This man made a bet of $321m on Netflix, cashes $1.9b profit

This man made a bet of $321m on Netflix, cashes $1.9b profit

Friday, June 26, 2015 4:24 pm


Carl icahn

Carl icahn

The stock market can either be a casino of big cash out for the lucky player or it can turn a graveyard of lost fortunes.

Carl Icahn, the 79 year old Jewish investor and the 10th richest man in the world has had a sunny day with one of his holdings, Netflix, making a cumulative windfall of $1.9 billion dollars in three years. Sometimes, the stock market can outperform America’s biggest lottery Power ball, in windfall!

The mogul investor, took to Twitter to announce his exit of Netflix, the video-streaming company. Since buying an initial stake worth $321 million in 2012, the investor has made more than $1.9 billion over the past three years, according to FORBES’ estimate based on Icahn Enterprises’ filings.

If the mogul had held onto all the shares, Icahn’s initial position of $321 million in 2012 (10% of Netflix at the time) could be worth $3.8 billion. His son Brett Icahn, who first brought to the deal to his father’s attention, wanted to keep all their Netflix shares while the billionaire investor decided to cut back, slicing their positions in half in 2013.

“When you are lucky and/or smart enough to have made a total return of 457 percent in only 14 months it is time to take some of the chips off the table,” the elder Icahn wrote at the time.

Despite Netflix hitting an all-time high after announcing 7-1 stock split on Tuesday, Icahn cited increasingly strong competition for the TV and movie streaming service in an interview with CNBC on Wednesday afternoon.

Now the billionaire investor is hoping to replicate his success in Netflix with a big bet on Apple AAPL.

As of March 31, his flagship fund owns about 53 million shares of Apple stock (worth of about $7 billion), the biggest stake he holds in market value.

“I think Apple is where Netflix was a couple of years ago,” he said. Watch out for another mega windfall for Icahn.


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