Investor Wallet and Community Update

Hi All,

Over the coming weeks and months and in the run up to the launch of the Pynk Investor wallet (coming Nov) - you will start to hear more from the Pynk Team on our approach to investing, right here in the community.

By using our Crowd Wisdom system, we are harvesting pockets of financial, economic and even geo-political wisdom from our global Crowd - and using the data to feed into the decision making process of our Investment Committee.

The very best of our Crowd are in this community and that’s why we want to start here with as much information as we can.

Read on to find out more about what is coming soon…

Pynk’s approach to Investing

As we start to explain more about the forthcoming Investor Wallet, you will see how we are taking a different approach from the majority of retail investment products out there - one that takes into account the global macro economic situation we find ourselves in today, and one that takes a ‘Thesis’ approach to investing. Hence the launch of our first investment product will be called the Thesis Portfolio.

For those not familiar with the term it is an approach to investing that first looks to understand the reason and market conditions that make for a sound long term investment opportunity, across individual asset classes or a group of assets. This is an approach the Pynk Investment Committee are taking when deciding where to deploy capital, and a series of such theses allows for a fully diversified portfolio structured in such a way as to realise healthy returns over the long term. Unlike the majority of retail investment products on the market today, Thesis Investing returns are less correlated and are about taking a longer term view.

Within the Thesis Portfolio - the Pynk Investment Committee combines multiple investment disciplines, including Growth Investing, Macro Investing, AI powered trading as well as well as Value Investing. We harvest feedback from the Crowd and AI to varying degrees to find investment insight across these disciplines, or as we say Wisdom in the Crowd (™). Furthermore, we collect and process both fundamental insights and quantitative data and so we are creating a ‘Quantimental’ approach to investing.

Value Investing

Over the next few weeks we are going to delve a little deeper into ‘Value Investing’ and how to make an assessment of a company’s underlying or intrinsic value by looking at financial metrics such as P/E, PEG, EV/S, P/S ratios. When volatile markets overreact to news, it presents opportunities for value investors to get in at a price that does not reflect the longer term view. Warren Buffet and Charlie Monger are value investors of course, and the approach requires an emphasis on detailed business and strategic analysis.

Broadly speaking, if the market is confident of the Earnings (E) being achieved (for example, because of forecast upgrades, how popular the products are, how defensible the E are etc.) - it will assign a higher price to it. It doesn’t always do this quickly and therein lies the opportunity of critiquing the earnings assumptions as an investor.

To muddy the waters, the market will also assign a higher price to an E situation it deems as scarce. A clear example we have been discussing recently is Innovative industrial Properties (IIPR). The market wrongly assumed that it was just another cannabis stock exposed to the same supply/demand vagaries as the companies producing the product. But anyone who bothered could have seen that their E was pretty well insulated to a variety of even quite extreme short term pressures.

Younger companies at earlier stages of development often don’t have long track records for the markets to establish any kind of range/quality judgement regarding their earnings.

But the same sort of analysis is key to determine the attractiveness of its value: likelihood of achieving the plan, certainty of growth prospects under a number of scenarios and how defensible (e.g. barriers to entry) their market position and therefore potential earnings are. It’s again complicated further by the fact that the level of E is basically a choice for companies who can reinvest heavily if they grow. For example, Amazon could have been profitable ten years earlier had they ‘stood still’ and not expanded so aggressively their product/geographical offering. While ratios such as EV/S weed out the highly leveraged, and P/S is certainly useful for companies at this stage - it often pays to look harder at these companies.

In a world where ‘growth’ stocks have had a good run in recent years - it’s our belief that this discipline is undervalued by investors across the board. Value investing has a longer, better record historically (as demonstrated by the below chart) and is again indicating high potential:

Finding Wisdom in the Crowd

We believe our Global Crowd are well placed to give us unique insight into the Investment Theses we are working on. Thanks to the internet and democratisation of financial information - there is no reason why we, as everyday investors, cannot come to the same level of insight as professional analysts.

Stay tuned for more information on how to approach value investing as an everyday investor.

In the meantime, please share any comments / initial thoughts below.

Many thanks,
Mark

Disclaimer: this information does not constitute any form of advice or recommendation by Crowdsense Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.

19 Likes

Think you’re spot on there @Think_Pynk. Using our community as an asset to select, disect and suggest individual assets to make up our thesis makes perfect sense. Very much looking forward to the wallet launch as one of the longest serving community members!

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Interesting write up @Think_Pynk. We have a lot of bright minds in this community and I believe we can be successful if we work together. This is in-depth and gives an idea of what to expect. It’s been months since we have been waiting and it will soon be a reality thanks to the crowd and the team. Excited for what’s about to happen.

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Good news in november :kissing_heart::kissing_heart::kissing_heart:

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Thank you for such explanatory update :clap: :clap:

and looking forward to learning along the way :open_book: :heart_eyes:

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Although it’s a great explanation of your vision, it just overcome my knowledge on investment strategies. I’m not an investor :grinning:, but I put my faith on you and on the wisdom of the crowd. I’ll keep predicting every day, to help building the models and Rose. I’ll try to keep up with you guys. Cheers

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thanks, @taliesin. That’s the beauty of investment with Pynk. You can invest your hard-earned money and then put your feet up, you don’t need to be an expert. In the meantime, you can learn as you go about many different aspects of investing.

Stick with us, there is a lot of really exciting and educational stuff heading this way soon! :partying_face:

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Wow @Think_Pynk Mark!! This was truly enlightening!!
I wonder, could you disclose some data about what kind of ROI you expect in relation with how much time the money is locked-up into the wallet?
Will it be a fixed lockup period or it will be flexible meaning that one can eventually take some profit along the way if needed?
I am very exited anyway…COME ON NOVEMBER, come soon!! :grin::grin::grin:

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Great news about the wallet! :tada: :tada: :tada:, can’t wait for more details to come out. And thanks for the insight into Pynk’s approach @Think_Pynk Mark, it’s nice to know more will follow; it presents a great informative opportunity for us pynksters :grin: :grin:

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The quick answer re withdrawals is it will def not be locked. So you can withdraw money whenever you so wish. There is a slight delay due to international bank transfers etc. so time to receive money back can take a few days depending on your country - but nothing major.

Re expected returns, more on this to come shortly (honestly, I need to check with the team what they are comfortable in us communicating, and there are some FCA restrictions around this).

Btw - some of the product team will post product shots/mock ups on here shortly. I saw working demo today and it’s looking great.

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I’d bet on it!!

Thank you for your kind answers Mark…woooooooooooooaaahh!!! I cant stand the wait!! :grin:

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Exciting times on Planet Pynk.

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As a heads up - you will see a new section in the community shortly called ‘Financial Enlightenment’. Here we will bring regular insight from the Pynk Investment Committee via Pouneh (new Head of Research) and others, to help us all think about our approach to investing in new ways.

I’m privileged to see much of the discussions happening in the Pynk IC and there is a wealth of knowledge there, the idea is to bring that directly into this community. More on this to follow.

Thanks also to all who filled out the feedback questionnaire re the community also, we are digesting the feedback and implementing where we ca (starting with the above)

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