He began to learn the inner workings of finance at the age of 17 and here he is, a multi-millionaire at 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 The echoes .
From $5.50 to $27 per share
The story begins for him last July, when he bought almost five million shares of the Bed Bath & Beyond group at $5.50 each. On August 16, the share price of the group that markets household items then rises to more than $27, and the student trader decides to sell his shares.
Masterstroke or stroke of luck, since the day after its sale, the group’s shares fell by 20%, then by 42% to reach $10.80 on Friday August 19 at the end of the day.
Not all stock market players have had the same fate as Jake Freeman. Many have rushed for the title and will now lose large sums, especially if the price continues to dive.
Shares of Bed Bath & Beyond group soared in July due to renewed buying by individual speculators, even as the group’s financial health is going through a rough patch.
Owner of own investment fund
A student of mathematics and economics at the University of Southern California, Jake Freeman has his own investment fund, Freeman Capital Management, which he created when he was 18 years old. With his personal savings and money collected from his relatives, he managed to endow it with 25 million dollars, which enabled him to invest in the stock market.
The 110 million earned does not therefore belong to him entirely since the sum also goes to his investors. Perhaps they will want to recover their earnings, or will they choose to leave it to the young trader to make new speculations? These first investments seem, whatever happens, promising for his early career.