Re:Big Ideas 2021 [pdf]
by cinntaile on Tuesday January 26, 2021 @08:01PM
(#25922974)
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.
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Re:Big Ideas 2021 [pdf]
by 0xb0565e486 on Tuesday January 26, 2021 @09:15PM
(#25923478)
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).