Henry Blodget

Jump to: navigation, search
Henry Blodget on June 26, 2012, in New York City

Henry Blodget (born 1966) is an American businessman, investor, journalist, and author.

He is a former equity research analyst who was senior Internet analyst for CIBC Oppenheimer and the head of the global Internet research team at Merrill Lynch during the dot-com era.[1] Due to his violations of securities laws and subsequent civil trial conviction, Blodget is permanently banned from involvement in the securities industry.[2] Blodget is now the editor-in-chief and CEO of Business Insider, a business news aggregator site.

Early life

Blodget was born and raised on Manhattan's Upper East Side, the son of a commercial banker. He attended Phillips Exeter Academy and received a Bachelor of Arts degree in History from Yale University, where he was a member of The Society of Orpheus and Bacchus. After college, he taught English in Japan, then moved to San Francisco to try to be a writer while supporting himself by giving tennis lessons. He was also a freelance journalist and a proofreader for Harper's Magazine.[1]

In 1994, Blodget joined the corporate finance training program at Prudential Securities, and, two years later, moved to Oppenheimer & Co. in equity research. In October 1998 he predicted that Amazon, then trading at $240, would trade for $400 within a year. This was thought highly unlikely by many traders at the time; however, just three weeks later Amazon's stock passed that mark (a gain of 128%).[3]

This call received significant media attention. Two months later, he accepted a position at Merrill Lynch,[3][4] and frequently appeared on CNBC and other similar shows. In early 2000, days before the dot-com bubble burst, Blodget personally invested $700,000 in tech stocks, only to lose most of it in the years that followed.[5] In 2001, he accepted a buyout offer from Merrill Lynch and left the firm.[1]

Fraud allegation and settlement

In 2002, then New York State Attorney General Eliot Spitzer published Merrill Lynch e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published.[6] In 2003, he was charged with civil securities fraud by the U.S. Securities and Exchange Commission.[7] He agreed to a permanent ban from the securities industry and paid a $2 million fine plus a $2 million disgorgement.[2]

Writing

He became the CEO, co-Founder, and editor-in-chief of Silicon Alley Insider, where he was a frequent contributor to the Seeking Alpha website.[8] Prior to co-founding Silicon Alley Insider, Blodget served as CEO of Cherry Hill Research, a research and consulting firm, and contributed to Slate, Newsweek International, The New York Times, Fortune (magazine)|Fortune]], Forbes Online, Business 2.0, Euromoney, New York, The Financial Times, and other publications. As of 2017, he is the CEO and editor-in-chief of Business Insider, a news aggregator website. He is a frequent contributor to the magazines Slate, Newsweek, and New York magazine.

Blodget's later articles for the magazine have focused on the return-limiting actions of individual investors, including listening to analysts and the financial media, and relying on active management such as mutual and hedge funds. His Slate articles about investing carry a seven-paragraph disclosure of potential conflicts of interest.[5]

He published The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing in January 2007.

He currently lives in Brooklyn.

Internet broadcaster

Blodget used to co-host the Daily-Ticker[9] broadcast with Aaron Task weekdays at Yahoo! Finance.

Bibliography

  • The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing. Atlas Books, 2007. ISBN 0-9777433-2-2.

References

  1. ^ a b c McGeehan, Patrick (November 15, 2001). "Henry Blodget to Leave Merrill Lynch". The New York Times. 
  2. ^ a b "The Securities and Exchange Commission, NASD and the New York Stock Exchange Permanently Bar Henry Blodget From the Securities Industry and Require $4 Million Payment". SEC. Retrieved 2007-04-21. 
  3. ^ a b "The Rehabilitation of Henry Blodget". The Motley Fool. Retrieved 2007-01-30. 
  4. ^ "Report Card: Henry Blodget". TheStreet.com. Archived from the original on 2006-12-05. Retrieved 2007-01-30. 
  5. ^ a b "The Wall Street Self-Defense Manual, Part 4" by Blodget, with sidebar
  6. ^ "Vested Interest". PBS. Retrieved 2007-01-30. 
  7. ^ Factual allegations as submitted by SEC
  8. ^ "Home". Silicon Alley Insider. Silicon Alley Insider. Retrieved 6 July 2015. 
  9. ^ "Yahoo Daily Ticker". 

Further reading

External links