Are we really supposed to feel sorry for this guy?

[maddogchen]

you read it completely wrong, its not a sad story, its a warning of how risky it is to be so heavily invested in one company. people need to diversify. Bear Sterns employees who did not diversify and suffered losses in their portfolio because of the fall should serve as an example to others just like Enron.

Company stock should be at max 20% of your investment portfolio.

 

[sandorski]

Originally posted by: maddogchen
you read it completely wrong, its not a sad story, its a warning of how risky it is to be so heavily invested in one company. people need to diversify. Bear Sterns employees who did not diversify and suffered losses in their portfolio because of the fall should serve as an example to others just like Enron.

Company stock should be at max 20% of your investment portfolio.

Should have e-mailed the dude a year back or so!!


Which raises a question in my mind: Do we know if that's all he had? Wouldn't surprise me if he hhas 10's of millions more somewhere else.

 

[amoeba]

Originally posted by: Special K

Originally posted by: amoeba
Those who say that if they had 61million, they would put it in a high interest savings account and live off the interest will never have 61million short of hitting the lottery.

The ultra rich didn't get that way by aiming and settling for creature comforts or they could have stopped much earlier.

Obviously one will never amass $61 million by investing in savings accounts, but after one has already accumulated that much wealth via riskier and more ambitions means, and is now in a different stage in life, is it such a bad idea to hold your money in safe investments and live off of the proceeds?

My point is he didn't get that much money because he needs the money to live off of. The money is likely a measuring stick of his success.

I don't feel sorry for him but at the same time I can't imagine what losing $930 million and a few billion for investors feels like. I would imagine that if I were in his shoes, I wouldn't feel so good about losing other people's money and losing most of my net worth despite having more than ample to live with.

I mean granted I don't personally know the guy and he could be of the "haha bitches, I still gotz 61 million" attitude, but somehow I don't think he got to his position with such an attitude.

 

[JeffreyLebowski]

Originally posted by: MrChad
So if you lost 94 percent of your net worth in a year we shouldn't feel badly either I'm guessing?

If I had $61 million dollars after running my company into the ground I'd be happy as a clam.

 

[JeffreyLebowski]

Originally posted by: Throckmorton

Originally posted by: Mwilding
It is amazing how socialist everyone gets when they talk about the money of someone with more than them...

"Socialism" is what let him walk away with $61 million instead of NOTHING.

I think this is where China has it right. Screw your company up and make the country look bad, they kind of expect you to kill yourself, or they can do it for you.

 

[BUTCH1]

Originally posted by: EXman

Originally posted by: BUTCH1
How in the hell could any investing bank ever get involved in the subprime mess is beyond me, a lot of those loans were of the "no-doc" variety, pure garbage...

I got a No-doc loan it rocked of couse I have great credit and 20% down that doesn't hurt easiest loan I ever had.

A lot of people got loans they had no business getting, when I qualified for my mortgage
it was a lengthy affair with much paperwork and took weeks. The bank then told me
how much house I could buy with the P+I not to exceed 37% of my income. During the
"boom" years banks got away from that type of discretion and were tossing money
around like crazy. No credit??, don't worry, No employment verification??, don't worry,
no down payment??, don't worry, we'll get you a loan...

 

[JJChicken]

Originally posted by: JeffreyLebowski

Originally posted by: MrChad
So if you lost 94 percent of your net worth in a year we shouldn't feel badly either I'm guessing?

If I had $61 million dollars after running my company into the ground I'd be happy as a clam.

Not if you lost >$939m

 

[puffff]

Originally posted by: amoeba
Those who say that if they had 61million, they would put it in a high interest savings account and live off the interest will never have 61million short of hitting the lottery.

The ultra rich didn't get that way by aiming and settling for creature comforts or they could have stopped much earlier.

:thumbsup: x 1000

 

[Phokus]

The banking industry is the ultimate moral hazard as we taxpayers have to bail them out when they fail. In this case though, the CEO paid for it.

Might not be a bad idea to require executives at these banks to have a high percentage of their investments tied to the banks they work for. Maybe then, we won't see ridiculously risky investments by these banks that cause these bubbles.