Image via WikipediaOn April 20, 2010, as soon as the news of the oil spill broke, I felt there was an opportunity. Yes, indeed! BP was the owner of the disaster. So I shorted BP at $57 and on May 7th, I covered. Made 17% return on my money--not too shabby.
Selling short is an investment technique in which you bet on the losing horse. Well, I felt that BP was the losing horse. One thing, though, you must not be too greedy. While many would expect a 17% on a short too puny a return--I'm satisfied.
I invested $100,000 and made $17,000. I wanted to sell only $10,000, but the opportunity was there, so why not go for it? Now, the same results can be obtained by investing only $10,000 but buying call options. But this is a technique that requires more sophistication and experience.
Keep abreast of the news. Cynical as it may sound, what is a disaster for some, could be an advantage for others.
Image via WikipediaHow to Diversify
P/E Ratio, Crystal Ball
Fixed Index Annuities
Making Money on the Downside:BP
If you are interested in seeing how I achieved personal success in the United States, you may find my book of short stories East of Tiffany's interesting. Some of the stories are based on my life as an executive, investment banker, and financial adviser to wealthy investors in the East Side of Manhattan.
Close to half-million people have read East of Tiffany's so far. Order your copy from either Amazon.com or Barnes and Noble.
Since English is my second language, Mary Duffy --a master of the English language-- aided me not only with the editing, but she also contributed her own stories. I love her writing in "When You Wish Upon a Star." This is a story based on a personal friend's life.
Adam Smith and Wealth
Investing in Stocks
Professor Guerrero Laws for Wealth
Economic Terms for the Impatient: What is ...?
Social Security Maximization
Senada Selmani, model Sentence Openers
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