When it comes to investing, I have been very conservative. I was influenced by books like Pioneering Portfolio Management & Unconventional Success by David Swenson, Yale’s Chief Investment Officer.
After 5 years learning about the financial markets and money management as an investment analyst, I came to the conclusion that beating the market in the long term is not only highly unlikely, but incredibly time consuming.
After implementing David Swenson’s asset allocation he recommended in his Unconventional Success book, years later I settled on Vanguard Life Strategy Funds, which are among the most brilliant investment vehicles on the market today.
The moderate growth fund has a 60/40 split between stocks and bonds, is globally diversified with very low fees, and is automatically rebalanced. Set it and forget it for around 8% per year annualized returns.
Given most of my focus has been on BuiltLean and helping people improve their health and well-being, I didn’t want to be an active investor.
This mindset still holds true today. The only difference is that instead of being globally diversified across thousands of companies in stocks and bonds all around the world, I’m mostly invested in a single project in a single asset class.
Have I lost my marbles? I don’t think so. It’s just risk/reward and getting to this point has been a 7-year process.
I sent the following to my family recently about my decision to put most of my assets in Bitcoin. More detail coming in another article soon.
SUBJECT: Why I have most of my assets in bitcoin
Hope you’re having a great weekend!
I wanted to let you know that I have put in the majority of my personal liquid assets into Bitcoin. I don’t view Bitcoin as a lottery ticket or speculative asset, even though it has huge price volatility. I see it as the best store of value ever created.
I shared my U.S. Debt Situation & Bitcoin Report with some of you. I wrote that considering 3–5% of assets in Bitcoin is sensible. Even if Bitcoin goes down 80%, which it has 3x, I’m comfortable with this decision. I see this as the future.
Since writing these reports in January, I’ve continued to learn and dive deeper. Some additional news that has come out and other perspectives:
1) Elon Musk, the world’s richest man and debatably the greatest entrepreneur of our time said about Bitcoin in late January — “In retrospect, it was inevitable”. He changed his profile signature on twitter to #Bitcoin. Musk’s company Tesla then announced they bought $1.5B of Bitcoin and are allowing customers to pay for cars with Bitcoin. This is a vote for Bitcoin both as a store of value and means of exchange.
2) Jack Dorsey co-founder of twitter said in 2018, “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin.” Dorsey knows as much as anyone about network effects and tech adoption, so his opinion is a big deal.
3) Large asset managers like Blackrock are “dabbling” in Bitcoin 2/18. The nation’s oldest bank BNY Mellon announced it will custody crypto assets on 2/11. A wall of money is coming into crypto, mainly into bitcoin.
Gold’s market cap is around $10 trillion. If Bitcoin reaches that level, it will be around $500k per coin.
If this still doesn’t make any sense, here’s economics professor Max Keiser *calmly* explaining to gold bug Peter Shiff why Bitcoin is important => https://bit.ly/3se4G6N
Originally published at https://www.linkedin.com/in/marcperryfit/