Tim Sykes Learning Center
Tim Sykes Learning Center Tim Sykes Learning Center

Tim Sykes is the penny stock trader who turned $12,000 of seed money into $6.7 million. But though trading is still very much in his blood – he continues to tutor a small army of apprentices scattered around the globe – philanthropy has become the self-made millionaire’s chief passion. Indeed, it’s been almost five years since the nonprofit social charity he co-founded, Karmagawa, opened its first ever school in Bali.

Back then, Sykes promised to build another school for every retweet and favorite his post received. Although he’s yet to establish 18,000 schools in under five years – even Sykes can’t hit those kinds of numbers – the trading guru has been on a mission to add his voice (and capital) to countless benevolent endeavors ever since. Earlier this month, Karmagawa’s 73rd school opened its doors.

Making a Better World

Why make money if you can’t make a better world? It’s been over a decade since billionaires like Bill Gates and Warren Buffett announced the Giving Pledge – with signatories promising to give away at least half their wealth either during their lifetimes or in their wills – and yet inequality continues to grow.

When the ten-year anniversary of the Giving Pledge passed last August, the combined wealth of the 62 living U.S. pledgers who were billionaires in 2010 had surged by an eye-watering 95%. Not even a pandemic could affect their earning power. At the same time, severe poverty and food insecurity continue to blight the lives of over a billion people.

In this troubling milieu, Sykes is doing all he can to give back, putting 100% of his trading profits into building schools and libraries, helping impoverished families in war-torn countries, and supporting others who badly need a helping hand. In recent years, Karmagawa has variously dedicated itself to environmental causes (plastic pollution, overfishing) and animal welfare (trophy hunting, trafficking), with Sykes promoting initiatives to his 1.5 million Instagram followers.

In recent weeks, the nonprofit has launched a fundraiser to help Texans affected by catastrophic storms that left almost all of the state’s 30 million residents without electricity. In addition to raising money via its community (Karmagawa itself has 1.3 million Instagram followers), the nonprofit pledged $30,000 each to four charities helping Texans with food, water and shelter.

It’s logical to wonder how one goes from studying the market and mastering penny stocks to scouring Bali, Ghana and Guatemala for sites to build schools. It all started in the 2010s, when Sykes saw that some friends of his were building a school in Cambodia. In that moment, the autodidactic trader stopped plotting his next move on the market and started constructing his plans for a better world.

From Speculation to Donation

Speculate to accumulate: it’s the investor’s favorite proverb. In his thirties, though, Sykes decided he was done accumulating. With the accoutrements of wealth already stockpiled, he decided to pour his profits into Karmagawa. He also became a mentor, educating amateur investors on the ins and outs of the stock market via guides and videos at timothysykes.com. Although many pupils are motivated by nothing more than a yearning to be wealthy beyond their wildest dreams, several have followed in Sykes’ footsteps, allocating a percentage of their profits to worthwhile causes – including Karmagawa.

Needless to say, those who decide to hoard their profits don’t get into Sykes’ good books. The trader recently took to Instagram to berate “penny stock promoters and selfish traders” who make fun of charity. “When did we become such a cruel and selfish society?” Highlighting Karmagawa’s $5 million+ donations, he called the venture one of the proudest achievements of his life and urged more traders to “give back to help those in need.”

Using one’s life experiences and platform to amplify worthwhile causes is just part of the day-job for Sykes. The next target? 1,000 new schools throughout the developing world. You’d be a fool to write him off.