The best performing investors are ones who are dead

[pawel7777]

https://www.bluewealth.com.au/general-knowledge/the-best-performing-investors-are-ones-that-are-dead/

I just came across this article and thought I'd share it as an ultimate reminder that being overly reactive and allowing panic to kick in is usually the worst that investors can do.

Be as calm and patient as dead people are and gains will come 

Yes, you read that correctly. Fidelity, one of the biggest asset managers in the world, performed a study on their best-performing client brokerage accounts. Over a 10-year period, they found that the highest returns came from the ones where the account holder was dead. The second best were the ones that had forgotten they had investments. Of course, I don’t recommend dying as a good investment strategy.

Why is this the case?

Most of the time, the market rewards investors who get into position and then do nothing. While it seems simple, it’s a lot harder than it sounds. Successful investing can be extremely boring, and it can be hard not to watch the news and tinker with your investments to try and squeeze out every ounce of performance from your hard-earned capital. But the market rewards patience and punishes those who give into emotions. 

Dead investors aren’t usually reading the news and panic selling as investments go down, nor are they prone to panic buying as the market is soaring (...)

[FinePoine0]

In any case, success is impossible without patience, usually with bitcoin investment you will definitely face losses if you are in a hurry. Bitcoin investing must be patient, it is best to buy dips at the moment and wait for the next bull run.

[Moreno233]

https://www.bluewealth.com.au/general-knowledge/the-best-performing-investors-are-ones-that-are-dead/

I just came across this article and thought I'd share it as an ultimate reminder that being overly reactive and allowing panic to kick in is usually the worst that investors can do.

Be as calm and patient as dead people are and gains will come 

I have seen remarkable improvement in my investing when I started applying the DCA method with some minor additions that makes it sustainable. Whenever I receive inflow of cash, I divide it into my money for my basic needs (40%), money for emergency funds (20%), reserve funds (20%) and investment funds for my DCA (20%). This way, I am investing 20% of whatever money I receive into Bitcoin while at the same time keeping some money aside as reserve and emergency as well to cover unplanned expenditures. I planned to keep these percentages until anything changes. Through this means, I can comfortably hold my Bitcoin for as long as possible more like the case being described in this post.

[Solosanz]

Of course best performing investors are dead because if they have insurance, their family will receive compensation their dead right?

But, if we talk about dead investors in Bitcoin, it's pointless because their family will not able to access the wallet. It's better for the family to never know if their parents have a lot Bitcoin, if they know, all they do is only regret and keep trying to access the wallet with any ways.

[BABY SHOES]

The deceased will not be able to do anything, so his investment will still perform well.
I don't want to die, it's better for me to panic seeing the market situation that continues to be volatile.

What's better is the second option where he forgets that he has investments, but don't forget like this, investments are part of our memories that will never be forgotten.

Still we have to HOLD on and be patient at the core.

[Mr Reporter]

If given the chance, the investors who pass away today would be the first to go check their investments; if not, I venture they won't miss it.

As a novice bitcoin trader, I do advise them to exercise patience. This is because, as they are just getting started in the world of cryptocurrency, the proverb "the patient's dog will surely eat the fatter done" is true. It seems to me that these same proverbs should be applied when making any kind of investment.

[Adbitco]

Sorry to say why not use a word that is more lighter than being 'dead' initially when I saw the topic I was like how could someone be dead about his investment then who then benefits from it after being dead lol.

Just had to finished up reading the whole to comprehend what you meant over here. On norm people shouldn't be the active with their investment provided the had already chosen the subscription plan like 10 years, 20 years or even 40 years depending on their initial age while making investment.

Anyone who had this projection can never be pulled or move by any heavy storm in the ocean except that investor(s) doesn't choose a long time subscription. And if they have gone for 20 years then I can such person is already been silent or let me use your word 'dead' otherwise to me I can consider it to be silent.

[TastyChillySauce00]

Make sense because i've seen plenty of stories of people that forgot they have BTC even to some extent they threw away their laptop and now their BTC holding worth millions  .

but mainly it's because some people are investing and getting influenced heavily by their emotion, like recent dips, had people bought at $60k around a month ago and see the price dumps into $54k they would've been freaking out but see right now price bounced back as if nothing happened  .

[Marvell1]

Make sense because i've seen plenty of stories of people that forgot they have BTC even to some extent they threw away their laptop and now their BTC holding worth millions  .

but mainly it's because some people are investing and getting influenced heavily by their emotion, like recent dips, had people bought at $60k around a month ago and see the price dumps into $54k they would've been freaking out but see right now price bounced back as if nothing happened  .

It sounds like a very good strategy, but between saying and doing there is a huge gap and it is not easy. When we accidentally forget something and then one day suddenly find it again, we feel very relieved and simple. But it will be a difficult task if we deliberately forget something when it is the thing we care about most in life. For many people bitcoin is almost a part of life, we discuss and think about it every day, even bitcoin is the only thing on their minds. How can we forget when it's always on our minds? I bet no one can do that these days.

[Alone055]

This is why people say that Bitcoin investors should make their investments and forget about it, which doesn't mean that they should literally forget about it but it means that they shouldn't touch their assets and keep holding, some even say that it is better if you don't look at the market very often if you have invested with the plan to hold it for long term because if market conditions aren't good even for a short term, you might have second thoughts and those thoughts might instigate you to sell your assets.

If you ask me, I do quite agree with that terminology about not touching your assets if you have made a long-term investment, but I believe one should always keep an eye on the market just to stay updated, and I'm not a type of a person who would say that one shouldn't sell their assets at all and keep holding because I believe you can make more money if you buy in a bear cycle, sell in the bull cycle, and repeat the process instead of buying and waiting for a decade or so.

[mirakal]

That is actually how investing works. It never gives profit right away, not even for months but usually for many years. And those who are calm and patient without expecting much from it even receive more rewards.

If we are buying bitcoin this 2024, we may expect a profit by 2028 when the next bull season strikes again. That is too long to wait that impatient people can't wait but for patient people, that is not impossible as they believe it will come. That is why we don't always think about our investment as it only bothered us too much and might change our mind instead of forgetting about it. I think that is the easiest thing we can do.

[Yatsan]

Makes sense actually, the less you care the less you would worry and be firmed of your investment. The idea is that the market price of Bitcoin continuously increases over time and years. Holding it will result to profit basically but if you would be an active watcher of the market, high chances are present that you would be conscious or be affected by your emotions to make a move which is either to buy or sell in a sudden. Well, trading would maximize the profit however win rate won't be always high given how unpredictable the market is, in nature. It seems like those who are just holding and not doing anything, indeed, generates bigger profit than those who buys and sells on a daily basis. But if day trading works for you then that would be better still.

[Marvelockg]

Looking at the current economic challenge that's facing almost all the part of the world and has gone to place most persons at a dear disadvantage, it's very deficult to hold an asset and forget about it for so long a time most expecially when the worth of the asset is much. For those that have actually died or did forget it, if that's even possible, it's understandable that they don't even have a choice but when you're holding an asset for the long term and you're at position where the market isn't favourable for a long time, fear and a sort of anxiety is certainly going to set in and you can't comfortably blind yourself to those kind of reality.

I know we're all being positive with our investment and we're generally looking at an ideal case where after the said time, our asset gains a good value. But then, what happens if after you've left your asset as though you're not even the owner and latter find out that the value of the asset at the current time isn't even up to what you bought it. Or another situation happens mid way while you're still holding the asset and it goes almost 20x the value you bought it only to leave it till it goes down way too low at the time you intend selling? I feel that it's okay not to rush in selling your asset too early but totally being less concerned about what becomes of it till it has gotten to the stage we intend selling it isn't the best option for me.

[OgNasty]

So you’re saying if I want to be one of the best investors…

The importance of understanding correlation and causality.

[STT]

Private investors tend to sell their winners too early and keep their losing investments forever, till broke.      An unfortunate opposite of what should happen if you want to profit and the bias is true enough that it applies across generations.


Its so often true that its worth writing down or engraving even and putting over your desk.   I know I sold my Apple shares too soon and Microsoft, both of them were fairly solid dividend stocks at one point in a cheap bargain kind of way.  Now both run at a premium as most tech shares will tend to rate at vs their faster rate of growth then most traditional companies.

In terms of BTC I dont know holding it all forever is realistic or productive to the wider growth and usage of Bitcoin.   We all owe something to the first users who bothered to mess around with pennies worth for the fun of it like trading cards for fun.

   I dont fit the dead category but the forgotten about 'mistake'  I've done more then once.   In the early days of BTC, price in hundreds and wavering alot I did purchase some goods.   Theres a time limit and after that they assume you didnt want to buy, so sometimes I'd go to pay but it'd arrive too late; a mixup.   In the end my payment is returned back or other means to pay occurred.

  A bit messy anyway thats how I ended up with a small chunk left dormant for about 5 years or so.  That is long enough in BTC to gain alot hence I try not to think myself ever unlucky and always keep a similar amount around.

    I can think of another giant special case, wallets on phones etc.  that whole rabbit hole must be a warren of lost 'investment' by now

[sunsilk]

It is a simple reminder to not just invest but also enjoy the fruit of your investments. But don't feel bad when you do nothing and you think that you're preparing for your future.

The future is unknown and you'll never know what will come next. So what you have to do as an investor is to have a road map of when you'd hold your position and when you'd sell them.

Well, it's quite different from Bitcoin holders. We've got plans as well but it seems that there's no way that someone is going to get out of this market because it's here to stay. Other might not be encouraged to sell but when one needs it, don't feel the guilt on it because you deserve to enjoy.

[JeffBrad12]

Isn't this also inline with the fact that inflation inflate the price of goods and well some of investing means such as stocks?

the house price back then will definitely be less than the price today because inflation and housing price spike, I wonder if this article also take account of inflation and weigh the worth of the investment back then to now accordingly to its real value.

regardless, learning from bitcoin chart first hand, we know that the people that sold early got minimal profit and the people that hold on to their bitcoin holding dearly until now already making millions.
so it does hold truth, it just about waiting for a tech to mature and have high adoption.

[bitgolden]

I don't get why it is so "hard" for so many people? I have always argued that it is literally the least you can do, and this basically proves it. Something even a dead person can do, and you are telling me that it is very hard to do? How hard could it be to do something that a dead person can do?

Are we insane to say that dead people can be better investors than alive ones? For what reason? Just because they can't? I mean while they can't, you have the option of not to do anything about it too. If you invest into some shit memetoken project then yeah you should sell your position and get out, I am not against that at all and I understand why you should.

But imagine a person who bought a lot of bitcoin and staying, why would you want to move that? I mean you have bitcoin, you can keep that for another 40 years and you will be richer every single time. Why would you want to move that money around? Why would you want to sell that and get out? What's going to happen, bitcoin crash to zero? I mean lets be real, selling is a weak move and it's clear that everyone should be holding, and holding is just another word for "do nothing". Just buy and do nothing after that, it's literally that simple.

[Gozie51]

Yes, you read that correctly. Fidelity, one of the biggest asset managers in the world, performed a study on their best-performing client brokerage accounts. Over a 10-year period, they found that the highest returns came from the ones where the account holder was dead. The second best were the ones that had forgotten they had investments. Of course, I don’t recommend dying as a good investment strategy.

Why is this the case?

Most of the time, the market rewards investors who get into position and then do nothing. While it seems simple, it’s a lot harder than it sounds. Successful investing can be extremely boring, and it can be hard not to watch the news and tinker with your investments to try and squeeze out every ounce of performance from your hard-earned capital. But the market rewards patience and punishes those who give into emotions.  

Dead investors aren’t usually reading the news and panic selling as investments go down, nor are they prone to panic buying as the market is soaring (...)

Yes and who is to be blamed for the low returns of the investment of the living? Is it fear or fud? Hahaha. Of course fear factor or fud are what characteristics that makes the living what they are. The blood that keeps flowing in the vain of the living interacts and also reacts to the market and the sentiment.

Naturally, there are factors that could put the living on their tools and make them temper with their investment to safe themselves of certain situation and those include but not excluding health challenges, economic hardship cum family financial burdens of which the dead don't have any business with that and so, their supposed left off investment would appreciate overtime. But the living can't leave out those investment because they want them to rise whilst they suffer degrading shame of hardship and deterioting health conditions. You see the difference regards the reason that the left off investment of the dead would make more return. Even, you have such bountiful returns when you just discover a lost wallet with lots of coins inside after a long time.

[Rruchi man]

Be as calm and patient as dead people are and gains will come 

As a repetition of what I said on Altcoinstalks, playing dead is not an easy ability to master, but surely not something that cannot be done.  To become really calm, one needs to master their emotions and avoid triggers like the news or even friends who carry with them and share FUD.

To remain patient, you need to have other sources of income that you can channel to sort your expenses so you can patiently hoard your investment. You also need to be disciplined, because the temptation to enjoy your investment will come.