Today I read the book 'The Way of Munger'. For so many years, Buffett and Munger have been regarded by investors as 'gods'. Their investment philosophy can be summarized from their writings, speeches, and shareholder meeting records, with keywords such as:
1⃣ Compounding
2⃣ Investing in simple and understandable business models
3⃣ Seeking excellent companies priced below their value
4⃣ Deep economic moats with stable profitability
5⃣ Long-term holding
6⃣ Not investing/participating in what one does not understand — within one's circle of competence
These keywords constitute the core logic of Buffett and Munger's value investing. But is there value investing in the cryptocurrency world? I believe that at least at this stage, value investing does not apply to the cryptocurrency space. Of course, with the exception of Bitcoin. The reason is that Bitcoin itself is unique and scarce, and over the past decade, Bitcoin's identity as 'digital gold' has been accepted by more and more people. Now, with the Trump administration moving it to the level of national strategic reserves, Bitcoin has a long-term value investment trend.
However, other coins, such as MEME coins, although they are based on some form of consensus like Bitcoin, have a weak consensus and do not possess unique scarcity. Therefore, if one were to apply the logic of value investing to altcoins, I believe it would be wrong. At this stage, altcoins are only suitable for speculation, and the reality is the same. Trading cryptocurrencies is akin to trading stocks; with the emphasis on speculation, there is an element of gambling. The core idea is to see who can run faster, who will take over from whom.
Whether trading stocks or cryptocurrencies, my experience is that discovering unique investment varieties with economic moats and holding them is far more profitable than speculative trading. This principle is simple, but in a market like the cryptocurrency space, which is in its early stages and filled with countless 'take a chance to turn a bicycle into a motorcycle' opportunities, achieving alignment between knowledge and action is extremely difficult. Everyone understands the principle, but still fails to act on it; this is a human flaw.
After all, making money through investing is not an easy task. More than 90% of Buffett's wealth was earned after he turned 50. Who in the cryptocurrency world can wait for that?
#比特币反弹 $BTC