Investment beginners frequently make the mistake of following the wrong “investment gurus” when they start their investment journey. As such, people like Kyle Bass have ample fan following to keep them going. Kyle Bass might be an aberration when it comes to investment experts but almost every genuine expert in the industry agrees that to follow the path of Kyle Bass is to doom investments to losses and failure. There is a huge reason why Kyle Bass reminds every of Erich Spangenberg – they are both doing the same thing and pretending to be altruistic in their intentions.
The Japan Economy Debacle – Kyle Bass seems to be assuming that the world is, by and large, stupid and without any logical acumen. This might be the reason behind his meme like status in the industry. He has consistently used crackpot theories to fulfill his own personal agenda and now that people are calling him out on it, he is offended. One of the most laughable and yet, sly moves of Kyle Bass has been related to the crashing of the economy of Japan. Bass has stuck to his guns since 2010 and until last year, he was still tooting his horn about how Japan’s economy will eventually crash. The reason – he bought some property in Japan and he wanted his loans to become cheaper on the basis of investment advice he was doling out. However, instead, his loans have gone up and now he is in no man’s land.
The Pharma Company Debacle – The Pharma company debacle is said to be the final nail in the coffin of Kyle Bass. The explanation is quite simple for a layman to follow – Kyle Bass sues pharma companies and makes money on the short sales, on the basis of the chaos he causes for those companies in the stock market. The bigger question is obviously that the law allows businessmen to do this and the government is planning on changing the law to make it fairer. However, what is irksome to Kyle Bass is that people are calling him and his actions out as morally repugnant. All he is doing is making medicines more expensive for the average man and what is that if not immoral and unethical?
Beginner’s Luck – Kyle Bass started off on a high when he correctly predicted the 2008 crisis of subprime mortgages. He was one of the few people who came out of that crisis with a profit. After that, his predictions and strategies have been consistently off the mark. Even his hedge funds are making losses and experts believe that he has lost 30% of them already.
With all these debacles and erratic decisions under his belt, it is almost surprising that Kyle Bass is still in business.