I’ve gotten a bunch of questions about Teeka Tiwari’s “Trump Tower” teaser pitch recently, so although the ad is actually very old now (it’s still got a January 29, 2020 date under the signature) I thought I’d re-share our solution. It is still circulating heavily, and it’s an ad for Palm Beach’s “entry level” newsletter called The Palm Beach Letter ($49, renews at $129).
What follows was last updated on April 6, 2020, in the throes of the Pandemic Panic, so the story for all of these stocks has obviously changed dramatically… as have prices for cryptocurrencies, with Bitcoin now up about 650% since then… but the actual ad and the stocks he’s teasing remain largely unchanged. I have kept my notes unchanged as well, though they may now sound foolish given the year we’ve had, so be gentle :).
The basic pitch is that blockchain is going to revolutionize the world, and that all the big guys are invested in it and we’re just getting started, with 295,000% gains coming (that comes from the World Economic Forum’s assessment that the blockchain ecosystem will store 10% of the world’s GDP by 2027, which might as well be a made-up number — there’s a free Palm Beach note about that here).
Tiwari even throws Warren Buffett in there as being part of this “investment of the decade” in blockchain technology, though that’s a pretty spurious name-drop (he implies that Buffett is “all in” because 21 of Berkshire’s 25 largest holdings have “invested in Genesis technology” — meaning they’ve done some kind of work with blockchain or cryptocurrencies… since I expect that almost every large company has done some work exploring or researching blockchain, that’s probably pretty meaningless).
But anyway, yes, his basic argument is that “Genesis Technology” is about to go mainstream and reach heavy adoption, and that as it becomes a huge part of the global economy you’ll get rich if you own the right stocks. Which, of course, he can tell you about for $49.
To be fair, Teeka Tiwari was one of the early mainstream newsletter guys who was recommending cryptocurrencies early on, back in the Summer of 2016, and particularly got into Ethereum before most pundits, so he’s not making up those historically excellent returns he probably had at that time. I would imagine that Ethereum pick in 2016 is probably what boosts the high average return that he brags about for his newsletter portfolio, much like the early picks of Netflix or Amazon fuel David Gardner’s average performance at the Motley Fool, and Tiwari these days is probably recommending little tiny cryptocurrencies right and left to try to replicate that 1,000% return magic.
But this one’s about stocks — so let’s find out what he’s pitching, shall we?
Before we get started, though, I should note that the “Trump Tower” part of this tease seems to be just name-dropping — he uses it as an example of a property evolving to “highest and best use”, as happens with lots of real estate eventually (a long spiel about a vacant lot becoming townhouses becoming a department store tower becoming Trump Tower, and adding value along the way). Somehow he applies this to blockchain, but mostly it’s just a way to drop the Trump name for attention… here’s how the connection is drawn…
What is blockchain’s “highest and best” use?