The 3 main reasons Warren Buffett didn’t invest in any cryptocurrency
Because he is not a speculator. His premise is to buy stocks that will be in it for the long haul.
- “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
Because the stock market can correct itself many times throughout a lifetime, it is wise to buy shares of great companies. Once you invest in stocks like Apple, a falling price is not always a bad thing. A discounted price can help you buy more shares, and if reinvested, you can make more profit once it comes back higher.
- “Diversification is protection against ignorance. It makes little sense if you know what you are doing.”
Lately, on television, I have been hearing about diversification this, diversification that. How upsetting it is to listen to these broadcasts. These people on the screen are trying to get investors to pad a brokerage account’s fees. For the most part, diversification leads to a minus in funds and, most importantly, time. Mr. Buffett bought Bank of America at an average of $7.14 per share. As of now, BAC is $26.74. The S&P 500 was up over 10% this year, while his BAC trade is worth over 380%.
- “Only when the tide goes out do you discover who’s been swimming naked.”
During a bull market, a lot of people seem to be smart at that time. Once the market is in a bit of trouble, the truly great traders/investors will be able to ride out the bear. People, who were constantly putting down BABA, did not see the broader picture. When the stock was under $60, those who were strong enough bought into this giant. Sitting now at around $188, investors are now up over 300% in just over two years.
Let me share my thoughts and experiences with you now!
We just saw the -probably- most successful investor of all time not investing in what this page talks about. That may make you feel a little bit uncomfortable. That’s not the actual purpose of this article. I wrote this one in order to make you think smarter when it comes to investing somewhere. When I first invested in Bitcoin, I did it because a friend of mine told me that it’s a good opportunity. I didn’t do my own research and although my investment was a beneficial one, I finally understood that I could be a wiser investor.
This experience made me wiser though. I learnt from my mistakes. I began researching Blockchain technology which is the technology that Bitcoin introduced and now I’m pretty sure that it’s not Bitcoin what will make you rich or any cryptocurrency that seems to be very promising and undervalued right now. The thing that is going to make you rich is your own thoughts and needs. Let’s be more practical from now on. For example, by understanding Blockchain technology I saw a lot of people’s needs (security, transparency, bureaucracy etc.) that people are currently spending the most money and time too, getting solved.
That made me finally decide that I will not only invest my money in this field, but my time and my life. I researched and understood the basics of this technology. I became a 365% more successful investor (that means that my financial investments made me 365% more money than before understanding this technology). I currently study all the «blockchain related» computer science fields so I can create Blockchain applications that save money and time from all the businesses around the world and optimize the current blockchain-based platforms by solving problems they currently have. Blockchain is the most promising technology in the 21st century. However, it’s still in the beginning and it has to overcome the obstacles in its way to become a part of our daily lives.
My tip after this experience:
When you invest your money, you don’t play to win in the short term. You need to first understand the field you’re investing to and only if you believe that this field is for you, you invest your money in it with a long term view. You’ll find that a lot obstacles will rise in this long journey. If you’re a real investor these obstacles won’t let you down or make you stop what you’re doing.
I hope that’s a good reason for you to start your research in Blockchain!
Contributors to this article:
Arshak Andriasov
The Stock Market Info