Buffett's investment logic, how to invest in cryptocurrencies?
In the past two days, U.S. stocks, A shares, precious metals and digital currencies have all ushered in a wave of good gains. This kind of general rise is relatively rare since the outbreak.
Prior to this, the excessive downturn in the market and the continuous deterioration of the epidemic made many investors pessimistic about the future, so they no longer paid attention to the investment market and did not open any positions. Therefore, when this wave of gains came, many people felt "out of the air".
From the perspective of long-term fixed investment, there is no such thing as "stepping into the air". Because long-term investors will not pay attention to where the "bottom" is, and often miss the opportunity to "buy the bottom".
Long-term investment only pays attention to whether the investment product will be higher in the future than the current starting price. If it is high and may be much higher, it will continue to buy and will not care whether the short-term price will be lower;
If the investment product is likely to be lower than the current purchase price in the future and may be much lower, it will be sold in batches without caring whether the short-term price will continue to rise.
So from this point of view, if you believe that Bitcoin will exceed the peak created in 2017 or even higher in the future, then the difference between buying Bitcoin at $7,000 and buying Bitcoin at $5,000 is when you earn 1 million, There is a difference of more than 50,000 and less than 50,000, so there is no need to have the emotion of "stepping into the air".
In fact, a more accurate term for long-term investment should be value investment, which focuses on the future appreciation space of investment products and does not pay much attention to the appreciation time of investment products.
But life is limited, and it is impossible for us to invest in an investment product that will only increase after 10 or 20 years. Therefore, in order to reduce the risk of time, when choosing investment products, we must try our best to choose varieties with unique value and low enough price.
Having a unique value ensures that with the rise of the economic cycle, its value will soon be recognized by people, and when it is sought after by people, the price will rise, and the time for return on investment can be expected; and the price is low enough to ensure When it comes into the spotlight again, its price rally gives investors plenty of room to profit.
The role model of value investing is not Buffett, but recently Buffett’s practice of buying airline stocks and selling them quickly seems to be contrary to the practice of "value investing", but in my opinion, Buffett will not violate his principles, but sees ordinary people The invisible essence.
I expressed my views in the article "Buffett's "cutting meat" and selling aviation stocks, my analysis of the future investment market" on April 6, and I also look forward to the proof of time.
Buffett said that his investment method is 85% Graham + 15% Fisher.
What does it mean?
Graham's investment method is that if I think the intrinsic value of a stock is 1 yuan, then I can buy it at 30 cents. Of course, the lower the buying price, the better. I believe it will definitely rise in the future Back to 1 yuan.
Fisher's investment method is simply"If the right work is done when buying, the time to sell will almost never come".
This sentence sounds like a mouthful, but what he actually said is that when we choose investment products, we should choose investment products with high intrinsic value. If the intrinsic value is high, it will continue to grow, and it will continue to bring us benefits, so we just hold on to such investment products and wait for the appreciation. Is it necessary for us to sell an investment product with rising intrinsic value? No, so "the time to sell almost never comes".
So under what circumstances should you sell it? There are three kinds of situations: firstly, when I bought it, I missed it, and after buying it, I found it was rubbish; secondly, after buying it, the intrinsic value of the investment product became worse and worse due to various reasons; thirdly, I found a better investment product.
I also agree with Buffett's investment logic, and I also use this logic to invest in digital currencies.
The value of Bitcoin and Ethereum is unquestionable and growing, and there is no currency that is significantly higher than their value, which is Fisher's logic;
The current prices of Bitcoin and Ethereum are far from their due value. This is Graham's logic. So we buy Bitcoin and Ethereum at current prices, there is no reason to sell them.
