could but a brand new Porsche Boxter for every man, woman, and child in Connecticut’s capital city of Hartford and have $91,364,000 in change.
- You could fund the total economy of Kyrgyzstan, Guinea or Somalia (by matching their GDP) and let everyone take the year off.
- You could buy any of the following companies in cash: Advance Auto Parts Inc. (NYSE: AAP), Teco Energy Inc. (NYSE: TE), and the makers of my favorite soy sauce – Kikkoman Corp. NPV (OTC: KIKOF)
The bottom line is, $6.5 billion is a lot of cash.
But what if I told you that 11 years ago, that same amount was lost by the Amaranth Advisors LLC hedge fund in the space of one week.
Branded as the biggest hedge fund collapse in history, the culprit behind the fund’s demise boiled down to one tragic mistake.
Brian Hunter – the trader that single-handedly accounted for the largest hedge-fund meltdown since records began – ignored one of the most important lessons you can learn as an investor – Proper position sizing.
Proper position sizing is widely overlooked among investors – making it a potentially disastrous – and costly- trading lesson.
Fortunately, for us, our 10-Minute Millionaire system is designed to save us from making the same financially catastrophic mistakes as Mr. Hunter.
View this page online: https://10minutemillionaire.com/2017/10/would-a-6-5-billion-loss-help-you-remember-this-crucial-trading-lesson/