[Boris' - book review for your long holiday]
“Scorching Hot” ,
“Inflation Testing Fed” , and
“Dow futures fall 200 points” might sound like a bad mantra for Indonesian investors today, especially those who are newly participating Tech Investing era.
Sadly, these headlines appeared after our market has just got rounds of encouraging developments on tech-related play.
Looking back to the history of last Tuesday, there were some interesting narrative around if you are a growth investor...
On the corner of M&A play – MPPA investors, for instance, was pretty much relieved on how Gojek's team has finally showed appearance on its 4.5% minority stake, company filed statement just after Tuesday's closing bell!
Those who already bet big might be happy to finally see some interesting names, such as Andre Sulistyo showing up in the details. Needless to say, in a normal environment, this might give a confidence boost for those analysts who keen to re-imagine the turn-around path of this big box retailer.
We also got great news on the side of digital banking business.
Take a cue for ARTO, for further example, investors might cheered on the fact that the bank will start lending to its clients by this week. The firm has just gotten approval by regulators to start lending through Jago app by this week, and recently scored more than 100,000 downloads from Android, and around 50,000 from Apple Store!
But will all these matter?
Boris, the Stock Trader would say “Nah…! Stock will dip anyway on Monday if the odds of inflation continues! I’ll just realize my position then. These tech stocks are not made to withstand flood anyway.”
That is, if we try to be short-term on the whole investing principle.
Boris, the Investor or Business Owner will answer differently, however.
He would see the inflation spike as the ‘Great Filter’ to differentiate which companies that truly make good products and create differences in the industry, and which one who just there to flip ownership, and try to hype up the party like its 1999.
Coming off this long holiday, I would like to give a shout to one of my favorite books,
Zero to One , who was written by an excellent tech start-up investor, Peter Thiel. You may know him as one of founder of
PayPal , a company which he nurtured during 2000 tech bubble era.
To some extent, maybe the unduly escalation of asset values is part of tech investing.
Similar to Thiel's experience in the early parts of his book – the challenge for start-up investing isn’t that how to believe in our own company, but to stay focus on it when everybody in the stock market is ready to believe in anything at all! In the 1999 people are flipping companies at alarming rate, and people pile in their cash in companies with anti-business model – where they lose money as they grew.
So how come company such as
PayPal survive, while the others not? One of Thiel’s suggestion is to look for a “Monopoly”.
Makes me wonder, how this apply to Indonesian stock market?
Boris, the Stock Broker š¾
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