Pimco's Bill Gross recalls the worst trade of his career and what he learned from it.
In 1974 he passed Wal-Mart and Berkshire Hathaway and a couple of years later, he lent to a company called Itell (?), which went to bankruptcy within six month. He said he was blind-sighted by the carpet and pretty secretary of the later.
His lesson was that he should lend money based on character and asset instead of flash.
The lesson learned stopped the bond Investment Guru from investing in subprime mortgages… and you know what happened there.
In 1974 he passed Wal-Mart and Berkshire Hathaway and a couple of years later, he lent to a company called Itell (?), which went to bankruptcy within six month. He said he was blind-sighted by the carpet and pretty secretary of the later.
His lesson was that he should lend money based on character and asset instead of flash.
The lesson learned stopped the bond Investment Guru from investing in subprime mortgages… and you know what happened there.
