Author: Konstantin Fominykh

Why do we extoll as true entrepreneurs Elon Musk and Bezos way over Sergey Brin and Mark Zuckerberg?

Konstantin FominykhLeave a comment
Not because that either TSLA or AMZN are more profitable! No, to the contrary….
Look at the Net Income for 2020 for all these companies FB and GOOG still are way, way more profitable than either TSLA or AMZN  (Net profits for 2020 or TSLA  $0.5B, AMZN $13B
FB $21B, GOOG $31B)
We extol the virtues of Musk and Bezos because they created something EXTRAORDINARY difficult, and they kept on relentlessly innovating for almost 25 years, developing their long-term visions through enormous difficulties
While the founders of GOOG and FB have founded something incredibly profitable by essentially luck (even though they were qualified and brave to take advantage of that)… 

Why do we extoll as true entrepreneurs Elon Musk and Bezos way over Sergey Brin and Mark Zuckerberg?

Big corporations are horrible at innovation

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Jamie Dimon says JPMorgan Chase should absolutely be scared about fintech threat.

The highly respected CEO mentioned that competition will be particularly tight in the world of payments.
Why would Jamie single out payments, if other areas of the bank services are under the attack too?
Is it because JP Morgan’s Chase paymentTech overcharges clients and is threatened by competition?
Or, is it because Jamie can’t fathom that other areas of the bank, including Asset Management and, eventually Commercial lending and Mortgages are also being attacked by Fintech?
The choice is hard though:  with all due respect, big corporations are horrible at innovation.
Remember, that:
1. Google wasn’t invented by Microsoft
2. Tesla wasn’t developed by General Motors
3. Facebook wasn’t launched by Comcast
 

Big corporations are horrible at innovation

Bitcoin acts as a leading indicator for other cryptocoins

Konstantin FominykhLeave a comment
Without a doubt, Bitcoin acts as a leading indicator for other cryptocoins, and many other asset classes globally by being a good proxy for the risk appetite.
With that in mind, given the historical ratio of Bitcoin/Ethereum, ETH has at least 2-3x upside now..;
Specifically, at historical highs ETH traded at ~10x the price of BTC/ETC, while now that ratio is ~30. 
I.e. the honest pseudo-analytical statement is:
If everyone pulls the valuation for BTC out of a thin air, then the valuation of Ethereum should be pulled from much thinner air (i.e. higher clouds).
 

Bitcoin acts as a leading indicator for other cryptocoins

How future returns for two polar sectors of Covid lockdowns – Tech vs. Energy? 

Konstantin FominykhLeave a comment
Mega profits of Zooms, Amazons and Wayfairs attract competition in masse and ruin future profits
While lack of any new oil production (let alone deep sea drilling) creates lack of supply, and, coupled with even modest recovery in demand, can produce huge profits for the Energy space…
Mean reversion manifests itself through capital re-allocation…. 

How future returns for two polar sectors of Covid lockdowns – Tech vs. Energy? 

How to find ideas from 2021, if you don’t want to run numbers?

Konstantin FominykhLeave a comment
Ask your friends what they crave for!
Are they dreaming about signing up for Zoom Premium to talk more online?
Or, maybe they are buying another Peloton Rowing Machine to spend even more time in their basement? 
Hell, NO! Most ppl talk about “when thing get better… let’s meet… let’s fly…. let’s travel…let’s go out… let’s meet for dinner”! 
People are craving normalcy and with vaccines offering tangible timeline, we should invest into the Recovery themes, which fittingly are SO DAMN CHEAP to boot!

How to find ideas from 2021, if you don’t want to run numbers?

Lost Passwords Locked many folks Out of Bitcoin wealth…

Konstantin FominykhLeave a comment

Lost Passwords Locked many folks Out of Bitcoin wealth…

The ownership of a Bitcoin implies nothing but a knowledge of the password, these passwords IS your wealth..
What happens when a password get lost for good?
These “stranded” coins will never be redeemed….
The analogy is a sunk Spanish silver galleons of the 16th century being buried deeply underwater when their treasures of Gold and Silver was lost for centuries, if not forever…
 

Lost Passwords Locked many folks Out of Bitcoin wealth…

Elon Musk Salary annual salary paid at Tesla is $23,760.

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I have no idea how Elon Musk became the world’s richest man…

Look at his filing at Tesla – Elon Musk Salary annual salary paid at Tesla is $23,760.
He must either be a really frugal saver or, maybe he had a really, really rich father…
Just kidding…
 
See SEC filings from TESLA below

Elon Musk Salary annual salary paid at Tesla is $23,760.

The small caps are no longer super cheap

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The small caps (Russell 2000) are no longer super cheap compared to large caps (S&P500) See how Russell200 has outperformed S&P500 last 3 months by almost 20% points Going forward, the performance of stocks of different size should be more even….

The small caps are no longer super cheap