Summer is fast coming to a close. Vacations (remember them?) will be winding down. Kids (got ’em?) will be heading back to school (maybe?). Oh, and it will be time to look ahead, plan and strategize for the end of 2021 and beyond. Rather than lose sleep and stress out, why not just stay with a winning hand? How? It’s easy.
First, identify something that is (or will be) changing global societies (innovation). Of course some of those really cool innovations are already taken (damn). Second, make sure that hot innovation is “winning” at what it is intended to do. Then apply those two basics to your own company and/or investment decisions.
Of course if you are a small retailer it would be hard to replicate Amazon. Or, launching a new car manufacturing company like Tesla is way out of the question. You could just buy those stocks but that does nothing for your business. Oh wait, way not mimic MicroStrategy. That’s what we’ve done.
Exactly one year ago (last August) the CEO of MicroStrategy, Michael Saylor, announced that rather than holding excess cash reserves in low (or money losing) treasuries, MicroStrategy would hold Bitcoin. Saylor came to the conclusion that Bitcoin is a true store of value and a much better use of idle cash. That’s an “ah ha moment” that changed every company’s financial thinking of how to efficiently hold its “dry powder.” CFOs around the globe took notice and now numerous companies’ balance sheets include digital assets, mainly Bitcoin. Now THAT’S innovation.
Is this a winning strategy? The short quip is….so far, so good. As in any new innovative strategy, you have to have vision, conviction and a long term view. Ignoring critics (haters), Michael continues to look into the future and add to MSTR’s BTC position (currently over 105,000 bitcoins) believing that its long term Bitcoin holdings has the unique potential to evolve into “the future of the property.” During a recent call. Michael reiterated;
“We continue to be pleased by the results of the implementation of our digital asset strategy,” he said, adding that “we intend to continue to deploy additional capital into our digital asset strategy.”
So, here is brilliant financial innovation and the beginning of a long term winning strategy with multiple ways to participate. As CEO of Digital Wealth News, I am following MicroStrategy and taking our excess cash flow and buying Bitcoin. Any size (profitable) business can do the same. Of course just buying MicroStrategy stock or Bitcoin works, too. But, following a true visionary like Michael Saylor makes life easy. Worked for Warren Buffet followers.
Blunting the always negative comments, do you wish you had followed (and invested) in innovators like Jeff Bezos (Amazon), Elon Musk (Tesla), Steve Jobs (Apple), Jack Dorsey (Square) or other innovators of similar ilk? Winning took a bit of time with them, too.
Another opportunity in plain sight?