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Retail investor: People say just buy & hold, it always comes back. That's what I should do right?


Me: Look at April 2000 on that chart. Nasdaq fell over 75% soon after that...
Retail investor: Brutal. But it came back.
Me: It took 13 years... Didn't break even until 2013.
Retail investor: Thirteen years... OMG.
Me: So "it always comes back" isn't a strategy... It's a hope. The people buried for 13 years weren't buying bad companies. They were paying insane prices for good ones.
Retail investor: So what actually protects you?
Me: Valuation. Never buy at ANY price. Great company below fair value is a completely different game than great company at 120x earnings.
Retail investor: So a good investment needs to be both a great company at a GOOD price?
Me: Yep! Just pretend you wanna go buy a nice SUV & retail price is $50k, but instead the dealership is charging $500,000... Good car. Bad price. Same concept.
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guroo
2 hours ago
First Review
This isn’t the first time Liquid’s centralized sidechain has run into trouble; assets should have been migrated long ago.
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