| Not much information, but you gotta admire Paul La Monica’s honesty. Discernment: Another Investing Superpower There’s a state of mind that can help us separate out the worthwhile news. It’s called discernment, and it’s another investing superpower. Discernment is like a filter you put on your mind. The filter asks questions before it allows the thought to seep into your brain. So when you see these overly simplistic headlines about why bitcoin went down, or why Dogecoin went up, ask yourself: did X really cause Y? Why? How? (If it’s really that simple, then next time X happens, you can just plan for Y.) Remember our simple investing philosophy: Buy and hold bitcoin; Plus a small number of high-quality digital assets; For the long term (5+ years). If you follow this plan – which so far has richly rewarded our patient investors – then you don’t need to worry about day-to-day market movements.
Long-term results are difficult to see in the short-term ... but the short-term is still important to watch.
As an example, I recently doubled my Ethereum holdings, after the new research I published in last week’s column – and the recent price drop, which convinced me ETH is a better bargain than ever. I'm acting on short-term price news ("it's on sale"), but thinking long-term. Figuring out the difference takes discernment, or the use of a “mind filter” to ask questions like:
What is the quality of this news organization? Is there data to back up this claim? Can I fact-check it? Does this reporter bring a bias – political, financial, or otherwise? In the big scheme of things, does this story ultimately matter? (See FactCheck.org for more good tips.) We’ve been releasing a series of “Investor Mindset” audio files (think of them like guided meditations for investors). Our latest episode will help you build the quality of discernment, to help you better separate financial fact from financial fiction. Paid subscribers can download Episode 11 here. | 