“I thought I was making an incredible investment,” Mark Hilton of Sherwood Elementary School stated. “I read in Margin of Safety by Seth Klarman that when kids on Wall Street Bets bid up bankrupt stocks you should short them. When GameStop went to $100 per share I put $15,000 of our school’s funds into a short.”
Mark Hilton, 45, has been the superintendent of Sherwood Elementary School in St. Louis, Missouri for 10 years. During the past ten year’s Mark has been in charge of managing Sherwood’s endowment fund – mainly investing in long-term index funds. This past year during the pandemic, Mark started to read as many investing book as he could get his hands on.
“I read over 14 books on investment strategy,” Mark said. “When I saw the hype with GameStop I remembered Ben Graham saying how meme stocks are a great short when kids on internet forums take them to ridiculous valuations.”
Literally seconds after Mark put a short order in, GameStop went to $400. “I was devastated. Not only did I short GameStop but I did it on 10x margin. When I looked at Sherwood’s Robinhood account it showed negative $12 million.”
Sherwood Elementary is now in the hole for $12.45 million. The school is on the verge of bankruptcy and ruin and completely out of funds. “We are holding a local bake sale this weekend,” Mark stated. “But there is no way we can come up with this money. I will have to fire all of our great teachers.”
If you have any idea what Sherwood Elementary can do to raise funds don’t hesitate to call the district.