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Get Rich Slowly Means Weathering The Storm

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Bear markets are tough. There is no other way to frame it.

For this reason, often the best thing we can due is to survive them. Markets get crushed, with sell pressure being the norm. Form this perspective, people get emotionally drained watching their accounts diminish.

It makes it even more difficult when there is a target for a fund like LBI. Setting an annual return as a goal means there will be times when we blast past it. These are well received. However, the bear also means that underperformance is the norm.

We see this across the board. Look at how many equity funds did the past 12 months.

The key is to remember we are dealing with an average. One year, in either direction, does equate to success or failure. Markets go up and they go down.

Actually, we can say the same thing about economies.

Lesson From Tesla

There is no doubt, when it came to performance, Tesla was one of the best companies over the past 5 years. Since 2017, the annual increase in vehicle deliveries is over 60%. This is obviously an average. It is also in excess of the 50% annual average the company forecast "for the foreseeable future".

Of course, the company and leadership, i.e. Elon Musk, were slammed for the performance in 2022. During that calendar years, sales were "only" up 40%. That is a failed growth rate according to Wall Street.

This, naturally, got the media going. All the talking heads on television mentioned how Tesla missed their guidance of 50% growth. The same part is these people do not understand the concept of average.

Never did Tesla say it would do 50% growth every year. Instead, it was an average 50% growth rate going forward.

Certainly, there could be times when underperformance cannot be avoided. Recessions happen. Supply chain issues can arise. Sourcing materials could difficult depending upon what is going on globally.

And let us not forget the push towards World War 3.

All of this can affect targets. As always, the hope is any disruption is short-lived.

20% Average Return

The goal for LBI is to average 20% per year in our fund. This is done through a series of investments along with activity. Naturally, much of this is dependent upon a variety of factors, many which are outside the control of any of us.

We are in a bear market within cryptocurrency. It is a run that is closing in on 18 months. This was a stretch that was tough for all of us, LBI included. Nevertheless, we keep building all we can.

The bottom line is there are going to be years whereby a 20% return is rather difficult. Sometimes that is unavoidable. That said, it is also prudent to remember that we will have times when the goal is exceeded on the upside. In fact, the first couple years of LBI saw amazing growth.

Long-term focus is what this is about. We are hitched to Leofinance because it is a project that has a great deal of development. Because of this, we can expect business practices (and results) to take over.

It is not easy to weather the storm but that is what get rich slowly means.

This is a project that should be viewed on a 10 year horizon. That is where the major payoff will come from.

Article by @taskmaster4450le

Posted Using LeoFinance Beta