The Investing Diaries - Jan 22, 2021

This post is going to be short and sweet, no rambling or jumping on the soap box for any causes.

Yesterday I started a position in Triterras Fintech (TRIT), a company with a short history and a long rap sheet of rumors. This company, for those that do not know, is a fintech that deals in trade finance and uses blockchain (buzzword right now) to process and track the transactions.

Why is this potentially valuable?

Well for one, the trade finance paper base system is full of fraudulent activity that can be solved by the tracking that occurs in blockchain. This is the same type of technology that Bitcoin (BTC) uses when tracking and keeping a digital ledger of transactions. This transaction history, if done properly, will seemingly eliminate the fraud that has hindered the industry.

Second, the ability to create a middle man that verifies transactions, financing, and tracks the shipping is something that will address a large portion of the market that seemingly has the need. The Kratos platform that they have developed has already been shown to work and is a technology that has huge potential.

Now, take a look at the chart and you will see a crazy amount of volatility. This is due to a short report that was written after an initial spike, one that was largely the part of Oppenheimer supporting TRIT in a big way. This short report, while I think important to read and research, is allowing for a great buying opportunity in terms of risk/reward. I am a huge fan of Mohnish Pabrai’s theory of “Head I win, tails I don’t lose much” and in my opinion this is one of those times.

I have started a position with a small amount, 100 shares, and am willing to ride this speculative ride. In my opinion, my $774 risk has a substantial chance to at least double in the next 2-3 years. If the short thesis is correct, I will lose $774. If the technology prevails and Oppenheimer is correct, I will be riding high with a ground breaking technology that will help change an interesting.

Until next time, happy investing!