Billionaire Kyle Bass | Shorting China & Top 7 Investing Quotes

Kyle Bass is a Legendary Hedge Fund Manager with a net worth of approximately $3 Billion.  Bass got rich by predicting the subprime mortgage crisis in 2008 and betting against the U.S Housing market.

Along with other legendary investors such as Michael Burry (Big Short.)  His investment style is that of a “top down” approach to investing looking at Economics, Politics and currency trades.  Investment Strategy: Short Seller, Economics, Top Down, Trader 

Bet against the Hong Kong Dollar: 

In recent times, Kyle Bass has spoken publicly about his controversial shorting of the Hong Kong Dollar, which is pegged to the US Dollar.  Bass believes that China is a “paper dragon” and the influence central China is having in Hong Kong is causing many issues.

He has also spoken publicly about the human rights violations in China and is very against their practices, in this sense you could also call Kyle Bass an Ethical Investor.  Hayman Capital’s Hong Kong Dollar short so far has not paid off, but if it does we could see another Asian financial crisis! 

Due to the unlikelihood of this occurring, Kyle Bass could generate exponential returns.

This strategy is very similar to the contrarian bet the Legendary George Soros made against the British Pound, in which he reportedly made over $1 Billion in a single day.  In recent times, Bass has reiterated his predicted a collapse of the Hong Kong Dollar and has urged investors to move their assets to USD

Today I’m releasing our views on the financial, political, and legal plight of Hong Kong. I think Investors that have assets invested there should immediately move them into USD before it’s too late. #china #onecountryonesystem #hk https://t.co/91rE7SVN6T

— 🇺🇸Kyle Bass🇺🇸 (@Jkylebass) May 23, 2019

1. Be a Contrarian

“China is a Paper Dragon which is why we’re selling short” – Kyle Bass (Hedge Fund Manager). Kyle Bass is a true contrarian, which is somebody who uses a unique insight to bet against the general consensus. He did this in 2007 during the housing bubble and now he is dong this again with China.

  Most Investors & Economists believe China to be a powerhouse and the next global leader which could even overtake the US. They having a growing middle class population, a strangle hold on Manufacturing & an immense influx of talented engineers coming into the workforce.

The Worlds largest hedge Fund Manager Ray Dalio is extremely bullish on China. Whereas Kyle Bass believes the opposite, he believes China is a “Paper Dragon” which is pulling the wool over the worlds eyes & it’s totalitarian regime should not be supported.

He also believes the Hong Kong dollar peg will break and another asian financial crisis will occur. Only time will tell if he is right again. 

2. Face Reality

“You can’t hate the mirror because your ugly” – Kyle Bass (Billionaire Investor). Kyle Bass is a straight talker who is not afraid to say the truth about what he thinks. Bass is the opposite of what one might call a “Snowflake”.

3. Lipstick on a Pig

“They put lipstick on a pig & tried to sell it to someone they didn’t know what they were buying” – Kyle Bass (Billionaire Investor). Be aware of speculative investments from young companies with many charts up and to the right, this can be highly risky for investors. A Healthy dose of skepticism is necessary for great decisions. 

4. Buy Gold?

“Buying Gold is buying a put against the idiocy of the political cycle” – Kyle Bass (Billionaire Investor). 

Trillions of dollars of Stimulus printed in 2020 has caused real Inflation fears which is starting to materialise. Bold Investors such as Billionaire Bill Ackman are betting interest rates will need rise if inflation continues. 

5. Don’t invest into China

“If National security was left up to corporate america we’d be speaking Chinese pretty quickly” – Kyle Bass (Hayman Capital). As mentioned prior Kyle Bass is very against investing into China for both Economic, Ethical & national security reasons.

6. Capitalism Without Bankruptcy

“Capitalism without Bankruptcy is like Christianity without hell” -Kyle Bass (Billionaire Investor).

Without bankruptcy companies & banks will fear no need to mitigate risk as if they fail, the tax payers will bail them out. We saw this happen in the 2007 Financial Crisis and also in 2020. 

6. Be Aware of Inflation

“Zimbabwe’s stock market was the best performing, but now your entire stock portfolio can buy three eggs” – Kyle Bass (Billionaire Investor).  Inflation is basically the “inflating/increasing in prices”, one measure is the CPI (Consumer Price Index) which measures the price increases on a basket of everyday goods. As more money is printed this can cause “Hyperinflation”, which can basically make money worthless.

This happened in Germany during the 1920’s when a wheel barrow of cash was needed to by a loaf of bread. But it has also happened in more recent times in Venezuela, Zimbabwe and even Turkey is experiencing high inflation but not Hyper inflation yet.  

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Kyle Bass Quotes Gallery