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In the book The Gone Fishin' Portfolio: Get Wise, Get Wealthy... and Get on With Your Life, by Alexander Green; the author states that

"Einstein lost his investment capital—including his Nobel Prize money—on bonds that defaulted"

Is this true?

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No. The Nobel Prize money went to his ex-wife Mileva Marić as part of their divorce settlement.

See for example Mileva Marić (Wikipedia), and Dark Side of Einstein Emerges in His Letters (New York Times).

A somewhat detailed account of how the money was invested and spent appears here, but the information sources are not attributed, so take it with a grain of salt.

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