Otto von Bismarck once said, everyone seems to think it's best to learn from one's mistakes, but I prefer to learn from other people mistakes.
@TheNefastor
3 жыл бұрын
It's supposed to be what sets us apart from animals.
@rockyfjord3753
3 жыл бұрын
Historical Reason is learning to avoid making the same mis-takings of the past. Ortega y Gasset, Spanish philosopher, died in 1955.
@SkandalRadar
3 жыл бұрын
Bismarck also said: "The first generation earns the money, the second manages the fortune, the third studies art history (today gender studies) and the fourth completely goes to waste."
@deelag5444
3 жыл бұрын
you still learn better after you burn yourself... when you learn from someone else, you tend to forget... When you have made a mistake in a certain situatioin, you will be more likely to remember and be more cautious... Otto von Bismarck just wanted to sound smart with that quote...
@TheNefastor
3 жыл бұрын
@@deelag5444 I don't know... I never burned myself and I never forget that fire burns. Bismark has a point, simply it applies only to intelligent people.
@tinomorgenstern3430
3 жыл бұрын
"But Adolf had even greater ambitions...". That sentence never ended well.
@benyameenyitzhak1036
3 жыл бұрын
I laughed way too hard at this
@kafkaesk3449
3 жыл бұрын
It's always has to be a guy named Adolf
@Adrian_Nel
3 жыл бұрын
Yeah, failed artist, failed pharmacist, Volkswagen, and a train involved in his final solution. This is dark, I know.
@marktimmer2212
3 жыл бұрын
Nice try morningstar, i almost laughed
@victorholmlund6480
3 жыл бұрын
@@marktimmer2212 brah, noone knows who morningstar is. stop calling him that
@nomex9829
Жыл бұрын
He did not lose everything, only the thing most precious to him: absolute power. It was clear that to cover the margin call he would have to give up his majority position in Ratiopharm which he could not bear. After his death his oldest son took over, sold Ratiopharm, successfully restructured the rest of the holding, and is worth > 10 billion today.
@TrustMeIKnowEverything
Жыл бұрын
Erm no he's worth about 6billion. As far as I know 6 isn't more then 10.
@SylvainOfGandahar
Жыл бұрын
@@TrustMeIKnowEverything 6 or 10 depending on valuation or share price - regardless certainly no reason to off yourself.
@TrustMeIKnowEverything
Жыл бұрын
@@SylvainOfGandahar errrm he's worth 6bill. What are you talking about offing yourself.
@TrustMeIKnowEverything
Жыл бұрын
@SylvainOfGandahar different people bro 🤦🤦🤦🤦
@SylvainOfGandahar
Жыл бұрын
@@TrustMeIKnowEverything He offed himself despite his son building back the company to 6 bio. a few years later. He probably thought that the problem was more substantial. Heck - in a few decades the family assets could reach higher levels than before. He could have played golf and let his son do the work.
@SafetyBriefer
3 жыл бұрын
Lost most of my businesses being over leveraged? Better short stocks to make it up.
@wallstreetmillennial
3 жыл бұрын
literally cannot go tits up
@marilynlucas5128
3 жыл бұрын
The same thinking that made him was the same thinking that plagued him. How can he ever think he was crazy? Somethings got to kill you at some point.
@mohammedzohair4035
3 жыл бұрын
He has made HIGHLY stupid investments. No thinking just emotion, don’t even know how he became a billionaire, just by mistake probably.
@fliu5282
3 жыл бұрын
One stupid Jack-ass sweet talked by stock-swindler, oil salesman and con-artists-investment bankers got $50 mil fees for arrange the deal in Hellderberg Cement. Well, you are now buried in it.
@Kni0002
3 жыл бұрын
Would of been better off holding
@rockyfjord3753
3 жыл бұрын
Greed becomes an addiction. The problem is one of not acknowledging limits.
@AlexanderTheGoodEnough
3 жыл бұрын
It would be too much to ask the impulsively self indulgent to have perspective.
@AlexanderTheGoodEnough
3 жыл бұрын
@Kim Jong Un oof! I had wondered what you'd been up to recently. Haven't heard much out of the DPRK in a while, figured you ended up on the wrong side of a coup. Btw, is that sister of yours single?
@AlexanderTheGoodEnough
3 жыл бұрын
@The Mutt with no Butt at least he has a butt....that he should have been more content just to sit upon.
@samsonsoturian6013
3 жыл бұрын
Tell that to GME pumpers.
@prepaidtrash5552
3 ай бұрын
@@AlexanderTheGoodEnoughgreed is a matter being human, funny you say that from a position of a peon. If you had an ounce of his power you would surely act similarly
@conspiracyman8353
3 жыл бұрын
"To err is human, but to really foul things up requires leverage."
@slavenrasic2173
3 жыл бұрын
You are never too rich to leverage
@TheNefastor
3 жыл бұрын
@@slavenrasic2173 all evidence to the contrary.
@rockyfjord3753
3 жыл бұрын
Who said that?
@chikafujiwara9889
3 жыл бұрын
Godly advice
@nick4506
3 жыл бұрын
@@TheNefastor did you watch the video?
@SylvainOfGandahar
Жыл бұрын
The saddest part was actually that his suicide was premature. His son Ludwig managed to restructure this huge conglomerate of over 100 companies. The Merckle family is worth billions again or at least hundreds of millions of Euros. He literally jumped the gun too early - he could have surrendered the business to his most capable son Ludwig as planned and enjoyed playing golf and tennis. A couple years later everything would be back to easy mode since he wasn't really poor when he ended his life.
@leonrobinson8180
3 ай бұрын
No one can see the future. Plus the shame was too much.
@SylvainOfGandahar
3 ай бұрын
@@leonrobinson8180 Trump was technically bankrupt and the same goes to this guy. He just reacted differently. And by technically I really mean technically, because someone truly bankrupt is not jumping back to 4 bio. $ net assets like the family of this man. What many end-stage billionaires end up doing is siphoning off a couple hundred mil and then living off that for the rest of their lives. He could have done that as well and let his son take over just as he did anyway after his death.
@AntonyMBenedict
3 жыл бұрын
A very valuable lesson for all of us is how leverage and short selling can ruin everything.
@AL_THOMAS_777
2 жыл бұрын
AND: dont worship/adore CRUDE money !!
@tensevo
3 жыл бұрын
The problem was he was convinced that he was right, and that the market was wrong. But, The market does what it does. It cares not for what is right or wrong. The price is what the price is.
@deeeznutzzz4336
2 жыл бұрын
Exactly! It took me three years to learn this but I no longer counter trend trade and I react to forex vs speculating forex. That mindset has made me profitable in forex! Happy trading !
@tensevo
2 жыл бұрын
@@deeeznutzzz4336 Not many ppl are able to accept that fact. Those who accept that the more they know, the less they know, have access to untold wealth.
@rathelmmc3194
2 жыл бұрын
He was right, just bad timing.
@fritz3135
3 ай бұрын
@@deeeznutzzz4336could you elaborate?
@seapeaaye371
3 жыл бұрын
This highlights the rat race mentality hiding in most of us. Once you taste success you can never stop wanting more making you chase this cheese that’s actually outside the wheel. You desperately run faster and faster until you slip and lose everything. LESSON: Don’t be cheesy!
@540Abd
3 жыл бұрын
Bet big and win big, get it wrong once and it's game over 😂
@Inocenciojamil
2 жыл бұрын
@@540Abd im against that because its only game over if you already give up you dont lose if you still know you can rise again even after you lose everything especially fortune but this guy is old so basically he cant take it and just decided to end his life to solve it😌
@prepaidtrash5552
3 ай бұрын
lol isn’t it funny how people blame billionaires, but if most of us were in their position they’d likely act the same way
@KeyFlew
3 ай бұрын
@@prepaidtrash5552thanks so much. Billionaire hate is so overrated!
@mukeshjobanputra6721
3 ай бұрын
@@540Abdwell said 😂😂😂😂hahaha. I have done this!!
@spde
2 жыл бұрын
Ok, I know that the rest of you may not live in Germany, but the image used when referring to the mansion in central Germany that he used to own is actually a castle called Schloss Benrath in Düsseldorf about 30 minutes from where I live, and nobody is allowed to live there, so that was kind of funny. As always, excellent video!
@rainerwahnsinn2150
3 жыл бұрын
4:44 "He decided that he would short Volkswagen stock." Ohhh, at that point we all know what's coming.
@kevindudson2344
2 жыл бұрын
The Bullet was his timing!
@ApfelNicknack
3 ай бұрын
This was not a traditional short, he didn’t really have an opinion on Volkswagen and neither had the hedge funds involved. The video just gets it plain wrong, it was a play were they thought the delta between the more valuable common stock and the less valuable preferred stock would tighten. So they bought the relatively undervalued preferred stock and sold short the relatively overvalued common stock. What they didn’t anticipate was that Porsche was secretly trying to take over VW and had therefore acquired a large stake in VW. Obviously they needed voting rights this acquiring common stock, when Porsche finally disclosed their stake the short sellers panicked as the German state of Lower Saxony had a 20% stake and the Porsche stake was so high that the short sellers were unable to cover all their shorts. It was quite „perfect“ storm type of scenario.
@alexacosta2140
2 жыл бұрын
The more I learn about the “billionaires” that were around before 2007-08, the more I understand why it HAD to happen. People built entire fortunes on weak foundations because of their assumptions of growth.
@FANAKAFOREX
2 жыл бұрын
Respect leverage or perish
@erikperik1000
2 жыл бұрын
For those in the know, it was easy pickings.
@yashashgc3488
2 жыл бұрын
I think many get away with it under usual circumstances
@jpanda79
Жыл бұрын
Sounds like stuff happening today
@bacool
3 ай бұрын
Much worse today with crypto
@alessandroxiang1214
3 жыл бұрын
"The market can remain irrational longer than you can remain solvent".
@sebastianniqvist3144
3 ай бұрын
I’ve never hear this one but it is 1,000,000,000% true.
@belajar_menggambar
2 жыл бұрын
That why warrent buffet never short stock...
@ytlover7924
3 жыл бұрын
This channel is a gem, hidden gold. Its not enough to learn from your own mistakes as others have done far more and still failed or made fatal mistakes. To succeed you have to know where others failed. And this channel is all about providing that in bite size summaries. Amazing content.
@REgamesplayer
3 жыл бұрын
Pretty much sums up our financial markets. If his timing was different, he would be hailed as a genius, greatest investor of our times like Big Short. Since we heard the other side of the story, we consider him foolish.
@ferror18
3 жыл бұрын
I dont think it was about luck, the reason why Michael bury is a legend it's because the the vision and skills to time the crash.
@REgamesplayer
3 жыл бұрын
@@ferror18 Bury had actually started to short his positions quite early on.
@ferror18
3 жыл бұрын
@@REgamesplayer Well yes before everyone realized he was right. That is still great timing. Terrible timing would be what this men did with cement and shorting vw.
@REgamesplayer
3 жыл бұрын
@@ferror18 It was years before crash. In financial markets, it is a long time.
@ferror18
3 жыл бұрын
The fact that it was years before only makes it the more impressive
@royslapped4463
3 жыл бұрын
I love how so many people are "Billionaires" today! Most just own a bunch of over valued assets. It's like having a company with 1 billion in actual assets and properties but the stock of their company is worth 100billion. They don't have anywhere close to that in actual cash and take out loans with leverage on their company. This is great for them until their company fails or the stock drops and they have billions in loans and only 1 billion in assets which values go down if they have to liquidate.
@daviddarfdas
3 жыл бұрын
Great video. Ratiopharm is huge here in Germany, pretty much anyone knows it. Very interesting to learn about its backstory, despite the tragic ending (especially for Merckle‘s family). Comes to show you that it is never a good idea to put all your eggs in one basket.
@MrManniG
3 жыл бұрын
I found just one little flaw in the video: the 20 percent share in Volkswagen is not held by Saxony but by Lower Saxony (Niedersachsen)
@rodneyfungus8249
4 ай бұрын
Well hat makes all the difference. Absolutely shocking error.
@Annexia_
3 жыл бұрын
"greed, for lack of a better word, is good." Understanding when enough money is enough is called wisdom. If I had billions in the bank I would be on a beach somewhere carelessly laughing my arse off!
@CarlosRodriguez-bu8jq
3 жыл бұрын
that's just because you are a broke-ass chump, like most of us, once you have a certain amount of money, it stops being about it, you get used and chase the high of success. You don't jump in front of a train just because you went from uber-rich to regular rich.
@Annexia_
3 жыл бұрын
You jump in front of a train when you realize your greed ruined you... I am far from broke. I like my ability to live by my terms, make money and laugh at dumbasses that hit those levels and flush it down the toilet.
@edema.3418
3 жыл бұрын
Greed is not good. So much evil has been committed in this world because of greed.
@tensevo
3 жыл бұрын
Nobody has billions in the bank. It's all asset valuations.
@kenan5284
3 жыл бұрын
@@CarlosRodriguez-bu8jq dude get a life you are insulting someone you know nothing about
@Prizax
3 жыл бұрын
Don't use margin to diversify into other assets, and DO NOT short car companies.
@mohammedzohair4035
3 жыл бұрын
Exactly, freaking stupid ass investments he has done which brought his downfall. No proper diversification, super risky, bought BILLIONS of dollars of loans from banks to pay for stakes, highly leveraged. Freakin this was the reason he lost all his BILLIONS. INVEST WISELY!!
@nastyab8003
3 жыл бұрын
Porsche learned about Volkswagen
@mybocks3
3 жыл бұрын
After making the biggest mistake of his life he took swift action: *he made it again.*
@MediaMontero
2 жыл бұрын
My jaw just kept dropping. And when we got to the Volkswagen part, it plummeted past the floor
@dool1002
3 жыл бұрын
If only he learned that money was a means to an end, not the end itself.
@jeffmorin5867
3 жыл бұрын
He made it part of his identity.
@picketf
3 жыл бұрын
He clearly didn't care about the money it was prestige he was after. He founded an investment trust that made 5x on cement. Clearly he was doing very well when things went south, he didn't realize the extent of the crash and wanted to put his wealth on the other side of the scale so he could prove to everybody that his bets were right, that he could weather surfing down the wave by selling EVERYTHING he had in pharma, basically his family's century long legacy - in the end it didn't play out. Markets proved his bets were wrong, cement wasn't more valuable than pharmaceuticals in the long run, it was for a limited time, before the implosion of the housing bubble. By the time he decided to short VW to keep his cement business afloat he had already made the choice to pay with his life. It was never about the money, but about the shame of losing more honor than he could afford. It hurt him to be so fundamentally wrong, so much that he didn't want to keep alive.
@scottwheeler1641
2 жыл бұрын
His children were his assets
@AL_THOMAS_777
2 жыл бұрын
Yup man, its like with concrete: Its NOR an "ugly" stuff PER SE; it all depends on what you are doing/creating with it. Same for money: Little money in the right hands can move much more than billions in the wrong hands . . .
@krisameryckx
3 жыл бұрын
Great channel, dudes!!! Thanks for keep creating this small documentaries! Respect!
@demstaincanada
3 жыл бұрын
The guy still had hundreds of millions. He could've lived off the % interest alone.
@TheNefastor
3 жыл бұрын
Yup. And lived large, too. Must have been insane.
@samsonsoturian6013
3 жыл бұрын
His debt exceeded his net worth. And loss depression is very real.
@kiklocus4660
3 жыл бұрын
is that true?
@kiklocus4660
3 жыл бұрын
@@samsonsoturian6013 but he still has lot of millions though?
@samsonsoturian6013
3 жыл бұрын
@@kiklocus4660 he'd spend a lifetime paying it back and would live in an ordinary home forever. The Irish billionaire who lost everything actually ended up moving into a house down the street from where he grew up. I know you're thinking in terms of Nick Cage's bankruptcy, where the solution to the debt was to star in as many movies as possible, but it is possible for super rich people to literally lose all of it.
@QueenPcontrolstheuniverse
3 жыл бұрын
damn, he did the right thing by liquidating his personal assests to save his company which no CEO would ever do and then he lost everything in the WV short..
@kraitshakti
3 жыл бұрын
Which is why many smart people don’t do the right thing. It often results in a loss when the rest of the business world is not doing the ‘right thing.’
@mukovhemphigalale3408
3 жыл бұрын
03:31 why would one sells his profitable business to cover the losses of a dying one. Liquidate the dying business, sell off all her assets
@darnation8650
3 жыл бұрын
Well, if his big short had worked out the way he anticipated, he would have been hailed as a daring genius. But it didn't.
@ArianrhodTalon
3 жыл бұрын
This. It's great that W$M is surfacing such stories as there's a disproportionate amount of stories floating around on people 'beating the odds' and becoming 'succesful'. Not realizing the vast majority of people who lost money would not be actively talking about it.
@sylar747
3 жыл бұрын
But he didn't need to make that bet in the first place. He was still very wealthy. He was too weak to fight his greed.
@oama2009
3 жыл бұрын
@@sylar747 All of this you have said because he failed.
@Bash70
3 жыл бұрын
Volkswagen's share price did plummet hard after the squeeze. Wouldn't say his decision to short the stock was a bad one, but definitely badly mistimed.
@benjaminfacouchere2395
3 жыл бұрын
I think that's what always happens after a short squeeze, everybody knew this. The problem is when you short (and probably with leverage) and the stock price rises, you have to have the collateral, otherwise your bank will automatically cover the short.
@johnnyboyzZ
3 жыл бұрын
It’s like he didn’t realize his family could live off of a couple hundred million dollars
@Politik-mit-Kopf
3 жыл бұрын
From “Great Skills” to “Greed Kills”
@denny4090
3 жыл бұрын
Very very well said
@AL_THOMAS_777
2 жыл бұрын
😁😁😁 bloody true . . .
@szk4023
3 жыл бұрын
In my opinion, with all that debt before things went south, he was only a billionaire on paper (in truth he was a multi-millionaire with lots of debt). For regular people, it's like buying a $500k home and claiming immediately that your net worth is as much or more. No! Until you've paid in full, it's not really yours, it still truly belongs to the bank! Moral of the story, don't lose sight of reality.
@FuZZbaLLbee
3 жыл бұрын
“Adolf had even greater ambitions” no good will come from that
@thomas.02
3 жыл бұрын
"he decided to short volkswagen stock" me having read about the volkswagen short squeeze: i know where this is going
@rejithretnan8365
3 жыл бұрын
Lol 😂
@vasilo123
3 жыл бұрын
„But Adolf hat ever grater Ambitions“ I see where this is going
@AMCApes
3 жыл бұрын
Ken Griffin, CITADEL
@cannedtuna6114
3 жыл бұрын
Rip Not
@Chris-es3wf
3 жыл бұрын
Lol citadel is making record profits thanks to apes 😆
@erdemb4169
3 жыл бұрын
GME TO THE MOOOON🚀
@Kaizoku_apex
3 жыл бұрын
YOU HAVE 2 YIL KEN
@zxdfssfsd
3 жыл бұрын
GME GO bRrrrr
@samsonsoturian6013
3 жыл бұрын
Let this be a lesson that yes, sometimes even billionaires lose everything.
@willydanneberg8169
3 жыл бұрын
Ms jane is legit and her method works like magic i keep on earning every single week with her new strategies
@pihnana4264
3 жыл бұрын
She helped me recover what I lost trying to trade my self
@kuarjones910
3 жыл бұрын
I think she's the best broker I have ever seen
@tiagosantos8981
3 жыл бұрын
Seeking for her contact details👇
@tiagosantos8981
3 жыл бұрын
+1
@tiagosantos8981
3 жыл бұрын
(725)
@hotmechanic222
3 жыл бұрын
best advice I every received was "out of debt means out of danger"
@zaza6911
3 жыл бұрын
Jeez! What a compelling story! Each and every student graduating in business (I should say "each and every one", period. Actually) should be shown this video. Getting caught in quick sands looks so easy then that teaching how to recognize them first comes very handy.
@Craighetfield2024
3 жыл бұрын
I think the name adolf is very synonymous with the words “failure” and “suicide” in Germany 🇩🇪
@yeetyeet7070
3 жыл бұрын
actually, genocide is the first thing that comes to mind
@SupaL33tKillar
3 жыл бұрын
Little bit racist. That's like saying Anderson is a name synonymous with failure or Mao is a surname for tyranny.
@fortomorrowwehunt8449
3 жыл бұрын
@@SupaL33tKillar no Anderson is a name synonymous with saving the human race from the machines
@jadesmith6823
3 жыл бұрын
Say it as you see it.
@mohammedzohair4035
3 жыл бұрын
Well, I feel ‘Adolf’ the name is synonymous with reaching to the top, and falling deep down, a tale of Uber success, big failure, and finally suicide.. in that case he was destined to lose all his fortune.. pretty poor isn’t it?
@seneca983
3 жыл бұрын
5:23 "An additional 20% of the stock was owned by the German state of Saxony." As a minor nitpick, I think that 20% was owned by *Lower* Saxony, a.k.a. the Real Saxony.
@domsjuk
3 жыл бұрын
Everything about this comment is correct and good.
@ProfAzimov
Жыл бұрын
Doesn't matter to the story.
@AtillatheFun
3 жыл бұрын
1:38 the last time we heard that…well let’s just say it didn’t end well for most of the world.
@ciaranscott7844
3 жыл бұрын
Damn haha
@choibtc6121
3 жыл бұрын
Moral of the story: one put a stop less when short sell, especially when leverage applied. I learned it the hard way with super heavy loss
@kuukeli
Жыл бұрын
thank you for the video
@1greenMitsi
3 жыл бұрын
as you age you should be making less and less riskier investments. I dont understand how a billionaire would be reckless like that and throw it all away. Making an all or nothing bet should only be a thing in your 20s when youre trying to make it
@vivienneduong6541
3 жыл бұрын
There’s no money in the world’s worth dying over. I personally find being poor has its advantages. When you have nothing, everything is better. People are more appreciative when they have little. I’m no billionaire but I have a fair shares of highs and lows in my life. I love it either way. Edit: I forgot to mentioned people are nice to you genuinely when you’re rock bottom. You see who are your real friends. When I had money I worried about the dumbest things, but for good reasons.
@VeryProPlayerYesSir1122
3 жыл бұрын
There is no advantage of being poor. The most important things are ability of being resourceful and being financially responsible.
@vivienneduong6541
3 жыл бұрын
@@VeryProPlayerYesSir1122 Idk about you but for myself I find its like a breathe of fresh air being poor from time to time. It helps me to bring perspectives back into focus. I prefer being rich any day but I’m okay being poor too. All that matters at this stage of life for me is family, happiness, and good health. The rest is bonus.
@oreganodealerlsog8630
3 жыл бұрын
this guy was rich his whole life. he never knew how it is to live from pay check to pay check
@cconstantza3107
3 жыл бұрын
True .. you appreciate more when you have less..
@monicarenee7949
3 жыл бұрын
Growing up poor taught me a lot, but I was a child who didn’t truly understand how much stress and anxiety it caused my parents until I got older. I then witnessed it older and saw how all that stress led to health issues and early death. On the other hand, I now live comfortably but have no desire to get ultra rich, and I don’t let people know how much I make or my net worth. I guess something in between is best? Not too poor that it stresses you out and not pursuing wealth to the point it consumes you.
@zdrux
3 ай бұрын
I find most business savvy people have no idea how to invest/trade the markets.
@HafeezBlackLeg
3 жыл бұрын
Shorting stock after doing his due diligence? man never learn from his mistake and trying to make money fast... stock didnt work that way most of the time, its better to buy and hold for a long time
@VeryProPlayerYesSir1122
3 жыл бұрын
You can't make money fast on the stock market.
@GameFuMaster
3 жыл бұрын
@@VeryProPlayerYesSir1122 of course you can. Just need either luck or prescience. 1 is unreliable, the other doesn't exist.
@Ripcraze
3 жыл бұрын
@@VeryProPlayerYesSir1122 You can, but in 99% of cases it's just pure luck. If anyone knew how to consistently make fast money in the stock market they would be insanely rich very fast.
@mohammedzohair4035
3 жыл бұрын
@@Ripcraze true, 100%
@mohammedzohair4035
3 жыл бұрын
Invest wisely, invest in good performing companies, DIVERSIFY, hold for a long term, make money from its yearly growth, that’s it, no shortcuts to making money on the stock market. Patience is key. And most important, reduce ur risk as much as u can. If u wanna invest like Warren Buffet u need to do the above. No real shortcuts to getting rich.
@trommelbiel
Жыл бұрын
I used to live in Germany and jumping onto moving trains is their favourite way to kill themselves. It occurs a thousand times every year. Really sad. .
@mattweger437
2 жыл бұрын
Moral of the story. Don't fuck with car guys
@ladyj6278
3 жыл бұрын
I love the description given of the world's biggest casino, the Stock Market - which is exactly what it is.
@George-dk5mw
3 жыл бұрын
I guess owning a home is also a casino? Not really. A casino, the odds are always stacked against you and you also have no say or research in your "bet" and risk manageement on a bet....and if you lose you lose all the bet. Stocks, you do have a say in your research, risk managment to loss, and speculation on growth. The stock market is only a casino when you buy (meme) stocks and don't do your own research or manage your risk.
@krisb-travel
3 жыл бұрын
i dont get it, at minimum he would always be able to walk away with 5-10 million.... even after the short going horribly wrong... why not at that point just screw it, time to retire and enjoy time with wife, kids, grandkids and sipping margaritas on a beach?
@ecpgieicg
3 жыл бұрын
he personally guaranteed the loans his investment company made
@meganathan98
3 ай бұрын
I remember Warren Buffett once saying something like it is immensely stupid to put at risk what you have and need to try to get what you don't have and don't need...
@DrunkJackal
3 жыл бұрын
Maybe building wealth was a game to him and just possessing billions wasn't exciting. He needed to actively be working on some new project, or he saw making money as a game, and that was exciting. People need something to do.
@JB-yb4wn
3 жыл бұрын
Should have collected stamps or made a train set or something.
@fearGod8
3 жыл бұрын
leverage is like playing with fire Once it goes against you, it burns everything
@SarahDigsHockey
3 жыл бұрын
He should have been happy with his wife, kids, billions and mansion. Like they say in the movie, "How many yachts can you water ski behind? How much is enough?"
@lehlohonolomakhetha9357
3 жыл бұрын
There's no such as enough yet complete sense of self. I'm always ashamed of the R1 i make forgetting someone in prison would appreciate making it
@sebastianstangassinger4335
3 жыл бұрын
Why is noone talking about how jumping in front of a train is the most asshole thing to do
@domsjuk
3 жыл бұрын
True
@jon3948
3 жыл бұрын
That combined with leaving his family behind makes me not have as much sympathy
@AL_THOMAS_777
2 жыл бұрын
Why so '? I think its pure desperation in its most sadest form . . .
@swedesam
3 жыл бұрын
Ah, the lesson here is if you're self made multi-billionaire, don't risk losing all of it by doing stupid things like a naked short position....you got that Citadel!?
@felixml919
3 жыл бұрын
You got his rise up pretty mixed up: His dad was already dabbling into production when the company was still in the current Czech republic but they got expropriated after WW2 and moved to south Germany. Adolf took over the company in 67 and founded Ratiopharm in 73 with which he made the majority of his money. Phoenix only got founded in 94 and I've never heard of it as a German while Ratiopharm is probably the most famous German drug manufacturer
@Pqndchannel
2 жыл бұрын
What about Bayer?
@funimax4236
3 жыл бұрын
"GREED is sold to us as AMBITION" Russell Brand.
@overman2306
3 жыл бұрын
Russell Brand is a millionaire.
@funimax4236
3 жыл бұрын
@@overman2306 There is nothing wrong with being a millionaire unless I'm missing the point?
@overman2306
3 жыл бұрын
@@funimax4236 No, but there is something wrong with talking socialism while being a millionaire. It could be construed as greed to be a millionaire. Why does he need all that money when there are people struggling financially? Kinda greedy.
@funimax4236
3 жыл бұрын
@@overman2306 I don't agree. Unless he earned it immorally, I see no problem with it. He has since changed his stance about his industry and recognised its pitfalls, it doesn't the mean he has to give it away to prove a point. Being rich is not wrong if you have earned it the right way.
@overman2306
3 жыл бұрын
@@funimax4236 I agree there's nothing wrong with being rich. What I'm saying is that Russell Brand is a champagne socialist. How can a millionaire socialist comment on greed while there are homeless people he could help with his millions?
@tradingwizard562
3 жыл бұрын
If u have hundreds of millions left after a bad luck run,it's time to relax and live off interest. Don't be that greedy.
@carojames6776
3 жыл бұрын
It's having to live with the knowledge that you have lost so much, not what you have left, it's still a bitter pill to swallow and for him it would have been very difficult to live with the guilt and the humiliation.
@exohive5608
3 жыл бұрын
Still had hundreds of million but thought it wasn’t enough 😒.
@kwhyes5619
2 ай бұрын
0:33 hitting on 19 while describing "extremely risky investments"
@jerolvilladolid
3 жыл бұрын
9 out of 10 billionaires cannot claw back up if you take away their fortune. Getting rich owes much to luck, opportunity, and destiny smiling at you. I have always believed the millionaire with the sports car is not smarter than the bartender at the club. One just got a string of good fortune while another cannot catch a break.
@MARKCRASTO
2 жыл бұрын
Also the ability to take "risk". That bar tender is taking none
@The_torero
2 жыл бұрын
@@MARKCRASTO ..Exactly. Fortune favors the brave.
@Megadebt
3 ай бұрын
Why anyone would keep pursuing more and more money when they're already billionaires is beyond me. It's not like you'll ever be able to spend all that money in a lifetime. I would just cash out and travel the world.
@MariaSantos-iq9zx
3 жыл бұрын
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong. I don't look to jump over seven-foot bars; I look around for one-foot bars that I can step over.
@amaval8402
3 жыл бұрын
That is true.
@amaval8402
3 жыл бұрын
Rich people plays the money game to win. Poor people plays the money to not lose. The goal of the truly rich people is to have massive wealth and the poor sees it as surplus opportunity for consumption instead of investing it. change your mindset and do what the rich does, which is investing, investing and investing.
@judgegreatson2060
3 жыл бұрын
anyone who is nt invest"lng now is missing a tremendous opportunity.
@judgegreatson2060
3 жыл бұрын
Yes. It's better to take risk and make sacrifices than to remain poor or settle for less..
@alfredsacchetti1577
3 жыл бұрын
lnvestlng in financial_market is what all rich people do. This is not a living but to grow our portfolio.
@marketwizard1977
2 жыл бұрын
Lesson: don’t over leverage even if it seems like a sure thing because black swan events do happen
@hypernation8298
2 жыл бұрын
Never become over leveraged
@jakelamotta7904
3 жыл бұрын
I've known him. Crazy time back then
@Soulastro12
3 жыл бұрын
This proves the point that you should only invest as much as you can afford to lose.
@rcc8506
3 ай бұрын
He should have never used margin to buy into Heidelberg, just sold part of his company in exchange for it. Heidelberg is rock solid, it bounces back eventually and moreover cement is a cyclical business.
@23drcharles
3 ай бұрын
The new book The Bubble That Broke The Bank gives an excellent timing tool for the coming real estate crash in 2026. The problem with billionaire investors who suffered from a halo effect and believe their wealth bubble is going to last forever. The billionaire bubble will once again pop in 2026. Build your Noah's Ark based on the book's model.
@edgregory1
2 жыл бұрын
Batters that swing for the fences strike out the most.
@cnxexpat1862
3 жыл бұрын
Instead of enjoying his life with his family as a rich man, he wants more and more and more. I can´t understand.
@eyob8969
2 жыл бұрын
Note to myself ; when you i become a billionare dont leverage like mad man!
@mscolli3
3 жыл бұрын
4:03 So was he the guy hitting on 19 in this analogy?
@ramensenpai2754
3 жыл бұрын
They hired some bad actors for that one lmaooooo
@jonathanbrotto7278
3 жыл бұрын
The mother of all evil is speculation.
@tensevo
3 жыл бұрын
Disagree, the mother of evil, is speculating everything on one position, a short position of a global brand, VW. It's the position size that wipes you out, not the sentiment.
@sircassian5568
3 жыл бұрын
MARGIN AND LEVERAGE DANGEROUS
@AL_THOMAS_777
2 жыл бұрын
Whole stockmarket is a g a m b l i n g h e l l . . .
@hummit
2 ай бұрын
That’s why never short stocks…..buy long at the most lose 100% but shorts can easily lose a lot more than 100%
@seanmusona9408
3 жыл бұрын
Greed destroyed him , he entered markets he had no knowledge in
@nolaguy1408
2 жыл бұрын
Just about every comment here on what he did wrong is off: stop losses, leverage, etc. His problem was that he hadn't cashed out a nice chunk of his wealth at that age, since there's no longer time to recover.... goodness
@vincentyeo88
3 ай бұрын
Yes, correct. He forgot to quit the game, count his money, and go to The Bahamas.
@JustinFH
3 ай бұрын
Never trade what you need for what you want
@theyjustwantyourmoney4539
3 жыл бұрын
Its really disheartening to know that what many are aspiring to be can horribly go wrong.
@turbotwotime329
2 ай бұрын
Greed will delete you every time, one way or another.
@brookrestall3274
3 жыл бұрын
What a classic Debbie Downer story about success-driven psychosis. Time to go find something on the lighter side after that! Jeeeezzzzzz!
@TheNefastor
3 жыл бұрын
It's a greedy short-seller taking a train in the face. What's not to like, besides the clean-up ?
@davidallen8611
3 жыл бұрын
This is the best channel on KZitem!
@dewsterman
Жыл бұрын
If he could have held on until 2015 when VW's emissions scandal was discovered, he might have gotten some of his money back.
@basta60
2 жыл бұрын
Somebody just never be enough until they are left with nothing.
@johanessugiharto
3 жыл бұрын
Nothing wrong with what he did, from business diversification to shorting VW stocks. Margin of error was very slim, he just extremely unlucky.
@tomasvalent3876
4 ай бұрын
born in 1934 and named Adolf 🤔popular name back then 1:04
@dougsheldon5560
4 ай бұрын
So, another guy starts off with family money and blows it? Are you listening DJT?
@iamthesupremeleader
3 ай бұрын
DJT doubled his net worth in the last 6 months smart guy.
@dougsheldon5560
3 ай бұрын
@@iamthesupremeleader Nope, check again. The orange fraudster has lost most of the value.
@TsLeng
3 жыл бұрын
Takes lots of special energy to f up being a billionaire
@jimmyhvy2277
3 жыл бұрын
Gambling / Investing with Borrowed money is a Dangerous game .
@chubulu9842
3 жыл бұрын
One thing about extreme wealthy people they can’t see themselves living a commoner life
@oama2009
3 жыл бұрын
If you're an extremely wealthy person i believe this. If you're not, how do you know ?
@pwm8277
Жыл бұрын
he would have to satisfy with the pharmaceutical business.
@andychow5509
3 жыл бұрын
Short a company in your own backyard, which provides jobs for millions. I'm not going to cry for the shorters.
@leanderrowe2800
3 ай бұрын
He was too leveraged as many were when everything collapsed in 2008. I have a family member who and her husband owned many rental properties in the same way, couldn't make the margin call by the bank and had to sell at a loss. It's all about greed.
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