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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Investments - Strategies
Not Every Investment is a Winner
by Howard Haykin
Not all investments can be winners. One can only hope that … (i) we select more winners than losers; (ii) in the long run our investments appreciate in value; and, (iii) we have the sense or backbone to sell off investments that appear to have little, if any, upside potential. [See Turning a Small Loss into a Bigger Loss.]
PAYPAL is an American company operating a worldwide online payments system. In May, PayPal bought $500 million worth of Uber stock (at the IPO price of $45 a share), betting that the multinational ridesharing company would grow significantly.
Since then, Uber shares have fallen significantly – and continue to fall - hitting their low point in early November. At that point, with Uber trading at $25.58 a share, PayPal had an unrealized loss of $216 million on its $500 million investment. Needless to say, it’s got to be uber-tough to lose 43% of an investment after just 6 months.
What's worse is that ... (i) prospects for Uber remain clouded, as the company continues to report disappointing earnings; and, (ii) February 2020 is the earliest that PayPal can unload its Uber shares, should it seek to cut its losses.
Now, aren’t you feeling better about your investments?