OT? - Win big, lose big
<< Michaels, 67, says he turned a $2.75 million stake into $49 million worth of Dell stock over the past two years by using options, leverage and a lot of guts.
"If you want to arrest me for portfolio concentration, come and get me," says the Oklahoma native, an unrepentant practitioner of the winbig, lose-big school of investing. Michaels and his wife control some 550,000 Dell shares purchased with a staggering $20 million in margin debt.
Michaels admits the bet looks foolhardy to some. Even brokerage executives have tried to talk him into selling. But like a lot of Dell fanatics, Michaels believes the PC maker has only begun to grow and will increase sales 45% to $26 billion this year.
"You don't look at price/earnings multiples," he says. "You look at what the future income stream is going to be. Then you take everything you've got, leverage it up your you-know-what, mortgage your dog, your wife, your house, put it all in Dell stock and sit down and relax."
Relax? >>
forbes.com
*****
Hi Richard,
I was doing a Full-Text search on the words 'margin call' at the bottom of the page to see how much people on margin might be hurting and came up with this gem.
I wonder how well this guy is sleeping these days.
< g >
John
PS - How much margin can you get on your dog?
|
