Leo KoGuan teslas billionaire options

Tesla’s Hidden Billionaire: amassing a $7 billion stake in Tesla trading options

Singapore man Leo KoGuan — who started trading stocks in 2019 — has quietly amassed one of the single biggest stakes in Elon Musk’s company.

From a penthouse overlooking Singapore, a discreet billionaire made a startling claim telling the world that he’d quietly amassed one of the single biggest stakes in Elon Musk’s Tesla Inc.

“I believe in Elon’s great mission,” Leo KoGuan said on Twitter

And with that one tweet in September, KoGuan — already a billionaire in his own right — began to dribble out details… all while the value of his holdings soared and soared: to $4 billion, $5 billion — and, now, to more than $7 billion.

Is it true?

Could a single investor collect such a huge position in a company like Tesla with anyone noticing? Could he really have become Tesla’s third-largest individual shareholder, behind fellow billionaire Larry Ellison and Elon Musk, the richest person in history?

Yes.

As of late September, bank records show he owned 6.31 million Tesla shares.

KoGuan also held 1.82 million options giving him the right to buy Tesla between $450 to $550 a share giving him a juicy profit since the stock the stock is currently $1,222.09 a share.

TESLA shares are up 178.95% over the past year alone

KoGuan’s Roadmap to Riches

KoGuan made most of his wealth from a New Jersey technology business he co-owns, but is more often seen wearing a white T-shirt these days.

He claims his secret to riches was to keep doubling down; and, most important, believing in Elon Musk.

“Sometimes you win, sometimes you lose,” KoGuan says. “Fortunately, I win more of the time than I lose.”

KoGuan says he’s added to his Tesla stake since September, buying both shares and options.

His Investor Playbook

Describing himself as a retail investor, KoGuan said he picked up stock trading in 2019. He poured money into several well-known names — Baidu, Nvidia Corp. and others, but as the year went on, his bets got riskier.

KoGuan started by selling all his positions but one: Tesla. After hearing a podcast hosted by Tesla investor Dave Lee and Ron Baron, the billionaire owner of Baron Capital Management, KoGuan was inspired to focus even more on the California based electric car maker. He began dumping his money into the stock, juicing the bet with leverage. By early 2020 he held 2.3 million shares (amounting to about 12 million shares after adjusting for last year’s stock split), a stake worth around $1.5 billion.

Then markets cratered and his stake was almost wiped out in a cascade of margin calls.

“I lost almost everything,” KoGuan said.

But he kept buying according to his “playbook”: buy short-term in-the-money stock options; take the profits when the stock goes up; use some of those proceeds to buy actual shares — and put the rest into another options bet. Doubling down again and again and again.

KoGuan was unbowed in the face of financial doubters.

He pointed out he’s already diversified — he can fall back on his stake in privately held SHI, which the Bloomberg Billionaires Index values at $3.2 billion.

Will he ever sell?

Has KoGuan ever been tempted to cash in his billion-dollar gains and move on?

No, he’s told his followers: the goal is to accumulate $100 billion or more of wealth and use this money to fund free health care and material comfort for all people.

“I look at it like a squirrel,” he says. “You collect acorns and you eat some. But most you are trying to keep for the winter and you don’t eat until later.

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