There are many people in the world of finance that have fallen from once great careers. Finance is a field that celebrates great success based on the rate of return that advisers bring clients. One of the central tenets of investing is that the more risk that a person takes on, the more their rate of return will increase. This has cause many people in the industry to take on more risks than they would have otherwise. At the end of the day, many people get burned by taking on investments that are way too risky. Kyle Bass is one of these individuals that had a great career in finance that was eventually hurt by his actions. Here are several things that we can take away from the career of Kyle Bass in finance.
All investing involves some level of risk at a certain level. However, there are ways to manage risk in a way that is better for the client. There are many different avenues that investment advisers use to decrease risk such as diversifying. A lot of clients put their trust in investment advisers in order to earn a high rate of retirement. That trust should be taken seriously by anyone that is in the industry. A person’s life savings is not something that should be gambled with. In the case of Kyle Bass, that is almost exactly what happened.
Kyle Bass is a great example of how volatile the world of high finance can be. There are many people that have stumbled and fallen as a result of trying to earn a higher rate of return for clients. However, in trying to earn the highest rate of return possible their investing moves closer to gambling. Kyle Bass gambled away millions of dollars in investments to try and earn a higher rate of return. At the end of the day, he ended up hurting his clients and career more than he would have ever imagined.