While many traders and investors have made fortunes, some have lost billions due to poor decisions, bad luck, or overconfidence. Here are some of the biggest stock market losers of all time:
1. Jesse Livermore – The "Boy Plunger" Who Lost It All
Peak Wealth: $100 million (adjusted for inflation, ~$1.5 billion today) Biggest Loss: Lost everything and went bankrupt multiple times.
What Went Wrong?• Made a huge fortune shorting the 1929 crash, but later lost it all on bad trades.
• Ignored his own risk management rules.
• Overleveraged and failed to adapt to changing markets.
2. Adolf Merckle – The Billionaire Who Bet Against Volkswagen
Peak Wealth: $12 billion Biggest Loss: Lost billions shorting Volkswagen (VW) in 2008.
What Went Wrong?• In 2008, Volkswagen’s stock skyrocketed 400% in two days, becoming the world’s most valuable company temporarily.
• Merckle had a massive short position, expecting VW stock to drop, but he was caught in a short squeeze.
• His empire collapsed, and he tragically took his own life.
3. Bill Hwang – The $20 Billion Disaster of Archegos Capital
Peak Wealth: $20 billion Biggest Loss: Lost $20 billion in TWO DAYS in 2021.
What Went Wrong?• Used extreme leverage (borrowed money) to buy stocks like ViacomCBS (VIAC) and Discovery (DISCA).
• When prices dropped, he couldn’t cover his margin calls, forcing massive liquidation.
• Banks like Credit Suisse & Nomura lost billions due to his bad bets.
4. Masayoshi Son – The $70 Billion Crash of SoftBank
Peak Wealth: $78 billion in 2000 Biggest Loss: Lost $70 billion during the 2000 dot-com crash.
What Went Wrong?• Overinvested in internet startups before the dot-com bubble burst.
• His company, SoftBank, saw its stock drop 99% from its peak.
• However, he later recovered by investing in Alibaba, making back billions.
5. Eike Batista – From $30 Billion to Bankrupt
Peak Wealth: $30 billion in 2012 Biggest Loss: Lost his entire fortune and went bankrupt.
What Went Wrong?• Owned oil company OGX, which collapsed due to failed oil discoveries.
• Took on too much debt, and when the company failed, so did his fortune.
• Was once the 8th richest person in the world, then ended up owing billions.
Lessons from the Biggest Losers
You must use the best stock strategy
As many traders and investors have made fortunes
