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Veteran venture investor Chris Sacca has a word of warning for beginner investors who made off like a bandit this year: It’s not you.
In a tweet Tuesday, Sacca dropped this “hard truth” on newbie investors: “You’re not actually that good at it. You just caught a wild bull market,” and advised them it’s time to take some profits.
The decade-long bull market has defied all odds and continued to surge this year, despite the economic havoc wrought by the coronavirus pandemic, leading to easy money for some investors, especially in tech, where IPOs boomed and valuations skyrocketed, leading to worries of another bubble. The tech-heavy Nasdaq COMP, +0.26% is up nearly 43% year to date, as opposed to the S&P 500’s SPX, +0.35% nearly 15% rise and the Dow Jones Industrial Average’s DJIA, +0.23% modest gain of almost 6%.
While that tweet drew a lot of praise as solid advice, apparently Sacca drew enough backlash — including from Barstool Sports founder and day trader Dave Portnoy, who told Fox Business that Sacca “sounds like a sour loser and an idiot” — that he responded with another tweet Wednesday, this time dripping with sarcasm:
(“Stonks,” if you’re not hip to the lingo of kids these days, is an internet meme used to mock bad financial decisions.)
Sacca knows whereof he speaks. He built his first fortune investing during the dot-com boom two decades ago, then went bust when the bubble burst. He went on to found the VC fund Lowercase Capital, and was an early investor in tech companies such as Twitter Inc. TWTR, -0.61%, Instagram and Twilio Inc. TWLO, -0.11%. He retired from the VC game in 2017.
