You can learn an important lesson from Credit Suisse:
In 2006, Credit Suisse had a market cap of $70B.
By 2016, they had a market cap of $30B.
By 2022, they had a market cap of $10B.
Today, they were acquired for $3B.
Lesson: give up.
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The real lesson is message discipline. The Saudi investor who has 9.4% of CS’s shares was asked in light of SVB’s problems would he be increasing his support of CS.
The correct answer was something like: ‘I would love to do so but am unable to because if I go over 10% it moves me into a completely different regulatory environment; so I am obliged to stick with my 9.4%, thanks, but I’m very pleased with my investment in CS.’
Instead the stupid schmuck said ‘No, I won’t be putting any more money in’.
Which amounts to the same thing but caused CS to collapse and be snapped up.
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