He bet on the Bed Bath & Beyond group and it paid off big. At age 20, Jake Freeman earned $110 million by selling his stock.
He started learning the ropes of finance at the age of 17 and was a multi-millionaire by 20. Still a student, Jake Freeman pocketed $110 million in the space of a month thanks to his financial investments, reports the Financial Times , relayed by Les Echos .
From $5.50 to $27 a share
The story begins for him last July, when he bought nearly five million shares of Bed Bath & Beyond Group at $5.50 each. On August 16, the home furnishings company’s share price rose to over $27, and the student trader decided to sell his shares.
It was a masterstroke or a stroke of luck, since the day after his sale, the group’s shares fell by 20%, then by 42% to reach $10.80 by the end of the day on Friday, August 19.
Not all stock players had the same fate as Jake Freeman. Many rushed into the stock and will now lose large sums, especially if the price continues to plunge.
The Bed Bath & Beyond group’s stock had soared in July due to renewed buying by individual speculators, even though the group’s financial health is going through a rough patch.
Owner of his own investment fund
Jake Freeman, a mathematics and economics student at the University of Southern California, owns his own investment fund, Freeman Capital Management, which he set up when he was 18. With his personal savings and money from family and friends, he was able to raise $25 million, which allowed him to invest in the stock market.
The 110 million dollars earned do not belong to him in their entirety, since the sum also belongs to his investors. Perhaps they will want to recover their gains, or will they choose to leave the young trader to make new speculations?