Author Topic: Teen hedge fund manager - Wohl Capital  (Read 102245 times)

merkhet

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Re: Teen hedge fund manager - Wohl Capital
« Reply #30 on: March 22, 2015, 08:16:49 AM »
Securities regulation wasn't my specific area of law, so I assumed that the "ignorance of law is not a defense" maxim applied there, but you're right -- it seems more complicated -- though I don't know if it applies outside of a criminal prosecution. And I'm uncertain as to whether the SEC can still bar you from working in the securities industry absent a criminal conviction. My theory here, and in many other aspects of life, is that it's often better to stay far enough from the chalk outline that you don't get any chalk on your shoes -- but I suppose everyone has different risk tolerances.

Law is... not all that arbitrary, actually. Certain parts of it are arbitrary, perhaps securities regulations and/or some substance regulation, like say pot. However, much of it comes out of natural laws stemming from Locke, etc., that govern property rights, tort law, etc.

The reason I felt the need to point out the difference in your two statements is that I don't know that there's such a thing as common sense that extends globally (or even within a country), which is why the statement to break laws that aren't "sensible" generally isn't a workable notion. One of my favorite quotes is that "infidels don't think of themselves as infidels" -- meaning that while in this country, we're all rah-rah America, there are some people out there who think we're the devil. And vice versa. Also, growing up in the South and hearing about "the War of Northern Aggression," and then living in the North and hearing about "the Civil War" indicates to me that the legal notion of "a reasonable person" is a farce. But now we're getting a little philosophical...

Ah, well, the neighbors makes more sense. In general, most people prefer to live conventionally, so that's probably what was driving that. Sorry you and your family had to go through that though.


UNF2007

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Re: Teen hedge fund manager - Wohl Capital
« Reply #31 on: March 22, 2015, 09:47:19 AM »
WOW, I can't believe people are giving him money, it seems like there is a social dynamic at work here. Maybe once he got enough people on board, the others were nervous on missing out? People really need to be saved from themselves. Would you let the kid perform surgery on you if he watched some videos on youtube from yale/harvard medical school and got up at 0530? Of course not, people inherently realize that takes experience, training and many years to master, something not found in a person still in high school. I think a similar paradigm applies to investing other peoples capital, because if you screw it up their quality of life is going to take a major hit.

fuluvu

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Re: Teen hedge fund manager - Wohl Capital
« Reply #32 on: March 22, 2015, 11:27:31 AM »
The 17 year old  kid in this story did not end so well. Mo Islam is a liar.  This young kid may not be a liar as Islam. But, I do not believe that he can tell the difference between “luck” and “skill”. Over a short period, 50% of investors can achieve above average return by through a dart on a stock table.  I bet that his profit will soon become losses from his so-called “strategies”.

$72M 'whiz kid' investor made the whole thing up
Scott Wapner   | Ben Berkowitz
Tuesday, 16 Dec 2014 | 8:45 AM ET
CNBC.com

Mo Islam, the 17-year-old "whiz kid" investor who suggested he'd made $72 million trading stocks on his high school lunch breaks, admits now he made much less than that.

As in, zero.

After a long day in the media spotlight, Islam admitted to the New York Observer late Monday night that the whole thing had been a fabrication and that he had not made anything at all trading stocks.

"The people I'm most sorry for is my parents. I did something where I can no longer gain their trust," he told the magazine in a question-and-answer session at the office of a public relations firm.

The controversy started with a New York magazine article that suggested Islam was fabulously wealthy for a boy his age, the result of astute stock picking at school.

But skeptics pounced on the story almost immediately, and in a CNBC interview at midday Monday, Islam said the New York article was not accurate. He intimated that his trades had netted a few million dollars but dodged repeated questions.
« Last Edit: March 22, 2015, 11:36:04 AM by fuluvu »

ScottHall

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Re: Teen hedge fund manager - Wohl Capital
« Reply #33 on: March 22, 2015, 01:10:13 PM »
WOW, I can't believe people are giving him money, it seems like there is a social dynamic at work here. Maybe once he got enough people on board, the others were nervous on missing out? People really need to be saved from themselves. Would you let the kid perform surgery on you if he watched some videos on youtube from yale/harvard medical school and got up at 0530? Of course not, people inherently realize that takes experience, training and many years to master, something not found in a person still in high school. I think a similar paradigm applies to investing other peoples capital, because if you screw it up their quality of life is going to take a major hit.

Managing money is nothing compared to surgery. Tons of people do it - and lose to the market - all the time, and still collect billions in fees annually. It probably has one of the lowest standards of quality of any field that I'm aware of.

And for what it's worth, in a pinch, I would consider letting an untrained surgeon operate on me.

https://www.youtube.com/watch?v=8_eAkdtYay4

ScottHall

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Re: Teen hedge fund manager - Wohl Capital
« Reply #34 on: March 22, 2015, 01:15:06 PM »
Securities regulation wasn't my specific area of law, so I assumed that the "ignorance of law is not a defense" maxim applied there, but you're right -- it seems more complicated -- though I don't know if it applies outside of a criminal prosecution. And I'm uncertain as to whether the SEC can still bar you from working in the securities industry absent a criminal conviction. My theory here, and in many other aspects of life, is that it's often better to stay far enough from the chalk outline that you don't get any chalk on your shoes -- but I suppose everyone has different risk tolerances.

Law is... not all that arbitrary, actually. Certain parts of it are arbitrary, perhaps securities regulations and/or some substance regulation, like say pot. However, much of it comes out of natural laws stemming from Locke, etc., that govern property rights, tort law, etc.

The reason I felt the need to point out the difference in your two statements is that I don't know that there's such a thing as common sense that extends globally (or even within a country), which is why the statement to break laws that aren't "sensible" generally isn't a workable notion. One of my favorite quotes is that "infidels don't think of themselves as infidels" -- meaning that while in this country, we're all rah-rah America, there are some people out there who think we're the devil. And vice versa. Also, growing up in the South and hearing about "the War of Northern Aggression," and then living in the North and hearing about "the Civil War" indicates to me that the legal notion of "a reasonable person" is a farce. But now we're getting a little philosophical...

Ah, well, the neighbors makes more sense. In general, most people prefer to live conventionally, so that's probably what was driving that. Sorry you and your family had to go through that though.

Fair enough, we can just agree to disagree then.

Also, sorry if my last post seemed biting. Didn't mean to be a jerk, but reading it, it seems like it could have come off that way pretty easily.

merkhet

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Re: Teen hedge fund manager - Wohl Capital
« Reply #35 on: March 22, 2015, 01:18:15 PM »
Nah. I just assumed we were chatting about the philosophy of law. :)

innerscorecard

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Re: Teen hedge fund manager - Wohl Capital
« Reply #36 on: March 22, 2015, 07:09:02 PM »
Inner Scorecard - Where financial independence, value investing and life meet: http://www.innerscorecard.co/

philly value

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Re: Teen hedge fund manager - Wohl Capital
« Reply #37 on: March 22, 2015, 07:51:44 PM »
This is fun:

https://twitter.com/jacobwohl

Be sure to include your completed invetment form.

permabear

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Re: Teen hedge fund manager - Wohl Capital
« Reply #38 on: March 22, 2015, 08:00:02 PM »
Apparently this qualifies as a prospectus these days: http://media.wix.com/ugd/ab94f4_9b6fbbdafef14e0aa360e0578c8530e3.pdf

innerscorecard

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Re: Teen hedge fund manager - Wohl Capital
« Reply #39 on: March 22, 2015, 08:52:21 PM »
Inner Scorecard - Where financial independence, value investing and life meet: http://www.innerscorecard.co/