Spoiler Alert – Read this article after watching the movie.
It’s reasonable to wonder what a movie about the housing crisis and ensuing financial meltdown could teach regular people in the market about investing. But within The Big Short there are nuggets of wisdom that pertain to value investing. There’s also Margot Robbie in a bathtub, so something for everyone.
The movie is set in the 2000s and follows the events and characters involved in the housing market bubble (Spoiler Alert: that bubble burst). The characters were all prescient, and saw that the housing market was decidedly overvalued, and they realised that they stood to gain by shorting it. Most of the characters in the film, and their real life counterparts, profited immensely from those trades.
While the movie focuses on hedge fund managers, big time stock traders, and bond salesmen – not your typical lot to learn from for personal investing – there are truths in the movie that extend to all levels of value investors. If you’re in London, join us at London Value Investing Club where we as a group of value investor discuss various value investment opportunities.
Read more here.