DOING, PART III
I felt like my fund of hedge funds was not helping anyone but a few rich people. And I was losing confidence in many of the funds I was invested in.
I remember one fund I visited in 2005 or 2006 outlined for me how the world was going to end.
First mortgages were going to go bust. And then all the derivatives on those mortgages would go bust. They were betting against the entire system and every month the market was still going up, they would lose money.
"But when the market finally collapses we will make billions for our investors. You are welcome to invest with us but we are not letting everyone in."
I didn't take the risk. I didn't want to lose every month while they waited.
In 2006-7, they made about $10,000,000,000. John Paulson went from having $100,000,000 for himself to being worth in the many billions.
"Our main worry," they told me, "is that according to our models, all the banks will go bankrupt very quickly. So we might not be able to collect our money before the world collapses."
Which would have happened if not for the government bailouts, allowing them and a few other big hedge funds to collect while everyone else suffered.
So I decided to shut it all down.
And I made a website instead which outlined some of my main investment strategies. I won't go into the details of that site because I describe it elsewhere many times and I sold the site pretty soon after I made it when we started getting millions of users a month.
Nevertheless, the money I made from selling that website, and from doing all these funds, was quickly lost by me when I became arrogant again.