Chamath Palihapitiya: nothing beats a bet on bitcoin

Chamath Palihapitiya, founder of venture-capital firm Social Capital, described Bitcoin as the best illustration of a ‘winning asset’. The billionaire cited the leading cryptocurrency in his musings on investing.

Investing 101: Don’t confuse slugging percentage with batting average.

The former is being the cool kid in high school — you’re a rare thing and everyone wants to know the secret.

The latter is like going to the prom with your mom. Everyone talks about it, but not kindly.

— Chamath Palihapitiya (@chamath) September 23, 2020

Palihapitiya advised following the path of “all great investors,” who focus on the “slugging percentage.” He used a baseball term that denotes a batter’s effectiveness, reflecting the share of his potentially productive hits rather than the overall batting percentage.

“It’s better to own a large part of one winning asset than insignificant parts of many others,” stressed the founder of Social Capital.

All great investors have gotten one big thing right: they focus on slugging percentage.

They know when to capitulate, buy up, when to be “risk on” and ride the winners. They care more about owning a big piece of one winner vs irrelevant pieces in many winners.

— Chamath Palihapitiya (@chamath) September 23, 2020

Earlier in June, the billionaire described bitcoin as a hedge against the risks to the global economy arising from its low correlation with traditional assets.

Chamath Palihapitiya has previously spoken positively about the leading cryptocurrency. He contends that bitcoin is the best antidote to autocracy, and by 2037 its price will reach $1 million.

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