Sunday, September 13, 2009
Kann Endre: The Pope of the Stock Exchange
He was born 103 years ago in Budapest as Kann Endre but he is better known as Andre Kostelany. He made his money in Paris and Zurich, and in 1939 he transferred all of it to New York ("My heart is in the left, my head in the right, and my money in New York"). The speculation of his life was to buy German 1930 bonds after Germany's defeat, when no one thought they will be paid back. Thanks to the German Economic Miracle they were redeemed and his profit was enormous. Adenauer also gave him a medal. His next operation was Russian Bonds emmitted by the Tzar, which he bought at 2% and sold at face value. He said that 49% of his speculations failed but 51% succeeded, and the 2% difference was enough to make his fortune.
Addenda: What was the reasoning behind his very successful speculation of German pre-War Bonds? After the war, Germany was destroyed and the population was starving (people forgets that), but Andre thought: The Germans are a serious, hardworking, productive people, they always pay their debts. So he bought the bonds for nothing and invested in the reconstruction of German industry. In fact, this Jew is the real father of the German post-war "economic miracle".