We all know Warren Buffett subscribes to the concept of Intrinsic Value – but one key factor is that valuations to him are only taken with a pinch of salt.
Cryptocurrencies were in the limelight yesterday as Bitcoin (BTC) and other alt-coins like Ethereum (ETH) fell dramatically to its lowest the last couple of days.
If you have read my previous posts about Cryptocurrencies, Blockchain-backed companies and ICOs (link here and here), you might have an idea on what my views are on cryptocurrencies as investments.
We are seeing similar analyst trends with regard to investments in cryptocurrencies, fintech companies and Initial Coin Offerings (ICOs), as we did for the Internet Bubble of the 1990s to 2000.
Over the years, value investing as a stock-picking methodology has grown in popularity due to the successes of famous investors such as Warren Buffett, Joel Greenblatt and Peter Lynch.
Digital currencies (or cryptocurrencies, as it is more popularly known) has been a hot topic in finance in recent times due to not only the rags-to-riches stories of people who’ve held bitcoin since the early days till its current sky-high market value, but more importantly, due to the decentralized and distributed properties of the technology that it is built on.
The Efficient Market Hypothesis (EMH for short) is a theory developed and popularized by economist Eugene Fama in the mid-1960s to 1970s.