Around this time last year, everyone and their brother was in a little bit of a pre-panic and nobody wanted to own financial stocks. The even started to bail on JPMorgan, forcing the Khaleesi of Wall Street to watch while The Street publicly doubted whether or not his leadership game was still on point.
Well, this being Jamie, he wasn't going to pull a Corbat and just lie there limply while people devalued his precious stock price. So Jamie did the obvious thing and personally scooped up some shares of JPM... 500,000 shares.
That was almost a year ago, and looking at the calendar prompted the prisoners of The Palisades good folks at CNBC to ponder how that whole trade worked out J-Dimez...
Much has been made of the move and deservedly so considering the profit Dimon made on that purchase — what appears now to be a $17 million gain on a $26.6 million investment, just based on the shares purchased that day. That's based on where JPMorgan stock was compared with where it is now. And that doesn't even account for the total profit he made on his holdings.
Well, that's nice and tidy. What kind of coin are we talking about here?
The Feb. 11, 2016, purchase came at an average price of $53.18. The stock closed Friday at $87.18, equaling a $34 per share gain, or 64 percent.
Bank shares actually saw mediocre performance through much of the year, but a late-year rally fueled by Donald Trump's upset victory in the presidential race sent financial stocks soaring. JPMorgan shares are up 24 percent since Election Day.
The purchase brought Dimon's total holdings in his bank to about 6.75 million shares, which would have been worth $359 million at the time. Given the $34 per share rise in JPMorgan's stock price, those holdings are now worth closer to $588.5 million. That would be a gain of over $229 million.
So Jamie has earned more than a quarter bill in 12 months on a move based entirely on his confidence that he was the right man for his job. It prompts one to wonder why no one proposed putting Jamie in charge of the Treasury Department...