Resist FOMO. An asset manager has set up an ETF for ‘genuine investment’, avoiding market share such as cryptocurrencies and memes.

Man looking at stocks on multiple computer screens against a green background with pixelated dollar signs, Bitcoin and Ethereum tokens and rocket ship emojis
  • A new exchange-traded fund from GCI Investors is returning to the basics of investing.
  • “We invest in underlying companies and firms instead of just stocks,” said Guy Davis.
  • His potential losses, he said, are much lower than risking investing in meme stocks and crypto.

A fund manager wants you to forget the obvious gains from meme stocks and crypto and return to the basics of investing.

“We are very much at the opposite end of the spectrum to investing in meme stocks,” said Guy Davis, CEO of Houston, Texas-based GCI Investors. “We invest in underlying companies and firms instead of just stocks.”

Two companies he likes are UK-based online grocery delivery company Ocado, which has grown 545% over the past five years, and waste management company GFL Environmental.

“Waste is an incredibly unsexy industry,” he said. “Who would want to invest in a waste company when they can invest in a bitcoin mining company that generates thousands of dollars in returns?”

But he said the level of stable returns from a waste management company – even during shutdowns spurred by the pandemic – is “incredible.” The GFL was announced in March 2020, when the pandemic had just begun. Since then, it has risen 120% to around $ 37.

“You have a very solid industry and you have made something individually wonderful happen in the company that will even increase your returns. It enables us to have a very high degree of confidence in the future,” he said. .

The company’s first exchange-traded fund, called the Genuine Investors ETF, was launched on December 1 under the ticker “GCIG.” Waste management and the delivery of groceries can seem like a hard sell alongside the massive increases in meme stocks like GameStop and AMC, which have won 152% and 1,200% respectively so far this year, or the almost 100% rise in price on bitcoin. Not to mention the striking gains of 37,000% for some metaverse-related cryptocurrencies.

But to someone who quickly became a bitcoin or meme stock millionaire, Davis says, “Well done, great news. Go and do something successful with it, because the chances of doing it again are infinitely small.”

He describes his investment approach as simplified and old-fashioned. His Genuine Investors ETF has 23 individual companies that the company knows “inside and out” and that he said are generally not subject to outside risks such as regulatory whims or commodity prices.

“The potential return may be a little lower, but our potential losses are far more limited,” he said.

Davis said the stock market just provides opportunities, not information about companies. The S&P 500, he said, is no longer a target for the largest companies, but the “most popular”. Tesla, a favorite among retailers enthusiastic about electric cars and Elon Musk, is in the top five, he noted.

“The stock is huge; the company is small compared to what it’s actually generating,” he said.

Davis said he knows what the companies he invests in are worth, unlike bitcoin, which he said no one “has any idea is worth 50 cents or a billion dollars.”

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