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Jake Woodhouse 2mo ago 💬 11

3 years ago I encouraged my family to allocate 10% of our investment trust into Bitcoin

Thankfully they agreed

It’s up 450%

And is now 30% of the portfolio

The bulk of the capital is in tradfi allocations

One of our money managers told us at the time that you couldn’t beat inflation

His recommendation was to buy a tax exempt uk government bond with a “net yield” of 7%

Interestingly, instead of seeing the power of Bitcoin to outpace inflation and protect family wealth

Now they’re coming for the position to “take profit”, “de-risk”, and “re

-balance”

You can guess what my opinion is

NO….

We beat inflation

You said we couldn’t

We proved that you could

And now you want diworsification

Problem is, family members are lured in by their “regulated family wealth adviser” chat

Some tricky conversations ahead

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Discussion

₿ujuX 2mo ago

We we're right and remain right, we must not falter.

Jake Woodhouse 2mo ago

We’re right. We’ve got proof we’re right. We’ve got to just HODL

df732ef6... 2mo ago

Diworsification is a great term

Janis 2mo ago

Re-balancing wouldn’t actually be a horrible idea. But if and only if you rebalance into something that historically goes up when Bitcoin is going down. Gold, maybe? Or, well, Hyperliquid HLP vault lol.

But, like, point being, maybe this is not the hill for you to die on. But then you can probably steer the conversation into at least getting hard assets and not some government bagholding vehicle.

Janis 2mo ago

That’s provided you can’t convince them to just HODL, of course.

Jake Woodhouse 2mo ago

But if you sell, what are you buying? I cannot justify anything else

Janis 2mo ago

So, just to make it clear - it’s really about if you see that others can’t be convinced, and you still want to be fun at family parties lol.

Asked ChatGPT, and yeah, it’s only gold really. Reason being, the markets still see Bitcoin as a risk-on asset that more or less moves with equities, while gold is counter-cyclical to that. As in, when stocks (and Bitcoin, sadly) crash, gold goes up, and vice versa.

I’m not really a goldbug, but gold still does better than fiat bonds and what not when it comes to long term money supply inflation resistance. So at least you’d have a type of hard money still in the portfolio.

The only reason I’d be hesitant about this is that gold is up 60% I think year to date, which is crazy. From technical analysis perspective, I’d hesitate to buy something that looks so overbought. On the other hand, if there _is_ a correction in the next 24 months, gold will do better still.

So, I’d go something like - “look, my opinion is that Bitcoin is the best investment we can have. Yes, there is a risk of a significant correction (40% or so), if we face a global recession or something, but that will most likely still be more than what we initially bought it for. So I’d want to keep it as is, or even allocate more into it. However, if you’re uneasy with such a large part of our portfolio being Bitcoin, we could rebalance into something that historically works as a recession hedge, such as gold”

NFA, DYOR lol, I’m just a rando on nostr

Jake Woodhouse 2mo ago

Gold might be the only other think I’d consider. Stored physically at home

I like debating these things! There’s always an angle that hits home

Control-Plane Capital 2mo ago

30% into Bitcoin is not that concentrated depending on your goals.

What is more shocking is that you have multiple money managers.

Buying and holding QQQ (beta) + gold (repression hedge) + self-custody Bitcoin + an emergency fund/dry powder (T-bills) outperforms more than 99% of PMs after fees and taxes.

You just automate contributions and do nothing else.

TL;DR: Build a portfolio that (a) doesn’t force you to sell when you’re right but early, (b) doesn’t implode when you’re wrong, and (c) can sit through temporary illiquidity without margin calls.

More context: https://controlplanecapital.com/p/investing-simplified-do-you-have

Portfolio Managers (PMs) optimize career/mandates. That's why he wanted you to buy a tax exempt uk government bond. More context: https://controlplanecapital.com/p/how-to-exploit-portfolio-managers

El Guiri 2mo ago

Consider meal preparation strategy?

First prepare the ingredients:

Just put anything against gold long term and invert the scale.

Put in pan and apply heat:

Put the gold cost of a suit in 1900 and now for perspective of denominator.

Leave to simmer.

Ask if they'd like to self custody a dessert after digestion.

Jake Woodhouse 2mo ago

Sounds delicious