The Billion Dollar Mistake: Learning the Art of Investing Through the Missteps of Legendary Investors

by Stephen L Weiss

Overview

“Concentrating on personal finance don’ts is a clever idea . . . an intriguing reminder of what not to do when investing your money.” —The New York Times
 
Brilliant investors and top businesspeople make mistakes, too—very expensive ones. Drawing on his twenty-plus years of experience at some of Wall Street’s most prestigious firms, as well as original research and interviews with these legendary investors, Stephen Weiss offers fascinating narrative accounts of their billion-dollar blunders.
 
Here, such prominent figures as Kirk Kerkorian, Bill Ackman, David Bonderman, Aubrey McClendon, and Leon Cooperman discuss the most significant trade or investment that went against them, the magnitude of the loss, its effect on their businesses—and on their personal lives. The book skillfully examines the causal relationship between the quirks of each investor’s personality and the mistakes they have committed—as well as the lessons learned. While some investors made errors of judgment, others made errors of perception. But no matter how many zeros were attached to these particular losses, investors at any level can profit from the wisdom gained—and avoid the same missteps.
 
“When a great investor flubs it, everyone can learn a lesson. With that in mind, author Stephen Weiss delves into the biggest mistakes of such Wall Street luminaries as Bill Ackman, Leon Cooperman and Richard Pzena.” —Barron’s

Product Details

ISBN-13:	9780470572665
Publisher:	Wiley
Publication date:	08/31/2022
Sold by:	Barnes & Noble
Format:	eBook
Pages:	272
File size:	422 KB

About the Author

STEPHEN L. WEISS has spent the last twenty-three years on Wall Street working for some of the industry's most prestigious firms. He is currently a Senior Managing Director and Head of Equities at an investment bank in New York City. Weiss started in institutional sales at Oppenheimer & Co., then moved to Salomon Brothers, where he eventually co-managed the firm's 500 person global research department and became a spokesperson for the equity division. Weiss also worked at SAC Capital, co-managing the firm for legendary hedge fund manager Steven Cohen. Subsequent to SAC, Weiss joined Lehman Brothers in senior management, helping to restore the once prominent equity business to the pinnacle of the industry.

Table of Contents

Acknowledgments ix

Introduction 1

Chapter 1 Kirk Kerkorian: Due Diligence Is Due Every Time 11

Chapter 2 David Bonderman: Does This Mean I Also Overpaid for the Rolling Stones? 31

Chapter 3 Aubrey McClendon: Falling on the Wrong Edge of the Two-Edged Leverage Sword 51

Chapter 4 Bill Ackman: Detour from Discipline 69

Chapter 5 Nick Maounis: “Trust, but Verify…” 89

Chapter 6 Leon Cooperman: The Pirate of Prague Meets the Prince of Princeton—and the Boy from the Bronx Gets Squeezed 109

Chapter 7 Richard Pzena: Fashions Change, History Persists—or Does It? 129

Chapter 8 Geoff Grant: Style Drift—It’s Hot Till It’s Not 149

Chapter 9 Volkswagen and Porsche: The Hare Finally Wins and the Shorts Get Squeezed 171

Chapter 10 Chris Davis: It Was Dressed like an Insurance Company, but It Didn’t Quack Like One… 195

Chapter 11 Madoff Investors: Hook, Line, and Sunk 215

Epilogue Me Too: Mistakes I’ve Made and Lessons I’ve Learned 235

Notes 237

Glossary 241

About the Author 249

Index 251

Editorial Reviews

Concentrating on personal finance don’ts is a clever idea. Mr. Weiss writes about 11 big investors — from the very well known, like the billionaire Kirk Kerkorian, to others like Richard S. Pzena, who runs his own investment firm. The author zeros in on one enormous error that he says each of the 11 made — a mistake, in the words of the book’s title, that cost each $1 billion or more… the book is an intriguing reminder of what not to do when investing your money.”
—The New York Times

“Great investors are often put on a pedestal and worshiped by those trying to emulate them. This book removes the pedestal and allows you to truly learn from them. Author Stephen Weiss… has truly crafted a great read and has transformed the lessons of legendary investors into an entertaining and educational narrative. Definitely check out The Billion Dollar Mistake as you're bound to become a better investor from it.”
— Market Folly

Weiss creates a fascinating look at these cases with up close narrative reporting. In some instances the famous investors themselves review their mistakes and provide a surprising candor on how and why they failed. You almost feel like an eavesdropper in a closed door meeting learning untold secrets. Who knew investing could be so riveting! - 800 CEO Read (Dec. 2009)

When a great investor flubs it, everyone can learn a lesson. With that in mind, author Stephen Weiss delves into the biggest mistakes of such Wall Street luminaries as Bill Ackman, Leon Cooperman and Richard Pzena. – Barron’s (Dec. 2009)

From the Publisher