Buxton: I once put my life savings into a gilt option

As a confident and bold young investor in the Square Mile, Richard Buxton once wagered all of his life savings on the UK cutting interest rates.

Buxton, who has built his name as one of the UK's top stockpickers, actually began his career in the bond markets. After just six months in the job, Buxton bet his entire £2,000 savings on a rate cut. "I was so convinced interest rates were going to come down quite sharply that I put entire life savings into a gilt option. After chatting it through with my boss, he put some money in it too," he says. Buxton was spot on, with interest rates falling 2.5% over the period of 15 January to 23 May 1986. "We made three times the money, which I think kind of endeared me to him," he adds. ...