Over the past month, most memecoins suffered brutal sell-offs many dropping 30%+ even 50%Investors are rotating heavily into large caps like $SOL, $ETH, and others.The trust that once fueled meme communities is fading fast.From $TRUMP coin’s launch to endless celebrity rugs & scams, the narrative has shifted.The latest blow: $YZY — another reminder that for many, memes = exit liquidity.👉 The market is choosing now fundamentals over jokes. ...

Core Viewpoint - The investment strategy focuses on a balanced portfolio between low-cost funds and individual stocks, emphasizing long-term holding and understanding market dynamics beyond mere financial metrics [1] Investment Strategy - The portfolio is approximately 50% in low-cost funds and 50% in single stocks, reflecting a balanced investment approach [1] - The investment philosophy prioritizes holding stocks for at least 10 years, avoiding market timing [1] Market Understanding - The market is viewed as a meeting point of demand and supply, with a focus on predicting human behavior rather than solely relying on financial ratios like P/E [1] - There is an emphasis on understanding what the market perceives in a stock beyond numerical data, which includes analyzing sectors, industries, and long-term growth trends [1] Current Investment Outlook - The company is currently bullish on specific stocks including AMD, PLTR, TSLA, as well as broad US equities and Bitcoin [1]

Altcoin Analysis - The industry should focus on the fundamentals of altcoins in September [1] - The industry should identify altcoins with real utility and long-term potential [1]

Fundamentals vs. NarrativesIn a highly connected system, the thing that spreads the fastest winssee: COVID, fake news, viral memesThe Internet is a highly connected system — the financial system is notThe latter has circuit breakers, markets/banks close outside business hours, and inefficiency is a featureBut crypto connects the financial system with the internet, and so makes the financial system highly connected as wellBut in a highly connected system, speed of spread dominates, so fundamentals start matt ...

Investment Philosophy - Fundamentals are the guiding principle, focusing on essential information rather than distractions [1]

RT Jess 🌱 (@thattallguy)the more connected the system, the more dominant the fastest-spreading element becomesnarrative dominates fundamentals not because people are more retarded now, but because narratives are the fastest-spreading virus in an increasingly more connected graph ...

IMPORTANT: this does not imply that fundamentals don't matter!I'm just describing the physics of the situationas you click the "Play" button and let time go by, eventually, people start developing antibodies to the narrative, just like a bacterial infection, and shed themselves free from itbut a virus/narrative that is rooted in fundamentals will have higher retention and will endure over timeput differently: pure narrative will spread much faster in the shorter term, but a narrative rooted in fundamentals ...

the reason narrative dominates fundamentals is not that people are dumber or suddenly greedierit's physicshumans think in storiesnarratives are easier to understand, and fundamentals require time to analyseif narratives are easier to understand, then they spread fasterif they spread faster, then they infect more peopleif the internet connects more people than ever before, then the rate of infection increases exponentiallyand if enough people are infected, it ends up shaping realityand if crypto increases th ...

Market Dynamics & Investment Implications - Narrative is currently more influential than fundamentals due to increased connectivity [1] - Crypto increases the connectivity of the world's value by turning information into value [1] - Narratives spread faster than fundamentals because humans understand stories quickly [1] - Increased connectivity leads to volatility and ecosystems of products like perps, shitcoins, and prediction markets [1] Underlying Cause: Connectivity - Connectivity, driven by advancements like airplanes and the internet, is the underlying reason for the shift [1] - The internet increased the connectivity of the world's information [1] - Crypto increases the connectivity of the world's value [1] Impact on Financial Markets - Stocks are becoming more like memes, and memecoins are traded with trillions in value due to increased connectivity of information and value [1] - Hypergamblification arises from narratives spreading fast, leading to volatility [1]

Valuation Concerns - The company's valuation is approximately 70 times revenue, a multiple rarely seen and unsustainable for software companies [1] - While the company's fundamentals are exceptional, the valuation remains a concern, reminiscent of past instances where high multiples for companies like Snowflake proved unsustainable [3][4] - A significant portion (around 40%) of the investor base is retail investors, which can sustain the stock price for a while, but institutional investors have valuation thresholds they cannot exceed [5] Growth and Sustainability - The company's performance is outstanding, with top-line and bottom-line margin combined equaling 90, which is unheard of [2][3] - Deceleration in revenue growth could trigger a multiple contraction, especially given the current high valuation [4] - The CEO's statement about growing revenue ten X with a shrinking employee workforce raises questions about the sustainability of such growth, considering the need for talented personnel to implement the software [7] Market Dynamics and Risks - The market's irrationality, driven by a retail investor base, could persist, making it difficult to predict when the stock's high valuation will correct [9] - The company's unique business model and exceptional execution have defied fundamental reasons to sell the stock, despite the stretched multiple [10][11] - Upside risks include potential monetization of IP and sustained commercial momentum, which could justify the valuation [8]