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(The Week)   Halsey Minor managed to blow through over $200 million in less than five years and is now bankrupt despite being neither a Powerball winner, nor a professional athlete, but the founder of business that sold for over $1.8 billion in 2008   (theweek.com) divider line 79
    More: Strange, Halsey Minor, Powerball, Dominion Resources, James Rivers, california dmv, financial risk  
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7771 clicks; posted to Geek » on 03 Jun 2013 at 2:18 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-06-03 12:45:41 PM  
There ya go.  A fine example of someone getting a battleship full of money and not knowing how to farking handle it.
 
2013-06-03 12:50:05 PM  
hahahahahahahahahhahahahahahahahhahahahahahahaha
 
2013-06-03 01:52:47 PM  
blogs.amctv.com

halsey acted stupidly
 
2013-06-03 02:23:56 PM  
Love this line:

"Choosing Chapter 7 is clearing the slate," bankruptcy lawyer Bob Rattet tells Bloomberg. "He isn't required like Middle America to pay his debts, because they're mostly business-related."

That makes me feel so awesome
 
2013-06-03 02:25:24 PM  
If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000
 
2013-06-03 02:26:42 PM  
Pfft.  That's about $3.3M per month.  I could do that.

I wouldn't do that, but I could do that.
 
2013-06-03 02:27:43 PM  
www.polyvore.com
 
2013-06-03 02:30:34 PM  
That's a lot of chicks at the same time, man.
 
2013-06-03 02:35:48 PM  

Stoj: Pfft.  That's about $3.3M per month.  I could do that.

I wouldn't do that, but I could do that.


You would have to work VERY hard at it, and extra hard not to have , say, at least $100+ mi in tangible assets to show for it.  Hell, even Doug Humphrey  (anopther DC metro local boy made good,- started Digex (at the time a dial up ISP) with a "borrowed"  mainframe  in the early  90's sold it to MCI/Worldcom for $6 billion in 2000) was smart enough to spend at least some of his cash buying and restoring a WWII British destroyer to use as his private yacht.  I don;t know how his "Angel" VC firm is doing but I do know the storyies of parties on that yacht are...epic (though gawd help us all if those geeks and engineers ever firgure out a way to get the main guns working again..)
 
2013-06-03 02:51:39 PM  
I witnessed something very similar first-hand. I took a job working directly for a guy who made $300,000,000 when he sold his tech company during the late 90s dot-com boom. He attributed his outlandish success to his own talents and ability, when in fact it was purely being at the right place at the right time.

So he took a ton of his money and started reinvesting in start-ups, some of which were really bad ideas. He had the most inept people involved (friends from High School, poker buddies) running each of these businesses. The reasonable people involved tried to give him advice and he wouldn't hear it; the bottom line was always that he made "almost half a billion" doing it his way in the past, and we should just take notes and learn something. I got out after the big market crash 2008 when he had already lost 90% of his fortune. Since then he has shuttered a couple of the businesses, sold off his cars, and most of his residences.

I also worked in a similar capacity for a CEO who started a business from scratch with his dad, invented their own equipment, and worked hard to take the company public. He's cautious, trusts all hisadvisers and VPs, and his worst fear is losing what he has worked so hard to create.

It's the difference between self-made and lucky.  At least in my limited experience.
 
2013-06-03 02:53:30 PM  

skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000


Come now, 6M is nothing when the guy up the street is pulling in 7M. You can never have too many Ferrari's.

Remember, like in Monoply you only win the game if you have all the money.
 
2013-06-03 03:02:14 PM  

LemSkroob: skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000

Come now, 6M is nothing when the guy up the street is pulling in 7M. You can never have too many Ferrari's.

Remember, like in Monoply you only win the game if you have all the money.


boggles the farking mind. You can literally give $1,000,000 away to charity, keep more money than you could possibly spend in a year (except in this guy's case, apparently) and reinvest enough to keep the principal pegged to inflation so that no one in your family ever has to work again ever... but nope, you had to have the 10th Phantom and the 10th house to have a garage to house it
 
2013-06-03 03:07:32 PM  
movieguy247.com
 
2013-06-03 03:07:52 PM  

skullkrusher: but nope, you had to have the 10th Phantom and the 10th house to have a garage to house it


With the guy I worked with, he had a favorite sports car that cost $1.3m. There were only a certain number of them available in the world, with 3 different types of chassis. He bought 3, one of each variety, and kept one each at his three main residences. None of them were his primary mode of transportation.
 
2013-06-03 03:08:36 PM  

LemSkroob: skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000

Come now, 6M is nothing when the guy up the street is pulling in 7M. You can never have too many Ferrari's.

Remember, like in Monoply you only win the game if you have all the money.


Watching Shark Tank with my son we had this very discussion the other day, and while I hate to hold up mark Cuban as a role model for anything, the simple fact is, he's as wealthy as he is today, because he was very smart at seeing the furture or because he chose not to be greedy at exact the right time.   When he sold Broadcast.com to Yahoo, Yahoo stock was at about $160 a share and looked to be headed staight for the strastosphere.  HE sold ALL his stock after his lock-out and netted about $2 billion.  Before it hit bottom a few years later Yahoo was trading for about $8 a share  meaning he would have still been worth a whole lot...like $100 million, but a LOT less than he was by cashing out at the top of the market.  I wonder if that's because he saw the tech bubble bursting without absolute certainty, or whether he just decided that $2 billion was enough for anybody and it was time to get out.
 
2013-06-03 03:16:10 PM  
What a dumbfark. I'd get a luxury mobile home up in the woods with tons of gadgets and travel the world, just to come back for a few weeks to the forest home. Most of all, keep a low profile and disappear. Maybe mysteriously help people here and there.
 
2013-06-03 03:16:47 PM  

WinoRhino: skullkrusher: but nope, you had to have the 10th Phantom and the 10th house to have a garage to house it

With the guy I worked with, he had a favorite sports car that cost $1.3m. There were only a certain number of them available in the world, with 3 different types of chassis. He bought 3, one of each variety, and kept one each at his three main residences. None of them were his primary mode of transportation.


even that wouldn't break the bank at these amounts of money. Just the insane spending money just for the fark of it (I could see bragging rights of having one of each type of car being worthwhile for someone with that sort of scratch) is incredible to me. This dude could have set his family up forever without ever having a care in the world about spending for himself and didn't.
 
2013-06-03 03:18:05 PM  

Quantum Apostrophe: What a dumbfark. I'd get a luxury mobile home up in the woods with tons of gadgets and travel the world, just to come back for a few weeks to the forest home. Most of all, keep a low profile and disappear. Maybe mysteriously help people here and there.


if you substitute the woods for a cave under your mansion and the doublewide with gadgets for a kickass car with gadgets, I think we might have a lucrative storyline in the works
 
2013-06-03 03:23:50 PM  

skullkrusher: WinoRhino: skullkrusher: but nope, you had to have the 10th Phantom and the 10th house to have a garage to house it

With the guy I worked with, he had a favorite sports car that cost $1.3m. There were only a certain number of them available in the world, with 3 different types of chassis. He bought 3, one of each variety, and kept one each at his three main residences. None of them were his primary mode of transportation.

even that wouldn't break the bank at these amounts of money. Just the insane spending money just for the fark of it (I could see bragging rights of having one of each type of car being worthwhile for someone with that sort of scratch) is incredible to me. This dude could have set his family up forever without ever having a care in the world about spending for himself and didn't.


I think this guy is a gambling addict. VC = horse race betting
 
2013-06-03 03:24:08 PM  
oi39.tinypic.com

/surprised I'm the first for this
 
2013-06-03 03:25:34 PM  
A lot. Minor's investment firm, Minor Ventures

I don't care what your name is, "Minor Ventures" is a TERRIBLE name for an investment firm.
 
2013-06-03 03:29:46 PM  

Stoj: Pfft.  That's about $3.3M per month.  I could do that.

I wouldn't do that, but I could do that.


I don't know if I could.

I think I'd be dead before I managed to spend it all, assuming I'm trying to spend $3.3 mill a month.

That's a LOT of whiskey.
 
2013-06-03 03:30:20 PM  
In 2008, Minor bought the Carter's Grove Plantation - a 400-acre estate on the James River - from Virginia's Colonial Williamsburg Foundation for $15.3 million, with plans to raise horses there.

How come people that find wealth take up these absurd/absurdly expensive hobbies? Something tells me this guy never raised horses before.
 
2013-06-03 03:31:34 PM  

skullkrusher: Quantum Apostrophe: What a dumbfark. I'd get a luxury mobile home up in the woods with tons of gadgets and travel the world, just to come back for a few weeks to the forest home. Most of all, keep a low profile and disappear. Maybe mysteriously help people here and there.

if you substitute the woods for a cave under your mansion and the doublewide with gadgets for a kickass car with gadgets, I think we might have a lucrative storyline in the works


Snerk.
 
2013-06-03 03:34:46 PM  

skullkrusher: even that wouldn't break the bank at these amounts of money. Just the insane spending money just for the fark of it (I could see bragging rights of having one of each type of car being worthwhile for someone with that sort of scratch) is incredible to me. This dude could have set his family up forever without ever having a care in the world about spending for himself and didn't.


I agree-- the car story always killed me, though. Bigger picture, I think in both cases (my former boss and this guy) their egos got the best of them. They started throwing immense amounts of money at new ventures, trying to prove they had the magic touch. They didn't. They were just lucky the first time and couldn't admit that to themselves.
 
2013-06-03 03:34:59 PM  
When the company I worked for got sold, the president made out like a bandit.  He said he wanted to share some of the wealth with the employees, so for the 50 or so employees, he writes down $1 million and says that's set aside for everyone, with payments based on how well the company does and based on how long you stay on after the company got sold.

I was relatively new, so figured I wouldn't get the average of $20k over three years, so I was a bit surprised when I got told I'd get $5k.  Turns out there were costs in the $1 million that he needed to pay and so the pool for us was way smaller than he advertised.  That was when I learned to NEVER set expectations when dealing with money.  Be vague, give a smaller number than you think, but don't let people think they're getting more than you can give them.

Then he figured he'd splurge and get a new car.  So he got a 'sporty' Accord.  One of my co-workers said "No matter what he does to that thing, it'll still say A-C-C-O-R-D".

/haven't checked up on him, but I sure hope he's broke
//the ex-president that is
 
2013-06-03 03:37:35 PM  

HotWingConspiracy: How come people that find wealth take up these absurd/absurdly expensive hobbies? Something tells me this guy never raised horses before.


He lost all the money in that venture when the horse seeds he planted never sprouted.
 
2013-06-03 03:38:42 PM  

WinoRhino: With the guy I worked with, he had a favorite sports car that cost $1.3m. There were only a certain number of them available in the world, with 3 different types of chassis. He bought 3, one of each variety, and kept one each at his three main residences. None of them were his primary mode of transportation.


I'm guessing McLaren F1 here.  If so, that was a wise investment, because there are less than a 100 in existence, it is a true classic and one of the most desirable cars in the world to this day.

It may not ever reach the lofty heights of the Ferrari 250 GTO which can sell for as much as $20,000,000, but I would bet it is more valuable than a Veyron will ever be.
 
2013-06-03 03:42:50 PM  
s24.postimg.org
 
2013-06-03 03:49:31 PM  

ProfessorOhki: A lot. Minor's investment firm, Minor Ventures

I don't care what your name is, "Minor Ventures" is a TERRIBLE name for an investment firm.


True, but it's a great name for a Thai travel agency.
 
2013-06-03 03:50:15 PM  

Glitchwerks: I'm guessing McLaren F1 here.


Yes, that was it. Though I think he sold two of the three already.
 
2013-06-03 03:57:59 PM  

WinoRhino: HotWingConspiracy: How come people that find wealth take up these absurd/absurdly expensive hobbies? Something tells me this guy never raised horses before.

He lost all the money in that venture when the horse seeds he planted never sprouted.


It's a shame. He buried all the horses 3 inches deep and watered them daily just like the directions said but not one of them sprouted.
 
2013-06-03 04:01:39 PM  

FlashHarry


halsey acted stupidly


That was my first thought.

*fishtbump*
 
2013-06-03 04:02:17 PM  

Famous Thamas: Love this line:

"Choosing Chapter 7 is clearing the slate," bankruptcy lawyer Bob Rattet tells Bloomberg. "He isn't required like Middle America to pay his debts, because they're mostly business-related."

That makes me feel so awesome


Unreal, dude. "Middle America". But there's no class warfare, right?
 
2013-06-03 04:04:57 PM  

WinoRhino: Yes, that was it. Though I think he sold two of the three already.


Mr. Bean probably made him a generous offer since he keeps wrecking his own.
 
2013-06-03 04:06:02 PM  
I can distill whatever else I might say into:

Dumbass.
 
2013-06-03 04:07:05 PM  
well, he did have three success stories with VC investing: GrandCentral, which is now known as Google Voice, OpenDNS, and ScoutLabs (gave a couple mil in funding, sold for $20m).

that's out of seven investments total. that's actually not bad for VC.

It appears that he lost a good $70mm to $100mm with the horse farm. But that still only accounts for at most half of his payday.

he also has over $10mm in unpaid income taxes.
 
2013-06-03 04:13:02 PM  

HotWingConspiracy: In 2008, Minor bought the Carter's Grove Plantation - a 400-acre estate on the James River - from Virginia's Colonial Williamsburg Foundation for $15.3 million, with plans to raise horses there.

How come people that find wealth take up these absurd/absurdly expensive hobbies? Something tells me this guy never raised horses before.


That is because you are supposed to do things like that. If you go from working slob to nouveau riche you need to show the old money that you have class. And you can't do that while living in a studio apartment while sensibly reinvesting your money,
 
2013-06-03 04:21:50 PM  
I'm sure hookers and blow figure into this somewhere, too.
 
2013-06-03 04:26:52 PM  
What people don't know is that part of the sell of his company included a clause that he had to spend $200 million in 5 years and have no assets to show for it in order to get his true compensation from the sell, $2 billion.
 
2013-06-03 04:35:02 PM  
People like him think they are geniuses so they think they can easily invest in a startup and do it again and instead of they self evaluation that they also got partially lucky they just keep trying to get another big win.

I know of someone like this. He made millions on investing and thought he was some investing genius and then of course lost it all.
 
2013-06-03 04:43:37 PM  

skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000


This is obvious to anyone except rich people who cant handle their money it seems. I mean didnt this guy talk to a financial advisor at all?? sheesh.
 
2013-06-03 04:46:02 PM  

Magorn: LemSkroob: skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000

Come now, 6M is nothing when the guy up the street is pulling in 7M. You can never have too many Ferrari's.

Remember, like in Monoply you only win the game if you have all the money.

Watching Shark Tank with my son we had this very discussion the other day, and while I hate to hold up mark Cuban as a role model for anything, the simple fact is, he's as wealthy as he is today, because he was very smart at seeing the furture or because he chose not to be greedy at exact the right time.   When he sold Broadcast.com to Yahoo, Yahoo stock was at about $160 a share and looked to be headed staight for the strastosphere.  HE sold ALL his stock after his lock-out and netted about $2 billion.  Before it hit bottom a few years later Yahoo was trading for about $8 a share  meaning he would have still been worth a whole lot...like $100 million, but a LOT less than he was by cashing out at the top of the market.  I wonder if that's because he saw the tech bubble bursting without absolute certainty, or whether he just decided that $2 billion was enough for anybody and it was time to get out.


He has a pretty awesome blog that documents the transaction and his thinking at the time.  He states that he saw the crash coming and I tend to believe him.  I don't agree with everything but there is some great stuff in his blog archives.
 
2013-06-03 04:48:54 PM  
He should have jsut set aside half for his investment schemes and kept the rest for himself and his family. You would think a normal person would start to worry when they pissed away almost half of it on risky ventures.
 
2013-06-03 04:51:09 PM  
Yes, news of money and who has it and who has lost it.
Very mainstream media of you, subby.
 
2013-06-03 04:51:33 PM  

BEER_ME_in_CT: skullkrusher: If you take $200,000,000 and put it into AAA rated muni bonds, you can rather easily pull down as much as $6,000,000 a year in tax free interest and that's not even counting the compounding possible via reinvestment.
$6,000,000 a year tax free.

/$6,000,000

This is obvious to anyone except rich people who cant handle their money it seems. I mean didnt this guy talk to a financial advisor at all?? sheesh.


I can accept trying to reinvest and VC but at the least squirel away 10m or so as your own personal parachute.
 
2013-06-03 04:51:34 PM  

mainstreet62: Famous Thamas: Love this line:

"Choosing Chapter 7 is clearing the slate," bankruptcy lawyer Bob Rattet tells Bloomberg. "He isn't required like Middle America to pay his debts, because they're mostly business-related."

That makes me feel so awesome

Unreal, dude. "Middle America". But there's no class warfare, right?


What the guy is trying to say is that this is a business & not a personal &, but yeah, pretty callous language, esepcially now that people wanting to file a & have to prove they are really really really poor or be forced into a chapter 13, but a "bankrupt" guy with 50 mil in the bank doesn;t have to.
 
2013-06-03 04:56:10 PM  

FlashHarry: [blogs.amctv.com image 280x185]

halsey acted stupidly


You win one internet.
 
2013-06-03 04:59:28 PM  

Famous Thamas: Love this line:

"Choosing Chapter 7 is clearing the slate," bankruptcy lawyer Bob Rattet tells Bloomberg. "He isn't required like Middle America to pay his debts, because they're mostly business-related."

That makes me feel so awesome


Well, middle Americans can file bankruptcy as well, and have certain debts extinguished.

I dont know the specifics of this guys bankruptcy, but if this Halsey guy is getting out of debts on his businesses, presumably every lender to any of his businesses knew going in that the business was on the hook, not Halsey personally. So why is it bad that the lenders take the loss when the businesses go under?

Sounds like the reporter grabbed a populist, though misleading, quote from the bankruptcy lawyer.
 
2013-06-03 05:17:29 PM  

WinoRhino: Glitchwerks: I'm guessing McLaren F1 here.

Yes, that was it. Though I think he sold two of the three already.


I also know someone who bought one of those and later sold it.
Maintenance on them is crazy expensive even if they just sit. If you want the records to be proper for resale you have to fly in a team from GB to do the work to spiff it up.
You can also go through a set of brakes just by driving it once in rush hour traffic.
 
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