Would you like to make a killing?
Imagine that you don’t receive critical news.
Rather, you are the sole source.
Eight people meet,
Each represents 1/8
of the year end results.
Seven know and announce their results.
The 8th, me, is still pulling pieces together.
Mine is the largest and most variable.
Without it the business is stable, small profit.
When finished, mine showed a very heavy loss.
I knew nothing of insider trading
And decided to short the stock.
The good news? Nothing happened.
The stock never moved, and I broke even.
Why?
A major stockholder wanted a board seat.
He agreed to support the stock to get the seat.
For the three months after the announced “big loss”
He bought any stock put up for sale.
Moral: You don’t know what you don’t know.
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