Investors Who Made Millions From The Global Financial Crisis!
The global financial crisis of 2007-2008 had a profound impact on the world’s economy and financial markets, resulting in recessions for many countries. As with any major economic downturn, some investors were able to turn a profit during the chaotic times. The following are five of the top investors who profited from the global financial crisis:
1. John Paulson
One of the most successful investors to have emerged during the financial crisis was John Paulson. In 2007, he correctly predicted that the housing market was about to collapse by taking out short positions in mortgage-backed securities and subprime mortgage lenders such as Countrywide Financial Corp and New Century Financial Corp. This bet netted him and his hedge fund an estimated $20 billion in profits—a return of more than 500%.
Another savvy investor who profited from the global financial crisis was hedge fund manager David Einhorn. He used a combination of traditional stock picking and short selling to make millions on companies such as AIG and Lehman Brothers Holdings Inc., both of which were heavily impacted by the crisis. Overall, Einhorn’s Greenlight Capital gained approximately 50%, making it one of the best-performing hedge funds during this time period.
Hedge fund manager Steve Cohen is another investor who made significant profits from the global financial crisis through his SAC Capital Advisors firm, which he founded in 1992 with only $25 million in capitalization under its belt at that time.
Between 2007 and 2008, SAC Capital managed to nearly double its money by investing wisely across multiple asset classes. These included commodities, foreign exchange, and distressed debt investments such as those linked to subprime mortgages that had been negatively affected by the recessionary environment of this period.
Despite being famously risk-averse when it comes to investing, billionaire Warren Buffet was still able to make a fortune off of shrewd investments during this tumultuous time period thanks largely due to his reputation as one of Wall Street’s smartest investors giving credence to transferrable trustworthiness among hesitant stakeholders who held onto their stomachs while they watched their portfolios plummeting into oblivion during these dark days within global financial markets.
By investing heavily in distressed companies like Goldman Sachs & Co., his holding company Berkshire Hathaway’s portfolio returned an impressive 20% cumulative gain from 2008-2009 despite an overall market decline of 10%.
Despite these successes made possible due to well-informed decisions informed by years’ worth of experience within high-stakes investing environments, most people would be wise not to attempt similar endeavors without extensive research or trusted professional advisement. Rest assured, riskier gambles prove too costly for even wealthy investors with deep pockets like those listed here today!
More in Finance
The Best Way to Maximize Your Return on Investment
Maximizing the Return on Investment (ROI) is one of the grand objectives of every investor, and rightly so! You put your...April 28, 2023
The Importance of Business Finance Companies in the U.S.
Business finance companies are a key component of the American economy. They give individuals and businesses access to capital and credit,...April 22, 2023
Is the Future of Technology at Risk?
The world is rapidly moving towards a digital future, with almost every aspect of our lives now going online. From banking...April 15, 2023
Common Misunderstandings About Finances
Understanding finances is an essential skill that every adult should have. However, many people struggle with financial literacy, so they struggle...April 8, 2023
What Do Warren Buffett & Larry Ellison Have To Say To New Investors?
Investment giants like Warren Buffett and Larry Ellison have plenty of wise words to share with new investors. These investment rules,...March 26, 2023
How Richard Branson Became A Billionaire
The 1970s – Early Entrepreneurial Success At the age of 16, Richard Branson began his journey toward becoming one of the...March 20, 2023
Lessons We Can Learn from Bill Gates’ Journey
Bill Gates, the co-founder of Microsoft, is one of the most successful entrepreneurs in history. From starting a computer software company...March 14, 2023
Nikola Tesla- The Scientist Who Could’ve Been a Billionaire.
Nikola Tesla, a 28-year-old Serbian innovator, immigrated from Paris to America in 1884, possessing a recommendation letter written to one of...March 7, 2023
Use These Killer Tips To Grow Your E-Commerce Business
Online businesses – better known as eCommerce – are one of the highly profitable businesses in 2023. Gone are the days...March 1, 2023