Summary

• I liked Strategy (MSTR) as a bitcoin HODL (Hold On for Dear Life) “intelligent leverage” play that outperformed bitcoin by regularly increasing bitcoin held per common share.
• I also liked two of its preferred issues; STRK because convertibility softened MSTR’s volatility and STRC, because its dividend would fluctuate to whatever level would keep the stock near $100.
• I respect MSTR’s top execs as very smart guys, perhaps even geniuses. But as MSTR evolves, I’m recalling the 2000 book, “When Genius Failed.” MSTR isn’t in danger now, but...
• I’m seeing red flags. MSTR seems to be relying much on unreliable past performance. And I now see a lot of complexity which I deem a negative investment factor.
• I’m not completely giving up here. I respect management’s intelligence, creativity and its intense desire to openly communicate. But things are still evolving. For now, I’d rather be a spectator.

We can always debate who is or isn’t a genius.

Here are some of my thoughts…

In the investment community, I don’t think it’s controversial to apply the label to Steve Jobs or Warren

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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