Loose Stones

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.

Loosen Stones
In the article “Buttonwood Foam party – Bubble-hunting has become more art than science” featured in The Economist on August 19th 2020.

This is what Newton lost in the stock market.

Screenshot 2020-08-31 at 15.50.03
Converting £20,000 in 1720 to 2017. Source Currency converter: 1270–2017.

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.

Quant Girl

I write about Mathematics, Statistics, Finance, Programming, and the relationships among them. I enjoy learning, listening to music and podcasts, practicing yoga, reading magazines, and watching documentaries.

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