A 20 year old student made $130M in a single trade.
It is every bit as incredible as it sounds.
A 20 year old university student in California just 5X his entire portfolio and made $130M from one trade.
Meet Jake Freeman, who probably know more about Wallstreetbets on Reddit that you and I.
What stock was it?
Bed Bath & Beyond (BBBY).
Yes, I know, the ticker is quite cute.
But the story of BBBY isn’t cute.
A well known department store in the US, they sell everything from candle sticks to blankets.
They have been struggling throughout the pandemic and earnings aren’t doing well at all.
So when the stock was at $5.50 a piece, Jake our meme stock hero, decided to buy it.
A lot of it.
Around $25M worth to be exact.
That is when the unforeseeable happened.
BBBY stock price started to climb against all odds and reasons.
If I knew, they would have interviewed me on national TV.
But I guess it is the combination of meme stock fever, reddit, retail investors FOMO-ing in and Ryan Cohen’s announcement that he was going to dump his 12% stake in BBBY.
Ryan is the billionaire founder of pet food company Chewy and Chairman of GameStop, who loves buying meme stocks and starting a movement.
So I wouldn’t say Jake was playing with his lunch money, he seems like a pretty serious and legit investor.
Apparently, he interned at a hedge fund at 17 and has been investing for years already.
I recall being overjoyed over a Nintendo Gameboy when I was 17 so we clearly aren’t the same.
A few questions I have swirling my head.
What instigated Jake to buy, of all stocks, BBBY?
Knowing full well it wasn’t doing well at all and their recent quarterly reports were pretty sad, indicating no reason for anyone to believe the tock price will moon.
What divine powers did Jake have to know when to sell?
He kind of sold almost at the peak of $27 before it went back down.
I want whatever he is drinking to get soothsayer powers.
Also, let’s be honest, a 20 year old with $25M lying around to invest, isn’t exactly your typical college kid.
At one point, he literally owned 6% of BBBY!
Ok so it wasn’t just Jake, he was managing a lot of money for friends and family.
And he probably lucked out on a really risky bet.
And meme stock fever probably had a big hand in in too.
But isn’t it utterly awesome that in this day and age, a 20 year old student can make $110M from the stock market?
It may be a lucky strike, a privileged kid with money making money, but it is still an awesomely wild story.
Whatever the case, imagine just how crazy a resume Jake would have: I made $130M in a single trade at age 20, before I even graduated from university.
Have you made money from the stock market recently?
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