As a financial blogger, Helmut Jonen lives from dividends. Helmut Jonen / Graphics: Dominik Schmitt
Helmut Jonen, a former UBS banker, shares his worst investments. He counts Steinhoff and Credit Suisse among others.
While furniture retailer Steinhoff was rocked by an accounting scandal, Credit Suisse suffered at the hands of Archegos and Greensill.
The experienced investor can think of two other stocks where the investment didn’t turn out ideally: Swissair and General Motors, he reveals in an interview with Business Insider.
Helmut Jonen is a well-known face in the financial scene for many reasons: He is an ex-banker at UBS, a dividend expert and likes to share his opinions on stocks and financial topics on social media.
Business Insider met the expert at the “Invest” financial trade fair in Stuttgart. We asked him a key question: “What was your worst investment?” He told us not one, not two, but four investments in stocks that performed less than ideally.
Steinhoff
Helmut Jonen doesn’t have to think twice before he thinks of his first failed investment. The first company he mentions in the interview may be familiar to some people: “It was this furniture retailer Steinhoff,” he says.
After the ex-banker invested, the international furniture retailer Steinhoff was rocked by a massive accounting scandal. In 2017, it was revealed that the company had manipulated its financial reports for years, causing its share price to plummet and losses worth billions of dollars. Investors lost a large part of their invested capital.
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Swiss credit
The shares of Credit Suisse and the company itself experienced a comparable crash in the Swiss financial industry: “I was also a shareholder in Credit Suisse,” reveals Helmut Jonen. At the time, the financial institution was considered one of the largest banks in Switzerland.
It has suffered significant losses in recent years, particularly after the collapse of Archegos Capital Management and the Greensill scandal. These events led to huge write-downs and a loss of shareholder confidence.
Swissair
And Helmut Jonen had another negative example from Switzerland in his stock portfolio. He also invested in Swissair shares, as he explains.
Swissair, Switzerland’s former national airline, ran into financial difficulties in 2001 and filed for bankruptcy. The so-called “grounding” meant that the planes had to remain on the ground.
General Motors (GM)
The investment in an automobile giant from the USA was also a big failure: “I was a shareholder in General Motors, which also went bankrupt during the financial crisis,” he tells Business Insider.
The US automaker filed for bankruptcy during the 2008 financial crisis. A combination of falling car sales, high debt levels and a drastic decline in consumer confidence led to this result. The company had to seek government support.
Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.
Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.