This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The perfect portfolio doesn’t exist.There, I said it.Every great investor has made colossal mistakes. Even Warren Buffet, the Oracle of Omaha, is far from perfect. You would probably never guess that one of Buffet’s largest mistakes (admitted by himself) was buying stock in Berkshire Hathaway. If you don’t believe me, the interview is right HERE. We can add Bitcoin and, well, tech stocks and the internet to Buffet's list of failures. If he had bought Bitcoin when he called it “rat poison squared,” he would be up nearly 500% today.No investor or portfolio is perfect and none are created equal.Portfolios are largely created and managed by people, meaning that their composition is susceptible to bias and emotion. There are algorithms and software that assist with portfolio creation and management, but these are initially programmed by humans as well. No two portfolios are created equal.Here’s why this matters.The assets in a portfolio matter, but so does the mindset of the creator. Two identical portfolios yield identical returns for as long as they remain the same. But the human half of the equation is always volatile. When Ethereum rises in price, all of the Ethereum in all wallets rises in price. But the human reaction to Ethereum's rise is different for each portfolio manager. A portfolio is only as good as the investor who created it.A well diversified portfolio managed by a skittish investor can be a recipe for failure, even if the assets were initially chosen well. A poorly diversified portfolio managed by an investor with strong conviction can outperform, even if the assets are not ideal. Bitcoin maximalists catch a lot of heat for their "Bitcoin only" approach, but they have strong conviction. Buying some altcoins at the right time would likely have made them more money, but that's not the point. Most die-hard Bitcoin maxis are in significant profit. They are holding a strong asset and have diamond hands. Their thesis works and they, therefore, have a strong portfolio. How about a new investor that allows an expert to initially assist in forming their portfolio? Let's say the newcomer is recommended this split: 30% Bitcoin, 20% Ethereum, 15% stables, 15% layer ones, and 20% high risk. This looks solid. This is a good start, but what happens when the expert exits stage right and the beginner is forced to manage the assets? This composition is a train wreck waiting to happen. A portfolio is nothing without a seasoned captain. The beginner would likely do far better simply dollar cost averaging into Bitcoin and holding.Finding the perfect split between assets is only the beginning. Investors will always make mistakes. There will always be a better time to enter, exit, or rebalance that you you seemingly can't master. The closest we can get to a perfect portfolio is the portfolio that we are comfortable managing.A portfolio is only as good as the investor who created it.I WILL BE LIVE STREAMING TODAY AT 9:30 AM EST WITH MY MENTOR, CHRISTOPHER INKS. WE WILL BE DISCUSSING VARIOUS CHARTS AND STRATEGIES, SO YOU DON'T WANT TO MISS IT! HERE IS THE LINK.In This Issue:The Perfect PortfolioBitcoin Thoughts And AnalysisAltcoin ChartsThe $600M Hack That Nobody NoticedThe New MicroStrategy StrategyOpera Browser To Support Multiple ChainsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #467 - The Perfect Portfolio
The Wolf Den #467 - The Perfect Portfolio
The Wolf Den #467 - The Perfect Portfolio
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The perfect portfolio doesn’t exist.There, I said it.Every great investor has made colossal mistakes. Even Warren Buffet, the Oracle of Omaha, is far from perfect. You would probably never guess that one of Buffet’s largest mistakes (admitted by himself) was buying stock in Berkshire Hathaway. If you don’t believe me, the interview is right HERE. We can add Bitcoin and, well, tech stocks and the internet to Buffet's list of failures. If he had bought Bitcoin when he called it “rat poison squared,” he would be up nearly 500% today.No investor or portfolio is perfect and none are created equal.Portfolios are largely created and managed by people, meaning that their composition is susceptible to bias and emotion. There are algorithms and software that assist with portfolio creation and management, but these are initially programmed by humans as well. No two portfolios are created equal.Here’s why this matters.The assets in a portfolio matter, but so does the mindset of the creator. Two identical portfolios yield identical returns for as long as they remain the same. But the human half of the equation is always volatile. When Ethereum rises in price, all of the Ethereum in all wallets rises in price. But the human reaction to Ethereum's rise is different for each portfolio manager. A portfolio is only as good as the investor who created it.A well diversified portfolio managed by a skittish investor can be a recipe for failure, even if the assets were initially chosen well. A poorly diversified portfolio managed by an investor with strong conviction can outperform, even if the assets are not ideal. Bitcoin maximalists catch a lot of heat for their "Bitcoin only" approach, but they have strong conviction. Buying some altcoins at the right time would likely have made them more money, but that's not the point. Most die-hard Bitcoin maxis are in significant profit. They are holding a strong asset and have diamond hands. Their thesis works and they, therefore, have a strong portfolio. How about a new investor that allows an expert to initially assist in forming their portfolio? Let's say the newcomer is recommended this split: 30% Bitcoin, 20% Ethereum, 15% stables, 15% layer ones, and 20% high risk. This looks solid. This is a good start, but what happens when the expert exits stage right and the beginner is forced to manage the assets? This composition is a train wreck waiting to happen. A portfolio is nothing without a seasoned captain. The beginner would likely do far better simply dollar cost averaging into Bitcoin and holding.Finding the perfect split between assets is only the beginning. Investors will always make mistakes. There will always be a better time to enter, exit, or rebalance that you you seemingly can't master. The closest we can get to a perfect portfolio is the portfolio that we are comfortable managing.A portfolio is only as good as the investor who created it.I WILL BE LIVE STREAMING TODAY AT 9:30 AM EST WITH MY MENTOR, CHRISTOPHER INKS. WE WILL BE DISCUSSING VARIOUS CHARTS AND STRATEGIES, SO YOU DON'T WANT TO MISS IT! HERE IS THE LINK.In This Issue:The Perfect PortfolioBitcoin Thoughts And AnalysisAltcoin ChartsThe $600M Hack That Nobody NoticedThe New MicroStrategy StrategyOpera Browser To Support Multiple ChainsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO