Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
While discussing two popular investment terms on Twitter, Social Capital CEO Chamath Palihapitiya said that his early Bitcoin investment is his best bet. The former senior executive at Facebook also hinted that he has been âsizing upâ more bitcoins since his initial purchase years ago.
Batting Average Vs. Slugging Percentage
The Canadian-American venture capitalist took it to Twitter to compare and share his opinion on two investment terms that actually originated from baseball â slugging percentage and batting average.
The idea behind the batting average is simple â it divides the number of times a person has made a successful investment by the total number of investments. If the end-number is more than 50%, the batting average is in green.
However, that doesnât necessarily mean that the investor has made a profit because he could lose more on the losing investments than he can make on the winning ones. According to Palihapitiya, getting a positive batting average is like âgoing to the prom with your mom. Everyone talks about it, but not kindly.â
This is where the slugging percentage comes in. Not every hit in baseball earns the same number of points, and not every investment earns the same profit. It divides the average amount of money made on winners with the average amount of money lost in losing investments. Palihapitiya categorized it as âbeing the cool kid in high school â youâre a rare thing, and everyone wants to know your secret.â
Virgin Galacticâs Chairman explained that if an investor focuses on batting average, he could skip buying an asset when its price increases. Thus, he could miss out on higher returns once the asset further rises in value. This is something that âgreatâ investors understand and apply correctly as they focus on slugging percentage.
Investing is all about dollars in â> dollars out or the multiple of invested capital (MOIC).
How many good companies youâve invested in interests no one who knows anything.
How much did you make? What was your entry point? Did you size up or did you shit your pants?
â Chamath Palihapitiya (@chamath) September 23, 2020
Palihapitiya: Nothing Compares To My Bitcoin Bet
Social Capitalâs Founder and CEO added that once the investor understands the fundamental differences between the two terms from above, he could even be âall inâ if necessary
Only when heâs fully convinced of the potential of a particular asset, he could size up his portion and let the âslugging percentage do all the talking.â
Interestingly, Palihapitiya outlined the primary cryptocurrency as its best bet and asserted that heâs buying more:
âIâve made some great bets before, but nothing compares to my Bitcoin bet in 2012 and sizing up.
P.S. HODL.â
As CryptoPotato reported a few months back, Palihapitiya said that he was introduced to Bitcoin about a decade ago. He found it âreally interestingâ and purchased a million bitcoins for about $80.
During a recent investment conference call, he also revealed that his firm Social Capital started accumulating BTC in 2013.
Featured Image Courtesy of Yahoo
The post Social Capital CEO Chamath Palihapitiya: Bitcoin Is My Best Investment Bet appeared first on CryptoPotato.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.