Domestic private equity giants enter Bitcoin, enlightenment to us
On February 18, Canadian time, Canada and North America’s first Bitcoin ETF-Purpose Bitcoin ETF (stock code BTCC) was officially listed on the Toronto Stock Exchange in Canada, and became one of the top ten most active securities on the exchange that day.
This news is undoubtedly quite positive for the currency circle, and stimulated by this news, I think that there will be a Bitcoin ETF in the United States soon. However, this news triggered an event that in my opinion is more meaningful than this news: that is, Dan Bin, the star fund manager of domestic private equity, announced on Weibo that he bought Bitcoin. The way Dan Bin bought Bitcoin was through Canada’s Bitcoin ETF.
We can see that Dan Bin’s purchase of Bitcoin is not enough if it is only from the perspective of "a certain big guy bought Bitcoin, and Bitcoin has taken another step towards mainstream institutions". We still need to see this itself has a deeper impact.
Friends who often invest in A shares must not be unfamiliar with Dan Bin. He is a star private equity fund manager in the domestic A-share market, and one of the very few fund managers who I think are insightful and thoughtful.
To explore the deeper impact of Dan Bin's buying of Bitcoin, we must start with Dan Bin's investment characteristics and style.
Dan Bin’s investment career is a symbolic turning point in my opinion: after 1993, after Dan Bin suffered four major setbacks in investing in stocks and treasury bond futures, his investment method gradually changed from technical analysis to value investment.
It was after this change in style that he was able to have the magic touch of investing in the A-share market: in 2003, he bought Vanke for 5 yuan, bought Kweichow Moutai for 23 yuan, bought Yantai Wanhua for 12 yuan, and bought China Merchants Bank for 9 yuan. I have bought the stocks of outstanding companies, and I have continued to buy them since then, and I have benefited a lot so far.
Among the stocks bought by Dan Bin, we use Moutai as an example to analyze his style.
Today, Moutai's stock price has reached an astonishing 2,460 yuan, but everyone has become accustomed to this and thinks that Moutai "is valuable." Back in 2003, the general stockholders at that time did not think Moutai was valuable, and the stock price of 23 yuan at that time was very unrecognized for a stock with "average value". But Dan Bin dared to buy under such circumstances, and continued to buy, and still holds it to this day.
Why? Because Dan Bin saw the unique significance and potential of Moutai to Chinese people, he not only dared to buy in a big way, but also dared to hold it for a long time without fear of bulls and bears.
How much psychological torment does this have to endure, and how deep an understanding of Moutai and national conditions is required to do it? That's where he excels.
Therefore, when Dan Bin buys a target, he must not only look at the short-term, but must enter the game from a long-term perspective, and will definitely consider the attributes and various risks of the investment target before buying.
Well, we all know that people in the traditional financial circles are quite disdainful of Bitcoin, a new thing that is extremely subversive in thinking. It was only in 2020 that some well-known financial figures in Europe and the United States, especially the United States, began to gradually change their views and change their views rapidly.
Dalio, the top investor I talked about in the article before, is a typical example.
However, in the past year, among the many high-profile traditional financial figures who have appeared in Bitcoin news, we have hardly seen well-known domestic traditional investors.
what does that mean? On the one hand, this means that under the relatively cautious macro environment in my country, it is not easy for the conservative traditional financial circles in China to change their influence on Bitcoin; The ideological gap is widening.
But Bin's move reversed the situation in the domestic financial circles.
Next we see two situations:
One is that we can all guess that there must be a group of people in the traditional financial circle who expressed disdain for Dan Bin's behavior. Regarding this point, we only need to look at Dan Bin’s comments on Weibo to see: a large number of financial professionals with glamorous faces still expressed their ridicule of Bitcoin’s “valuelessness” and “Ponzi scheme”.
But on the other hand, Dan Bin's move will definitely cause another group of vigilant people in the traditional financial circles to start to rethink Bitcoin, and take a serious look at the development of this new thing and its impact on the future.
Bitcoin must have started an unprecedented ferment in the domestic financial investment circle now, but this effect is an undercurrent surging, and outsiders cannot see it.
Next, domestic private equity funds buying bitcoin through overseas channels will gradually become standard, but due to the sensitivity of the domestic environment, everyone may not publicly admit it.
One more thing to note: Dan Bin bought bitcoin for $50,000. This means that he must be optimistic about Bitcoin in the long-term, and his long-term goal must be higher than we imagined.
As I write this, I am a little afraid to imagine how the market will develop next.
In addition, I also thought that if friends who read our articles for a long time and have been following us to invest in Bitcoin for the past two years, our cost is less than 10,000 US dollars, but Bin’s cost is at least 5 times ours.
In the investment of Bitcoin, we have completely defeated top fund managers like Dan Bin. Where is the key to our victory? In cognition, we can think elastically earlier than they do. This is something we should always keep in mind.
