André Kostolany was a well-known stockbroker, market commentator, and financial author born on September 9, 1906, in Budapest, Hungary, and passed away on September 14, 1999, in Paris. He gained popularity through his insightful commentary on financial markets and his pragmatic view of stock market events.
Some key points regarding André Kostolany:
Life Journey: Kostolany came from an affluent family and experienced the First World War and the inflation of the Weimar Republic in Germany during his youth. After a business education in Budapest, he moved to Paris and began a career as a stockbroker.
Market Commentator and Author: Kostolany became well-known for his insightful and humorous commentary on financial markets. He wrote several books on investment and stock market strategies, including “Die Kunst über Geld nachzudenken” (The Art of Thinking About Money) and “Kostolanys Börsenpsychologie” (Kostolany’s Stock Market Psychology).
Investment Philosophy: Kostolany emphasized the importance of psychology and emotions in financial markets. He was known for his belief that market movements are often influenced by human behavior and emotions.
Humorous Anecdotes: Kostolany was renowned for his humor and anecdotes. His easily understandable and entertaining way of discussing financial topics contributed to his recognition and appreciation beyond the financial world.
Later Life: After his active time in the stock market, Kostolany remained active as a commentator and author. He lived in various countries, including Germany and France, and his influence on the investment community persisted even after his death in 1999.
André Kostolany, with his knowledge and personality, left a lasting impact on the investment community and is considered one of the prominent figures in the history of financial markets.
The Childhood of Speculator André Kostolany
André Kostolany was born on February 9, 1906, as the son of a wealthy Jewish industrialist family in Budapest. In the turbulent times of the disintegrating Habsburg Empire, Kostolany already showed an interest in currency speculation at the tender age of 13. Although he studied philosophy and art history in Vienna and inserted a few semesters of economics, in the mid-1920s, his parents sent him to apprentice with a Parisian stockbroker. There, he received a significant lesson that would shape his future actions: “In the stock market, it always boils down to whether there are currently more fools than securities or more securities than fools!”
After completing his apprenticeship, the young speculator Kostolany joined the brokerage firm Amerongen & Compagnie, marking the beginning of a unique stock market career. In the late 1920s, André Kostolany achieved his first stock market success with Russian stocks. After a disappointing visit to the Paris Stock Exchange, he decided to take a different path and speculate on falling prices. This decision paid off correctly for the first time in 1930:
During the collapse of the Paris Stock Exchange, Kostolany overnight became a wealthy man. However, a year later, significant changes in the markets brought unforeseen difficulties. The speculator Kostolany had bet on falling prices through futures trading. Suddenly, US President Hoover granted the Germans huge reparations, leading to a rise in prices. André Kostolany lost his entire fortune and fell into debt. Humbly, he once again sought employment as a broker.