Concentration vs Diversification (and my MSTR strategy for wealth creation)
While diversification is a good way to preserve wealth, concentration is often a better way to build a fortune.
When i first saw the Microstrategy opportunity back in 2021 / 2022 i saw that it had same or higher potential to Netflix or Apple or Amazon in their early days.
i invested as soon as possible but then the last halving cycle went into crypto winter and the stick price fell and after losing a lot of share value i realised my timing was off.
i made it my mission in life to gather as much seed capital as possible by the next bitcoin halving driven bullrun and try again at a better time. invest in MSTR.
After i made this decision i started to think a lot about concentration vs diversification and worried that perhaps my strategy is too simple.
While watching todays interview with punter jeff on youtube i heard them mention concentration is better to build wealth. Diversification is better to preserve wealth. This made me happy as i realised in had the right idea.
see video; - YouTube
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Irresponsibly long Microstrategy. MSTX in uptrends for max gains. Single stock trader that watches bitcoin for insights.
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Strain : do write more on your thoughts about concentration strategy
HMS Victorious OP Strain : Thanks - I’ll prepare a part 2 for next week.
735919637 : I did the same this year....and even rode Mstx when it was really pumping recently...all in. And my portfolio went 9x
HMS Victorious OP : Yes - amazing when I works. I was up 6x before the crash and that was despite selling on weekends and losing significant ground (I regret that). My only mistake was not taking profits when it went exponential. Modifying my strategy now. Experimenting with trailing stops and MACD.
Coach Donnie : Let’s GOOO
102875548 : i like your opinion piece. Good strategy.
Ramli : Good strategy..