Sunday 7 January 2018

The People Who Trash Sheldon Inwentash Don't Understand This Market

With the rise of Sheldon Inwentash's new capital pool, ThreeD Capital Inc. (IDK.C) last week, I have seen his name come up a lot more often, and not always in a complementary way. I get it. I have written about the Pinetree saga a couple of months ago when first investing in IDK and relating his involvement with one of my top picks, FTEC. Let's keep in mind that although he was responsible for Pinetree's downfall, he was also equally responsible for its rise, making early investors a lot of money.

There is nothing wrong with being skeptical with an investment. But the people who relentlessly trash Inwentash for his involvement with Pinetree don't seem to understand that this is a millennial market. There are 25 year olds who have made more money on weed stocks in their first 1-2 years of investing than 55 year olds who have been trading the TSX and Venture for thirty years. This is a "what have you done for me lately" market. And what IDK has done for these young investors lately is double last week. So to the 55 year olds reading this, you can either avoid the play and act like a grouch online, or you can play the momentum and make some cash.

As far as the 25 year olds are concerned, I've met a few with beginner's luck who don't realize that they have beginner's luck and are acting like they are the next Warren Buffett. The market will eventually eat them alive if they don't learn some lessons before then. But until then, momentum stocks with buzzwords like weed and blockchain will be hot well before they have to come up with some kind of achievable business model. There is no point in fighting it by saying Inwentash blew up Pinetree a few years ago when his fund is making people money today.

There is a chance that IDK will blow up just like Pinetree. There is an equal that Inwentash learned some lessons from that hardship which he will now apply to IDK which will make it last. But either way I think early investors will make out like bandits just like they did up to 2007 with Pinetree.

1 comment :

  1. What you are really saying is, that just like any total amateur, he was just riding a wave up to 2007, and then hung on and doubled down for 9 painful years until it went bankrupt. Of course in the easy years he took a 35 million bonus for being in a bull market, and in the bear years took a nice salary. In addition he borrowed to buy penny stocks in a bear market, and he kept on buying even when the debt covenant was breached so he got fired from his own fund. So now he's joined a new bull market and making money... So a genius once more! I made money by buying the debentures at a great discount which paid off nicely. I don't understand if anyone is a serious investor why they wouldn't do some research into the new bull markets on their own rather than need to pay your guru salary, fees, and I expect a massive bonus during the boom year...