Vulture Investing on the Web: Buying Mt. Gox Bitcoin at pennies on the dollar.

comments Comments Off on Vulture Investing on the Web: Buying Mt. Gox Bitcoin at pennies on the dollar.
By , February 28, 2014

Distressed assets may be the “extreme sports” version of value investing, but it’s a game as old as money itself.

From Baron Rothschild faking everybody out and going long British gilts after the Battle of Waterloo, to the whole Marty Whitman school of investing in distressed assets, when something implodes, while most people scramble to unload the toxic assets, there is are the vultures who swoop in and sometimes make out like bandits.

The key is to this is creating low risk / high reward setups, so your downside risk is minimal (even if you lose your entire investment) while your upside potential is phenomenal. These types of investments are frequently losers, but the minority of winners win big, enough to make it all worthwhile (if not lucrative) for the people who are practiced at the craft of distressed investing.

So it goes that as technology – and money – evolves, so will the investment scenarios that present themselves. In today’s case, the destruction of the world’s largest bitcoin exchange provider, Mt. Gox, has presented just such an opportunity. Read more »

Google Analytics Alternative