by Michael Covel
Daily Reckoning
“If you take emotion — would be, could be, should be — out of it, and look at what is, and quantify it, I think you have a big advantage over most human beings.” — John W. Henry, trend follower who went from being a farmer to owning the Boston Red Sox
When shares of Enron collapsed in 2001, a lot of investors got wiped out.
I’m sure you remember what happened with Enron, one of the biggest frauds in corporate history.
The firm used creative accounting to hide huge debts and heavy losses on its trading businesses. Once the fraud became evident in 2001, Enron quickly went from being one of the biggest corporations in America to being one of the biggest debacles in history.
More than 20,000 employees were thrown out on the streets. In a matter of months, the stock dropped from $90 to $0.