How GameStop Bull Roaring Kitty Isn't All That Different From Warren Buffett

Benzinga2021-03-19

Famed investor in GameStop Corporation (NYSE: GME), Keith Gill — also known as — Roaring Kitty — is more like Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett than most people might think. Here’s why.

The Pudding’s Proof: Gill who goes by the handle “Deep F---ing Value” on the Reddit forum r/WallStreetBets limited his exposure to GameStop call options when the stock shot up in late January. He purchased more shares after they declined in February, according to the Wall Street Journal. GameStop shares have rallied 970.9% since 2021 began and have seen a net change of 4,715% over one year. The retailer’s shares closed 3.84% lower at $201.75 on Thursday and fell another 0.4% in the after-hours trading.

The investor has the habit of revealing his GameStop holdings on social media in a regular fashion. Gill’s uncanny ability to time the action would impress Buffett, as per a Bloomberg opinion piece by Tae Kim.

Letting Go Of Euphoria And Despondency: Kim writes referring to a Buffett cited parable that “Mr. Market” “can swing from euphoria to despondency,” taking with it stock prices up or down based on “manic-depressive emotions” rather than on changes in a company’s fundamental business or outlook.

Buffett attributes “the key to success” to exploiting this moodiness of the market and escaping getting trapped in the price action. Gill’s ability to execute GameStop trades to his profit is an illustration of this strategy.

This Kitty Is A Value Investor: Buffett and Gill are akin when it comes to trading style, as per Kim.

“Despite the prevailing narrative that Redditors are aggressive gambling day traders, Gill at least is more akin to an old-school value investor like Buffett when it comes to GameStop.”

“Roaring Kitty” has repeatedly laid out the deeply researched investment case for the company on his YouTube channel and has been involved in the stock since the summer of 2019,” wrote Kim.

In for The Long Haul: Pointing towards “positive signs” like Chewy Inc (NYSE: CHWY) co-founder Ryan Cohen driving GameStop’s strategy and new hires at the gaming retailer, Kim said that the company reaching $30 billion in valuation over the next three to four years is a “reasonable aspirational goal.”

Kim warned investors that it was going to take for GameStop's new executive team to implement their new initiatives.

“[Investors] should be prepared to ride through another mood change or two from Mr. Market. We know “Roaring Kitty” will be.”

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • SKHan
    2021-03-22
    SKHan
    Buy lowest possible and sell highest possible!
  • Sorrie2u
    2021-03-22
    Sorrie2u
    Funny
    • SSVC
      [强][握手]
  • Jj1985
    2021-03-19
    Jj1985
    Lol like like like and comment
  • GameTop
    2021-03-19
    GameTop
    Re al ly ?B u t I D o n't C a r e !繼續買進&SH,無他,J U S T L I K E 這隻股票!?·?
  • pyrolysis
    2021-03-19
    pyrolysis
    Rk = WB?? Time will tell
  • lihodinho
    2021-03-19
    lihodinho
    Good for trading ~~~~~~~~~~~~[財迷] [財迷] [財迷] [財迷] [財迷] 
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