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Thread: greatest creation of individual wealth in the history of finance |
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Thread Status: Active Total posts in this thread: 7
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retsof
Former Community Advisor USA Joined: Jul 31, 2005 Post Count: 6824 Status: Offline Project Badges: 
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I added the red.
----------------------------------------http://www.marketwatch.com/news/story/hedge-f...%2D87CE%2DED1CFB14FCC5%7D Top hedge-fund managers had the greatest payday in the modern history of finance during 2007, according to Institutional Investor's Alpha magazine. The publication released its seventh annual ranking of the top-paid managers on Wednesday. The top spot in Alpha's 2007 rankings went to John Paulson of Paulson & Co., who took in a record $3.7 billion. Paulson gained attention by his investment strategy to short the subprime mortgage market. According to Alpha, the top 25 managers averaged $892 million in earnings, up 68% from the $532 million they earned on average in 2006. Five managers earned more than $1.5 billion -- a reflection of how much the industry has grown and how much money was to be made in high-powered finance, even in a year of crisis. The magazine counted managers' share of fees plus gains on their own capital but excluded money that some managers made by selling their firms or taking them public. The managers typically take 2% of the assets under management as a fee, plus 20% of the profits of the fund. The magazine said "the greatest display of individual wealth creation in any year in the modern history of finance" would likely spur a "heightened level of envy and resentment" toward the funds, in light of the rising number of home foreclosures.
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Former Member
Cruncher Joined: May 22, 2018 Post Count: 0 Status: Offline |
Sounds like a gutsy Evel Knievel of finance. The dream of every short-seller is to correctly time a financial collapse in order to profit from it. The problem with short-selling is that there is unlimited potential loss but only limited potential gain (if the price falls to 0). Also, even if the market price is obviously too high ('what goes up must come down') there is no way to guess when the downturn will come. For example, comparing land with national income, Great Britain seems to have real estate prices that are much more overpriced than American mortgages before the bust, but - so far - they are just slowly declining. I still remember the Japanese real estate bubble, when the (theoretical) value of a square mile in Tokyo was almost enough to buy Canada and California. (Granted, that was during the last big USA real estate bust - the Savings&Loan bust.)
----------------------------------------And I happen to hold stock in a NC bank (Wachovia) that paid 26 billion for a California mortgage company in 2006.  Charlotte NC is one of the few cities where real estate prices are still going up. The largest local insurance company in SC bought a California insurer a generation ago and barely avoided a Chapter 7 bankruptcy a few years later. People tend to measure the situation elsewhere by a yardstick that fits their local situation. The Japanese used to be willing to pay any ridiculous price for foreign (undervalued) real estate.Added: Lest anyone ask me for stock market advice, I had better hastily add that my big sister called me for information yesterday. She sold her Wachovia stock last year and needed to know the basis price for tax purposes. She does not even know how to look that up. The stock had already fallen so far back then in 2007 that she did not quite double her money.   So why didn't I sell?[Edit 1 times, last edit by Former Member at Apr 16, 2008 7:40:35 PM] |
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retsof
Former Community Advisor USA Joined: Jul 31, 2005 Post Count: 6824 Status: Offline Project Badges:
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That's pathetically funny for a specific reason.
----------------------------------------I have had stockbrokers from A.G. Edwards (now a branch of Wachovia Bank) calling, and even knocking on the door. Weird. A couple of weeks ago, I had a call I was just waiting for: Hello, this is Rachel from Wachovia Bank. IS THAT REALLY A GOOD IDEA? Why? You tell me. THE WACHOVIA BRANCH IN MY NEIGHBORHOOD WAS ROBBED THREE TIMES LAST YEAR. Uhhh. Thank you. Good bye. (It's only 2 years old, but is turning my neighborhood into a high crime area) So why didn't I sell? Who was the smart one??? Hedge-fund managers get biggest payday in history
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----------------------------------------Work+GPU i7 8700 12threads School i7 4770 8threads Default+GPU Ryzen 7 3700X 16threads Ryzen 7 3800X 16 threads Ryzen 9 3900X 24threads Home i7 3540M 4threads50% [Edit 2 times, last edit by retsof at Apr 17, 2008 12:34:11 AM] |
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JmBoullier
Former Community Advisor Normandy - France Joined: Jan 26, 2007 Post Count: 3716 Status: Offline Project Badges:
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retsof, why don't you build your endless links this way:
----------------------------------------Hedge-fund managers get biggest payday in history That would leave readers of your thread free to choose the font size they prefer without having to horizontally scroll... Cheers. Jean.  |
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retsof
Former Community Advisor USA Joined: Jul 31, 2005 Post Count: 6824 Status: Offline Project Badges:
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retsof, why don't you build your endless links this way: Hedge-fund managers get biggest payday in history That would leave readers of your thread free to choose the font size they prefer without having to horizontally scroll... Cheers. Jean. That's possible. I see what you're doing. I get mixed up with the forum format here, as compared with phBB, not to mention HTML. In the meantime, David Autumns wanted a hockey stick graph, so there's a giant one in the greenie thread, requiring a right scroll. Oh well.
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Former Member
Cruncher Joined: May 22, 2018 Post Count: 0 Status: Offline |
there is a lot of luck in some of these 'gambles'.
so where do we find the biggest losers? like joe lewis who lost 800 million of his own money while investing in bear sterns. http://business.timesonline.co.uk/tol/busines...inance/article3558485.ece and bill miller of legg-mason, a former hot-shot manager now with huge losses 2 years in a row http://www.philly.com/inquirer/business/20080...er_s_Legg_Mason_fund.html |
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JmBoullier
Former Community Advisor Normandy - France Joined: Jan 26, 2007 Post Count: 3716 Status: Offline Project Badges:
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Regarding the greenies thread they can make it 20-screen wide if they want, I don't care. I have given up several months ago expecting anything useful (i.e. honest and reasonable) from this thread.
---------------------------------------- Paraphrasing some famous person about war I would say that environmental matters are something so important that it should not be left to greenies... Cheers. Jean. |
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