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Podcast: Read & Repeat
Episode: EP53 When Genius Failed - The Rise & Fall of Long-Term Capital Management
Description: Roger Lowenstein's book "When Genius Failed" is one of the best business failure case studies I've ever read. As we come up on the 25-year anniversary of Long-Term Capital Management's downfall, I thought it would be a great time to explore the lessons behind their fall from grace. LTCM started as a hot new hedge fund in the mid-90s, ready to deliver outstanding returns through their team of "genius" Ph.D. financial experts and unique bond arbitrage strategy. They posted incredible results over the first 4 years, multiplying their investor's capital by 4x, but then only 6 months later, nearly...