Raise your next round on StartEngine. Apply Now
Raise your next round on StartEngine. Apply
Get iOS App Sign Up
September 6, 2022 | 3 Min Read

When There’s Blood in the Streets, It’s Time to Buy

time to buy

When There’s Blood in the Streets, It’s Time to Buy

Mr. Wonderful here –

While I wish I could take credit for that time-honored expression, it actually dates back to Baron Rothschild. And it’s been true since before there was even such a thing as a stock market.

Let’s step back and look at investing 101: I don’t care if you’re talking about public securities, private equity, or crypto – the key is to buy at a discount to fair value, NOT at the market peak. Right now, the market is spooked – especially tech stocks that were flying off the shelves a year ago. Today? The Nasdaq is down almost 4000 points YTD, and anyone naive enough to buy in during last year’s highs probably got wiped out.

It’s a tough lesson but one that makes you a better investor.

When I was a young buckaroo trader, the market took a dip and I got slaughtered investing on margins. That hurt and it taught me a valuable lesson about the dangers of gambling in a bull market. But did I lick my wounds and retreat? No. Long term, you just have to stomach it, and when everyone else is afraid – that’s when you get greedy.

Here’s a famous example that a lot of young investors may not know: in ‘73 inflation drove stocks into a bear market – sound familiar? Then, The Washington Post had roughly $400M in assets, but their market cap was down to $80M. So now ask yourself: was this a stock headed to zero or was this a seriously undervalued company? Well, Berkshire Hathaway stepped in and bought it. Fast forward to 2013 and Berkshire exited their position at an over $200% profit.

Will every investment you make be the next Washington Post?

No way. There will be losers in this market, which is why you need to diversify

Take a look at my own portfolio. At any given time, I have as many as 30 or more positions in digital assets. It’s no secret that crypto has had a beating this year – that’s why I never invest more than 5% in any one asset. I expect some to fail, particularly in a high-risk sector. But just one or two winners can more than pay for all the losers. And right now, they can be bought on the cheap.

Today firms are drawing down their revenue and earnings numbers as their P/E is getting crushed. The sheep will sit on the sidelines or start chasing fixed-income assets; meanwhile, smart investors will see opportunity.

What’s true in public securities is also true in private markets.

Two years of a red-hot venture capital market drove startup valuations to an all-time high this spring. Well, now we’ve just had back-to-back quarters of shrinking VC investments, which means the waters are receding and we’re starting to see who’s been swimming naked.

Times like these are some of my favorites to be an investor because today founders are accepting terms that would have been unthinkable just a year ago. That tells me that my dollar will buy a lot more equity now than it did then. It also tells me my potential gains are significantly larger.

So I’m not surprised when I hear platforms, like StartEngine, say they’re seeing triple-digit growth in new investors – because, after all, when there’s blood in the water, it’s a good time to be a shark.

Kevin O’Leary is a paid spokesperson for StartEngine. View the details here.

Want to stay up to date with the latest posts from StartEngine? Sign up here:

You May Also Like

Important Message


www.StartEngine.com is a website owned and operated by StartEngine Crowdfunding, Inc. (“StartEngine”), which is neither a registered broker-dealer, investment advisor nor funding portal.

Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by regulated affiliates of StartEngine: StartEngine Capital LLC, a funding portal registered here with the US Securities and Exchange Commission (SEC) and here as a member of the Financial Industry Regulatory Authority (FINRA), or StartEngine Primary LLC (“SE Primary”), a broker-dealer registered with the SEC and FINRA / SPIC. You can review the background of our broker-dealer and our investment professionals on FINRA’s BrokerCheck here. StartEngine Secondary is an alternative trading system (ATS) regulated by the SEC and operated by SE Primary. SE Primary is a member of SIPC and explanatory brochures are available upon request by contacting SIPC at (202) 371-8300.

StartEngine facilitates three types of primary offerings:

1) Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Primary, LLC (unless otherwise indicated). 2) Regulation D offerings (Rule 506(c)), which are offered only to accredited investors. These offerings are made through StartEngine Primary, LLC. 3) Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Capital, LLC. Some of these offerings are open to the general public, however there are important differences and risks.

Any securities offered on this website have not been recommended or approved by any federal or state securities commission or regulatory authority. StartEngine and its affiliates do not provide any investment advice or recommendation and do not provide any legal or tax advice concerning any securities. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. StartEngine does not verify the adequacy, accuracy, or completeness of any information. Neither StartEngine nor any of its officers, directors, agents, and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this site or the use of information on this site.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks, and you should complete your own independent due diligence regarding the investment. This includes obtaining additional information about the company, opinions, financial projections, and legal or other investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment. See additional general disclosures here.

By accessing this site and any pages on this site, you agree to be bound by our Terms of Use and Privacy Policy, as may be amended from time to time without notice or liability.

Canadian Investors

Investment opportunities posted and accessible through the site will not be offered to Canadian resident investors. Potential investors are strongly advised to consult their legal, tax and financial advisors before investing. The securities offered on this site are not offered in jurisdictions where public solicitation for offerings is not permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence.

California Investors Only – Do Not Sell My Personal Information (800-317-2200). StartEngine does not sell personal information. For all customer inquiries, please write to contact@startengine.com.

StartEngine Marketplace

StartEngine Marketplace (“SE Marketplace”) is a website operated by StartEngine Primary, LLC (“SE Primary”), a broker-dealer that is registered with the SEC and a member of FINRA and the SIPC.

StartEngine Secondary (“SE Secondary”) is our investor trading platform. SE Secondary is an SEC-registered Alternative Trading System ("ATS") operated by SE Primary that matches orders for buyers and sellers of securities. It allows investors to trade shares purchased through Regulation A+, Regulation Crowdfunding, or Regulation D for companies who have engaged StartEngine Secure LLC as their transfer agent. The term “Rapid,” when used in relation to transactions on SE Marketplace, specifically refers to transactions that are facilitated on SE Secondary, This is because, unlike with trades on the StartEngine Bulletin Board (“SE BB”), trades on SE Secondary are executed the moment that they are matched.

StartEngine Bulletin Board ("SE BB") is a bulletin board platform on which users can indicate to each other their interest to buy or sell shares of private companies that previously executed Reg CF or Reg A offerings not necessarily through SE Primary. As a bulletin board platform, SE BB provides a venue for investors to access information about such private company offerings and connect with potential sellers. All investment opportunities on SE BB are based on indicated interest from sellers and will need to be confirmed. Even if parties express mutual interest to enter into a trade on SE BB, a trade will not immediately result because execution is subject to additional contingencies, including among others, effecting of the transfer of the shares from the potential seller to the potential buyer by the issuer and/or transfer agent. SE BB is distinct and separate from SE Secondary. SE Secondary facilitates the trading of securities by matching orders between buyers and sellers and facilitating executions of trades on the platform. By contrast, under SE BB, SE Primary assists with the facilitation of a potential resulting trade off platform including, by among other things, approaching the issuer and other necessary parties in relation to the potential transaction. The term “Extended”, when used in relation to transactions on SE Marketplace denotes that these transactions are conducted via SE BB, and that these transactions may involve longer processing times compared to SE Secondary for the above-stated reasons.

Even if a security is qualified to be displayed on SE Marketplace, there is no guarantee an active trading market for the securities will ever develop, or if developed, be maintained. You should assume that you may not be able to liquidate your investment for some time or be able to pledge these shares as collateral.

The availability of company information does not indicate that the company has endorsed, supports, or otherwise participates with StartEngine. It also does not constitute an endorsement, solicitation or recommendation by StartEngine. StartEngine does not (1) make any recommendations or otherwise advise on the merits or advisability of a particular investment or transaction, (2) assist in the determination of the fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Invest in StartEngine

190% YoY Growth: Invest in the leading equity crowdfunding platform.

This Reg A+ offering is made available through StartEngine Crowdfunding, Inc. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. For more information about this offering, please view StartEngine’s offering circular and risks associated with this offering.


Kevin O’Leary is a paid spokesperson for StartEngine. Read the 17(b) disclosure here.

Founder's Summit Application