Bad Investments

Via Atrios, the Times sheds a tear:

For James E. Cayne, the firm’s chairman and former chief executive, holding on to his Bear stock was a point of pride, and he rarely, if ever, sold. A billionaire just over a year ago when Bear’s stock soared past $160, his 5.8 million shares are now worth about $28 million at Monday’s closing price of $4.81.

Well, I’d take $28 million. More to the point, keeping such a huge proportion of your savings in stock of a single firm is obviously bad investment practice. Very bad, in fact. Strange that a big-time financial wizard wouldn’t know the first thing about the need to diversify.