Amit Kupfer
United Kingdom
2m
π–π‘πšπ­ 𝐁𝐒𝐭𝐜𝐨𝐒𝐧 𝐇𝐨π₯𝐝𝐞𝐫𝐬 π‚πšπ§ π“πžπšπœπ‘ π’π­π¨πœπ€ 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 It might sound crazy for an equity guy to say it, but I believe some of the best investors of the last decade were Bitcoin holders. No, I’m not saying you should buy Bitcoin. I personally think it has no real value (boomer). But the way they invested holds a powerful lesson for those of us who invest in stocks. Let's break down what we can learn. π“π‘πž 𝐏𝐨𝐰𝐞𝐫 𝐨𝐟 𝐇𝐨π₯𝐝𝐒𝐧𝐠 𝐎𝐧 If you look at who made serious money from Bitcoin, it wasn't the traders jumping in and out. The life-changing returns went to the "holders"β€”the people who bought it and then held on through every stomach-churning crash and dizzying rally. In a way, they are true long-term investors. They ignore the noise and don't try to time the market. They understand that trying to consistently buy low and sell high is a loser's game. The real money is in holding on. 𝐏𝐫𝐒𝐜𝐞 𝐒𝐰𝐒𝐧𝐠𝐬 Investors in the stock market tend to freak out over a bad quarter or a down year. But big price swings are normal, even for the best companies in the world. Mega-stocks like Apple, Microsoft, and Amazon regularly swing 30% to 50% from their high to low point within a single year. It’s just part of the game. Here's a great example: Apple. Between 1997 and 2000, the stock went up 10x. Then, it crashed all the way back down to its 1997 price. Yes, you read that rightβ€”the entire tenfold gain was wiped out. But imagine if you had invested $10,000 in 1997 and just held on through all of that volatility. Today, you’d have about $7.9 million. And there are many other examples like this. Of course, that’s incredibly hard to do. Most investors think in terms of months or a year, not the 5-10 year horizons where real wealth is built. But if you can train yourself to think long-term, you'll have a huge advantage. 𝐌𝐲 𝐁𝐒𝐠𝐠𝐞𝐬𝐭 𝐌𝐒𝐬𝐭𝐚𝐀𝐞: π’πžπ₯π₯𝐒𝐧𝐠 𝐚 π–π’π§π§πžπ« 𝐓𝐨𝐨 𝐒𝐨𝐨𝐧 Surprise! my biggest investment regret isn't a stock I lost money on; it’s the massive gain I missed out on because I sold a winner way too early. Back in 2023, I bought Meta at around $160 and sold it at $317. I was quite happy with my 98% return, but I sold too soon. I sold it because it had become a much larger portion of my portfolio than I had intended (not a good enough reason!). If I had simply held on, that gain would have been 348% by now. The extra profit from that one investment would have been more than enough to cover all my other losing investments during that timeβ€”and I had quite a few of them. Oh, and not having to pay capital gains tax yet would have been another plus! This brings us back to the Bitcoin holders. Their lesson isn't about crypto; it's about mindset. The takeaway is simple: If you believe in the company, hold on to your investment. The only reason to sell should be if the company's fundamentals have changed for the worse, not because the stock price went down or up. We should plant seeds by investing in good companies, have the patience to let them grow, and not let the market's mood swings scare us out of a great deal. This "secret" is how you can make 10-baggers on investment. With that being said, I’ll admit that the portfolio's short-term story has not been satisfying so far this year. But this is where patience can pay off. A year is just a single data point in time, and I believe that with time, some of the companies we hold in the portfolio can become multi-baggers. I've seen this pattern play out many times in my investment journey; periods of frustrating performance are often just the quiet before significant long-term gains. Thanks for reading, have a great weekend! Amit P.S. Below is a dream screenshot for every long-term holder. Copy Trading is not investment advice | Capital at risk | Past performance does not guarantee future results.
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