In July 2010, a 50-year-old hedge fund manager quietly bought 240,000 tons of cocoa beans. That was 7% of the entire world’s production. The majority of all available supply on the market. His bet was worth a billion dollars. The press called him “Chocolate Finger.” Chapter 34 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Anthony Ward and his massive cocoa gamble.
In July 2010, a 50-year-old hedge fund manager quietly bought 240,000 tons of cocoa beans. That was 7% of the entire world’s production. The majority of all available supply on the market. His bet was worth a billion dollars. The press called him “Chocolate Finger.” Chapter 34 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Anthony Ward and his massive cocoa gamble.
How do you hide $1.8 billion in losses for over a decade? You stay at the same desk, you forge your boss’s signature, and you pray that the market turns around. Chapter 17 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Yasuo Hamanaka, a copper trader at Sumitomo Trading in Tokyo who controlled 5% of the global copper market, lied about it for eleven years, and brought down the biggest single-company trading loss the world had ever seen.
How do you hide $1.8 billion in losses for over a decade? You stay at the same desk, you forge your boss’s signature, and you pray that the market turns around. Chapter 17 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Yasuo Hamanaka, a copper trader at Sumitomo Trading in Tokyo who controlled 5% of the global copper market, lied about it for eleven years, and brought down the biggest single-company trading loss the world had ever seen.
“Every moron could buy a printing press, everything might be better than paper money.” That is Nelson Bunker Hunt explaining why he bet the family fortune on silver. Chapter 13 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of the Hunt brothers, two Texas oil heirs who tried to corner the global silver market. They almost pulled it off. And then they lost everything in a single day.
“Every moron could buy a printing press, everything might be better than paper money.” That is Nelson Bunker Hunt explaining why he bet the family fortune on silver. Chapter 13 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of the Hunt brothers, two Texas oil heirs who tried to corner the global silver market. They almost pulled it off. And then they lost everything in a single day.
Imagine you are a bank. Someone comes to you and says, “I have millions of pounds of soybean oil stored in tanks in New Jersey. Give me a loan.” You send an inspector. The inspector dips a measuring rod into the tank. Oil floats on top. Looks fine. You approve the loan. What you do not know is that 95% of the tank is filled with water and there is just a thin layer of oil floating on the surface.
Imagine you are a bank. Someone comes to you and says, “I have millions of pounds of soybean oil stored in tanks in New Jersey. Give me a loan.” You send an inspector. The inspector dips a measuring rod into the tank. Oil floats on top. Looks fine. You approve the loan. What you do not know is that 95% of the tank is filled with water and there is just a thin layer of oil floating on the surface.
A city burns down. Warehouses full of wheat turn to ash. Storage capacity drops overnight. And a group of traders looks at this disaster and thinks: “We can make money off this.”
A city burns down. Warehouses full of wheat turn to ash. Storage capacity drops overnight. And a group of traders looks at this disaster and thinks: “We can make money off this.”
Picture this. A 30-year-old guy from Massachusetts moves to Chicago with no connections and no fortune. Within a few decades, he becomes the most feared trader on the floor of the Chicago Board of Trade. They called him “Old Hutch.” And he figured out how to squeeze money from wheat like nobody had done before.
Picture this. A 30-year-old guy from Massachusetts moves to Chicago with no connections and no fortune. Within a few decades, he becomes the most feared trader on the floor of the Chicago Board of Trade. They called him “Old Hutch.” And he figured out how to squeeze money from wheat like nobody had done before.