Patience Pays dividends in the Longrun
Now is your time
The recent Crypto flash crash again made many question their tolerance to the turbulant waters of Crypto currency. The seasoned veterans will have taken advantage of the dip and picked up good deals across Bitcoin, Ethereum, Hive and many others, while many new kids on the block ran for the nearest exit and sold their losses, instead of being patient. This is quite negative in that many lost money here, due to their impatience, but worse again they will now view Cryptocurrency cynically and it may be a long time before they are brave enough to put a toe in the water. They may just miss the best vehicle for wealth generation in their lifetime. We already have many self made Crypto millionaires and billionaires and it seems we are still very early in the journey. Those burnt in the recent flash crash will return to Cryptocurrency eventually. They will have no choice eventually. Twenty years from now we will have a close to zero cash society, where all transactions are carried out on a blockchain ledger.
Patience pays
Many of the most successful investers in history either died or forgot about their investments. Don't believe me? Read this qoute from a Fidelity investment study. Sage words indeed.
an internal performance review of Fidelity accounts to determine which type of investors received the best returns between 2003 and 2013. The customer account audit revealed that the best investors were either dead or inactive—the people who switched jobs and “forgot” about an old 401(k) leaving the current options in place, or the people who died and the assets were frozen while the estate handled the assets. The next best performers were those with energy, healthcare, and small-cap value portfolios. My speculation on why dead people beat everyone else is that there is no temptation to employ recency bias and sell a stock simply because the price of the company went down or they assume that the recent bad economic conditions will continue perpetually into the future.
In other words they were not looking closely at the peaks, the troughs, the bulls, the bears and everything in between. Kind of hard to do that when you're six feet under! How can we be like them while alive? We can invest for the long term. Choose your investments carefully based on sound fundamentals and then sit back and watch them appreciate, or rather let them appreciate. That's the key thing here, they were not obsessed with checking their portfolio every hour, every day. That constant looking is bad news in my opinion and one can become inpulsive and check ones portfolio last thing at night and first thing in the morning. I know I was this way in 2017, when I got involved.
I recommend you be more like the forgetful folk, and let the sands of time cover over your portfolio and allow it time to grow and nurture it. Your knowledge and reading is the watering can and should allow you to move out of any dead stocks or Cryptocurrencies occasionally, but scrutinise these decisions carefully.
If you bought a stock or share or coin, you should have done your due diligence and recognised what you put your hard earned money into as a strong investment. Remember that every buy and sell is costing you money and eating into your margin.
Reinvest
If you make dividends, reinvest them. If you have a pension, look into tax free AVCs. If you have spare cash, look to invest in shares, Cryptocurrency, precious metals and property. Diversity is the name of the game. Don't put everything in the one basket. For every one guy this works out for and you read about, 100s end up broke and in the worst case, literally living on the street. With that in mind only invest what you can afford to lose. You need to have a certain mindset to do well with investments, and if it keeps you up at night worrying, then maybe investment are not for you, after all your health is your wealth and in my opinion good sleep is directly proportional to good health and lonengivity. No use stacking the coin, if you won't be around to reap the benefits.
Funny one
I think this image that was sent to me sums up the recent crash pretty well to be honest and it certainly gave me a good laugh
The images used throughout are not my own and were sourced at the free image website http://www.pixabay.com
