Good morning everyone, happy midweek!
Now I know some of you after seeing the title might be thinking.. is Bjorn abandoning long-term investing!? Don’t worry, I’m not haha. But I do think it’s worth remembering how much the game has changed, and what that means for us today.
Back in the 1900s, investing was a very different game. If you wanted to buy shares, you’d have to call your broker, place an order, and eventually hold a paper certificate that proved you actually owned a piece of the company.
It was slow, formal, and not something you could do on a whim. You really had to think carefully before investing, because changing your mind later was a real hassle.
And when I started investing, things had already gotten a lot easier. You didn’t need to shuffle around paper certificates anymore. But still, there were barriers, such as requiring to buy a certain number of shares, with high commission fees. That made each decision feel weighty.
That soon changed, where with just $500 (sometimes even less), anyone can begin investing from their phone in a matter of minutes. No paper, no waiting, no big hurdles. Zero-commission trades, instant access.
Fast forward to today, what do we have? The immediate availability of information right at your fingertips from AI tools like ChatGPT, together with the sexy 50x, 100x promises in crypto. “This token is going to the moon, hop on before it’s too late!”
And suddenly, long-term investing looks boring and unsexy. Who wants slow compounding when you could chase rockets to the moon and feel that thrill? Let’s be honest, the worst part is scrolling through your feed, watching everyone post their wins, making it look like they have a >100% win rate!
But here’s the catch - most people underestimate just how much those “thrilling” investments mess with your emotions.
Unless you’ve trained yourself to stay numb to the rollercoaster, that pressure alone can push you into choices you wouldn’t normally make (and your sleep).
Because more than just the potential 100x, you got to consider your risk tolerance, your ability to stomach losses, and whether you can stay calm when things swing wildly.
Here’s the thing: all investments carry risk. And I actually think it’s fine to try different things, you’ll only know if something fits you by testing it out. The problem starts when you keep chasing the same shiny, exciting bet, even if it keeps burning you.
At the end of the day, the goal isn’t to look cool or to brag at parties about your latest moonshot. The goal is to grow your money. And history has shown us, time and again, that long-term investing has been one of the most consistent ways to do it.
Because the truth is, flashy trades come and go. The next big thing eventually becomes yesterday’s news. But compounding? That never goes out of style.
Not sexy. But steady. And that’s worth a lot more than it looks.
Till the next post, ciao!
Patience builds wealth,Bjorn