Jan 6, 2022 4 min read

The Intelligent Blockchain Investor: Hello World ❤

Value Investing revolutionised the investing world. But can it be applied to Blockchain Investments? Read this article to explore with us.

The Intelligent Blockchain Investor

The Intelligent Blockchain Investor: Hello World ❤

Value Investing revolutionised the investing world. Initially sparked by Benjamin Grahams ‘The Intelligent Investor’, it became championed by Warren Buffett and Charlie Munger of Berkshire Hathaway fame. As the concept has grow, an investing framework has been established focusing on long term returns and understanding the intrinsic value of companies.

Today, Value Investing proponents are legion. Entire investment funds are dedicated to delivering on this remarkable framework, led by Berkshire Hathaway. The impact has been extraordinary, and as they say, the best is yet to come!

And then we have Blockchain

It’s a technology which could be upending entire industries and economic systems. It might be the harbinger of an entirely new economic driver worth untold trillions.

Or it could be the greatest mass delusion in history.

Both can’t be true

If blockchain is viable, there’s tremendous opportunity. A quick look at history shows us the tremendous rewards available to those who carefully and systematically analyse innovation and opportunity.

If blockchain is viable, there must be a way to assess and analyse the intrinsic value of the organisations involved. If we can find a way to assess and analyse this value, then we can find a way to intelligently invest in blockchain.

In short:

If blockchain is viable, there must be a way to apply Value Investing principles

If we do this, everyone wins. Projects with profound improvements for humanity will gain access to the capital they need to succeed. Our investment capital will continue to grow, which will allow us to invest in more. We will be a part of unleashing a new wave of innovation and development across the world.

Can We Develop Such a Framework?

I believe there is a way to do this. I believe that not only is it possible, there’s a systematic way to approach our analysis which at least makes us intelligent investors, rather than passive ‘get-lucky’ observers.

And so this series was born. A series where I do my best to outline a systematic analysis of my conviction, putting out there publicly where everyone can see it.

I hope you like it.

And who knows. If it turns out to be a giant mass delusion, we’ll at least have some fun exercising our mind :)

What to Expect From This Series

The series is structured as a series of introductions to various parts of the blockchain universe before developing an analysis approach.

We start by exploring The Investors Dilemma. This outlines some of the challenges which blockchain is throwing at traditional methods of investing.

Next, we explore the The Game Being Played. This what I call the overall blockchain market. We get introduced to blockchain technology, the opportunities created, the challenges faced, and some of the trends which will shape the future of this dynamic market. We leave with some great context to inform our future analysis.

Then we explore The Players In The Game. It’s what I call the various organisations in the market. We get introduced to some of the ways organisations in this field are a bit different from typical companies (and other ways they’re the same!) We leave with some great insights we can leverage as we develop our future analysis.

We finish by developing an analysis framework, called Analysing The Game. These articles suggest a structured way to approach the analysis of The Players In The Game. We’ll leave this part of the series with at least one way of thinking about how we might approach participating in The Game.

How to Approach This Series

There’s four keys to success in using this series.

Firstly, I’d encourage you to be healthily sceptical. This series of articles is only a very brief introduction to the blockchain universe, and misses out a ton of detail for the sake of keeping things conceptually straightforward. I strongly encourage you to be keep a solid dose of scepticism as you read these articles. I might be on to something, but I might be completely wrong. Do your own research and let’s see where how history judges us.

Secondly, this series doesn’t give you investing advice. It simply outlines an analysis framework. Hopefully it allows us to approach the blockchain market in an informed manner. What it doesn’t do is take into account your financial situation, your prior investing experience or anything else related to providing financial advice. Even thought there are times I mention specific projects, this is either to illustrate a point, or draw attention to something interesting or unique. I’ll do my best to be clear when I might receive some kind of benefit from your interaction (although this is a fast moving market, so things change rapidly!)

Thirdly, take time to interact. Comments, claps, tweet mentions, LinkedIn mentions and sharing is a great way to interact with a community of people who can add to our exploration. A great way to stay up to date with this series as it comes out is by following me or signing up to our email distribution. A word of caution though — please keep it respectful, fun and polite. We want a safe place to learn and grow ❤

Finally, have some fun. We were created on purpose, for a purpose, and for me, this is part of my purpose. I genuinely enjoy what I’m doing here, and I hope you are too.