Everybody knows about Sir Issac Newton great contributions to Physics and Mathematics but fewer people have heard about his excursions in the world of investment.
In the spring of 1720, Newton owned shares in the South Sea Company, probably the hottest stock in England at that time. In a fortunate move (and apparently spotting the coming bubble in advance) Newton liquidated his shares, pocketing a 100% profit totalling £7,000. However, these gains did not last. Months later, he jumped back in at a much higher price and ended up lossing £20,000. To put this amount of money in context, scroll down ⬇️ to take a look at what this money would buy you in 1720.
This is what Newton lost in the stock market.
Quite a bit of money lost by Sir Issac Newton. It seems that not even the brightest minds can resist to the temptations of a volatile market.