Eike Batista: Lessons from the Downfall [VIDEO]

Eike BatistaBy EIKE_BATISTA.jpg: JulianaCoutinhoderivative work: – JBarta (This file was derived from EIKE BATISTA.jpg:) [CC BY-SA 3.0], via Wikimedia Commons

Eike Batista‘s story – flamboyant entrepreneur becomes the richest man in Brazil, only to see most of it wiped out when the market turned against him – has at least two good lessons for investors.

Eike Batista: Lessons from the Downfall [VIDEO]

The first hearkens back to one of our “Walking Dead Investment Lessons“: don’t trust smooth talkers. Mr. Batista was an “outrageous, out-sized character, kind of like a Brazilian version of Donald Trump,” John Lyons said this morning on the MoneyBeat show. But now, said Lyons who interviewed the fallen billionaire, he was “bleary-eyed,” subdued and “recouping.”

“I don’t think he’s ever done an interview on the downside.”

The second lesson is also simple: beware booms. Brazil, and Mr. Batista, rode two booms, a commodities boom, and an emerging-markets boom. Now that those booms are abating, Mr. Batista’s empire has gotten hammered, and he’s trying to salvage what’s left of it.

“He never delivered on his enormous promises. He was kind of a product of this euphoria for Brazil and for oil.”

If you’re interested in cautionary tales, read John’s fascinating piece in today’s paper.

Via: wsj.com

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com

Be the first to comment on "Eike Batista: Lessons from the Downfall [VIDEO]"

Leave a comment