Cryptocurrency and Stock Investments: A Journey of Greed and Wisdom
Hello Romeo!
As someone who is greedy, I am excited to share with you my current investment interests—Cryptocurrencies. In the future, the world will be built on blockchain technology, and I want a significant portion of that future in my wallet. Many of my investments have yielded impressive returns, from x50 to x850. However, others have only grown by x10. In contrast, the stock market is often seen as the place where people aim for annual gains of 50%. But in my view, an increase of x10 a year is nothing significant. That's why I am focusing on cryptocurrency investments.
Stocks: A Part of Business Participation
Alongside cryptocurrencies, I am also interested in stocks. My goal is to participate in the business world, contributing to its growth and making a profit. To achieve this, I seek guidance from a good advisor/broker who can help me navigate the complexities of the market and maximize my investments. The importance of having a trusted advisor cannot be overstated.
Current Investing Focus: Cryptocurrencies and ICOs
Currently, I am particularly interested in cryptocurrencies, especially in the realm of Initial Coin Offerings (ICOs). The entire market is experiencing a strong bull trend, and the prices of ICOs are at very attractive levels. There is a good chance of seeing significant returns. Being part of this market, I have even liquidated some of my stock investments to move into the cryptocurrency market.
Index and ETFs: The Safest Bet
For those who don't have the time or the inclination to dive deep into the financials of individual companies, Index/ETFs are a safer bet. Early on in my investing journey, I made the mistake of picking individual stocks, but within a year, I lost a significant portion of my initial investment of $3000. During that time, I was betting on penny stocks, hoping for a big return. This was a harsh lesson that taught me the importance of caution and depth in my investments.
After that, I shifted my focus to mutual funds, but even here, I made dumb investment choices by opting for high-expense ratio small-cap aggressive growth funds. My 401k wasn't showing much growth because of these high expenses. The housing market crash further emphasized the risks and the need for low-cost, low-risk investments. That's when I realized the power of index and ETFs with the lowest possible expense ratios.
Over the past decade, my savings have grown steadily due to my investments in low-cost index funds. I don't have the time or interest to do in-depth due diligence on individual stocks. With a full-time job, a family, and other hobbies, such extensive research is simply not feasible. Warren Buffett's advice is still relevant: put 90% into low-cost SP500 index funds and 10% into bonds. If that's good enough for Buffett, it's good enough for me.
For those who don't have the time to dedicate to research or aren't willing to put in the effort, it's crucial to realize that they are essentially gambling. It's better to be in it for the long-term and follow established, proven strategies.