Buy the Team, Not the Story

Recently, several emerging themes in the stock market are captivating traders and investors with great energy. Trading volume is spiking. One such theme is quantum computing. However, much of the current trading frenzy is driven by narratives, stories we tell, the abstract, rather than substance, proof or reality. As a trader, I don’t see anything wrong with is, but I have a learned a few lessons about how to avoid making a bad decision in this kind of environment.

The most important thing I’ve found in moments like this is the power of investing (or trading) in the team behind the stock rather than just the story. It’s easy to be swayed by a catchy company name or ticker symbol, but understanding the background, vision, and drive of the team is essential. After all, every company, every stock, is made up of people – just like you and I. These people have different morals, ethics, goals, and backgrounds. I have learned to understand this before jumping in.

Yes, some companies may have the perfect name like “Quantum Computing Company” and ticker “QUANT” but that does not mean it is any good. However, it sure does fit the story perfectly. Someone searching for a Quantum Computing company will surely come across a name this perfect for what they’re looking for.

“Oh my goodness! That company’s name is perfect!”

Don’t get suckered into this. This is just a story. This is just marketing.

Go find out who the team is before you do anything.

In speculative markets like this, I don’t expect to see much revenue or net income. So, it’s all about the team. The team is steering the company forward, navigating extremely choppy seas, and trying to find a proven business model in a time when speculation is highest.

In a speculative market, knowing the people behind the stock is critical. While the story may attract you, it’s the team that will determine whether to take the investment plunge. The name, the branding, it all means nothing at this stage.

I’ll be sharing more thoughts on quantum computing stocks soon, and ETFs similar to the chart below, but for now, I’m observing and evaluating various teams and processes from a distance.

Written by Stefan Cheplick, a fintech builder and writer with experience at Stocktwits and TradingView. Background and published work.