Warren Buffett is called by many the greatest investor of all time. Whether this is true or not is subject to debate. What is not is his track record over more than half a century of investing. He achieved a 20% annual return for move than 50 years.

That is why he is one of the most quoted investors of all time. Forget EF Hutton, when Buffett speaks, many listen.

It is safe to say that he saw a bear market or two in his time. If you think of the worst markets since the 1960s, Buffett went through them. The Savings and Loan crisis, '87 crash, Dot com bubble popping and GFC, all had Buffett as a participant. Thus, he might have a thing or two to teach us about the tough times.

I guess we can say the most important lesson to remember is bear runs do not last forever. The same is true for the bulls although many seem to think that isn't the case. Market reality is we have ebb and flows in markets. They are unavoidable.

Yet it is another lesson that is crucial to what we are doing right now in cryptocurrency.

Source

Ownership Forever

To say that Buffett focuses upon the long-term is an understatement. He is the epitome of long-term thinking.

When asked what are the best stocks to own, he simply stated ones that you want to hold forever. In his mind, the stock to have in your portfolio are the ones you never sell.

That is why Buffett is such an advocate for companies like Coke. He feels the history and the consistent growth rate make it ideal to hold for decades.

Another company he recently stated to add was Apple (APPL). Buffett avoided this for years (decades actually) owning up to the fact that he didn't understand how the company made money. Here is another lesson: invest in only what you can grasp.

It was only after Apple started to act like a large cap stock that Buffett started to buy. He might not truly understand all the technology but he does grasp the company's cash flow.

These are two examples of companies, at least in Buffett's mind, that can be held long-term. They fit into his ownership forever category.

With this outlook, do you think Buffett gets upset about market pullbacks? When he his time horizon is longer than he is going to live, what do you think his emotional state is when thinks drop 20% or so?

It is easy to see how he remains calm. His experience and understanding of markets causes him to not worry about things. Actually, it is not uncommon for him to take some free cash and start buying more of the stocks he likes. Buffett is known for sitting on the sidelines when he thinks the market is "overpriced".

Buy Solid Projects

Life can be a bit tougher in cryptocurrency since the track record for most things simply is not there. However, we can use many of the same approaches.

Buffett doesn't play the markets. Instead, he is a long term investor who uses the gains over time to enhance his holding. There are a few traders who make more money on a return basis but not that many. Most end up getting caught by that one trade which puts them on the wrong side.

So what is your "ownership forever" coins or tokens? This is something we each have to decide. What is the core of our portfolio that we are going to invest in long-term? If this is known, we are in an ideal position to act.

When there are market pullbacks, crypto is on sale. Just like Buffett gets excited when Coke drop 20%, we could do the same. Is Bitcoin high on your list? Well it is down near 60% from its peak. That is a huge discount.

The same can be said of Ethereum, Hive, or BNB. Whatever you believe in the future, there is an opportunity. It is up to each of us to identify the core holdings and seek to build around that.

For those who take this approach, market drops are opportunities. Instead of looking at what is lost, the truly successful focus upon how much more they will gain due to dollar cost averaging.

In the end, those with the proper mental approach can fare much better.

Article by @taskmaster4450le.

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