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There was a story about a couple from Texas that loaded up with most of their personal wealth on Dell stock near its IPO point. Dell had IPO'd at a particularly
by adventureful 14y ago
There was a story about a couple from Texas that loaded up with most of their personal wealth on Dell stock near its IPO point. Dell had IPO'd at a particularly low price point (so cheap, $0.05 / share, that you'd still have a 240 fold return today from that first year potentially), so it didn't take much to see huge wealth returned.
So as the stock kept going up, they kept leveraging up higher. They started from a few hundred thousand invested, ended up around $40+ million (Dell was a 1,000 bagger in ten years), but were carrying some insane leverage against it like $12 to $15 million at the peak. Never heard a follow up story, but they claimed they planned to just keep letting it ride and pushing the leverage up to boost returns - they had no concerns about a crash.