Seasoned venture investor Chris Sacca has a warning to budding investors who have taken off like a bandit this year: It’s not you.
In a tweet Wednesday, Sacca dropped this “hard truth” on budding investors: “You’re actually not that good at it. You just caught a wild bull market,” advising them it is time to take some profit.
The decade-long bull market has defied all expectations and continued to rise this year, despite the economic havoc caused by the coronavirus pandemic, leading to easy cash for some investors, especially in technology, where IPOs boomed and valuations skyrocketed, sparking concerns about another bubble. The technically demanding Nasdaq COMP,
is up nearly 43% so far, unlike the S&P 500’s SPX,
nearly 15% rise and the DJIA of the Dow Jones Industrial Average,
modest profit of almost 6%.
Also see: “Holy smokes, I’m a $ TSLA naire!” This is how quickly Tesla’s wild ride turned modest investments into seven-figure windfalls
While that tweet received a lot of praise for solid advice, Sacca apparently got enough backlash – including from Barstool Sports founder and day trader Dave Portnoy, who told Fox Business that Sacca “ sounds like a sour loser and an idiot ” – to which he responded. another tweet Thursday, this time dripping with sarcasm:
(‘Stonks,’ if you’re not hip in kids’ slang these days, is an internet meme used to mock bad financial decisions.)
Sacca knows what he is talking about. He built his first fortune by investing during the dotcom boom two decades ago, then went bankrupt when the bubble burst. He went on to found the VC fund Lowercase Capital and was an early investor in technology companies such as Twitter Inc. TWTR,
Instagram and Twilio Inc. TWLO,
He quit the VC game in 2017.