While the pain amongst iron ore investors is widespread, very few would be feeling it as much as Fortescue Metals Group Limited's (ASX: FMG) Andrew "Twiggy" Forrest.
For the first time in eight years, Forrest, who is Fortescue's founder and chairman, finds himself outside of Australia's top 10 richest people with his personal fortune having more than halved to just $2.8 billion. Although still an enviable amount, it's quite small when you compare it to what it was worth back in February at around $6.2 billion.
Fortescue's shares have been hit for six in 2014 as a result of the plummeting iron ore price. With the commodity down 48% since the beginning of the year, Fortescue's shares have dropped 53% and yesterday recorded a fresh five-year low at just $2.70. Given that the iron ore price fell a further 2.2% overnight to be changing hands for US$70.20 a tonne, there's a very real possibility Fortescue's shareholders – including Forrest – could be in for even more pain today and in the coming weeks.
As reported by the Fairfax Media, Forrest declined to comment on whether he intended on buying anymore Fortescue shares at today's depressed prices, although he did suggest the stock presented as good value.
The agony of losing money
Although very few investors would know what it feels like to lose quite as much as Andrew Forrest has this year, we all know how painful losing money is, period.
Despite how tempting it might be for some investors to make a move into the iron ore sector – hoping to catch a potential rebound in prices – I would suggest remaining on the sidelines would be a much wiser move. With experts predicting the commodity's price will fall to US$60 or even into the US$50s in the coming 12 months, shares in the miners could still fall much, much further.
Rather than potentially risking it all in Australia's waning mining sector, I urge you to take a look at this ultra-promising ASX stock instead.
