I Just Lost A Million Dollars | Crypto & Stocks | Summary and Q&A

TL;DR

The content discusses the author's investment losses in various sectors, including stocks, crypto, NFTs, and real estate, and emphasizes the importance of sharing losses and staying invested for long-term gains.

Key Insights

• 🤣 Despite market downturns, the stock market has historically always made money over 20-year rolling periods. (Bullet 1)
• 🥳 Staying invested and being patient can lead to market rewards. The market has recovered within an average of 567 trading days after drops, with positive returns five years later. (Bullet 2)
• 🌸 The author highlights the importance of diversifying investments across different asset classes, such as stocks, crypto, and real estate, to mitigate losses. (Bullet 3)
• 🚄 The speculative nature of NFTs and the volatility of crypto investments are stressed, with caution advised when considering these assets. (Bullet 4)
• 🚄 The author believes real estate presents an investment opportunity as the market softens, particularly for first-time homebuyers. (Bullet 5)
• 🌸 Transparency and sharing investment losses are important for highlighting the realities of investing and managing expectations. (Bullet 6)
• 💋 The author acknowledges their own mistakes, such as investing in growth stocks they didn't fully understand, emphasizing the importance of sticking to one's investment strategy. (Bullet 7)

Transcript

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Questions & Answers

Q: Why did the author decide to share their investment losses?

The author believes it's important to be transparent about losses and remind investors that making money is not always guaranteed. They aim to show that investing comes with both wins and losses, and it's crucial to stay invested for long-term gains.

Q: How did the stock market perform historically despite occasional drops?

Over a 20-year rolling period, the stock market has historically always made money. Despite 15 bear markets in the past 96 years, the cumulative return has been positive, and the market has always recovered within an average of 567 trading days.

Q: What was the author's investment strategy for their stock portfolio?

The author initially focused on dividend income by buying individual stocks with a high dividend yield. However, as their income increased, they shifted towards buying broad market index funds (such as VTI and VOO) to maximize equity and reduce taxes.

Q: What impact did growth stocks have on the author's portfolio performance?

The author admits to making a mistake by investing in growth stocks they didn't fully understand. Two specific stocks, Coinbase and Corsair Gaming, resulted in losses of $77,000. If not for these investments, their portfolio would have performed better compared to the overall stock market.

Q: How has the author's crypto portfolio performed?

The author's crypto portfolio, primarily consisting of Bitcoin and Ethereum, reached a peak value of $1.16 million. However, the recent market downturn caused its value to decrease by over 50% to around $610,000. The author mentions that Bitcoin's long-term potential may lead to significant gains in the future.

Q: What is the current value of the author's NFT portfolio?

The author's NFT portfolio, which had a peak value of $312,000, currently stands at around $65,000. They highlight the speculative nature of NFTs and the volatility associated with these investments.

Q: How did the author's real estate investments perform?

The author's real estate portfolio has held up well, with their rental home increasing in value by $100,000 and their primary residence appreciating by around $400,000 following a remodel. The author expects the real estate market to soften in the future, presenting buying opportunities.

Q: What is the overall performance of the author's investments this year?

After accounting for losses in stocks, crypto, and NFTs, the author's year-to-date performance resulted in losses of $410,000. However, considering the appreciation in real estate, the net losses amount to $910,000.

Summary & Key Takeaways

• The author shares the current state of the market, highlighting the downward trend in stocks, crypto, and real estate, and talks about the importance of discussing investment losses.

• The author provides historical data about the stock market, indicating that despite occasional drops, it has always made money over a 20-year rolling period.

• The author gives an overview of their own portfolio, discussing the performance of individual stocks, index funds, crypto assets, and NFTs, as well as the appreciation of their real estate holdings.