Here's What Happened To Sir Isaac Newton During The South Sea Stock Bubble Of 1719 | Exploring Markets

Here's What Happened To Sir Isaac Newton During The South Sea Stock Bubble Of 1719

Sir Isaac Newton is perhaps one of the most brilliant scientists of all-time. He wrote the laws of motion and founded the concept of gravity.

But he was no investor.

In 1719 he made one of his first-ever investments, and bought shares in the South Sea Trading Company. He nearly doubled his money, making a quick trade that spanned over 3 months. But it did not take long for him to lose all of his original investment, and then even more.

The chart below shows what happened.

He later said about the situation: "I can calculate the movement of the stars, but not the madness of men."