• Orphaned as teenager; born in Kolkata
  • By mid 40s, he was CEO of McKinsey
  • Retired in 2007 to take on roles with the United Nations and World Economic Forum
  • Partnered on philanthropic work with Bill Gates
  • Sat on the board of directors of five public companies
  • By 2008, he was worth $100 million. Source

The turning point

  • He didn’t want to be a mere centa-millionaire. He wanted to be a billionaire
  • He sat on the board of directors of Goldman Sachs
  • In 2008, Goldman was struggling due to the financial crisis.
  • Warren Buffet planned to invest $5 billion into the bank to help it survive
  • Rajat Gupta learned of this transaction before the public and saw it as an opportunity to make insane money
  • 16 seconds after learning of the deal, he called a hedge fund manager, Raj Rajaratnam
    • He immediately bought 175,000 shares of Goldman Sachs
    • He made a quick $1 million when the Buffet-Goldman deal was announced
  • Many such instances repeated. SEC claims Gupta’s insider tips led to $17 million in profits
  • Gupta and Rajaratnam went to prison; having lost everything

Sources