Asset Cycling to Capture Volatility

“John Fredriksen rarely thinks long-term. Buy today, sell tomorrow, take the profit when it’s there. These years leading up to the 90s were perfect for such a mindset. With the best broker contacts and a knack for good deals, Fredriksen made millions of dollars each time a ship was bought and sold. He himself claimed to have earned 100 million dollars each year from such quick transactions during the period 1987–89. An incredible amount, which may be somewhat exaggerated. It requires about 25-30 purchases and sales during the year, and even Fredriksen must have had difficulties keeping up.”

“John Fredriksen was everywhere at this time, unstoppable in his search for a deal, like a drug for the mind. No part of shipping was uninteresting. He bought old drilling rigs without contracts, only to sell them almost immediately. The profit from just a few months of trading rigs was about 200 million kroner. From the bankrupt Jan Erik Dyvi, four heavy-lift ships were purchased. The rule was otherwise everything was for sale, immediately.”