U.S. Markets close in 5 hrs 15 mins
  • S&P 500

    3,753.65
    -65.18 (-1.71%)
     
  • Dow 30

    30,570.40
    -458.91 (-1.48%)
     
  • Nasdaq

    10,915.57
    -262.32 (-2.35%)
     
  • Russell 2000

    1,685.44
    -33.93 (-1.97%)
     
  • Crude Oil

    105.98
    -3.80 (-3.46%)
     
  • Gold

    1,811.90
    -5.60 (-0.31%)
     
  • Silver

    20.25
    -0.49 (-2.35%)
     
  • EUR/USD

    1.0429
    -0.0015 (-0.1460%)
     
  • 10-Yr Bond

    3.0180
    -0.0750 (-2.42%)
     
  • Vix

    30.05
    +1.89 (+6.71%)
     
  • GBP/USD

    1.2146
    +0.0024 (+0.1956%)
     
  • USD/JPY

    135.9410
    -0.6040 (-0.4423%)
     
  • BTC-USD

    19,011.15
    -1,097.54 (-5.46%)
     
  • CMC Crypto 200

    406.96
    -24.50 (-5.68%)
     
  • FTSE 100

    7,123.51
    -188.81 (-2.58%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     

How GameStop Bull Roaring Kitty Isn't All That Different From Warren Buffett

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Famed investor in GameStop Corporation (NYSE: GME), Keith Gill — also known as — Roaring Kitty — is more like Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett than most people might think. Here’s why.

The Pudding’s Proof: Gill who goes by the handle “Deep F---ing Value” on the Reddit forum r/WallStreetBets limited his exposure to GameStop call options when the stock shot up in late January. He purchased more shares after they declined in February, according to the Wall Street Journal. GameStop shares have rallied 970.9% since 2021 began and have seen a net change of 4,715% over one year. The retailer’s shares closed 3.84% lower at $201.75 on Thursday and fell another 0.4% in the after-hours trading.

See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌

The investor has the habit of revealing his GameStop holdings on social media in a regular fashion. Gill’s uncanny ability to time the action would impress Buffett, as per a Bloomberg opinion piece by Tae Kim.

Letting Go Of Euphoria And Despondency: Kim writes referring to a Buffett cited parable that “Mr. Market” “can swing from euphoria to despondency,” taking with it stock prices up or down based on “manic-depressive emotions” rather than on changes in a company’s fundamental business or outlook.

Buffett attributes “the key to success” to exploiting this moodiness of the market and escaping getting trapped in the price action. Gill’s ability to execute GameStop trades to his profit is an illustration of this strategy.

See Also: Beyond WallStreetBets, Analyst Sees GameStop Benefiting From These 3 Factors

This Kitty Is A Value Investor: Buffett and Gill are akin when it comes to trading style, as per Kim.

“Despite the prevailing narrative that Redditors are aggressive gambling day traders, Gill at least is more akin to an old-school value investor like Buffett when it comes to GameStop.”

“Roaring Kitty” has repeatedly laid out the deeply researched investment case for the company on his YouTube channel and has been involved in the stock since the summer of 2019,” wrote Kim.

In for The Long Haul: Pointing towards “positive signs” like Chewy Inc (NYSE: CHWY) co-founder Ryan Cohen driving GameStop’s strategy and new hires at the gaming retailer, Kim said that the company reaching $30 billion in valuation over the next three to four years is a “reasonable aspirational goal.”

Kim warned investors that it was going to take for GameStop's new executive team to implement their new initiatives.

“[Investors] should be prepared to ride through another mood change or two from Mr. Market. We know “Roaring Kitty” will be.”

Read Next: Gamestop Short-Selling Nets Bill Gross M, Who Says Current Volatility 'Perfect Opportunity For Options Sellers'

Photo by freeimage4life on Flickr

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.