2 ms·

I wonder if their profits are basically the result of a momentum strategy? Since their investment thesis is based on investing in future technology and after a

I wonder if their profits are basically the result of a momentum strategy? Since their investment thesis is based on investing in future technology and after a few years those ideas become mainstream which will lead to an increased investor apetite for that particular technology which will lead to a price appreciation.

0xb0565e486 6y ago
Could very well be. My guess is that the inflows generated by their clever marketing is enough to move the market in their favor, and thus, creating a positive feedback loop. See the inelastic market hypothesis (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935).