Bitcoin (BTC), The Graph (GRT), Quantumscape (QS) and Warren Buffett and his 13F

Play episode

Thoughts on Cryptocurrency, Bitcoin (BTC) and The Graph (GRT), Quantumscape (QS), and Warren Buffet’s Berkshire Hathaway and their 13F.

Bitcoin (BTC), The Graph (GRT), Quantumscape (QS) and Warren Buffett and his 13F


Podcast Transcript

Hey, this is Jeffrey, another issue Stock Smart February 12th 2021 edition just an update market is closed on Monday. So we will not have a show then but let’s get right at it, hope everyone’s doing well. Let’s start off, the markets unwinding a little bit. You can see market’s either going to be flat or down today again. We’re a little over bought in the S&P 500. So it’s going to take a few days for that overbought nature or state to decrease a little bit to encourage more buying again and in various stocks. We’ve been talking a little bit about options in the last show, we talked a bit about call options, we also talked about the vix and how the vix has increased its base rate where it sits or its resting point, which is around 20. It’s gone up a little bit today but options trading and again,

This is what I was getting at with the Vicks and how its increased its bottom line or Baseline, I should say, option trading is up 61% this year and that’s going to have an impact on the VIX and that’s why you’re seeing the VIX baseline sitting at 20 rather than where you used to sit which is in between 11 and 12. So options trading is up this year and that has to do with the increase of the you know, recreational or the average trader or the retail trader a lot of the Robin Hood type of crowd, a lot of those people who were in those short squeezes, to save money, they were buying call options, of course because they’re much less expensive than buying the actual position, so to buy call options on GameStop,

They could have bought those for pennies rather than spending the full amount on the stock which was still relatively cheap if you got in when it was around $12. So I want to look at Bitcoin again. Just take a look at Coinbase, I’m not being paid or anything for Coinbase. It’s something that I do use myself, when I invest in Bitcoin, there’s a lot of other companies too that are creating, you know, bitcoins and or tokens besides just the actual original Bitcoin, Ethereum, of course, people are familiar with and some other ones like Litecoin and Wrapped Bitcoin that you may be familiar with there’s one that I’m taking notice of it’s called The Graph and The Graph is a Technology company essentially that issues its own token and The Graph is a company that essentially works in the blockchain technology.

They have a block chain technology themselves that they created and their technology allows firms that work in the block chain and work with blockchain data to find and sort data more easily within those data blocks and whenever that someone uses their technology or they share information with in the blockchain with them, their network distributes a token to them, which is their token of blockchain that they have which called GRT or The Graph. Anyone who helps process of transactions in the blockchain with them gets the token. So it’s interesting to me about that is that you can see because their technology is being used a lot to sort data, their technology, I mean, I would say their token is being distributed widely.

So that will give it more acceptance than some of these other tokens and that’s interesting to me because that will put it in the hands of all these other users that may not have had it via like how you would acquire regular bitcoin which is how I acquire which is just to go to a site like coinbase and I essentially deposit my money into coinbase and then coinbase is an exchange that holds my Bitcoin in it and I can go and check and see which are the most popular Bitcoins. Looking at these what I would say about the graph and I did some research. Analysts that follow this on a daily basis, I do not, mean I’m getting from more familiar with it. They are anticipating that this has a Target price of $5 per token right now.

It’s at 2.43. So $2.43. it was up as high as 65-70% in the last 24 hours. Now, it’s trading down a little bit. It’s up to about 32% for 24 hours, but this is gone ballistic since early December, it’s up something like 800% over the last 5, 6,, 7 weeks so their token now sits at $2.43 and you can see what I’m noticing as I look at these other tokens that are available. Retail investor or regular investor may go in and say hey, I want to buy some cryptocurrency, but they may be, you know, dismayed by the price of Bitcoin, it’s at 47,000 thinking, you know, I don’t want to buy fractional share of Bitcoin.

I’d rather maybe take the chance that one of these other cryptocurrencies is going to explode and buy one that’s cheap or maybe I can corner the market and get like a hundred shares or 200 shares or whatever if they want to get $100 worth. You can buy something like a token called Stellar lumens, which is XLM for $0.48 and you can maybe get you know, two hundred or a hundred tokens for that for what you invest so what I’m seeing is besides Bitcoin, which is covered widely. They’re all these other tokens and they’re increasing in value as well. And I see a lot of it and I believe a lot of it when I look at it. There’s one called Nu Cypher, which is Nu Cypher. That’s up about 27% over the last 24 hours and what I’m seeing is that these cheaper, less expensive tokens,

Probably where people can buy greater percentages of them are going up more. Now one thing you’ll need to look at too where we talked about Bitcoin, Bitcoin is limited to 21 million that can be made. So you’re going to have to look and see what the actual rate of tokens are in these other services as well because an oversaturated market is going to not increase value, it’s going to decrease value. I go back to this example of Bitcoin as I was thinking about it last night, when I was a big Baseball Card Collector, baseball was a passion of mine my whole life. It was always amazing to me to have this one baseball card that everyone wanted which was the T206 Honus Wagner card, which is way it’s an old card for like early 1900s and this is the card that everyone wanted.

This is the most rare card it became ultra rare because it used to be distributed in tobacco cigarettes. Honus Wagner was against he was against the cigarettes. He was an anti-smoking person back in those days, which is pretty amazing, when you have to think about it, to be against cigarettes in the in the early 1900s, but he was against it. So he told them do not make it, do not put me in that pack of cigarettes because I’m against cigarettes.

So it was really interesting is that made the card even more rare but this is a card that really the reason it became so rare is it was ultra rare to find hard to get from a really limited series and it took on its own life of value, sort of like what Bitcoin does it’s the same thing, It’s a rare thing, people want it they see value in it and that’s how it becomes valuable. It’s really, you can’t explain it any other way, it’s stored value. So that’s about it on bitcoin. I want to talk about a stock that we’re looking at now


This is a stock I was in earlier in the year and watched it go as high as $132 before you know, it took a precipitous drop, stock is called QuantumScape, ticker symbol QS.

So again, it hit a high at about 132 mid-December, was way overbought and sold off dramatically. now, this is another momentum stock in the EV space and you’ll have investors in this company, include Bill Gates and Volkswagen. It’s an American company in the San Jose area and they produce solid-state Lithium-ion batteries, very important in the today’s technology in the market. What I would also say very important is that it’s an American company creating these and we’re seeing right now.

Don’t forget what we’re seeing the semiconductor industry, distributors or makers of EV Vehicles electric vehicles here in the United States are going to want to find companies like a QuantumScape who are making their product here that they can rely on their supply chain and that includes and I’m not saying that they’ve chosen them if there is a deal with Apple with Hyundai you can see how that would benefit Apple to have a distributor like QuantumScape, and again, I am not saying that it’s happening that is only speculation at this point, but they’re headquartered in San Jose. So again, that the proximity is great, it’s a company that’s being backed by Bill Gates and his fund as well as Volkswagen and what they’re doing with their battery technology is what we all want with Battery Technology.

If you’re going to buy an electric vehicle, in the days when this first started you would have to sit for hours to charge your vehicle. But what they’re building. is they’re essentially building fast charging batteries. So Morgan Stanley put a bull call on QuantumScape, stock has jumped today about 10%, we like the stock, I’m going to watch it definitely after it went to 132 in December, It really bought them. It shaved two-thirds of its value off and bottomed out but found support in the 40 range. So it bumped off support today. Got some positive a positive catalyst with the backing of Morgan Stanley again companies who are building electronic vehicles here, electric vehicles here like Ford, and or if Apple gets in the space, are going to want to find a domestic supply chain of their solid state batteries QuantumScape, QS.



So I have a question from Shirley. And thanks again for the questions. You can reach me at and we’re getting 20, 25 questions a day. I appreciate it I try to answer all the questions via email. If I can’t get them on the show, really appreciate you sending them in so Shirley wants to know what’s a 13F, 13F is a filing with the SEC. by hedge funds that essentially list the positions that hedge funds are taking so it’s the listing of their stocks and they have to submit a report no more than 45 days after the end of the quarter so if the quarter ends, 12/31. The report has to be filed by the 15th. There’s a very exciting one that everyone follows a 13f that’s coming out on Monday, market is closed on Monday so we’re not going to have a show again.

But there’s a 13F that’s coming out on Monday that usually everyone piles into and looks at and it’s Berkshire Hathaway Warren Buffett’s firm and people want to see what he’s invested in one of the reasons people choose this hedge firm is not only because he’s become the most legendary investor of our time, but because they take positions and they usually take long positions. It’s not a company that’s in a stock for 3 days, and then sells it and dumps it when they’re taking positions. If they’ve putting in any new positions.

They’re generally in those positions now the problem with the 13f if you’re looking at it from as an investor, problem with a 13f is you don’t know if they have vacated the position or if they’re still in it when it’s listed because a firm could in in that 90-day quarter, they could buy the position and sell it after their filing and you won’t even know. Now the 13F also, when they file the 13F, they don’t have to have all their positions in it.

They do have to put in long positions and their put and call options and there ADRs, but there are other positions that they don’t have to include like short positions and then cash and then other asset classes that they hold so we’re going to go over the 13F on our next show of Buffett’s Berkshire Hathaway on next show which were going to do on Tuesday the 16th. That’s it for today. Have a great weekend and we’ll see you next time again on Stock Smart.

More from this show

Episode 14