For successful investors, it is all about understanding the current market and knowing when to pull the trigger on an investment and when to turn away. The same can be said about Kyle Bass. However, this individual has made his money through, while legal methods, off of individuals heartache. There are other investors who have done the same, but few have become publicized about the matter. Why is it that Kyle Bass has become the investor he is today? Through damaging interviews and his overall practice of making money off of the less fortunate.
When the housing market collapsed in the late 2000’s, Kyle Bass invested in the subprime mortgages expiring and being foreclosed upon. He, like many other individuals, saw that it was just a matter of time before the housing market collapsed. It wasn’t anything someone could stop, so warning others would not have done anything to help. He did what many investors did and invest money into the eventually “winning” side of the matter. In other words, every single time someone lost their home he made money. It is part of the nature of the beast, but what really came back to haunt Kyle Bass was his interviews about the subject.
Kyle conducted several different interviews with major news organizations, stating how he made his money and how happy he was for making the money. His gleeful nature made it especially damaging to his personal image and it instantly made him one of the “bad guys” from the entire situation.
Kyle isn’t done with his desire to make money off of people less informed than he. For the last several years, he has been stating the Asian market would collapse. With the right investments, it would prove possible to make a substantial amount of money. However, every single year the Asian markets have proven fine, yet Kyle continues to sing the possible collapse. He pointed to the Chinese market and the fast growing GDP. He pointed to the housing markets and how no country could sustain this kind of growth. With these proclamations, he had other individuals investing into markets against the Asian markets, which would pay off nicely, if the markets had collapsed. However, none of this has come to fruition and it has caused Kyle’s investors to lose a good amount of their investments.
Now, it seems more and more unlikely for this to ever happen. China devalued their currency. This way, the growing value of the currency wouldn’t drive companies away towards India and other, less expensive nations.