Isaac Newton was a genius, but look how he lost millions of money.

Isaac Newton was one of the smartest men who ever lived.

But there's a big difference between being a smart physicist and a smart investor.

There's a very interesting annex on Newton's adventures, in his investments in the South Sea Company “

In the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, England's most popular stock. Smelling that the market was coming out of control, the great physicist whispered “could calculate the movements of celestial bodies, but not the madness of the people”.

Newton immediately sold his stake in the South Sea, pocketing 100% of his profits for a total of 7,000 pounds. But just a few months later, kidnapped by market enthusiasm, Newton bought back at a much higher price and lost 20,000 pounds. For the rest of his life, he stopped anyone from mentioning the words "South Sea"”.

Newton wasn't stupid, of course. He was the man who invented calculation and conceived the three laws of motion.

But this episode shows that it wasn't a smart investor, because it allowed emotions to control it, and it was thus included in the multitude's irrationality.

As they say, an investor's biggest problem is likely to be himself.