Takeover Fever

Takeover Fever

Disclaimer: Your capital is at risk. This is not investment advice.

Thank you to my old friend Zak Mir, who co-hosted the ByteTree webinar on Thursday. I went over some of the key investment themes, reviewed the Soda and Whisky portfolio performance and spent the second half answering questions from the audience. It was great to have Zak as a co-host, even though he’s a fan of big tech. Surely, we all love the outcomes from big tech; it’s simply a matter of price. I am a stickler for understanding valuation in investment, whatever the asset class. Big tech, I still believe it will end in tears.

Thanks to all of you who participated.  For those who couldn’t make it, and considering it’s a bank holiday weekend, you may get a chance to watch it.

It was satisfying to have a bid in the ByteTree Venture portfolio. On Monday morning, Keyworks Studios (KWS) was bid for by private equity. I had only recommended it a few days earlier, so it was a moment to celebrate.

For those interested in ByteTree Venture, you can read my note here. We have removed the paywall and it is an example of the service our clients receive, but please don’t buy the stock as we have already taken profits of 73%. Private equity would disagree we made 73% because, to them, time is money. 73% in a week? That equates to an IRR of 2848930797990%. The maths is 1.73^(365/7).

A Week at ByteTree

I shall do my best to keep them coming, and on Friday I recommended a professional services firm that is also significantly undervalued and a similar situation.

Silver was also a theme, as it made a ten-year high alongside copper. The plan is that it races to $50, which was first touched in 1980 courtesy of the Bunker Hunt Brothers. Then again in 2011, before an exhausting slump. The bulls are hoping for a third time lucky. That is possible, but the less excitable bulls think we’ll have to wait for the fourth attempt before silver makes a new all-time high. Maybe my strategy should have been Silver and Gold: SOLD!

Silver Breakout

Source: Bloomberg

I made the point that pre-Bitcoin, the Austrians (economists), doomsters and inflation hunters used to talk about silver. Bitcoin caught their imagination, and I am sure that has caused silver to become much cheaper than gold in recent years. If silver is in third place, I was right to make the shift to BOLD after all!

I covered Bitcoin’s energy consumption in ATOMIC and was intrigued to learn that it consumes 0.16% of global energy, and has emissions slightly below that of gold. For a pair of assets that protect you from the government, that’s not bad at all. Especially when you don’t know who the government will be in six weeks as the UK has an election coming. It is best to switch off the telly and join our BOLD Webinar on Wednesday, 5 June, at 4 PM BST. Please sign up here.

Have a great weekend, and please remember the UK bank holiday means we will be a day late publishing ByteFolio and The Multi-Asset Investor next week.

Charlie Morris
Founder, ByteTree