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Fidelity Manager Rips Up Buffett Playbook, Goes All In On Crypto
I know, but these momentum bad boys always make a big splash right about the time markets are peaking. Usually, the terrible crash occurs with other peope's money.
The point is a matter of my perspective, having covered this stuff for too long. People were saying the same exact things in 2000--valuations don't matter. They don't matter until they do. The idea that bitcoin related cryptocurrency stocks are being trotted out as a good idea by this manager is very disturbing to me. This is what this manager says;
"I don’t believe in Warren Buffett," he said. "I care about new things, things that are innovative, that are growing, that are changing the world."
He’s unfazed if those stocks look expensive. "Valuation is an immaterial part of the process for me," he said. "It’s the least useful piece of information you will ever get because everybody knows what the valuation is."
That is exactly what I used to hear back when investors were buying stocks like Pets.com in 2000, and a very odd and dangerous thing to say nine years into a bull market.
His last quote actually makes him sound smart, if you believe in disruptive technology and its investment potential. (See new Ric Edelman book.) No one is disputing or even misunderstanding anything you are arguing. But it is not the right argument here. If you are furthermore implying this is like home delivery of petfood, you are off-base. My only point is only that his process appears to have done a very good job for a loong time. And what is the lesson from that? Apart from your being very disturbed.
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https://washingtonpost.com/archive/business/2000/01/01/tech-mutual-funds-led-the-way-in-90s/94a23caf-8230-40e4-bde7-d45840cd42f8/?utm_term=.91974dcba493
Valuations in any strict historical sense have not mattered for some time.
My only point is only that his process appears to have done a very good job for a loong time. And what is the lesson from that? Apart from your being very disturbed.