How to make a killing this winter with Warren Buffett 🔥
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Happy Friday everyone!
I’d taken some time off from writing to focus on other projects - I recently joined OnDeck’s Longevity Biotech program to extend healthy human lifespan and Founder University’s LAUNCH program to scoop out my personal interests in a startup.
But we’re in the middle of a bull run (a.k.a prices going up and to the right) in crypto, so I thought I’d check in.
At the beginning of this year, I wrote that the best investments for 2021 would be:
Bitcoin
Technology stocks
Personal brands
So how are we doing so far?
Bitcoin is up 130% - and 300% year-on-year.
Technology stocks are up 30%.
And your personal brand… well - it’s hard to quantify the exact upside, but I know some of you have made upward of 6-figures building your brands online. Congratulations.
And of course, there are always ways you can spice up your portfolio.
In April, I wrote to our premium subscribers about Ethereum (up 90% since). In August I introduced MANA (Decentraland) - up 400% since - and last month I wrote about Solana (up 25% so far).
In short, it’s been a good year.
And I believe it’s about to get better.
Over the next few months, the crypto markets could go much higher and your number one job will be to not screw up.
You must NOT:
Fall for scams (like the SQUID coin)
Get addicted to trading and timing the market (you will lose)
Invest more than you can afford to lose into projects with no fundamentals (like Isaac below)
Go completely insane (like this guy)
Lose your passwords/keys (like these guys)
You might be thinking - easy peasy - but even the smartest of us let our greed sabotage our results.
Isaac Newton famously invested in the South Sea Company in 1720 as the stock was going up. He initially cashed out 100% profit but then later got FOMO (fear-of-missing-out) as the stock kept going up - and reinvested all his gains.
The stock came crashing down and Isaac Newton lost everything.
In his own words - he “could calculate the motion of heavenly bodies, but not the madness of people.”
Damn, Isaac, always so wise.
Now, you might be thinking that if Isaac can’t do it, you can’t either.
But I have good news.
The simplest way to win is to step away from the noise and focus on the bigger picture.
Focus on owning a small number of great assets for the long-term (like bitcoin & Ethereum), spice up around the edges if you want, and ignore everything that could get you off track.
I’ve said this before, but it bears repeating: in a world of abundant information, clarity is the new superpower.
Remember, investing is like psychological warfare - but you are your own enemy.
Warren Buffett puts it more bluntly here (video should start at 2:22):
Now, replace “stocks” with “crypto”, and apply this lesson to the next few months.
So if you find yourself checking prices too often, take a step back. Go for a walk, spend time with your family, read a book - or whatever floats your boat.
If you’re worried day and night, it doesn’t matter how much is in your bank account. Your life will be miserable. I know this from personal experience.
Wealth isn’t just a number, it’s a feeling.
The most important is to stay sane and keep compounding.
Sending you all much love,
Alex.