Wisdom from a crypto billionaire, plus a risk-free bitcoin trade that could pay double-digit returns

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Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through what’s been happening in markets. Here’s what’s on the docket:

  • 29-year-old crypto kingpin Sam Bankman-Fried is one of the world’s youngest billionaires. He recently discussed a strategy that secured 10% daily returns on million-dollar trades, and shed other light on his winning approach.
  • Bitcoin futures are in contango, which presents a potentially high-return, risk-free opportunity for investors willing to do the legwork. We break down how the trade works.
  • Investing legend Joel Greenblatt averaged 50% annual returns over 10 years. He told us his strategy individual investors can use to find ‘creative’ opportunities in an increasingly crowded and ever-changing market.

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Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected]com or on Twitter @JoeCiolli.

Wisdom from a 29-year-old self-made crypto billionaire

Dado Ruvic/Reuters

In three-and-a-half years, Sam Bankman-Fried has quietly transformed from an ETF trader into a cryptocurrency legend and one of the world’s youngest billionaires, with an estimated net worth of almost $9 billion.

On a recent podcast, he discussed a strategy that secured 10% daily returns on million-dollar trades. He also shared how correctly evaluating risk in cryptos can lead to moneymaking opportunities.

Read the full story here:

A 29-year-old self-made billionaire breaks down how he achieved daily returns of 10% on million-dollar crypto trades, and shares how to find the best opportunities

A risk-free bitcoin trade that could pay double digits by December

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Bitcoin futures are in contango, which presents a risk-free opportunity that’s recently offered an 11% return for investors willing to do the legwork. The trade is designed to exploit the discrepancy between bitcoin’s spot and futures prices.

We break down how it works, and experts explain why this arbitrage opportunity even exists in the first place — and is unlikely to go away anytime soon.

Read the full story here:

Bitcoin is a headache to store, and that’s created an investment opportunity that could theoretically pay determined traders big risk-free returns by December

Creative strategies with value-investing legend Joel Greenblatt

Brendan McDermid/Reuters

We spoke to Joel Greenblatt, the co-CIO of Gotham Asset Management, where he averaged 50% annual returns from 1985 to 1994. He told us how he locates “creative” opportunities in a market where everyone always scrambles to buy the same things.

Read the full story here:

Investing legend Joel Greenblatt averaged 50% annual returns over 10 years. He told us his strategy for individual investors to find ‘creative’ opportunities in an increasingly crowded and ever-changing market.

Stock pick central

Seeking experts who are willing to name names? Look no further:

  • Wedbush highlights 5 crypto-linked stocks to buy and an altcoin that could double its valuation in the next 12 to 18 months as a broader crypto ecosystem develops behind the scenes
  • BANK OF AMERICA: Buy these 7 real estate stocks with cast-iron balance sheets and strong pricing power that look poised to soar even as rates rise
  • Goldman Sachs names 40 stocks to buy before they surge to meet its higher price targets – including 5 with more than 50% upside
  • BTIG identifies 14 beaten-down stocks poised to dominate the market this earnings season and extend their track record of crushing expectations
  • Bank of America shares 6 ETFs to capitalize on what could be the greatest capital-spending boom in 4 decades as Biden’s infrastructure policy rolls out
  • A fund manager at a $402 billion firm who has Harvard biochemistry and MBA degrees breaks down his approach to healthcare investing — and shares 8 stocks leading major medical breakthroughs in a ‘revolution in biology’
  • Bank of America says to buy these 6 bank stocks now before their earnings results in the coming weeks drive stellar growth and outperformance

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