For the month of May, it was actually a very exciting month.
+$25,000 for this month! This account has reached a new milestone of $200,000!
First, Crypto currency collapsed from a high point, to a significant lower point.
Bitcoin dropped from the top $63k+ a piece to $32k a piece.
Many voices in the market shouting Crypto crisis, or mining avalanche...
"Bitcoin is a bubble! now it's going to burst!"
That's a very common headline for the duration of May, 2021.
I remember back in April, my friend who is also an investor once told me when Bitcoin was at $60k a piece: "Bitcoin is going to be a million dollar a piece in 10 years."
While I don't doubt the potential of Crypto currency, but I think at the time, the price was too high.
"I would buy some if the price drops to $40k or so." That was my response at the time.
His response is: "That's not going to happen."
Having been in the market for years, I wouldn't say anything with that much certainty. Knowing the market is known for its uncertainty.
When the market is optimistic, I always hear people chanting Warren Buffett's famous saying:
"Be fearful when others are greedy. Be greedy when others are fearful."
However, when bitcoin collapsed from $60k to $32k a piece, who actually can live up to this saying?
Probably very little.
The most popular reaction when the market is in retreat is: "When others are fearful, I am more fearful!"
(I am guilty of being afraid when Bitcoin fell to $32k as well.)
Stock investing in its essence is anti-human nature.
That is why, in a market that grows 10% or more each year, the results is 70% people lose money, 20% break even, and only 10% people actually made a profit.
As a long term investor, our goal is not to squeeze every single dollar out of the market. We're here to make profit in the long run.
We do that by finding value in discounted equities!
With bitcoin at a huge discount at $36k a piece(40% discount), how can I resist the temptation?
If your favorite brand of appeal is at a 40% discount, wouldn't you buy some? Of course you would!
When the time is right, no need to hesitate.
When the market is afraid, that means the equity is at a discount!
If you follow the 3 cornerstones of investing, there is nothing to be afraid of.
Great company / Great equity
Great industry
Cheap price
Just buy, and hold forever! (I mean until you profit)
Below are some of the stocks I have sold in May(not suggestions to buy):
CRM +$380.85
PFE +$1,996.73
MRK +$781.92
TSM +$28.49
LMT +$404.68
VZ +$450.11
Doge +$5,993.93
CBS +$31.00
AMBEV +$679.32
AMD +$98.04
TCEHY +$94.80
CS +$800