written by reader 20k Alternative Investment plan

By buddman, January 31, 2018

Hello All, I am relatively new to Gumshoe but have been very impressed with the quality of the content and the manner in which it is presented. I am rather uninformed to alternative investing but this is my plan and would welcome any insight:

-8k of Ripple crypto currency
-3k Alt coins(already have some XMR XLM CDN EOS BTC ETH)
-3k ICO’s (already have some Larson& Holz) not sure of any other ?
-6k of company stock (thinking biotech and marijuana companies)?

My thought on this money is higher risk higher payout. Thanks

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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2 years ago

There’s not a lot of context (Is this your life savings? Do you have an insight into Ripple that most people don’t?) but my guess based on what’s presented is that this sort of portfolio is most likely going to lose its owner most of the money they put into it.

High-risk, high-return investments can be great if they are approached in the right way, which is to keep them a small part of the portfolio, to not go all in from day 1 but to accumulate them as the best opportunities arise, to not chase fashionable investment themes and to be super-patient.

People who get into cryptos now might still do quite well, but most people should not invest more than a low single-digit percentage of their portfolio. The real investing opportunity in cryptos will likely come in a few years’ time after the bubble has burst, just as it was a great time to invest in Amazon after the dotcom bubble burst and nobody was interested.

To look for asymmetric investing opportunities (high upside, low downside because you’re keeping your position very small, and you think it’s mispriced for some reason) is a rational response to the current “everything bubble” that makes conventional investing hard. But if it’s mostly about hearing about how other people have already made a lot of money in a particular sector and chasing after that, it’s a bad idea.

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