The Investor Who Made $100 Million During The Great Depression (2024)

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The Investor Who Made $100 Million During The Great Depression? ›

Jesse Livermore, whose fortune was estimated at over $100 million, never did anything in his life but play the market.

Not everyone, however, lost money during the worst economic downturn in American history. Business titans such as William Boeing and Walter Chrysler actually grew their fortunes during the Great Depression.

It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

Several individuals who bet against or “shorted” the market became rich or richer. Percy Rockefeller, William Danforth, and Joseph P. Kennedy made millions shorting stocks at this time. They saw opportunity in what most saw as misfortune.

The best performing investments during the Depression were government bonds (many corporations stopped paying interest on their bonds) and annuities.

Michael Burry made $100 million by predicting the housing market crash in The Big Short. Mark Baum, based on Steve Eisman, earned $1 billion from the market crash depicted in the film. Jared Vennett, based on Greg Lippmann, made $47 million from swap sales as shown in the movie.

The problems of the Great Depression affected virtually every group of Americans. No group was harder hit than African Americans, however. By 1932, approximately half of African Americans were out of work.

Despite all the President's efforts and the courage of the American people, the Depression hung on until 1941, when America's involvement in the Second World War resulted in the drafting of young men into military service, and the creation of millions of jobs in defense and war industries.

How did the rich stay rich in the Great Depression? ›

Those wealthy whose wealth was all in the stock market or was highly leveraged, lost everything. However, not every wealthy person had all their assets in the stock market or leveraged with debt. Many wealthy people owned land and buildings, all debt free. Many had lots of cash.

Toothpaste, deodorant, shampoo, toilet paper, and other grooming and personal care items are always in demand. Offering these types of items can position your business as a vital resource for consumers during tough times. People want to look good, even when times are tough.

White collar jobs fared better than blue collar jobs and those lucky enough to work for a city, county, state, or at one of the military facilities generally held on to jobs. Farm families were mostly well positioned (see "Kitsap County").

If any business is recession proof, it's the good, old-fashioned grocery store. These stores sell products that people always need, regardless of economic conditions. According to Grand View Research, “The global food & grocery retail market is expected to grow at a compound annual growth rate of 3% from 2022 to 2030.”

The problems of the Great Depression affected virtually every group of Americans. No group was harder hit than African Americans, however. By 1932, approximately half of African Americans were out of work.

During The Great Depression the cost of living was an average of $4,000 per year, today that amount would be equivalent to $60,575. Yet, the average salary was $1,125 per year.

However , while many individuals and businesses suffered , there were also some who profited from the crisis . One group that profited from the 2008 financial crisis was large banks and financial institutions .