The Best Trades Ever – Verified and True
I’ve been working rather hard to uncover the best trades ever recorded in modern financial markets. This is rather hard because there is a lot of lies and deception out there. Did that person REALLY make that great trade? Or is it just marketing? We’ll never really know unless they show their exact brokerage statements, but between news articles, quotes, verified findings, here’s the start of a list:
George Soros and the British Pound (1992): George Soros shorted the British pound, making over $1 billion. His bet against the pound led to the UK’s exit from the ERM, earning him the nickname “The Man Who Broke the Bank of England”.
Paul Tudor Jones and the 1987 Market Crash: Paul Tudor Jones predicted the 1987 stock market crash and managed to triple his capital by shorting the market, earning massive profits while others faced significant losses.
John Paulson and the Subprime Mortgage Crisis (2007): John Paulson’s bet against the U.S. housing market earned him and his investors around $15 billion during the subprime mortgage crisis.
Jesse Livermore and the 1929 Stock Market Crash: Jesse Livermore shorted stocks during the 1929 crash, netting him a profit of approximately $100 million, an enormous sum at that time.
Andrew Hall and Oil (2008): Andrew Hall made a significant bet on rising oil prices, earning him a $100 million bonus in 2008 due to the massive profits his trades brought to Phibro.
Louis Bacon and the Gulf War (1990): Louis Bacon’s correct prediction of a spike in oil prices due to Iraq’s invasion of Kuwait earned his hedge fund, Moore Capital, substantial profits.
Stanley Druckenmiller and the German Mark (1992): Working for George Soros, Stanley Druckenmiller’s massive trade betting on the German mark contributed to the $1 billion profit during Black Wednesday.
David Tepper and the 2009 Financial Recovery: David Tepper’s bold bet on the recovery of major U.S. banks after the financial crisis earned Appaloosa Management billions in profits.
Jim Chanos and Enron (2001): Jim Chanos’s decision to short Enron’s stock before its collapse made his firm, Kynikos Associates, substantial profits while exposing one of the largest corporate scandals in history.
Richard Dennis and the Turtles: Richard Dennis turned a $1,600 loan into $200 million and trained novice traders who made significant profits using his methods.
Warren Buffett and Coca-Cola (1988): Warren Buffett’s purchase of Coca-Cola stock in 1988 for $1 billion has since grown substantially, becoming one of Berkshire Hathaway’s most profitable investments.
Warren Buffett and American Express (1964): After a scandal, Buffett invested heavily in American Express when its stock was undervalued, eventually making significant returns as the company recovered.
Bill Ackman and General Growth Properties (2008): Bill Ackman invested in General Growth Properties during the financial crisis when it was on the brink of bankruptcy. The company later recovered, and Ackman made a $1.6 billion profit.
Michael Burry and the Subprime Mortgage Crisis (2007): Michael Burry, founder of Scion Capital, shorted the housing market before the 2007 crash, making a significant profit and gaining fame through the book and movie “The Big Short”.
David Einhorn and Allied Capital (2002): David Einhorn’s short position in Allied Capital, based on his belief the company was overvalued and involved in dubious accounting practices, eventually paid off when the stock collapsed.
Carl Icahn and Netflix (2012): Carl Icahn’s purchase of a 10% stake in Netflix for $58 per share led to substantial gains when the stock price soared over the following years.
George Soros and Yen Short (2013): Soros shorted the Japanese yen in 2013, profiting significantly from its devaluation due to Japan’s economic policies.
Jeff Bezos and Amazon: Jeff Bezos founded Amazon and took it public in 1997. His initial investment and stake have grown exponentially, making him one of the wealthiest people in the world as Amazon’s stock price skyrocketed.
Steve Eisman and the Subprime Mortgage Crisis (2007): Steve Eisman, another key figure in “The Big Short,” made substantial profits by betting against subprime mortgages before the 2007 financial crisis.
Warren Buffett and Goldman Sachs (2008): During the financial crisis, Buffett invested $5 billion in Goldman Sachs, receiving preferred shares with a high dividend. The investment provided significant returns as the bank recovered.
Seth Klarman and the Massachusetts Municipal Bond: During a 1990 financial panic, Seth Klarman’s Baupost Group bought Massachusetts municipal bonds at deep discounts. As the market recovered, the bonds’ values surged, resulting in substantial profits for Baupost.
Bruce Kovner and the Soybean Market (1980s): Bruce Kovner, a famed commodities trader, made a significant profit by correctly predicting a rise in soybean prices, solidifying his reputation in the trading world.
Nick Leeson and Barings Bank (1995): Although it ended disastrously, Nick Leeson’s initial speculative trades on the Nikkei 225 futures made substantial profits before ultimately causing Barings Bank’s collapse.
Bill Miller and Amazon (2000s): Bill Miller, a legendary mutual fund manager, consistently invested in Amazon during its early years and held on through market volatility. This trade paid off immensely as Amazon became one of the world’s most valuable companies.
Daniel Loeb and Yahoo (2012): Daniel Loeb of Third Point LLC acquired a significant stake in Yahoo and pushed for major changes in the company’s leadership and strategy. His activism led to substantial gains when Yahoo’s stock price rebounded.
Peter Lynch and Fidelity Magellan Fund (1977-1990): Peter Lynch managed the Fidelity Magellan Fund and achieved an average annual return of 29.2% over 13 years. His successful stock picks and investment strategies made it one of the best-performing mutual funds.
Jim Simons and Renaissance Technologies: Jim Simons, founder of Renaissance Technologies, pioneered the use of quantitative analysis and algorithms in trading. His Medallion Fund has produced consistently high returns, making it one of the most successful hedge funds ever.
Ray Dalio and Bridgewater Associates: Ray Dalio, founder of Bridgewater Associates, successfully navigated numerous market crises with his “Pure Alpha” strategy, generating strong returns for his investors over decades.
Ken Griffin and Citadel (2008): During the 2008 financial crisis, Ken Griffin’s Citadel LLC managed to avoid significant losses and even profited by correctly navigating the market turmoil, cementing its status as a top hedge fund.
Mark Cuban and Broadcast.com (1999): Mark Cuban sold his internet radio company, Broadcast.com, to Yahoo for $5.7 billion in stock at the height of the dot-com bubble. Cuban wisely hedged his Yahoo shares, preserving much of his wealth when the bubble burst.
Philippe Laffont and Facebook IPO (2012): Philippe Laffont of Coatue Management made a substantial bet on Facebook’s IPO. Despite initial skepticism and a rocky start, Facebook’s stock eventually soared, yielding significant profits for Coatue Management.
Carl Icahn and Apple (2013): Carl Icahn took a large position in Apple in 2013 and publicly pushed for the company to return more cash to shareholders through buybacks. His activism coincided with a substantial rise in Apple’s stock price, leading to significant gains.
Paul Singer and Argentina Debt (2001): Paul Singer’s hedge fund, Elliott Management, bought Argentine government bonds at a steep discount after the country’s default in 2001. After a long legal battle, Elliott Management received a substantial payout, making this trade one of the most profitable sovereign debt trades.
Bill Gross and U.S. Treasuries (2000s): Known as the “Bond King,” Bill Gross managed the PIMCO Total Return Fund and made highly profitable trades in U.S. Treasuries, particularly during periods of falling interest rates.
John Arnold and Natural Gas (2006): John Arnold, a former Enron trader, made a fortune trading natural gas through his hedge fund, Centaurus Advisors. His successful bets on natural gas price movements in 2006 earned him and his investors substantial returns.
Paul Tudor Jones and Brexit (2016): Paul Tudor Jones successfully predicted the market reaction to the Brexit vote in 2016, positioning his fund to profit from the volatility that ensued following the UK’s decision to leave the European Union.
Warren Buffett and Goldman Sachs (2008): During the financial crisis, Buffett invested $5 billion in Goldman Sachs, receiving preferred shares with a high dividend. This investment provided significant returns as the bank recovered.
Please stay tuned as I update this list, fact check it, and create even more.