How Newton Lost 30 Crore Rupees?

Sir Isaac Newton is considered one of the greatest scientists of all time His scientific laws and inventions changed the world forever 

But friends, despite being so intelligent and among the world’s biggest scientists, he failed miserably in the stock market today, in this post, we will learn how even the world’s greatest scientist couldn’t solve the puzzle of the stock market  So do Read this post till the end so that  you don’t make the same mistakes which Sir Isaac Newton did 


Hello friends, we welcome you to our Blog “” our website is based on investment education If you are interested in investing or want to learn to invest, then do visit our website 

Friends, the story begins in the year 1710 When Robert Harley became the head of finance of the British Government  and he found that the government is buried under debt  To solve the problem of increasing debt, 

Robert Harley sought help from a banker named John Blunt  John Blunt started the South Sea Company in 1711  in partnership with the government  The company announced that  all those creditors who have given a loan to the government  can surrender their debt to the company  and in exchange for that they will get the company shares of the same value as of their debts  To increase the interest in the company among the public the government gave the monopoly right to the company to trade with Spanish America  John Blunt, on the ground of this monopoly, 

started showing people the great future of the company  After this, the creditors started to surrender their debts to the company  and took company shares in exchange for it  after some years,  in 1718, The King of Britain, King George I made himself the governor of the company  Seeing this, the trust of the common people increased a lot in the company  and people started buying its shares  And due to this, the company’s share price started to go high  Seeing the share price increases,  by the year 1719, all the creditors converted their debts into company shares  Friends, at the same time, 

one of the biggest scientists of the world and among the richest people of Britain,  Sir Isaac Newton also noticed the increasing share price of the company  and invested in the company hoping for its bright future  On the other side, the South Sea Company came up with new methods to increase its share price 

The company started giving free shares to all the prominent people and businessmen of Britain  Because of this,  all these people started praising and admiring the company publicly,  As a result, the company’s share price started increasing rapidly  and it reached 330 Pounds in March from 120 Pounds in January  Sir Isaac Newton saw the increasing popularity of the company among people 

He felt that the company’s share price can fall anytime,  and he sold all his shares making a profit of nearly 100%  But friends, this was just a trailer, the movie was remaining  to increase its share price, even more, The company came up with a scheme  that anybody can buy its share by paying only 20 % of its price  Just after the launch of this scheme,  people went mad for buying South Sea Company’s share  and the company’s share moved up like a storm and reached 550 Pounds in May 1720  Sir Isaac Newton had already sold his shares 

But seeing the company’s share price rising,  he regretted his decision  Nevertheless, he had the belief that  the share price will not rise any further and it will go down rapidly  But friends, the company did not want to leave any effort to lift its share price  The company again launched a new scheme and decided that it will give loan to people to buy its shares  The company started giving loans  and now, people started buying the company’s share by its loan 

After this scheme, everybody, either a big businessman or a small trader,  wanted the shares of South Sea Company only  Due to this immense demand,  the company’s share price skyrocketed to 890 Pounds in June 1720  Sir Isaac Newton had already found the answers of complex questions of Physics and Mathematics  But, he was unable to comprehend the force working behind  the increasing share price of the South Sea Company’s share  He was feeling really bad due to his mistake of selling his shares too early  and by seeing people making easy money in the company’s share 

At last, Sir Isaac Newton pulled himself out of his mental inertia, and in an attempt to rectify his mistake,  he invested way more money than before in the company  But, he didn’t know that  the company’s share price was just about to reach its peak  For some time,  Sir Isaac Newton felt right about his decision of buying the shares again  When in August 1720,  the company’s share price reached 1000 pounds  He started to feel that the company’s share price will go only up  and therefore, the idea of selling his shares never came to his mind  At last, in August 1720, 

the share price started to decline after reaching a peak of 1050  Sir Isaac Newton felt this downfall was temporary  and he did not sell his shares  But friends, this time the company couldn’t come up with new schemes, and in one month, that is, by September  the share price dropped from 1050 Pounds to 175 Pounds 

The Government tried hard so that the trust of people in the company could increase  but this did not happen  and by December 1720,  the share price fell to 124 Pounds thus, before Sir Isaac Newton’s very eyes,  his 20,000 Pounds vanished  whose today’s value is close to 30 crore rupees 

Friends, this is beyond doubt that  Sir Isaac Newton is one of the most intelligent persons in the world till now and the way he changed the world, perhaps no one can ever do it  But despite all this, he had to suffer such a big loss in the stock market  Now, the question is why it happened?  And how despite being so intelligent, 

Sir Isaac Newton couldn’t understand the stock market  So friends, the answer to this is  Sir Isaac Newton couldn’t control his emotions  and made three mistakes among the 10 biggest mistakes of investing, And only because of these mistakes, he suffer such a big loss,

First of all,  he invested in the South Sea Company without the knowledge and doing any research  If Sir Isaac Newton had seen the financials and the profits of the company,  then perhaps, he would never have invested in the company  Thereafter when he sold his shares making a 100 % profit,  he did not feel good seeing the share price increasing  and falling into the gravity of his emotions,  he bought back the shares at a very high price  Still, he could have saved his loss 

if he had sold his shares just when the price started to go down  But, this time he did the biggest mistake of not accepting the fact that  he did a big mistake by buying shares at such a high price  And he remained hopeful that the share price will rise again  But friends, nothing as such happened  and Sir Isaac Newton had to bear a loss of 30 crore rupees  In this way friends, to become successful in the stock market,  emotions matter more than intelligence  If we can control our emotions and  do not commit the biggest mistakes of investing  then we can become a successful investor,

Thanks, To Read

Post Source

Leave a Comment

Best High Dividend Yield Stock For Long-term Best Breakout Stock To Invest Now High Dividend Yield Stock That Can Make You Millionaire Best Breakout Stock That Can Make You Rich Best Breakout Stock In IT Sector
Best High Dividend Yield Stock For Long-term Best Breakout Stock To Invest Now High Dividend Yield Stock That Can Make You Millionaire Best Breakout Stock That Can Make You Rich Best Breakout Stock In IT Sector