Think Long-Term and You Will Win | Bitcoin Poised For Greatest Bull Market in History
Thinking long-term has always been a centerpiece to the way I invest. I try to think as far ahead as I can when it comes to investing. If you think short-term, you'll notice that the quality of your decision making decreases rapidly in accordance with how short-term your thinking is.
For example, if you make a trade to make money in the next 60 seconds versus a trade to make money in the next 60 days, 60 months or 60 years. What is different?
The longer you go out on that timeline, the clearer your decision making is. Your thoughts are rational. They are fundamental. In fact, if you asked yourself "if I wouldn't hold this for 60 years, should I buy it for 60 seconds?"
This question can save you from massive losses. It could also point you in the direction of massive gains.
Investing is as Much Deciding What Not to Buy as it is What to Buy
Investing is a decision. It's deciding one thing over another. Especially in 2023, we now have options on options. There are countless places to stick your money and try to generate a return. The question is not what should I buy? but "what shouldn't I buy?".
I'm currently reading annual letter to shareholders that Warren Buffett wrote this year. He always shares some nuggets of wisdom from his 50+ years of rock solid investing.
As one of the most legendary (maybe, the most) investors of all time, Buffett has always preached a long-term mindset.
He always talks about making high-quality decisions. He doesn't talk about speed or hustle or doing a lot of things right. In fact, in this letter he says that making just 1 good decision ever 5 years is what has made him such a successful investor.
"The lesson for investors: The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders. And, yes, it helps to start early and live into your 90s as well." - Warren Buffett, Annual Letter to Shareholders
As investors, I think this is a big takeaway lesson from the letter. How many times have you focused on bad investments you made? Have you let them ruin your day? How about your month? or even year?
How many times have you stewed on past mistakes... seemingly unable to get over the fact that you took a misstep?
If instead you focused on moving forward with lessons learned and the ability to make higher quality decisions, perhaps your next investment would become the flower that blooms, turning those bad investments - the weeds - into insignificant marks on your portfolio.
Buffett also talks about how Coca Cola and American Express are shining examples of great decisions he's made over the last 50 years. Those would make up 5% of the Berkshire portfolio while one bad investment might only make up 0.3%. (if, for example he purchased a high-grade 30-year bonds that didn't appreciate since 1990).
Make a few really great decisions and don't fret over the small stuff. When you make a big decision about what to invest in, take your time, be thorough and understand as much about that decision as possible. If you misstep, you will do so knowing that you did all in your power to make the best decision with the information you had... and your next decision will be that much better for it.
Bitcoin
Bitcoin is one of such decisions for me. It has returned vastly more money to myportfolio than any other decision I've made in the past 11 years that I've been investing.
I'm still a young investor and I have many more decisions to make. I've made pleny of bad decisions as well. The key to me is knowing that I am improving the quality of my decisions as I get older and gain more experience in the world of investing.
Right now, I am back to accumulating Bitcoin. I have been since we dipped below $30k back in May 2022 (1 year ago).
As I continue to accumulate more Bitcoin, I ask myself if this is a good decision or not. Is Bitcoin something I would hold for the next 60 years and expect a good profit?
My answer is a resounding yes. But it doesn't end there. More research, more thinking and constant re-evaluation lies ahead.
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In some cases the answer is yes. Very rare case, most of them tied to leverage trading.
My personal top 3 mistakes in crypto since I started investing in such assets more than five years ago are: buying too late, fantasizing about insane targets and not taking even the tiny profits I had in my hand and entering a bear market poor carrying severely underwater bags.
I think I started with the right foot this cycle. Bought pretty low most of the coins that I hold in my portfolio.
Maybe one day I will buy some Bitcoin. I can see myself holding for six years... If I'll get to live that long...
👍🏻 Very good points @khaleelkazi. I am also a Fan of longterm fundamentally backed investing. One of my best so far were Tesla, Apple and Bitcoin. Hive still has to prove itself but I am confident it will pay out too.
Michael Saylor made a really great analogy when he described Bitcoin as a true store of value over time, which is actually at its heart a store of energy over time.
Money is also a form of stored energy, as force over time = work. The problem is that inflation eats away the majority of fiat's stored value over time. Similarly to how stored electricity can only be held for so long in various physical forms before it dissipates.
Bitcoin fixes this by actually appreciating in value over time due to supply constraints and the ability to store it within private keys on the network. This prevents any sort of physical decay or inflationary losses due to supply expansion, assuming market price discovery.
So in the end I would agree that Bitcoin is in fact the best investment to consider for long term.
We must always think long-term because good things always take time. We all want to get rich but it will never happen overnight
I must say that’s some awesome decision making, sadly not everybody can be like Warren Buffett but his philosophy is definitely one to respect and why not follow.
I also believe long-term investment should be more prioritized than the short-term because of the unforeseen opportunities that may arise at the long run. but what do I know we happened not to think alike.
I hope with you post some users will learn more about the long-term investing.
Thank you for sharing.
Great advice from Warren Buffett. In the world of investing, refining our decision making process to pick the good ones can indeed work wonders. It's possible to make some mistakes along the way.
Totally agree as anyone doing long term especially in crypto is going to succeed. Research and reevaluating is a must do as staying on top of your investments is ongoing.
I love the flowers versus weed analogy. That also means keeping a watchful eye on the allocation such that probability for flowers to win big is enhanced. But yeah, long term thinking is a good reminder. Now I can go watch grass or flowers grow! !PIZZA
$PIZZA slices delivered:
@cryptothesis(4/15) tipped @khaleelkazi
It can only get better as they say, we will surely make mistakes at some point but then those mistakes should not stop us from taking the next step, we just have to look very carefully before leaping.
It was a great read, I found this post while scrolling through my Twitter feed, it's been exactly a day away from hive, I'm happy I didn't miss this piece.
60 years is a pretty long time, 10 - 20 years sounds reasonable though.
https://leofinance.io/threads/view/alokkumar121/re-leothreads-38rofwick
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