At his height in early 2012, he was worth US$32 billion and ranked as the seventh richest man in the world. But by July 2013 his wealth had plummeted to US$200 million. And by 2014, Bloomberg reported that he had a negative net worth.
There are bloggers, journalists and professional investors writing about markets everyday. The problem is that not all of what is written is market friendly.
This is an issue that could prove extremely divisive in the coming decades. While a lot of focus has been placed on the benefit of a fourth industrial revolution – where automation takes part in – the social costs have not really been thought through or planned for.
In this new information age there is a new battlefront, and it’s not the South China Sea. Who controls the flow and creation of data is arguably more of a geopolitical game-changer than China’s assertion over the mineral rights in these troubled waters.
The whole thing is made of glass. I will probably smash that lovely screen that costs $279 to fix. I also don’t want to pay a thousand bucks to look like an animated animal. Nor do I want the phone fire a billion lasers at my face just so I can open it. Find out why I didn’t buy the iPhone X.
So what is the best forward-looking way to protect yourself against the next correction? I strongly believe you need try to understand the company’s fundamentals. This is tricky if you’re invested in an index. But if you don’t, you’re not really taking market risk seriously.
There are many way to look at risk and you can construct an index in a very active way. Ultimately, investors need to pick the best route that gets them where they want to go, and that depends on how long the journey is, and how much they want to see along the way.
You’re walking in the street with a suitcase filled with $100,000. And, before you ask, you’re not a member of the Italian mafia, a drug baron or a corrupt foreign government official from a collapsed state. You’re just you.
I am well aware of some of the industry’s weaknesses. However, what I wanted to share with you is what inspired me to act. This is what has motivated me on my journey, five asset management firms later.