Veteran investor Chris Sacca has a word of warning for start-up investors who have fled like a thug this year: It’s not you.
In a tweet on Wednesday, Sacca released this “harsh truth” about novice investors: “You are not so good at this. You just caught a bull market ”, and warned that it is time to make some profits.
The decade-long bull market defied all odds and continued to rise this year, despite the economic devastation caused by the coronavirus pandemic, leading to easy money for some investors, especially in technology, where IPOs exploded and valuations skyrocketed, leading to concerns of another bubble. The high-tech Nasdaq COMP,
increased by almost 43% year-to-date, as opposed to the SPX of the S&P 500,
almost 15% increase and the DJIA of the Dow Jones Industrial Average,
modest gain of almost 6%.
See too: ‘Gee, I’m a $ TSLA-naire!’ Here’s how quickly Tesla’s wild ride transformed modest investments into unexpected seven-digit gains
While that tweet garnered much praise as solid advice, apparently Sacca drew enough reaction – including from Barstool Sports founder and day trader Dave Portnoy, who told Fox Business that Sacca “sounds like a sour loser and an idiot” – which he replied to with another tweet on Thursday, this time full of sarcasm:
(“Stonks”, if you don’t understand children’s language today, is an internet meme used to mock bad financial decisions.)
Sacca knows what he’s talking about. He built his first fortune by investing during the dot-com boom two decades ago, and then broke down when the bubble burst. He ended up founding the Lowercase Capital venture capital fund, and was one of the first investors in technology companies like Twitter Inc. TWTR,
Instagram and Twilio Inc. TWLO,
He retired from the VC game in 2017.