This year’s been a real grind for Luckin Coffee LK, 36.05% investors.
At one point, Lone Capital held $367 million in stock to lead all hedge funds covered by Insider Monkey. DSAM Partners had $146.2 million worth. Melvin Capital, Renaissance Tech and Tybourne Capital were also bullish on the company, according to Yahoo Finance.
So when the stock, which was already down 89% for the year, had its trading halted back in April amid an investigation into financial misconduct, the losses were felt far and wide.
Yes, StopFapForever, who claims to be a 28-year-old Italian, shared his brutal market mistake with the bunch on WallStreetBets. He apparently he went all-in on Luckin and lost his entire life savings in the process. “Now I’m broke af,” he wrote, posting this screenshot of the carnage:
First, that's not a bad life savings for a 28 year old. Either he inherited a lot of it, or he'd had some success in the market before that made him arrogant.
Hubris, then nemesis. That's how it works. If you live long enough, you learn that lesson well, but hopefully just once.
I put my funds in the local Sealy Posturepedic. My account only goes up & down when my girlfriend and I do a horizontal dance.
ReplyDeleteOuch! Not pretty.
ReplyDeleteReminds me of the Schlockmeister Investment Fund, with it's 50% rates of return. ("That's right, at the end of the year, we'll return fifty percent of your money!")
ReplyDeleteSo he has a 5% return. Not terrible. If it wasn't returning just 5% of his money.