FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Today at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Today at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

» LOLC hotels
by Maharaja Tue Mar 12, 2024 2:34 pm

» AEL target price ?
by suku502 Mon Mar 11, 2024 11:26 am

» WAPO 200% UP
by LAMDA Sun Mar 10, 2024 10:33 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » Advanced Search

Search found 2 matches for 8

https://stacker.com/stories/2131/biggest-bankruptcies-past-35-years

[size=15]When a company finds itself unable to pay its creditors, it may have no other alternative but to file for bankruptcy. This process is designed to help organizations pay off their debts under the supervision of a federal court.
Contrary to popular belief, filing for bankruptcy doesn't always spell financial ruin for a company. In fact, many successful corporations and brands have filed as a way to reorganize their assets and pay off outstanding debts. [size=18]Marvel, Six Flags, and Texaco are just a few companies that have managed to bounce back after filing for bankruptcy. Still, reorganization under Chapter 11 is a dangerous gambit—studies estimate only 10% to 12% of businesses that file survive.[/size]
Considering that [size=18]corporate bankruptcy filings are up 63% this year, Stacker looked at the 20 largest bankruptcy filings of American corporations between 1980 and 2015 to discover why companies went bankrupt and how many of their employees fared after the fact. For many of the companies on the list, large-scale crises like the housing bubble of 2007 or the economic recession of 2009 served as catalysts for ruin. Other companies failed due to human hubris, corrupt accounting practices, and mega miscalculations.[/size]
Read on for a history of the 20 biggest bankruptcies of the last three and a half decades.
ALSO: [size=18]Booms to bailouts: Banking by the numbers over the last 30 years[/size]
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 114319196_445326e2cb_o_0
1 / 21
[size=10][size=12]The Web President // Flickr
[/size]
[/size]

[size=24]#1. Lehman Brothers Holdings, Inc.[/size]

[size]
Total assets pre-bankruptcy: $691.1 billion
Bankruptcy date: Sept. 15, 2008

At the time of its collapse, [size=18]Lehman Brothers was the fourth largest U.S. investment bank with 25,000 employees worldwide.
 A number of contributing factors led to its tumble including miscalculating the risks posed by rising home delinquencies after the housing boom of 2007. Former CEO Richard Fuld is now the chief executive at Matrix Private Capital Group. Former COO Herbert "Bart" McDade serves as the chairman of the Bond Market Association.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 3355876486_c55cd04a19_b_0
2 / 21
[size=12]Wonderlane // Flickr[/size]
[/size]

[size=24]#2. Washington Mutual[/size]

[size]
Total assets pre-bankruptcy: $327.9 billion
Bankruptcy date: Sept. 26, 2008

Washington Mutual, a conservative savings and loan bank, [size=18]became the largest failed bank in the history of the United States
. Its demise was due to a number of factors including the housing crisis in 2007, rapid branch expansion, the collapse of the secondary market for mortgage-backed securities, and the fallout from Lehman Brothers' bankruptcy. Today, former CEO Kerry Killinger focuses his efforts on the Kerry and Linda Killinger Foundation.[/size]
 
Topics tagged under 8 on FINANCIAL CHRONICLE™ Screen%20Shot%202018-11-26%20at%204.51.48%20PM_0
3 / 21
[size=12]PastMeetsPresent // YouTube[/size]
[/size]

[size=24]#3. WorldCom, Inc.[/size]

[size]
Total assets pre-bankruptcy: $103.9 billion
Bankruptcy date: July 21, 2002

WorldCom, once the second largest long-distance carrier in the United States, [size=18]filed bankruptcy due to $11 billion in accounting fraud.
 CEO Bernard Ebbers was sentenced to 25 years in prison for nine counts of conspiracy securities fraud and making false regulatory filings. The company rebranded in 2004 as MCI Inc.[/size]
 

Topics tagged under 8 on FINANCIAL CHRONICLE™ 1600px-Renaissance_Center%2C_Detroit-20161204-006-5_%2832131760983%29_0
4 / 21
[size=12]CucombreLibre // Wikimedia Commons[/size]
[/size]

[size=24]#4. General Motors[/size]

[size]
Total assets pre-bankruptcy: $82.3 billion
Bankruptcy date: June 1, 2009

[size=18]Automaker General Motors filed for bankruptcy after years of losses
, declining market share, and a seismic drop in sales. Despite $19.4 billion in federal aid, the iconic automaker could not shift gears to avoid bankruptcy. The government poured another $30 billion into GM to fund operations during its reorganization. Former CEO Rick Wagoner is on the board of directors of ChargePoint and recently invested in a startup called YourMechanic.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ Justin%20Sullivan%20Getty%20Omages
5 / 21
[size=12]Justin Sullivan // Getty Images[/size]
[/size]

[size=24]#5. Pacific Gas & Electric[/size]

[size]
Total assets pre-bankruptcy: $71.4 billion
Bankruptcy date: Jan. 29, 2019

Pacific Gas & Electric (PG&E), one of the largest power providers the U.S., [size=18]filed for voluntary Chapter 11 bankruptcy in a California court. The company provides most of the electricity and natural gas to millions of residents in Northern and Central California. The filing comes as PG&E faces extensive legal liabilities related to the recent deadly fires that devastated many parts of the state[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 1846466731_9625555308_o_0
6 / 21
[size=12]Ernst Moeksis // Flickr[/size]
[/size]

[size=24]#6. CIT Group[/size]

[size]
Total assets pre-bankruptcy: $71 billion
Bankruptcy date: Jan. 11, 2009

[size=18]Commercial paper led to CIT's bankruptcy in 2009. The company provides key financing and advisory services to businesses in the retail industry. CIT serves as a rare example of a company that made good on bankruptcy proceedings—it paid off and refinanced debt, built assets, moved past regulatory restrictions, and recently rebranded. Former CEO Jeff Peek is vice chairman of Global Corporate and Investment Banking at Bank of America Corporation and serves as vice chairman of the New York City Ballet.
 [/size]

Topics tagged under 8 on FINANCIAL CHRONICLE™ 72929925_68621d598f_b_0
7 / 21
[size=12]hanneorla // Flickr[/size]
[/size]

[size=24]#7. Enron Corp.[/size]

[size]
Total assets pre-bankruptcy: $65.5 billion
Bankruptcy date: Dec. 2, 2001

[size=18]Enron, once named “America's Most Innovative Company" by Fortune Magazine, crashed in 2001 thanks to CEO Jeffrey Skilling's creative market-to-market accounting that inflated income by around $586 million over a four-year period. Its stock—valued at a high of $90.56 in 2000—closed at just 26 cents a share when it filed bankruptcy. Skilling was sentenced to a 24-year prison term for his role in the scandal, but he was recently relocated to a halfway house. The documentary “The Smartest Guys in the Room" chronicled the full story of Enron's downfall.[/size]
 
Topics tagged under 8 on FINANCIAL CHRONICLE™ Shutterstock_492076351
8 / 21
[size=12]Jonathan Weiss // Shutterstock[/size]
[/size]

[size=24]#8. Conseco, Inc.[/size]

[size]
Total assets pre-bankruptcy: $61.4 billion
Bankruptcy date: Dec. 17, 2002

At the time it filed for Chapter 11, U.S. insurance and finance company [size=18]Conseco, Inc. was the third largest bankruptcy in American history.
 Company founder Stephen Hilbert was removed after accumulating $8.2 billion in debt. Hilbert has spent over a decade in the biotech world and currently heads up corporate development for Oisin Biotechnologies. Today, Conseco is known as CNO Financial Group and positions itself as “middle America's valued security partner.”[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ GettyImages-135855611
9 / 21
[size=12]Former chairman and CEO of MF Global Jon Corzine testifies, Dec. 15, 2011. // Alex Wong // Getty Images[/size]
[/size]

[size=24]#9. MF Global[/size]

[size]
Total assets pre-bankruptcy: $41 billion
Bankruptcy date: Aug. 11, 2011

After MF Global invested [size=18]$6 billion in unpredictable European bonds
 and used over $1 billion of its customers funds to cover its losses, the commodity brokerage firm declared bankruptcy. Its ousted CEO Jon Corzine went on to become chief of Goldman Sachs and later served as senator and governor of New Jersey. His new hedge fund recently attracted almost $20 million in new money.[/size]

Topics tagged under 8 on FINANCIAL CHRONICLE™ Shutterstock_1099086452
10 / 21
[size=12]Jonathan Weiss // Shutterstock[/size]
[/size]

[size=24]#10. Chrysler[/size]

[size]
Total assets pre-bankruptcy: $39.3 billion
Bankruptcy date: April 30, 2009

Automaker Chrysler was on the [size=18]brink of liquidation when the funds from the federal government and a partnership with Fiat
 allowed it to shift gears to survival. Ex-CEO Tom LaSorda founded and is the general managing partner of IncWell and the LaSorda Group. He also co-founded Stage 2 Innovations, a $100 million investment fund. He recently launched a mail-order bakery with his daughter.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 2539334956_87cef7e457_b_1
11 / 21
[size=12]JefferyTurner // Flickr[/size]
[/size]

[size=24]#11. Thornburg Mortgage[/size]

[size]
Total assets pre-bankruptcy: $36.5 billion
Bankruptcy date: Jan. 5, 2009

[size=18]Thornburg Mortgage is another victim of the nation's 2009 housing slump and credit crisis.
 After the jumbo mortgage provider filed Chapter 11, it rebranded as TMST and ultimately liquidated its assets. Former CEO Larry Goldstone and former CFO Clarence Simmons were accused by the SEC of trying to hide the company's failing financial condition and inflating the company's income by more than $420 million in 2007, but the charges were dropped.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ Pacific_Gas_%26_Electric_Co._General_Office_Building_%28San_Francisco%29_02
12 / 21
[size=12]Joe Mabel // Wikimedia Commons[/size]
[/size]

[size=24]#12. Pacific Gas and Electric Co.[/size]

[size]
Total assets pre-bankruptcy: $36.2 billion
Bankruptcy date: June 4, 2001

The Pacific Gas and Electric Company filed for [size=18]Chapter 11 back in 2001 due to blackouts from the energy crisis that cost billions of dollars.
 Now, liability from wildfires raging in California in late 2018 have rekindled fears of another bankruptcy. After its rebound, PG&E distributed $84 million in bonuses to 17 executives for their loyalty. Former chairman Robert D. Glynn Jr. received $17 million, and Gordon Smith, who ran the utility unit, received $10 million.[/size]
 

Topics tagged under 8 on FINANCIAL CHRONICLE™ 1600px-Texaco-in-Lewisville-Texas
13 / 21
[size=12]Buhler13 // Wikimedia Commons[/size]
[/size]

[size=24]#13. Texaco[/size]

[size]
Total assets pre-bankruptcy: $34.9 billion
Bankruptcy date: Dec. 4, 1987

[size=18]Texaco filed for Chapter 11 after a court said it owed Pennzoil $10.5 billion in damages stemming from a previous agreement. Texaco paid Pennzoil $3 billion and emerged from bankruptcy to later become part of Chevron. John K. McKinley, the chief executive officer who tried to resuscitate Texaco Inc, died in 2014.[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ Shutterstock_125689799
14 / 21
[size=12]Akugasahagy // Shutterstock[/size]
[/size]

[size=24]#14. Financial Corp of America[/size]

[size]
Total assets pre-bankruptcy: $33.9 billion
Bankruptcy date: Sept. 9, 1988

[size=18]After a $2 billion federal bailout of its primary subsidiary, the American Savings and Loan Association,
 the Financial Corp. of America declared bankruptcy. The tumble happened during the savings and loan crisis of the late 1980s. A year later the company was liquidated.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ Stock-exchange-738671_1280_0
15 / 21
[size=12]sneeze // Pixabay[/size]
[/size]

[size=24]#15. Refco[/size]

[size]
Total assets pre-bankruptcy: $33.3 billion
Bankruptcy date: Oct. 17, 2005

[size=18]The New York-based financial services company had around $33 billion in assets when scandal struck.
 CEO and chairman Phillip R. Bennett was accused of hiding $430 million worth of bad debts and using company funds to pay them. Bennett was sentenced to 16 years in prison for the cover-up.
 [/size]

Topics tagged under 8 on FINANCIAL CHRONICLE™ 1000px-IndyMac_Bank_logo.svg
16 / 21
[size=12]Wikimedia Commons[/size]
[/size]

[size=24]#16. IndyMac Bancorp[/size]

[size]
Total assets pre-bankruptcy: $32.7 billion
Bankruptcy date: July 31, 2008

[size=18]IndyMac declared bankruptcy after an FDIC takeover
 and bank run due to the end of the housing boom and looming economic slump. Sean Wright, vice president of Enterprise Information Security for IndyMac, worked through the bank's takeover and created individual employee retention plans based on goals and performance. In 2007, Indy had more than 11,000 employees. Within two years Indy had 2,000 employees and around 700 contractors. In 2011 the company filed Chapter 7.
 [/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 2756836140_a189b01304_o
17 / 21
[size=12]Kai Hendry // Flickr[/size]
[/size]

[size=24]#17. Global Crossing[/size]

[size]
Total assets pre-bankruptcy: $30.2 billion
Bankruptcy date: Jan. 28, 2002

International telecommunications company Global Crossing, whose market value once eclipsed General Motors, filed Chapter 11 because it was unable to support the weight of $12 billion in debt in a plummeting world economy. Founder [size=18]Gary Winnick sold shares worth a total of $734 million
 before the company collapsed, leaving many employees missing significant portions of their 401(k) funds.[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 12947737773_c6be71dace_b
18 / 21
[size=12]JeepersMedia // Flickr[/size]
[/size]

[size=24]#18. Bank of New England[/size]

[size]
Total assets pre-bankruptcy: $29.8 billion
Bankruptcy date: July 1, 1991

[size=18]Bad loans and heavy ties with bond creditors led to bankruptcy for Bank of New England and its sister banks, Maine National Bank and Connecticut Bank and Trust. The trio had assets totaling $21.8 billion and deposits worth $19 billion. Ousted chairman Walter J. Connolly Jr.'s pomposity was cited for the failure that affected thousands of employees, bond and stockholders.[/size]
 

Topics tagged under 8 on FINANCIAL CHRONICLE™ 43703779172_700ba2d493_b
19 / 21
[size=12]Head in the Suburbs // Flickr[/size]
[/size]

[size=24]#19. General Growth Properties[/size]

[size]
Total assets pre-bankruptcy: $29.6 billion
Bankruptcy date: Apr. 16, 2009

Chicago-based General Growth Properties [size=18]was the second-largest real estate investment trust and mall operator in the U.S
. when it filed for Chapter 11 protection. During the transition, Adam Metz served as interim chief executive officer, and Thomas H. Nolan Jr. served as interim president. A year and a half later, GGP emerged from bankruptcy. The company was acquired in early 2018 by Brookfield Property Partners.[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 1600px-LyondellbasellTower_1
20 / 21
[size=12]WhisperToMe // Wikimedia Commons[/size]
[/size]

[size=24]#20. Lyondell Chemical[/size]

[size]
Total assets pre-bankruptcy: $27.4 billion
Bankruptcy date: June 1, 2009

Lyondell Chemical, one of the world's largest privately held chemical makers, [size=18]listed $27 billion in assets and $19 billion in liabilities when it filed for bankruptcy
. A dramatic dip in demand and extreme volatility in costs of raw materials were among the reasons it filed for Chapter 11 protection. Today LyondellBasell is expanding rapidly, spending billions to grow its production along the Gulf Coast and its global markets. The company has about 13,000 employees worldwide.[/size]
Topics tagged under 8 on FINANCIAL CHRONICLE™ 2811377341_1d0838832c_b
21 / 21
[size=12]mrkathika // Flickr[/size]
[/size]

[size=24]#21. Calpine[/size]

[size]
Total assets pre-bankruptcy: $27.2 billion
Bankruptcy date: Dec. 20, 2005

[size=18]Skyrocketing natural gas prices and the failure of deregulation 
forced power plant operator Calpine to seek Chapter 11. It emerged from bankruptcy in 2008 to begin a new chapter in its history, and today is America's largest generator of electricity from natural gas and geothermal resources.[/size][/size]
Search in: ECONOMIC CHRONICLE™  Topic: Biggest bankruptcies of the past 35 years  Replies: 0  Views: 1200
As you read the list below, think about how you can learn more about each secret and adapt it to your own most effective use.

Secret #1: Contrarianism takes courage.
Everyone knows the essential investment formula: “Buy low, sell high,” but it is so much easier said than done, it might as well be a secret formula.
The way to really make it work is to invest in an asset or commodity that people want and need but that for reasons of market cyclicality or other temporary factors, no one else is buying. When the vast majority thinks something necessary is a bad investment, you want to be a buyer—that’s what it means to be a contrarian.
Obviously, if this were easy, everyone would do it, and there would be no such thing as a contrarian opportunity. But it is very hard for most people to think independently enough to risk hard-won cash in ways others think is mistaken or too dangerous. Hence, fortune favors the bold.

Secret #2: Success takes discipline.
It’s not just a matter of courage, of course; you can bravely follow a path right off a cliff if you’re not careful. So you have to have a game plan for risk mitigation. You have to expect market volatility and turn it to your advantage. And you’ll need an exit strategy.
The ways a successful speculator needs discipline are endless, but the most critical of all is to employ smart buying and selling tactics, so you don’t get goaded into paying too much or spooked into selling for too little.

Secret #3: Analysis over emotion.
This may seem like an obvious corollary to the above, but it’s a point well worth stressing on its own. To be a successful speculator does not require being an emotionless robot, but it does require abiding by reason at times when either fear or euphoria tempt us to veer from our game plans.
When a substantial investment in a speculative pick tanks—for no company-specific reason—the sense of gut-wrenching fear is very real. Panic often causes investors to sell at the very time they should be backing up the truck for more.
Similarly, when a stock is on a tear and friends are congratulating you on what a genius you are, the temptation to remain fully exposed—or even take on more risk in a play that is no longer undervalued—can be irresistible. But to ignore the numbers because of how you feel is extremely risky and leads to realizing unnecessary losses and letting terrific gains slip through your fingers.

Secret #4: Trust your gut.
Trusting a gut feeling sounds contradictory to the above, but it’s really not. The point is not to put feelings over logic, but to listen to what your feelings tell you—particularly about company people you meet and their words in press releases.
“People” is the first of Doug Casey’s famous Eight Ps of Resource Stock Evaluation, and if a CEO comes across like a used-car salesman, that is telling you something. If a press release omits critical numbers or seems to be gilding the lily, that, too, tells you something.
The more experience you accumulate in whatever sector you focus on, the more acute your intuitive “radar” becomes: listen to it. There’s nothing more frustrating than to take a chance on a story that looked good on paper but that your gut was warning you about, and then the investment disappoints. Kicking yourself is bad for your knees.

Secret #5: Assume Bulshytt.
As a speculator, investor, or really anyone who buys anything, you have to assume that everyone in business has an angle. Their interests may coincide with your own, but you can’t assume that.
It’s vital to keep in mind whom you are speaking with and what their interest might be. This applies to even the most honest people in mining, which is such a difficult business, no mine would ever get built if company CEOs put out a press release every time they ran into a problem.
A mine, from exploration to production to reclamation, is a non stop flow of problems that need solving. But your brokers want to make commissions, your conference organizers want excitement, your bullion dealers want volume, etc. And, yes, your newsletter writers want to eat as well; ask yourself who pays them and whether their interests are aligned with yours or the companies they cover.
(Bulshytt is not a typo, but a reference to Neal Stephenson's brilliant novel, Anathem, which defines the term, briefly, as words, phrases, or even entire books or speeches that are misleading or empty of meaning.)

Secret #6: The trend is your friend.
No one can predict the future, but anyone who applies him- or herself diligently enough can identify trends in the world that will have predictable consequences and outcomes.
If you identify a trend that is real—or that at least has an overwhelming amount of evidence in its favor—it can serve as both compass and chart, keeping you on course regardless of market chaos, irrational investors, and the ever-present flood of bulshytt.
Knowing that you are betting on a trend that makes great sense and is backed by hard data also helps maintain your courage. Remember; prices may fluctuate, but price and value are not the same thing. If you are right about the trend, it will be your friend. Also, remember that it’s easier to be right about the direction of a trend than its timing.

Secret #7: Only speculate with money you can afford to lose.
This is a logical corollary to the above. If you bet the farm or gamble away your children’s college tuition on risky speculations—and only relatively risky investments have the potential to generate the extraordinary returns that justify speculating in the first place—it will be almost impossible to maintain your cool and discipline when you need it.
As Doug likes to say; it’s better to risk 10% of your capital shooting for 100% gains than to risk 100% of your capital shooting for 10% gains.

Secret #8: Stack the odds in your favour.
Given the risks inherent in speculating for extraordinary gains, you have to stack the odds in your favor. If you can’t, don’t play.
There are several ways to do this, including betting on People with proven track records, buying when market corrections put companies on sale way below any objective valuation, and participating in private placements. The most critical may be to either conduct the due diligence most investors are too busy to be bothered with, or find someone you can trust to do it for you.

Secret #9: You can’t kiss all the girls.
This is one of Doug’s favourite sayings, and though seemingly obvious, it’s one of the main pitfalls for unwary speculators.
When you encounter a fantastic story or a stock going vertical and it feels like it’s getting away from you, it can be very, very difficult to do all the things I mention above. I can tell you from firsthand experience, it’s agonizing to identify a good bet, arrive too late, and see the ship sail off to great fortune—without you.

But if you let that push you into paying too much for your speculative picks, you can wipe out your own gains, even if you’re betting on the right trends.
You can’t kiss all the girls, and it only leads to trouble if you try. Fortunately, the universe of possible speculations is so vast, it simply doesn't matter if someone else beats you to any particular one; there will always be another to ask for the next dance. Bide your time, and make your move only when all of the above is on your side.

Extracted article from http://www.caseyresearch.com/articles/doug-caseys-9-secrets-for-successful-speculation-1
Search in: CORPORATE CHRONICLE™  Topic: Doug Casey’s 9 Secrets for Successful Speculation  Replies: 0  Views: 1060

Search found 2 matches for 8

Back to top