After averring that I would stay away from trading stocks in general because of market volatility, or that buying Twitter specifically was too risky, I bought some TWTR on Thursday at $51. (It closed at $49.80 on Friday.)
In my defense, Elon Musk's takeover of Twitter looks very likely now that he's secured $7 billion from other equity investors. In fact $51 (actually $51.28) seems like a "fair" valuation based on a $54.50 acquisition price and a 90% probability of execution. The risk of loss is much lower than it was a month ago.
The second reason is that this was hardly an "investment." TWTR is less than 0.1% of the portfolio and the purchase was more to be kept apprised of shareholder communiqués than to make a killing. It's very rare that a small fry can be an arbitrageur.
Besides, I spend more on entertainment, and frankly after more than 40 years of being in the stock market I've never seen any story that's been more entertaining.
— Elon Musk (@elonmusk) April 7, 2022
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