Experience and Understanding of Heavily Investing in Quality Assets

In yesterday's article, I shared two pieces of advice from senior investors:

First, cherish quality assets and hold onto them;

Second, befriend time with quality assets, allowing them to accumulate value through the fermentation of time, bringing returns.

In addition to this, I believe there is another crucial point: one must dare to hold a significant position in quality assets.

Among almost all the senior investors I have seen, regardless of their investment or speculation methods, there is one commonality:

They all had a decisive point in their past investment experiences, where they made a significant investment in a particular asset, thus gaining fame and laying a solid foundation for their subsequent continuous success.

Some call it the first pot of gold, others refer to it as a legendary victory—regardless of how it is described, it emphasizes the pivotal role that significant investment played in their life and career.

Without a significant investment, if one merely dabbles in projects, even if a project eventually appreciates 100 times, the overall return will be minimal due to the small amount of capital typically invested in trial projects.

Moreover, even if a project can yield a 100-fold return, there is great uncertainty in whether an investor can actually invest in such a project and whether they can hold it until it appreciates 100 times, making it difficult to achieve a high certainty of substantial returns.

My own experience corroborates this principle.

When I first entered the crypto ecosystem, I was making random trades. I had all sorts of chaotic assets; I bought and sold Bitcoin, barely remembered whether I had bought Ethereum (I think I did), and I had some EOS (I still have some ERC-20 EOS tokens that haven't been converted to mainnet tokens). As for Litecoin, Ripple, Tron… I had them all, the popular varieties of that year.

Later, when I was fortunate enough to be guided by a senior investor and realized that most tokens on the market had no value, I decisively cleared out all the chaotic assets I had, leaving only a large position in Bitcoin and Ethereum.

Regarding this, my advice to readers in past articles has been that Bitcoin and Ethereum should account for at least 50%, while my own holdings exceed 60%.

Holding a large position in these two assets has been a consistent part of all my subsequent operations, and I strictly adhere to this principle:

When I want to continue buying, I primarily buy Bitcoin and Ethereum.

When I realize gains in other areas, if I don't convert to stablecoins, I mainly convert back to Bitcoin and Ethereum.

This approach, on one hand, has given me confidence in my other operations—no matter how much I mess around or invest chaotically in other assets, even if those reckless actions lead to zero returns, it won't affect my core holdings.

On the other hand, it has provided a solid guarantee for my overall returns.

Therefore, holding a significant position in quality assets is crucial.

However, there is a point in this operation that ordinary retail investors find hard to grasp in other investment fields:

How do I know that the assets I hold a significant position in are quality assets?

What if the assets I hold a significant position in are poor quality? Wouldn't that be the end?

For example, many people are optimistic about U.S. stocks; let's ask ourselves honestly, if we could buy without any obstacles, would we dare to heavily invest in any particular stock? Or in a few stocks?

NVIDIA? Tesla? Google? Meta?…

As of now, I still don't dare to do so; I only dare to make small trial investments.

In this regard, I greatly admire senior investors like Buffett and Duan Yongping, who dare to hold significant positions in certain stocks for the long term.

But in the crypto ecosystem, it's different; I believe that the vast majority of retail investors should be very clear that there are universally recognized quality assets here:

I believe they are Bitcoin and Ethereum.

Of course, some investors only have confidence in Bitcoin. Even so, this indicates that the crypto ecosystem has already provided retail investors with a very unique advantage compared to other investment fields.

At the very least, every retail investor should confidently and boldly maintain a significant position in the crypto assets they are very confident in, without stepping outside the bounds.

If one cannot achieve this, it will likely be very difficult to benefit in the long term from the crypto ecosystem.