“Off the Wall” blog
Unique, straight-forward, unfiltered opinion on topics of concern for individuals with newfound wealth.
Don’t pursue a thrill.
I saw Bitcoin hit 40,000 this weekend and read a lot of commentary on the pros and cons of holding or selling…the excitement is off the charts.
I get it – it’s thrilling when an investment goes up…but remember, the pain level is twice the thrill in a loss of the same amount (loss aversion).
Thrill and pain aside, the problem that a lot of investors struggle with is monotony. It’s monotonous to watch things that move slowly. That’s probably why NASCAR is regularly televised and cross-country racing is not.
Simply put, it’s boring AF to sit around and wait for the market to validate the value of the investments in a portfolio.
It’s boring to wait for a better opportunity to purchase a stock when the performance of Bitcoin is in your face. It’s boring to own an unknown stock that no one is talking about or, worse, never heard of.
It’s boring to let compounding do its thing as Bitcoin is rolling.
It’s boring to ask, “What should I be doing right now with my portfolio? Do you think I should be buying Bitcoin?” only to hear, “You shouldn’t be doing anything because you have a plan, you have 12-18 months of cash, and you already have a well-diversified portfolio. You are compounding a rate of return that has a high probability of meeting your unique goals and objectives.”
Remember, the world is full of people who are full of sh*t with no shortage of sophisticated-sounding strategies and complex ideas on making money, just looking for someone bored to listen.
Monotony and boredom are an investor’s friend; don’t let them lead you to pursue a journey searching for excitement.
As of this writing, Bitcoin is down over 20% from a high of almost 42,000 on Friday to around 33,000 right now.
No one needs that thrill or pain in their portfolio. No one says, “I NEED a hot investment that will double in return in a short period.”
They simply WANT it.
Remember, never risk the wealth you have and need for the wealth you don’t have and don’t need…especially because you are bored and are looking for a thrill.
Keep looking forward.
Remember our “Quick Takes” video series from back in 2016?! It touches on exactly what we’re talking about above…Check out the full series on our YouTube Channel.
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