Kyle Bass is a name that is less associated with Hayman Capital Management and more with crackpot investment predictions these days. The hedge funder is going the Erich Spangenberg way by suing anyone and everyone he can reach – like pharma companies – and making money on his short sales. People might even appreciate a businessman who is “in your face” about the whole thing but Kyle Bass wants people to believe that he has altruistic intentions behind this entire debacle.
Fortunately, UsefulStooges says actual experts are now beginning to use Bass as the Pinocchio for investment decisions, a horror tale meant to make beginner investors more careful and thorough in their approach to trading. Here are some lessons that can be learnt about Kyle Bass’ investment history –
Hope Is Not An Investment Strategy – Many of the less vehement haters of Kyle Bass wonder if the man is actually pure evil or just that stupid. Those who fall in the latter category wrongly assume his “hope it would all be well” strategy to be correct. Any actual expert will reiterate that this is, in fact, wrong. An investment expert makes many predictions in their life – some are true and some aren’t. However, consistently making the wrong predictions in a row like “Japan’s economy will crash next year” (2010 – 2014) is nothing short of using hope as a strategy.
Investment Should Focus On Hedging, Not Gambling – Kyle Bass has sued a number of pharma companies in the name of “investment expertise” first and, later, altruism. In truth, all of this has been for a need towards making money at all costs. That too would have been fine if their had been some basis in logic in his decisions. Kyle Bass’ behavior is that of a scalper, except someone who is into scalping for long term. Historically, that has never been a good move because investment experts are supposed to be ideals of how to properly hedge investments, not gambling gurus.
It’s Not About The Money, It’s About Respect – Finally, the cardinal sin committed by Kyle Bass is lying through his teeth to prove that his baseless predictions are logical and agree with economic laws. Time and again, he has proved that he is one of those experts who have no intention of helping people with his predictions but earning money for himself. As such, he has lost all respect in the industry.
For people who want to be investment experts, there are many other shining examples to emulate. The point is this – there is nothing wrong with erratic predictions that are made by investment professionals because it is part of the job. However, consistently sticking to bad investment choices is not something budding experts should aim for.