Michael Saylor speaks...

johnarb said:
It's cool, I don't really like arguing on a message board, I prefer discussing actual usage of the crypto assets in local wallets, or yield farming which is hardcore web3 stuff

It would be great if everyone on ET can experience the ability to transfer crypto assets (money) on a decentralized network

I have no position on MSTR (yet), was planning to buy some call leaps after paying taxes, but taxes exceeded even my conservative high estimates

The bigger reason I haven't bought the MSTR leaps calls is negative wealth effect. Fed is succeeding in its inflation-fighting operations in my case

I'm supposed to buy a new laptop (my current one will be handed down to a family member that needs it) but I'm procrastinating, so I'm contributing to a slowdown of inflation, lol

The mind plays tricks even though short term liquidity has not changed, the value of the long term positions are still taken into account

Personal anecdote on this Fed interest rate hikes and QT effects on the markets and wealth effects and inflation
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What is the big thrill about the experience of transferring crypto assets in a decentralized network? Even if I imagine it is money, it doesn’t get me excited. I’m not against new methods, but sending money is a mundane activity. I have no complaints about the current methods.

You considered going long MSTR on top of your current Bitcoin position? Having all your money already in crypto isn’t enough for you? Let us know when you mortgage the farm. LOL
 
savoir said:
What is the big thrill about the experience of transferring crypto assets in a decentralized network? Even if I imagine it is money, it doesn’t get me excited. I’m not against new methods, but sending money is a mundane activity. I have no complaints about the current methods.

You considered going long MSTR on top of your current Bitcoin position? Having all your money already in crypto isn’t enough for you? Let us know when you mortgage the farm. LOL
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lol, asymmetric bets, limited loss, much higher upside, call leaps

I don't mortgage nothing, when i use leverage, it's always limited loss

We have no debts, pay off credit cards every month, Tesla is paid for

I have clear view to all my risk exposures, how about you? :D
 
Thats what zealots and pumpers always say when it goes south

"I only played a tiny teenie amount of my massive net worth"

When it works out they say

"I went all in , mortgaged the house, broke open the kids piggy banks"
 
johnarb said:
lol, asymmetric bets, limited loss, much higher upside, call leaps

I don't mortgage nothing, when i use leverage, it's always limited loss

We have no debts, pay off credit cards every month, Tesla is paid for

I have clear view to all my risk exposures, how about you? :D
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Asymmetric bets? You’ve been watching too many videos. I do agree with you that what you describe is betting. Betting blind, more like it.

There’s nothing bad about leverage if you know what you’re doing. If you’re good, you should use leverage.

Sounds like you have a good lifestyle set up. The trick is to keep it going. Things can change drastically in half a market cycle if you’re unprepared.

Risk exposure? I’m not spread out too much. Real estate, passive investments in a couple of small businesses, equities and stock index futures.

I’m pretty much settled at this stage. Not looking to move up to another lifestyle. It’s all about being healthy and staying interested. Trading is great for that.

I don’t drive much. Haven’t been into cars since I left the rat race. I prefer cars with internal combustion engines that get shitty gas mileage, something heavy and high up. F-150, Honda Pilot, and a hybrid Sonata for running errands.

I like to keep a low profile. If you ever experience having a field agent from the FTB show up at your door unannounced, you will know what I mean.
 
savoir said:
Asymmetric bets? You’ve been watching too many videos. I do agree with you that what you describe is betting. Betting blind, more like it.

There’s nothing bad about leverage if you know what you’re doing. If you’re good, you should use leverage.

Sounds like you have a good lifestyle set up. The trick is to keep it going. Things can change drastically in half a market cycle if you’re unprepared.

Risk exposure? I’m not spread out too much. Real estate, passive investments in a couple of small businesses, equities and stock index futures.

I’m pretty much settled at this stage. Not looking to move up to another lifestyle. It’s all about being healthy and staying interested. Trading is great for that.

I don’t drive much. Haven’t been into cars since I left the rat race. I prefer cars with internal combustion engines that get shitty gas mileage, something heavy and high up. F-150, Honda Pilot, and a hybrid Sonata for running errands.

I like to keep a low profile. If you ever experience having a field agent from the FTB show up at your door unannounced, you will know what I mean.
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My whole life has changed because of asymmetric bets (investments) :D

The key is to keep it so we don't run into the risk of ruin, per your description

I sat down for a long time with my tax accountant and it's not that complicated, conservative, nothing questionable that can come back to bite

Most are long term, but a few short term, I made about $50K on AMD call options last year and wife hit a 5-figure jackpot at slot machine (lol), The profits on AMD options were realized last year, but rolled into MSTR calls that expired worthless January this year (lol)

[paid 6 figures and the first digit is not a 1. Going forward, it's best to not sell more than $170k worth per year but I don't see having to sell that much this year or next unless we buy a house]

Everyone was saying to buy a house, it's a great investment, but I would only buy a house when I can pay 95% to 100% of its full value in cash and not a mortgage

I consider real estate with a mortgage a low-liquidity, highly leveraged, investment exposure which has maintenance costs (i.e. property taxes and upkeep costs) and has tail risks, i.e. fires, water damage, etc

Look at what happened in the news during covid, many retirees that invested in real estate as passive income got wiped out and lost their properties when the renters did not pay and was protected from eviction (Black Swan)

We try to live a modest lifestyle and even more so now with a negative wealth effect on our crypto assets portfolio

Best wishes to you on your investments, looks like you got it made and there's no need to take a higher risk just to move up on the numbers game

I still remember an advise I saw on Twitter that goes something like this "the difference in quality of life from not having to work 9-5 and going to 8 or 9 digit net worth is small compared to having financial independence and having to report to a job every work day"

I'm sure I butchered it but hope the idea is there
 
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Very interesting read on our savior:

https://doomberg.substack.com/p/a-drunken-saylor?s=r

“The Commission alleges that from the time of its initial public offering in June 1998 through March 2000, MicroStrategy, a Vienna, Virginia-based software company, materially overstated its revenues and earnings from the sale of software and services contrary to Generally Accepted Accounting Principles. The company's public financial reports during this time showed positive net income. In fact, the Commission alleges, MicroStrategy should have reported net losses from 1997 through the present.”


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"Having tapped out the unsecured debt market, Saylor literally mortgaged MicroStrategy’s software business to raise yet another $500 million of debt, but this time it was of the secured variety. That’s right, by issuing a straight bond with a 6.125% coupon, secured by the assets and future cash flows of the software business, Saylor simultaneously screwed over the previous buyers of the unsecured convertible debt (by cramming them down the cap table behind the new bondholders) and tripled down on his bitcoin parlay."
 
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savoir said:
Thanks for the correction. I was lazy and going off my memory. I should have typed quarterly operating expenses are 100MM as written in my notes, not 200MM.

A pretty decent business? Also wrote “unprofitable sans Bitcoin.” Bottom line is the fundamentals didn’t deter the trade.
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no. Profitable except for the Bitcoin part which he can’t mark to market but pays taxes on the mark to market.

he should stay in his lane and run his 80percent gross margin business.
 
johnarb said:
My whole life has changed because of asymmetric bets (investments) :D

The key is to keep it so we don't run into the risk of ruin, per your description

I sat down for a long time with my tax accountant and it's not that complicated, conservative, nothing questionable that can come back to bite

Most are long term, but a few short term, I made about $50K on AMD call options last year and wife hit a 5-figure jackpot at slot machine (lol), The profits on AMD options were realized last year, but rolled into MSTR calls that expired worthless January this year (lol)

[paid 6 figures and the first digit is not a 1. Going forward, it's best to not sell more than $170k worth per year but I don't see having to sell that much this year or next unless we buy a house]

Everyone was saying to buy a house, it's a great investment, but I would only buy a house when I can pay 95% to 100% of its full value in cash and not a mortgage

I consider real estate with a mortgage a low-liquidity, highly leveraged, investment exposure which has maintenance costs (i.e. property taxes and upkeep costs) and has tail risks, i.e. fires, water damage, etc

Look at what happened in the news during covid, many retirees that invested in real estate as passive income got wiped out and lost their properties when the renters did not pay and was protected from eviction (Black Swan)

We try to live a modest lifestyle and even more so now with a negative wealth effect on our crypto assets portfolio

Best wishes to you on your investments, looks like you got it made and there's no need to take a higher risk just to move up on the numbers game

I still remember an advise I saw on Twitter that goes something like this "the difference in quality of life from not having to work 9-5 and going to 8 or 9 digit net worth is small compared to having financial independence and having to report to a job every work day"

I'm sure I butchered it but hope the idea is there
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Is a Lotto ticket an asymmetric bet (investment)? Many people who’ve won can also say their lives have been changed.

Regarding real estate, you have a very superficial understanding of it.

Here is my take.

First, I don’t consider a personal residence an investment. I know that’s not the prevailing view. To me it’s a personal expenditure on the utility and enjoyment of a property. It’s also a life-cycle decision, especially if you have children, not a market-timing one. Making or losing money on a later sale is incidental to ownership.

Second, owning additional residential property is not always about rental income. There is utility and enjoyment as well as possible appreciation in value.

I own a vacation home on the Big Island and a house from inheritance. Neither generates rental income, so fortunately I was unaffected by the pandemic shenanigans that you describe.

The properties have appreciated in value quite a lot and ridiculously the last 2-3 years. As a bonus, the inherited property was bought in the mid-1980s and has the tax base carryover per Prop 13.

Third, there is a world of real estate beyond residential. Commercial properties I count as investments are an industrial warehouse for distribution of fermented food products, a certified kitchen, and an adjacent lot used by food trucks and pop-up food vendors.

I am the silent partner of the businesses that operate out of there and get 10% of gross monthly sitting on my ass. It’s not just about the income. From my trading profits I enabled another person to realize a dream.
 
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