Wednesday :: Mar 4, 2009

Open Thread


by Mary

Satyajit Das, the world's expert on credit derivatives (he wrote 3 volumes on this topic), relayed this investment story for 2008:

The best investment story of 2008 relates to a banker who had a modest shareholding in his employer – a storied investment bank. Upon being transferred to London, he sold the stock to finance a Range Rover. As business in London turned down, the banker was transferred to Dubai.

When selling his Range Rover, he suffered a loss of around 50% of the price he paid barely six month ago. The interesting thing was that the proceeds from the sale of the car (despite the 50% loss) would have allowed the banker to purchase five times the number of shares he sold to finance the car. 2008 is perhaps the only year on record in which a distressed price for a Range Rover outperformed equities.

It just goes to show that sometimes your bad luck can turn out to be good luck.

Mary :: 12:00 AM :: Comments (10) :: Digg It!