The best investment story of 2008 relates to a banker who had a modest shareholding in his employer – a storied investment bank. Upon being transferred to London, he sold the stock to finance a Range Rover. As business in London turned down, the banker was transferred to Dubai.
When selling his Range Rover, he suffered a loss of around 50% of the price he paid barely six month ago. The interesting thing was that the proceeds from the sale of the car (despite the 50% loss) would have allowed the banker to purchase five times the number of shares he sold to finance the car. 2008 is perhaps the only year on record in which a distressed price for a Range Rover outperformed equities.
In Iceland, where there is an oversupply of Range Rovers as the economic good time ended, the cars are now known as “Game Overs”. For investors 2008 was also a case of game over.
Look back in horror! (by Satyajit Das, author of Traders, Guns & Money)
p/s photos: Annie Lau Sum Yau