Investment
Our Philosphy
Buy to Hold
We like to take our time to make a decision to buy an asset, and take even more time to disinvest from that asset. Our philosophy is that we want to buy assets with the idea of holding them indefinitely. We will only sell these assets if we need to rebalance the fund, or if fundamental news is released which changes our view on the asset completely.
Invest for Real-world potential
There are a lot of attractive projects in this space which are theoretically impressive, and demonstrate phenomenal technology. Yet, we will not invest in projects unless we believe they have the potential to generate real world value.
Our own money is in the fund
This fund was started with our own money. And it remains that way. We will never invest our members money different from our own.
Ignore the noise, the FUD and the FOMO
Some jargon people: FUD = Fear, Uncertainty & Doubt. FOMO = Fear of Missing Out.
Daily price volatility is largely driven by these two forces, and should largely be ignored if you are a long term investor. When prices start to fall, the FUD reaction kicks in with speculators, and they tend to sell on the fact that prices are falling, resulting in more downward pressure on the price.
The converse is true when prices are rising. A certain amount of FOMO has speculators jump on the bandwagon, putting more upward pressure on prices.
Ignoring both of these is crucial for longer term success. Since we are buying to hold, we do not move our positions in response to daily price momentum.
Constantly looking for opportunities
The best opportunities for eye-watering growth is by investing early and often in projects which show potential.
Limit fund exposure to new projects
We will seldom take aggressive positions in these early stage projects, but even small positions which deliver 1000% growth are meaningful for our fund.
Protect our members from volatility-induced emotional decisions
Because of the FOMO and FUD cycles, we intentionally do not publish fund prices more regularly than once a month. Even with monthly prices, we expect the fund to have a negative month once every 3 months, on average. This already creates a degree of anxiety. If we published, for example, weekly prices, this anxiety would be exacerbated, and we know from experience that people who make emotional investment decisions tend to leave a lot of upside value on the table over time.