FYI: In the spring of 1720 Sir Isaac Newton ditched his shares in the South Sea Company, which had been a granted a monopoly on British trade with South America, for a cool 100 per cent profit of £7,000. However, the stock kept climbing and Sir Isaac bought them back at almost three times the price he initially paid. Within months the bubble had burst, obliterating the scientist’s life savings and leading him to lament that he “could calculate the motions of the heavenly bodies but not the madness of people”.
With the 10th anniversary of the global financial crisis approaching, it is natural to attempt to guess where the next debacle will occur. Sir Isaac’s misfortune shows how even history’s most brilliant minds can fail to spot financial excess — aside from his scientific renown, he was also head of the Royal Mint at the time of the South Sea Bubble.
Regards,
Ted
https://www.ft.com/content/946fe48e-b1ec-11e8-8d14-6f049d06439c
