I would describe myself as a value investor. I’ve got a dusty copy of ‘The Intelligent Investor’, read Berkshire Hathaway’s annual letters and usually invest in unpopular companies with strong financials. But with NFTs, the metaverse and cryptocurrency everywhere, I can’t but help to check them out.
In my opinion, I would dare to say many value investors would probably be weary of NFTs because they aren’t explicitly cash generating entities in the sense that NFTs are about art creation or a place for showcasing brands in the metaverse. The value investor looks for businesses with strong cashflows, sustainable debt levels and most importantly is undervalued. In the world of blockchain where exactly are the strong cashflows? There are speculations of what could generate strong cashflows, but these haven’t been proven yet.
I checked out OpenSea and Decentraland to see if I could persuade myself that NFTs are good to invest in like how the internet was back in the 90s.