AJ, Washington DC

The Worst Trade Of All Time

Thats 10 percent of Bear Stearns. Lewis bought in at a heavy discount back then, paying and average $100 per share. BS had been trading as high as $160 or so, and he thought he was getting a bargain. He's known to make risky bets as a currency trader, and I would be surprised if he had not hedged his investment - still, I cant say that he is an astute investor - BS was $30 last Friday, and I'm surprised he had not dumped the shares before then. Perhaps he thought that unwinding a 10 percent position would drive the stock down further. Do very large investors not have a Stop Loss built in at 5% or 10%??? I commiserate with his losses, but it's hard to be sympathetic. Lewis is a speculator, and knows the risks.