- Chris Sacca warned retail traders not to bet on meme stocks and crypto with borrowed funds.
- The billionaire investor is now fielding bailout requests after the recent market slump, he said.
- Sacca disclosed that he capitalized on the sell-off by buying discounted assets.
Chris Sacca has repeatedly warned meme-stock buyers and cryptocurrency fans against loading up on debt to supercharge their gains. Now, amateur traders who ignored his advice are begging him for help after the recent market slump, the billionaire founder of Lowercase Capital revealed in a recent tweet.
“It’s not fun to be right about it,” Sacca said, referring to a year-old tweet.
In that tweet, the former “Shark Tank” investor told retail traders that their gains during the pandemic were down to lucky timing, and suggested they pocket some of their profits.
“I have been long this market and taken my lumps with everyone else,” Sacca continued. “Just tried to help people not trade money they don’t own. Now my inbox is filling up with requests to bail strangers out of margin debt.”
While the broader stock market has only fallen slightly, retail traders who made levered bets on a handful of volatile growth stocks have been hit harder than investors with diversified portfolios, Sacca emphasized in a follow-up tweet.
The venture capitalist – an early backer of Uber, Twitter, and Instagram – also revealed that he “bought the dip,” and jokingly predicted that asset prices will continue tumbling to punish his bullishness.
“The market is going to continue to freefall,” he tweeted. “Why am I so certain of this? Because I did some buying today.”
Sacca has been underscoring the dangers of margin debt because it got him into trouble as a college student two decades ago.
“I kited my student loans, YOLO’d them to $12m, and then, in an f’ing blink, I woke up $4m in debt,” he tweeted at the height of the GameStop short squeeze in January of this year.
He underlined the “hopelessness and depression” that comes with falling into debt, after noting a month earlier that he was “beyond worried” about people using apps to trade stocks and crypto on margin.
Since 2017, Sacca has shifted his focus from betting on technology companies to tackling issues such as climate change, voter suppression, and criminal-justice reform.