Bitcoin touched a new high of $48,930 in Asian trade after MasterCard and US bank BNY Mellon moved to make it easier for people to use the cryptocurrency. The coin has gained over 60 per cent so far this year in a head-turning rally, but the Indian government is planning to ban it, including all other private cryptocurrencies.
In this edition of ‘Tweet Buster’, we scan the world of 280 characters to bring out the best of investing gems, money-making ideas and the do’s and don’ts of the stock market.
Bitcoin a failure?
At a time when the wind seems to be blowing in favour of Bitcoin, Nassim Nicholas Taleb, author of ‘The Black Swan’, said he has been getting rid of his Bitcoin as a currency is never supposed to be more volatile than what you buy and sell with it. “You can’t price goods in BTC. In that respect, it’s a failure (at least for now). It was taken over by Covid denying sociopaths w/the sophistication of amoebas.”
I’ve been getting rid of my BTC. Why? A currency is never supposed to be more volatile than what you buy & sell wit… https://t.co/huxIUegbtI
— Nassim Nicholas Taleb (@nntaleb) 1613150264000
BTC Volatility is not dropping with time/at higher price, exactly what you don’t don’t need. https://t.co/m5ZKUiuFia
— Nassim Nicholas Taleb (@nntaleb) 1613198842000
Is trading a sport?
Zerodha CEO Nithin Kamath compared trading in stock markets with playing a professional sport where only the fittest ones will survive. “Imagine waking up one day and saying I will compete in the Olympics tomorrow. Thinking that you will easily make a lot of money trading in quick time is as ludicrous an idea as that.”
And, trading is like playing a professional sport, it is the survival of the fittest. Imagine waking up one day and… https://t.co/M9uJ0ACSuf
— Nithin Kamath (@Nithin0dha) 1612964878000
The lesson in this for retail, remember if something seems too good to be true, it usually is. Stock markets are th… https://t.co/hYGC9jaeqz
— Nithin Kamath (@Nithin0dha) 1612964878000
MF portfolio strategies
Radhika Gupta, MD and CEO, Edelweiss Asset Management, shared her core mutual fund portfolio: Liquid/arbitrage fund, balanced advantage fund, mid-cap/small-cap fund, international fund – developed and international fund – emerging. “Why no large cap fund, everyone asks? I believe BAF gives you a similar upside with lower risk and drawdown. The addition of mid/small cap via SIPs is for the long term alpha. Barbell approach,” she said.
Why no large cap fund, everyone asks? I believe BAF gives you similar upside with lower risk and drawdown. The ad… https://t.co/Ew8wXmglQ2
— Radhika Gupta (@iRadhikaGupta) 1612876628000
Independent market expert Sandip Sabharwal said if Nifty ends February at the current levels it will be the best February for the market in the last 25 years.
If Nifty ends February at the current levels it will be the best February for the markets in the last 25 years……
— sandip sabharwal (@sandipsabharwal) 1612854885000
Trading helps investing
Shankar Sharma, Vice Chairman and Joint Managing Director of First Global, said he is a better long term investor now, because he was a trader for a long time.
I am a better long term investor now, because I have been a trader a long time then
— Shankar Sharma (@1shankarsharma) 1612940907000
In investing, many times, risk is higher at lower prices, and lower at higher prices.I have often disliked a stock… https://t.co/mvZnYeRMen
— Shankar Sharma (@1shankarsharma) 1612774004000
How long to hold a stock?
Microcap investor Ian Cassel said the key to investing is holding your winners as long as you can and selling your losers as quickly as you can. “Your holding period is directly tied to management execution. It could be 3 months or 30 years. It’s entirely up to them.”
The key to investing is holding your winners as long as you can and selling your losers as quick as you can. Your h… https://t.co/BPHBKOVcUc
— Ian Cassel (@iancassel) 1613218908000
Volatility vs risk
Cassel said to be a successful microcap investor you don’t need a high-risk tolerance but a high volatility tolerance.
To be a successful microcap investor you don’t need a high-risk tolerance, you need a high volatility tolerance.
— Ian Cassel (@iancassel) 1613008044000
ITC dividends are worth it?
iThought co-founder Shyam Sekhar appeared to be disappointed with ITC after its Q3 results were announced last week. “The management is not delivering enough on product verticals. FMCG is a slow gain game for ITC. The company is adding business when existing lines aren’t profitable enough. Dividend is a poor substitute for buybacks. We pay the price.”
If you are a small ITC shareholder, as I am, be clear Management is not delivering enough on product verticals.… https://t.co/Le0gm2qGCb
— Shyam Sekhar (@shyamsek) 1613183735000
Samir Arora of Helios Capital reminded investors that some consumer companies in India, from paints to biscuits to underwear, trade at near 50 to 75 per cent premium to P/Es of companies like Amazon and Netflix etc and at 200 per cent premium to companies like Google.
It is pretty amazing that some consumer companies in India from paints to biscuits to underwear trade at near 50 to… https://t.co/CKEfz419kb
— Samir Arora (@Iamsamirarora) 1613098552000
Not just FOMO
Behavioural finance expert and author of the book ‘The Psychology of Money’, Morgan Housel, said more powerful than FOMO (fear of missing out) is the opposite — denying or ignoring something obvious about an investment because admitting you were wrong is too painful.
More powerful than FOMO is the opposite — denying/ignoring something obvious about an investment because admitting… https://t.co/24k6R668fP
— Morgan Housel (@morganhousel) 1613060397000
Of course everything thinks this is about bitcoin but it’s just as much tech/value valuations, which so many people… https://t.co/dijdPYUqA9
— Morgan Housel (@morganhousel) 1613061435000
the core is identifying the difference between patience and stubbornness, which is very hard.
— Morgan Housel (@morganhousel) 1613061597000