Subnostr

Replying to

Jordan S

Well I’m forced to hold now, lol.

I don’t want to double down since Nvidia has been treating me well.

Kevin's Bacon 1y ago

Sounds good 🤙

But past chart performance is no guarantee of company strength, or of ongoing momentum.

I'm in MSTR for the Bitcoin yield, mostly in the long run, though I may trim some this year sometime. I have a high confidence they will continue to increase their bitcoin per share for years to come, and that their stock price will at various times in the future be able to afford me more bitcoin than I could have gotten for the same cost basis.

Investing is best played as a long term game. Bitcoin is best played even longer-term. I am unsure how long NVIDIA can maintain its momentum in the short to medium term should stock sentiment sour this year, though the company seems very well positioned for the long run with its brand recognition, the network effects surrounding it, and its capital investments and human capital.

If you need something stable that is likely to preserve your portfolio's overall purchasing power in the short term, consider finding a hedge that is uncorrelated with Bitcoin and the broader stock market. That's usually where a job providing income comes in, out of which I personally would be saving most of my unspent cash into bitcoin and a smaller portion toward stocks. There are also other stocks out there that are likely to do decently well in a bear market, which is how value investors a la Benjamin Graham do things. But sometimes just holding onto our butts and riding the market is the best approach.

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Kevin's Bacon 1y ago

To elaborate further, I consider myself a value investor, and I do this spreading risk around thing as well: the same thing that increases your expected profit (buying only undervalued companies) can reduce your risk of loss across your portfolio when you have a few different investments. Diversification has limits and my argument for concentration is that sometimes we need to sacrifice the short term and hold onto our butts to commit to something really good. It only takes about 5 good investments, plus or minus a couple, to have a well-rounded portfolio. Or with Bitcoin, 4 good investments plus Bitcoin as your savings. Cash reserves or credit lines if you need it to cover short term expenses and what have you. Most of all, be investing in self improvement and security, but that goes without saying, that's all we nostridges talk about lol!

Jordan S 1y ago

I also try to take the value investor approach but I also go for quick grabs sometimes, not say trading per se but accumulate companies when they’re undervalued.

These are what I’m in right now.

Kevin's Bacon 1y ago

Neat! Well the way to perform well is to know what you are in. If you have the time to put a decent amount of work into valuing these companies, getting a good sense of where they're probably heading, that's still a good way to go. It might also be a good way to get some experience and data, some greater understanding, by seeing what happens with these companies. I would caution against spreading your portfolio too thin in terms of what you can understand and keep track of, and what is the best set of bets.

Jordan S 1y ago

I was uncomfortable with MSTR at first because I thought he was leveraging but then I researched it, & ends up he won’t be forced to liquidate unless Bitcoin hits a really low amount.

I bought Nvidia before the stock split but I saw how well it was performing so I doubled down on it.

Yeah, I’m no stranger to market swings but it’s still frustrating nonetheless.

Unfortunately revenue, & liquidity has been an issue for me in recent years, so I’ve just been trying to make the money I have in there work as best as possible.

I think future allocations will be into Bitcoin directly however.

Kevin's Bacon 1y ago

I know that life! And your approach sounds very smart to me. Keep at it, and don't let fear be your guide. Trust in your own wisdom and in logic, and learn from the best investors.