Not entirely true, most of those billionaires put very little of their own money on the line even in diversified projects. A lot of billionaires are deeply invested in concentrated assets and use them as collateral to obtain bank loans and other financing to engage in riskier projects. How much of Trump's money was/is invested in his projects? Very little. Most sits safely in the bank collateralizing debt he used to finance his "projects". Very few billionaires go all in unless it is their own baby. One such billionaire is Michael Bloomberg.
can i trust lightspeed with my money?
- Thread starter yamin2000
- Start date
Well he explained that he needed high leverage in order to make his system work. Agreed that he should've pursued other safer alternatives but it's possible that he was just not aware of the potential pitfalls of what he could be signing. He should've ran what he was signing by his lawyer and he might've been advised so but nobody ever knows until when it happens.
Still feel really bad for him. A loss, especially a big loss REALLY hits you home and it DOES take a long time to get over it. Hope he finds better financing solutions to make his trading work.
So they just spread all their money in all the banks that they can possibly find in the world plus real estate and oh I forgot one more thing, fine art and antiques? Cuz if any of the banks go under, their protected limit is the same as ours.
Not what I said, I said most seem to make some very concentrated bets in incredibly safe projects/assets. The Steven Cohens of the world indeed concentrate their investments in real estate, fine art, and their own business. The Zuckerbergs are largely invested in their own businesses. Those who "invest" in riskier projects often issue higher yielding bonds and secure a portion of those with their more liquid assets. When something goes south the majority of bond holders will hold the bag and only a very small, if any, amount of own invested capital is lost.
I wish the same to him. But the mess he got himself into is mostly of his own choosing and he should potentially reflect more and settle with his past and get on with life. His constant attacks in the politics section speak a language that suggests a little more work needs to be done there.
Robert Morse
Sponsor
That would be incorrect. SIPC covers customer money/securities not the broker dealer's assets. All "customer" accounts are covered up to the limits, All.
Robert Morse
Sponsor
We introduce to both Wedbush Securities and Wedbush Futures (and Interactive Brokers). We are members of SIPC, FINRA and NFA. In fact our equity/option business is MUCH bigger than our futures business. Not even close. We also have a sister technology company that own trading platforms and risk systems-Sterling Trading Tech.
Bob
Last edited:
Robert Morse
Sponsor
Yes, ALL assets are custody with the clearing firm not us, but we are more than just a referral agent. We are next in line for losses and responsible for service/support, platforms, routing and booking of trades. We basically do everything except the clearing, stock loan and banking functions. You are our client but clear at the clearing firm.
Bob
Robert Morse
Sponsor
Sorry for 4 comments in a row. I slept through all this!
One more comment. I find it interesting that the accounts that are well under the SIPC limit are more apt to ask about safety of assets than my larger accounts and hedge fund clients that are well above SIPC limits.
One more comment. I find it interesting that the accounts that are well under the SIPC limit are more apt to ask about safety of assets than my larger accounts and hedge fund clients that are well above SIPC limits.
Maybe because for "poor" people losing money is causing more financial damage.
The small one is maybe with 10% of his assets in this account, while the big ones might be in for maybe 1%. The percentage of your total worth is relevant, not the amount of money in $. For some losing 100K is more life threatening then losing 10 mill for someone else.