Martin Shkreli is the world famous “pharma bro” who buys companies and then raises the price of their medicine. However, this is not exactly a bad thing. Read on to find out why. He’s also a very good investor and he has amassed a huge net worth while investing in stocks. He’s even owned a hedge fund and he also worked on Wall Street under Jim Cramer. He has taught many people Investment lessons via his YouTube channel and also live-streamed the whole class to answer questions anyone could have. He’s currently serving a prison sentence and is expected to be released in 2021.
Net Worth: $85 Million
His net worth is around $85 million, based on his asset portfolio and his statements about his company’s earnings. He has publicly shown his investment portfolio on his livestreams, and on one case he accidentally showed his bank account. This didn’t stop him from live streaming though, and you can still find his investment lessons on YouTube if you’re eager to learn from a Wall Street professional. Through his online streams, Shkreli gained a big following. People from all over the world could call-in to the streams, as his phone number is publicly known.
Source of Income
The main source of his income is his ownership in his pharmaceutical companies. He’s the owner of Turing Pharmaceuticals and also ran a tech-startup called Godel Systems. Depending on the stock price of his company, his net worth will fluctuate. He was developing a competitor to the popular Bloomberg Terminal and also gave out free beta access to his streamer audience. It’s currently unknown if the development of the Godel Terminal is still ongoing, as the website has been removed after his sentencing. He also profits massively from his investment portfolio, as well as the dividends these investments generate.
Martin Shkreli got his nickname “Pharma Bro” and “Most hated man in America”, after raising the price of his medicine called Daraprim 5000%. The medicine is used to treat infections for people who have the HIV/Aids virus. There was a public outcry when the price of a single pill was raised to $750, as people thought it would be unaffordable. Shkreli quickly cleared the air and stated that anyone without health insurance could receive the medicine for free. This was, of course, paid for by the insurance companies, which means that the general public actually benefitted from this price hike.
Criminal prosecution and conviction
Martin Shkreli was arrested on the morning of 17 December 2015. The charges were unrelated to the Daraprim price-hike but related to his old hedge fund MSMB Capital Management. Through obscure financial maneuvering, he paid off his investors in his hedge fund with money from his pharmaceutical company. This was the first case of investment fraud where the victims actually made money, instead of losing it. They all made profits on their investments that beat the S&P 500 by a big margin. Despite increasing his shareholder’s net worth, Shkreli was sentenced to 7 years in prison. He’s expected to be released in 2021. In April 2019 Shkreli was caught running his company through a smartphone with internet access. As punishment, he got 2 weeks in solitary confinement.
While in prison he’s running his own personal blog, which can be found here. He posts every week about which books he’s read, and what is going on in his life at the prison. It’s very entertaining to read, especially if you’re interested in Shkreli’s personal life.
Martin Shkreli is an avid reader, and he, like Warren Buffett, recommends you read 500 pages a week. He’s done a few book reviews, and he always shows every week what books he’s reading. The subjects are mostly about investing, programming, biotech, and chemistry. He also likes to read autobiographies of businessmen or other people who’ve accomplished a lot.