Jamie Dimon’s big bet on J.P. Morgan Chase’s stock, which he said he did on a whim, has paid off.
A year ago, the CEO of J.P. Morgan (JPM, +1.60%) bought up roughly $26 million worth of the bank’s stock in early 2016 amid a stock market sell off. At the time, Dimon acquired 500,000 shares at about $52.20 a piece. When asked a little while later why he had made the purchase, Dimon replied that he happened to have a morning when he didn’t have any plans.
That do nothing morning has really paid off for Dimon. A year later, and with Donald Trump as president, that stake has gained $16.9 million in value, for a one-year return of 65%, before dividends. And the timing was great. The stock closed at $53.07 the day Dimon bought the shares, and they haven’t looked back since.
That purchase boosted Dimon’s stake in the company to about 6.7 million shares, which is now worth $580.6 million, up $222 million in the past year.