5 ms·

Masayoshi Son should really be a mod in r/wallstreetbets

boeingUH60 3y ago
Alongside Bill Hwang, who famously lost $20 billion by excessive leverage. https://www.bloomberg.com/news/features/2021-04-08/how-bill-hwang-of-archegos-capital-lost-20-billion-in-two-days https://www.bloomberg.com/news/features/2021-04-08/how-bill-...
- yieldcrv 3y ago
  Hwang is the greatest. Most rich people just get comfortable/scared and go to index funds while there was absolutely no reason to stop given the amount of liquidity in the public markets. Ironically he ran out of liquidity, but it was a great example of what's possible.
  - s5300 3y ago
    [dead]
- loeg 3y ago
  Made the $20B through excessive leverage, too.
  - unyttigfjelltol 3y ago
    Tale old as time, they never quit when they're ahead.[1] [1] https://en.m.wikipedia.org/wiki/Jesse_Livermore https://en.m.wikipedia.org/wiki/Jesse_Livermore
    - NotYourLawyer 3y ago
      Hwang couldn’t have unwound his massive positions without crashing the prices. There was no quitting while you’re ahead for him. I still really don’t understand what game he was playing.
      - prottog 3y ago
        He definitely could have unwound his positions quietly over time. He'd have moved prices, sure, and his profits would have been less than what was marked to market, but nothing would have crashed. Forced selling from margin calls is what crashes prices.
        loeg 3y ago
        My impression is it is not at all clear that he could have unwound in a profitable way. If he could have, why did he miss the margin call? He was leveraged to fuck and sunk every little price increase into further leverage.
        prottog 3y ago
        With the caveat that I am certainly no expert, my understanding is that he blew up when VIAC issued a secondary offering, which flooded the market with new shares at a lower price, triggering a margin call then forced liquidation. So there was an exogenous shock. Of course, the kind of mindset that would have him take profits is not the kind of mindset that got him to such leveraged paper gains to begin with.
        NotYourLawyer 3y ago
        1. Buy lots of stock quickly and loudly. 2. Sell it slowly and quietly. 3. Profit! I don’t think this is how markets work.

Alongside Bill Hwang, who famously lost $20 billion by excessive leverage. https://www.bloomberg.com/news/features/2021-04-08/how-bill-hwang-of-archegos-capital-lost-20-billion-in-two-days https://www.bloomberg.com/news/features/2021-04-08/how-bill-...

yieldcrv 3y ago
Hwang is the greatest. Most rich people just get comfortable/scared and go to index funds while there was absolutely no reason to stop given the amount of liquidity in the public markets. Ironically he ran out of liquidity, but it was a great example of what's possible.
- s5300 3y ago
  [dead]
loeg 3y ago
Made the $20B through excessive leverage, too.
- unyttigfjelltol 3y ago
  Tale old as time, they never quit when they're ahead.[1] [1] https://en.m.wikipedia.org/wiki/Jesse_Livermore https://en.m.wikipedia.org/wiki/Jesse_Livermore
  - NotYourLawyer 3y ago
    Hwang couldn’t have unwound his massive positions without crashing the prices. There was no quitting while you’re ahead for him. I still really don’t understand what game he was playing.
    - prottog 3y ago
      He definitely could have unwound his positions quietly over time. He'd have moved prices, sure, and his profits would have been less than what was marked to market, but nothing would have crashed. Forced selling from margin calls is what crashes prices.
      - loeg 3y ago
        My impression is it is not at all clear that he could have unwound in a profitable way. If he could have, why did he miss the margin call? He was leveraged to fuck and sunk every little price increase into further leverage.
        prottog 3y ago
        With the caveat that I am certainly no expert, my understanding is that he blew up when VIAC issued a secondary offering, which flooded the market with new shares at a lower price, triggering a margin call then forced liquidation. So there was an exogenous shock. Of course, the kind of mindset that would have him take profits is not the kind of mindset that got him to such leveraged paper gains to begin with.
      - NotYourLawyer 3y ago
        1. Buy lots of stock quickly and loudly. 2. Sell it slowly and quietly. 3. Profit! I don’t think this is how markets work.