FYI:
Regards,
Ted
December 13, 2017
Dear WEALTHTRACK Subscriber,
Demand for socially responsible investing is growing rapidly among institutions, particularly endowments and pension funds, and individuals, especially women and millennials. It’s been a steady undercurrent that we have been following for years. As we wrap up 2017 we are reviewing its evolution on WEALTHTRACK with two impact investing pioneers, GAMCO Asset Management’s Christina Alfandary and Calvert Research and Management’s John Streur.
On the other side of the investment spectrum is Bitcoin, the most explosive financial story of the year, setting new records and garnering fresh headlines every day.
Bitcoin is not typical WEALTHTRACK material. Let’s face it, everything about it is atypical. It’s a digital currency, known as a cryptocurrency. As The Wall Street Journal put it, in a very good introductory piece, “It is a way for people to exchange value on the internet.” It is software created by an anonymous person, or persons in 2009. Its value is not based on any tangible asset like gold, or backed by any government. Its price is determined by unidentified investors and traders in a free, unregulated global market. And of course its price has gone crazy this year, up some 20 fold at one point to nearly $18,000. Bitcoin’s market value, around $300 billion, now eclipses Australia’s outstanding currency.
Sound’s nuts to me! As I warned my millennial son and his friends, it is acting like any number of manias and bubbles I have read about or experienced. So why bother to investigate? Because several really smart people who have been extremely successful investors in traditional assets, i.e. stocks have become Bitcoin investors.
One of the most notable is Bill Miller, the legendary value investor who set the record for beating the stock market for 15 years running, from 1999-2005. Yes, he underperformed for a few years after that but Miller has proven since that he has not lost his touch. Now running his own firm, Miller Value Partners, his Miller Opportunity Trust was the number one U.S. stock mutual fund for the five years ending last year. And his hedge fund, MVP 1 (MVP stands for Miller Value Partners) started investing in Bitcoin a few years ago. His average cost is around $350. His Bitcoin holdings have swelled to 50% of the fund because of its appreciation. The fund is up several hundred percent on the year.
Why Bitcoin? What’s his strategy? I talked to Miller extensively about his investment in a web EXTRA edition of WEALTHTRACK. We look forward to your comments!
Thank you for spending your precious time with us. Have a great weekend and make the week ahead a profitable and productive one.
Best Regards,
Consuelo
http://wealthtrack.com/bitcoin-currency-of-the-future-or-investment-mania-bill-millers-transformative-innovation-case/ 
