This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth.Much of what I write about boils down to a simple philosophy - value investing.According to Investopedia, value investing can be defined as - an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. It's the art of buying an asset on sale when nobody wants it.As simple as the idea is, it's almost entirely counterintuitive to our natural way of thinking.If clothing at a major retailer went on sale tomorrow for half off, the store would be flooded with customers, willing to wait hours in line for the chance to take advantage of the discount. Black Friday is a perfect example. But if your favorite stock, bond, commodity, or cryptocurrency dropped 50% overnight, would the same level of enthusiasm arise? The answer is a resounding no.Value investors are masters at managing their emotions when it counts. We have to learn to battle the little voices in our head and force ourselves to make the logical decision, even when it feels like the sky is falling.But what if the value investor is wrong? Legendary value investor Howard Marks had the perfect answer."There are two states of nature, either the world is going to end, or it's not. If it ends, it won't matter what we bought or sold. But if it doesn't end and we didn't buy, then we didn't do our job."The context of the above statement is fascinating. Just two days after Lehman Brothers announced bankruptcy in September of 2008, Howard Marks and his fund Oaktree seized a once in life time opportunity. That is when he made the above statement.As the sky was falling and Wall Street was shutting down, Oaktree spent $600M a week on distressed bonds. Either the world was going to end and they were going down with it, or they were coming going to make a sizable profit buying the dip. After running face first into the fire and enduring a few hard months of pain, the bet paid off in a big way - about $6B in profit, to be exact.Opportunities like 2008 don't come around often, but when they do, it's important to be ready. As long as the world continues to run on emotion, there will always be opportunities, and the value investor will always win. It's that simple.In This Issue:Value Investing Bitcoin Thoughts And AnalysisAltcoin ChartsAddressing The Fake Russian NewsWill Mexico Adopt Bitcoin?MICA Bill Heads To VoteStripe Returns To CryptoMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #455 - Value Investing
The Wolf Den #455 - Value Investing
The Wolf Den #455 - Value Investing
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth.Much of what I write about boils down to a simple philosophy - value investing.According to Investopedia, value investing can be defined as - an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value. It's the art of buying an asset on sale when nobody wants it.As simple as the idea is, it's almost entirely counterintuitive to our natural way of thinking.If clothing at a major retailer went on sale tomorrow for half off, the store would be flooded with customers, willing to wait hours in line for the chance to take advantage of the discount. Black Friday is a perfect example. But if your favorite stock, bond, commodity, or cryptocurrency dropped 50% overnight, would the same level of enthusiasm arise? The answer is a resounding no.Value investors are masters at managing their emotions when it counts. We have to learn to battle the little voices in our head and force ourselves to make the logical decision, even when it feels like the sky is falling.But what if the value investor is wrong? Legendary value investor Howard Marks had the perfect answer."There are two states of nature, either the world is going to end, or it's not. If it ends, it won't matter what we bought or sold. But if it doesn't end and we didn't buy, then we didn't do our job."The context of the above statement is fascinating. Just two days after Lehman Brothers announced bankruptcy in September of 2008, Howard Marks and his fund Oaktree seized a once in life time opportunity. That is when he made the above statement.As the sky was falling and Wall Street was shutting down, Oaktree spent $600M a week on distressed bonds. Either the world was going to end and they were going down with it, or they were coming going to make a sizable profit buying the dip. After running face first into the fire and enduring a few hard months of pain, the bet paid off in a big way - about $6B in profit, to be exact.Opportunities like 2008 don't come around often, but when they do, it's important to be ready. As long as the world continues to run on emotion, there will always be opportunities, and the value investor will always win. It's that simple.In This Issue:Value Investing Bitcoin Thoughts And AnalysisAltcoin ChartsAddressing The Fake Russian NewsWill Mexico Adopt Bitcoin?MICA Bill Heads To VoteStripe Returns To CryptoMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO