Jul 23, 2021 • 45M

Podcast Conversation: eToro CEO Yoni Assia on the purpose of investing, crypto assets, and building a $10B fintech

 
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Finance is being pulled apart by the forces of frontier technology. From AI, to blockchain, crypto and DeFi, to mixed reality, chatbots, neobanks, and roboadvisors — the industry will never be the same. Here is the blueprint for navigating the shift.

Hi Fintech Futurists,

Welcome back to our podcast series! For those that want to subscribe in your app of choice, you can now find us at Apple, Spotify, or on RSS.

In this conversation, we talk all things capital markets and investing with Yoni Assia, the founder and CEO of eToro, one of the fastest-growing and largest global digital investing companies, brokerages, and applications out there.

More specifically, we discuss the eating habits of Warren Buffet, community-driven investment challenging incumbent investing practices, the purposes of investing and trading, of financial health, of investment education, of gamification of investment strategy, of capital markets and GameStop and the connection between capital, memes and fashion, and finally machine learning’s influence of investment behaviour.

Warren Buffett's charity dinner spurred the boss of an online-trading  platform to embrace value investing | Markets Insider

For premium subscribers, a full transcript is provided along with the recording.

Hope you enjoy, and do not hesitate to reach out here!


Excerpt

Yoni Assia:
I wouldn't necessarily, by the way, call it incumbent. I would call it value investing. So the way I view it, I usually, and again, there's many ways to segment types of investing and because I've been a fan of capital markets since I was about 13, I would generally segment value investing as looking at the core existing value, being able to analyze and understand DCF cash flows and try as much as possible to get rid of what Benjamin Graham calls Mr. Market, the irrationality of markets. And I really got to understand and learn more about value investing because it hit my head like a 100 ton hammer when I had dinner with Warren Buffett. That's the really basics of investing, that it's amazing how many people don't understand. So when I asked Buffet about investing, he just referred me to Benjamin Graham's Intelligent Investor books. So I went and printed copies for all of eToro employees to read that book.

Mr. Market: The Investor and Market Fluctuations | Hurricane Capital
Mr. Market Has Quite a Temper

Then you have growth investing where it's either technology growth and it's about what we talked before, which is how much do you believe in the future growth of a company? Peter Thiel talks about it a lot in ‘Zero to One’, you have a lot of investors who are very minded towards growth. Obviously, you can think about very disruptive large companies like Amazon and Tesla, but you can also think about luxury goods, LVMH worth $350 billion is a growth company of manufacturing luxury goods. But if you look at a business and you can estimate that that industry and that mode of the business grows 25% a year for the next 10, 20, 30 years, you have potentially a very large valuation that it's hard to explain purely from existing or historical value. And then the third is, and you can call it in different names, but it is really around either scarcity or really understanding the irrationality or Mr. Market.


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