While the stock market crash of 1929 led to widespread financial ruin for many, certain individuals and types of investors were able to profit significantly by betting against the market. These were primarily pessimistic bearish investors who had anticipated an economic downturn.
Key Beneficiaries of the Downturn
The individuals who profited from the 1929 crash did so by "shorting" the market. Shorting is an investment strategy where an investor borrows shares and sells them, expecting the price to drop. If the price does fall, they can buy the shares back at a lower price, return them to the lender, and pocket the difference. This strategy allows investors to profit from declining stock prices.
Several prominent figures are noted for having amassed or increased their wealth during this tumultuous period:
| Investor Name | Noted Method of Profit |
|---|---|
| Percy Rockefeller | Shorting stocks |
| William Danforth | Shorting stocks |
| Joseph P. Kennedy | Shorting stocks |
These individuals, recognizing the signs of an impending crash or simply taking a bearish stance, positioned themselves to benefit when the market collapsed, turning the misfortune of others into substantial gains for themselves. Their foresight or strategic market positioning allowed them to make millions while the majority of optimistic investors faced devastating losses.
