The smartest people I’ve ever met have always been humble, unafraid to make fun of themselves, rarely do they feel the need to talk themselves up. I suppose all of those things convey intelligence, as internally, they don’t need to prove themselves in any which way.
When I watched the latest RoaringKitty live stream, also known as Keith Gill, the guy behind the short squeeze of GameStop AKA DFV on Reddit, I had to take notice of one particular thing – especially as the modern new outlets and tradefi (traditional finance firms) investors have continually mocked RK:
This is not dumb money.
There is something bigger at work.
Go check his Youtube videos, and you may even want to read his read his Reddit posts. Go straight to the source.
First and foremost, RoaringKitty, is a financial analyst who has put in hours, weeks, months and years of hard work into markets. Most people don’t realize that he is a Chartered Financial Analyst (CFA) charterholder, which is a professional designation given by the CFA Institute. This is not an easy thing to get. It requires rigerous studying and the passing of 3 exams. It generally takes several years to get this credential.
In my personal background, the best investors I know at reading a balance sheet or income statement are CFAs. They study every aspect of financial markets. This means, if we go back to the start, RoaringKitty’s investment in GameStop was not just a dumb lucky bet, but the result of extensive research.
He saw the potential in the company when it was heavily shorted by hedge funds and believed that the stock was undervalued. He started investing in GameStop in 2019, when the stock was around $5 per share. By January 2021, the stock had reached an all-time high of $483 per share, a staggering increase of over 9600%.
If you watch his original videos, you can see how much research he did into everything about the company including its balance sheet and income statements.
He did full valuations on spreadsheets, kept up with new releases, and updated his financial modeling in public over time.
The point is, there is much more to this story coming in the following weeks and months.
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