Carl Icahn admits mistake with bearish bet that cost $9bn

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In a surprising turn of events, billionaire activist investor Carl Icahn has recently taken to social media to admit his mistake in making an unwarranted bearish bet on the stock market. The bad decision resulted in a loss of $9 billion in assets that Icahn had invested in a variety of stocks.

By admitting his mistake, Icahn now joins some of the top names in the investment community who have made similar missteps in their trading judgment over the years.

Icahn’s loss occurred over several weeks beginning in late January as the stock market came under pressure from the novel coronavirus pandemic. He had suggested a bearish market call that would turn out to be wrong as stocks recovered quickly from the initial shock of the pandemic.

Icahn’s bet was predicated on a belief that the Covid-19 economic downturn would be much deeper and further reaching than expected. Instead, the market quickly rebounded in the ensuing months, eating into Icahn’s profits and leading to the biggest annual loss in his investment career.

In a recent tweet, Icahn expressed his regret: “I have never been so wrong on a market call. I apologize to anyone who followed me into this trade.” He also vowed to use the experience as a learning experience to inform his future investments.

Icahn’s admission of a mistake is certainly a noble gesture, but it nevertheless serves as a reminder to investors to always do their homework before making a financial decision and remember that investing is an inherently risky endeavor.