David McDonough's avatar
$469.4m follower assets
About to do a lot of buying
TL;DR I kept a LOT of cash on the sidelines the past 2-3yrs waiting for a correction* and... here we are!

I'll write a longer post when I have time... I don't think we've hit the bottom yet, but I'm starting to buy on the way down where I believe in the company long term and feel they're oversold/undervalued. This $COIN is probably the first of many over the next few weeks.

(*Also I was too busy to invest/manage my cash intelligently but whatever... I'm sticking with "genius market timer" instead of "reckless cash manager". )

(Countdown to @eric calling me out for "post-hoc rationalization... Shut it, @eric! )
Eric Messenger's avatar
Bro, I understand I’m a crypto guy, but I’m not one of the crypto to the moon/blinded by reality type crypto folks. But as an investor, Coinbase has a very unique moat. I’ve heard so many Bs reason why NOT to buy Coinbase. But they’re are the only game in town if you wanna invest in a public company that operates a crypto exchange. And since it’s for beginners and Americans don’t like anything that’s difficult, I believe more than 50% of all eventual crypto investors will be on Coinbase. In terms of what they offer to newbies, they win hands down. I’ve moved on as my difficulty has increased but still stake a couple assets there. They actually give you free crypto to learn about crypto.

And where else can you find a business down 65% off 52 week highs, with a TTM P/E of 9, PEG of 0.01, EV/EBITDA ~5, P/FCF ~2.69, YoY revenue growth of 515%, Net Income Margins ~46%, ROE 91.6%, ROA 20.6%, ROTC 45.8%. I have 100% faith in the company going forward and I e never seen a stock with that type of growth and profitability while carrying such a ridiculously low valuation.
David McDonough's avatar
@wall_street_deebo simply could not possibly agree more with everything you said. Narrative + Numbers = WTF valuation is this!? Yeah, I'll take it!
Steve Matt's avatar
Worth mentioning that we're still higher then we were 2-3 years ago lol
Rihard Jarc's avatar
Given how painful it feels to deploy capital in this environment in hindsight it will probably look like a great period to do so.
Eric Messenger's avatar
I studied a lot of historical charts in some of the first books I read on investing. Was clear that buying when the end of the world was near ALWAYS pays off handsomely. Covid was my first real world experience, this is just another. If I can add to my five favorite stocks a couple/few times a week, and they’re 5%-10% cheaper each time, that’s heaven in my world.
Liuke Yang's avatar
If anyone wants a long but fun primer on $COIN, here’s one from Hayden. Good for the weekend 👍

Bob Workman's avatar
Thanks, will consider after May 10 earnings.