5 upvotes, 1 direct replies (showing 1)
View submission: Don't invest recklessly
I have no idea :)
Generally speaking, I interpret it to be contrarian - sell when the price is going to the moon, and buy when others are jumping out of windows. Assuming, of course, that you have done your due diligence to determine that you are investing in a solid asset that will recover the value that Mr. Market is irrationally shedding.
Warren Buffet (who said that quote) is considered to be a great investor because of his ability to analyse businesses and determine fair values, and then purchase/invest in those businesses when the broader market has unfairly / irrationally discounted them.
As for Bitcoin - we don't have a valuation model that fits (or at least I haven't seen one), so "fair value" is impossible to determine. I certainly see the parabola as being "greedy" - and if Bitcoin were a significant/substantial part of my investment portfolio I would be selling & re-balancing at this time.
However - for me it's "fun money". If it goes to zero, my retirement is not impacted. If it goes to Mars - then my retirement might come early :) And everything in between, I'm just going to hold until I have a better use for those funds.
For example - I could cash out now and pay off my car. That'd be nice, but it wouldn't change my life. If it hits $100k+ in a year (or two, or three) - where I can then cash out & pay off my house -- that's a much more compelling offer that I would probably take advantage of, because that would have a huge impact on my living situation.
To each his/her own :)
Comment by nickeberle at 09/12/2017 at 09:31 UTC
1 upvotes, 0 direct replies
When a couple coins can buy a house with fiat this shit is popping try justifying hodl when you put a nominal amount in and in a couple years it pays cash for a home.