Experience and Understanding of Heavily Investing in Quality Assets

CN
10 hours ago

In yesterday's article, I shared the advice of two senior investors with everyone:

First, cherish quality assets and hold onto them;

Second, befriend time with quality assets, allowing them to accumulate value through the fermentation of time, bringing returns.

In addition to this, I believe there is another crucial point: one must dare to hold a significant position in quality assets.

Among almost all the senior investors I have seen, regardless of their investment or speculation methods, there is one commonality:

They all had a decisive moment in their past investment experiences, where they made a significant investment in a particular asset, which led to their fame and laid a solid foundation for their subsequent success.

Some call it the first pot of gold, while others refer to it as a legendary victory—regardless of how it is described, it emphasizes the pivotal role that significant investment played in their careers.

Without a significant investment, if one merely dabbles in projects, even if a project eventually appreciates 100 times, the overall return will be minimal due to the small amount of capital typically invested in such dabbling.

Moreover, even if a project can yield a 100-fold return, there is great uncertainty in whether an investor can actually invest in such a project and whether they can hold onto it until it appreciates 100 times, making it difficult to achieve a high certainty of substantial returns.

My own experience corroborates this principle.

When I first entered the crypto ecosystem, I was making random trades. I had all sorts of chaotic investments; I bought and sold Bitcoin, I can't even remember if I bought Ethereum (though I think I did), I had some EOS (I still have some ERC-20 EOS tokens that haven't been converted to mainnet tokens), and as for Litecoin, Ripple, Tron… I had them all, the popular varieties of that year.

Later, when I was fortunate enough to be guided by a senior investor and realized that the vast majority of tokens on the market had no value, I decisively cleared out all the chaotic assets I had, leaving only a large position in Bitcoin and Ethereum.

Regarding this, my past advice to readers has been that Bitcoin and Ethereum should account for at least 50% of one's portfolio, while I personally exceeded 60%.

Holding a large position in these two assets has been a consistent part of all my subsequent operations, and I strictly adhere to this principle:

When I want to continue buying, I primarily purchase Bitcoin and Ethereum.

When I realize gains in other areas, if I don't convert to stablecoins, I mainly convert back to Bitcoin and Ethereum.

This approach has, on one hand, given me confidence in my other operations—no matter how recklessly I invest in other assets, even if those reckless actions lead to zero returns, it won't affect my core holdings.

On the other hand, it has provided a solid guarantee for my overall returns.

Therefore, holding a significant position in quality assets is crucial.

However, there is a point in this operation that ordinary retail investors find difficult to grasp in other investment fields:

How do I know that the assets I hold in large quantities are quality assets?

What if the assets I hold in large quantities are inferior assets? Wouldn't that be a complete disaster?

For example, many people are optimistic about U.S. stocks. Let's ask ourselves: if we could buy without any obstacles, would we dare to invest heavily in any particular stock? Or in a few stocks?

NVIDIA? Tesla? Google? Meta?…

As of now, I still don't dare to do so; I only feel comfortable making small test investments.

In this regard, I greatly admire senior investors like Buffett and Duan Yongping, who dare to hold significant positions in certain stocks for the long term.

But in the crypto ecosystem, it is different. I believe that the vast majority of retail investors should be very clear that there are universally recognized quality assets here:

I believe those are Bitcoin and Ethereum.

Of course, some investors only have confidence in Bitcoin. Even so, this indicates that the crypto ecosystem has already provided retail investors with a very unique advantage compared to other investment fields.

At the very least, every retail investor should confidently and boldly maintain a significant position in the crypto assets they are very confident in, without stepping outside their comfort zone.

If one cannot achieve this, it will likely be very difficult to benefit in the long term from the crypto ecosystem.

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