Most of us have heard the the expression "Respect your elders" or have been instructed by our parents or other authorities in our lives to do so. It goes without saying that those who have gone before us know a thing or two about life and everything it can offer us as well as what it can take away. They have been there done that sort of thing, and we can learn from their experiences if we pay close attention.
When it comes to investing, there are a few people I consider to be the respected Elders. Men like Jim Cramer, Larry Kudlow, Mario Gabelli, Warren Buffett, and yes, Carl Icahn. When these men say something, I am eager to hear what is, what their point of view happens to be, and what direction they are going towards. They all have a lifetime of knowledge in what makes the market tick, what it's like to win, and what it's like to lose.
Yesterday Icahn appeared via a phone interview on CNBC's Fast Money Halftime Show. During the discussion he spoke a lot about the over all conditions of the stock market and gave his thoughts on both long and short term horizons. Near the end of the talk he was asked about the Crypto Markets and he did not hesitate to give an answer. Most of what he had to say was on the negative side, however, I couldn't help but hear something else woven into what he was trying to articulate. " I don't like crypto currencies only because, well, maybe I don't understand them" he said. " When you talk about the Block Chain How do you regulate it?" "Maybe I'm just too old for it, but I sure wouldn't touch that stuff" "But if you like that stuff well, maybe you understand it much better than I do" Icahn added.
After listening to him my first reaction was that of disappointment. One of the fathers of the market had just jumped in with his opinion of the new crypto market and had refused to give his blessing. But I began to dissect his dialogue. Icahn is not the first heavy hitter to weigh in on the Bitcoin craze. Billionaire investor Warren Buffet had expressed his opinion only a few weeks earlier. He was quoted as saying "When it comes to crypto currencies, I can say almost with certainty that they will come to a bad ending". When asked if he would short Bitcoin he had this interesting response..." I get into enough trouble with things I think I know something about, why in the world should I take a long or short position in something I don't know about?" Do you see the common underlying thread here? Both of these Investor Icons have gone on the record to say that they would stay away from the crypto market and in the same breath have both acknowledged the fact that they know little about them. I wonder what they might say if they actually did some research and were able to come to an understanding as to how this new technology is set up to work? I would be very interested to know. At their age however, it seems as though the're not interested in finding out.
If you read any of the major headlines that came from both of these recent interviews all you will glean is a quick dismissal of the Bitcoin, Block Chain, and Crypto markets from these Wall Street legends. I have yet to see one Highlight the fact that admittedly they have no knowledge of the markets in question. So my take away is this, I will always look to history and its leaders to gain any type of edge in my life moving forward. But in a case like this, we may need to forge on and break new ground for ourselves as we navigate through uncharted crypto waters. I won't buy into the fear or the FUD that some headlines may try to stir up. I will continue to study and understand what these new technologies have to offer and believe that someday my investment will pay off handsomely.
Old dogs can't learn new tricks