Life was better when there was a βcomputer room.β Where you had to physically enter the room to get on the internet and then log off and leave that room and the internet stayed behind. The minute we were able to take it with us in our pockets thatβs when society collapsed fully
It's scary to acknowledge how much longer your days feel when you don't psychologically retreat into technology
Makes you realise how much of your life has disappeared into various screens.
5 basic principles to survive investing long term:
Start every decision with βWhat can I afford to be wrong about?β
Consider your psychology first - strengths/weaknesses and put this into your process so that it maximises strengths and handles your weaknesses - dont just copy someones process doesnt matter if its Buffett or Drunckenmiller
Judge your process not outcome (This space is filled with one time wonders who then go on to lose it all. If the alternative outcome was death no matter how good the outcome there is nothing to learn from these people)
Good process is how you do well even when things move against you not just planning on things going well
Asymmetry considers probability over outcomes - "Its doing well" is not a good enough reason as its about downside vs upside
Opportunity cost must be high - across your investments there needs to be an argument for why any one thing you own could do better than anything else you own and they shouldnt be tied to a single outcome
(Emergency fund/cash is separate to this which allows you to stay liquid and in the game while you wait)
Imagine you are needing to escape from any of the countries in the crossfire in civil disorder let alone a war time scenario
The real estate is impaired in value and in liquidity
If your plan was physical gold you better be benching your bodyweight and be a good fighter - chaos leads to chaos and you cant get on a plane or cross a border with any sizeable amount of gold
Your share accounts can get restricted or limited via foreign policy and local issues
Most people in the West have not had to experience anything like this in a generational time frame and so it impairs their imagination on things that are plausible
The West believes that for the rest of time war an attacks is only what the west does to the rest of the world while we watch TV
In many western cities already people try not to wear an expensive watch in public or carry anything too valuable even in peace times due to theft - cant even leave their goods on a table while they go to the bathroom without anxiety but you think in times of instability that someone walking around with a large heavy bag is not going to be targeted?
Bitcoin offers neutral digital sovereignty and flexibility - yes it is finite and will help with inflation long term etc but money made, stored and moved with only the limits of your own body is extremely valuable and the value of it when needed is an exponential function - its not like gold
If you have a short term mindset and cannot understand how far its come in 17 yrs and that a SoV takes time idk what to tell you. You would know that in 2009 the day it was created it wasnt a SoV now somewhere between there and the future it shifts from speculation to usage and we are moving a long the spectrum over time - understanding the word "emergent" is very important