irrational investors 2 min read

what have you learned from Michael Burry, who shut down his fund Scion Asset Management a few days ago?

he took large bearish positions through put options against Palantir and Nvidia, which basically means he was betting their stock prices would fall.

but the market didn’t move the way his analysis suggested.
he argued that todays valuations are increasingly disconnected from fundamentals.

and he’s not wrong. he’s 100 % correct.

but it’s an irrational market.

irrational market

the market has been, and will always be irrational.
the world is driven by perception, not facts.

people don’t invest based on present-day facts.
people invest into growth potential, into stories, into narrative.

that’s exactly how a founder should market his/her startup.

you should not focus on today’s situation.
you focus on the future outcome;
shift the focus using stories.

irrational founder

the market is not rational. why should you?

irrational founders could win against rational founders.

not because they’re reckless, no.
but because they understand how humans actually make decisions.

in a world driven by perception, momentum, and belief,
the one who shapes the narrative often beats the one who simply analyzes it.

sometimes: the irrational approach is the most rational strategy.