Oversimplifying investments could be detrimental

Letter # 92 | 20 July 2022 | Buoyant Capital | Oversimplifying investments could be detrimental

“Steve Jobs taught me that when you deliver the highest quality you can imagine, you will have a great business forever” said Ron Johnson of Enjoy Technologies. His company went public through SPAC in October 2021 at a valuation of USD1.4 billion. Last week, they hastily filed for Chapter 11 bankruptcy as the company was left with no money to pay salaries. In our ET article today, we look at the spectacular rise of SPAC (USD162 billion issuance in 2021) and its dramatic fall (less than 10% cos trading above IPO levels now). More importantly, we draw interesting lessons as to how the oversimplified ‘bite-sized advice’ that sounds good, is in fact, detrimental to long-term investing. Read here: Oversimplifying investments could be detrimental

Disclaimers:
Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies are provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.