LEARN FROM GENERALS OF THE
MARKETS - PART 16
“Despite years of experience I still have sleepless
nights, but I think this is important
– it is a sign that I am focused and fully committed to
my job.” - Stephen Temes
Carl Icahn, who was born on
February 16, 1936, is a highly successful investor and businessman. He grew up
in New York City, and was educated at Princeton University. He also went to New
York School of Medicine, but he didn’t graduate from that school. He started
playing the Wall Street in 1961. In 1968, he started a trading company. From
1978, he started to take positions in certain companies where he could
influence them, usually to his own advantage, and of course, to the advantage
of the shareholders of each company.
In 2008, Forbes mentioned
Icahn as the forty-sixth wealthiest person on earth. Around March, 2012, his
fortune was mentioned as being worth fourteen billion dollars. Icahn made
generous donations to many humanitarian and education causes. As a result of
this, buildings, places, etc. are named after him. He’s also been honored with
many awards.
Lesson
What are the lessons that can
be learned from Icahn?
- Icahn
is a contrarian investor. He’d invest in companies whose shares were
thought to be very cheap. There’s something the Wall Street calls “Icahn
Lift,” which means that the shares of a company could start rallying when
Icahn buys them. He’d struggle with companies he believed weren’t properly
managed (after he’d purchased enough positions to be able to do this). The
purpose of the struggles was to effect changes in those companies, so that
the following results could benefit those who’d invested in those
companies. He said some CEOs were being paid for doing something nasty.
But it was from the nastiness that he made his money (as some others also
did). He used other professionals’ weaknesses to his own benefit. This is
one of his most effective investing strategies – things that made him a
multibillionaire. How can you benefit yourself from others’ errors on the
battlefield of the financial markets?
- Of
course, this strategy, though effective, wasn’t always bringing exactly
the desired results. Yet, Icahn is hugely successful. This means that if
you’ve a good trading or investing strategy, it won’t bring the desired
results always, but in the end you should be a victorious market
speculator. Icahn investment style works out because his Partners hedge
fund usually posts decent profits on a yearly basis.
- The
markets have immense riches in them. Making money is no evil, provided
it’s done in legitimate ways. "I make money. Nothing wrong with that.
That's what I want to do. That's what I'm here to do. That's what I
enjoy." Icahn himself says. So if you want to, and do, make money in
the markets, there’s nothing wrong with that. You should be rewarded for
your determined effort.
Conclusion:
Caution notices are present in here and there, whether you buy new gadgets or
some playthings. Medicines also have some paper that contains a notice about
what might go contrary to expectations. The caution in trading is that it
carries risk, yet great riches are brought to market wizards by that risk. Top
traders have their own share of heartaches and faults, but their steadfast
determination result in much success.
This piece is ended with a
quote from Icahn:
"When most investors, including the pros, all agree
on something, they're usually wrong."
NB: You would be
exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Copyright (C) ADVFN PLC
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to receive permanently free winning Forex trading signals, please send me an
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